ReadMe:
COOPERATIVE AGRICULTURAL PRODUCTION AND MARKETING ASSOCIATION (CAPMA)
SLOGAN: “Soil is a bank, invest in it”
MOTTO: “The more we are the merrier”
CONTACT: [email protected]
+2348033507166
INTRODUCTION: GENESIS OF THE VISION
The evolution of the vision behind CAPMA Scheme is intrinsically linked to my struggle in life to fulfill God purpose for my life as revealed to me during my period of trial/travail which I choose to call “wilderness experience”. In carrying out God given assignment of enlisting in the army of those fighting to eradicate poverty from the lives of low and middle class members of Nigerians society, I was determined to abide by the Psalmist injunction, “search for God and His strength and keep on searching” (Psalm 105:4). These words encouraged me to keep on searching for practical solutions to “vicious cycle” of poverty in Nigeria. In the same book of David the reward for persistence search for God and His strength was stated thus “I will give you the land of Canaan as your inheritance” (Psalm 105:11). It is these Biblical admonition and provision that kept me focused and persistent.
Over the years, I have conceived and developed cooperative schemes and involved myself in two cooperative activities aimed at eradicating poverty from the lives of Nigerian downtrodden masses and ensuring financial wellbeing of middle class.
These Schemes Include:
1. Accelerated Rabbit Production and Marketing Scheme .
2. Cooperative Manufacturing and Marketing Scheme (CMMS).
3. Hidden Treasures Investment Clubs network.
4. Member and former president of Ifesowapo Multipurpose Cooperative Society, Zaria.
5. Founder and current Chairman of NITT Multipurpose Cooperative Society, Zaria.
Scheme 1, 2 and 3 have been published in booklet form which will be available to members who eventually register for membership of CAPMA.
On the entrepreneurial aspect, my family operates an integrated poultry and rabbit farm where we raise layers chickens, broilers chicken, cockrel, turkey, geese and rabbit in Zaria.
MR. SALIU BABATUNDE AKINTAYO, THE PROMOTER OF CAPMA
In order for prospective members to build confidence in the scheme, I believe they should know Mr. Akintayo and his antecedents.
Mr. Akintayo was born in Ode-Omu, Osun State of Nigeria. He attended the Apostolic Primary School, Ode-Omu; Nigerian Model Primary School, Mushin Lagos; Zumuratul Islamiyyah Primary School, Ajegunle, Lagos; Gbongan Ode-Omu Anglican Grammar School, Osun State; Institute of Agricultural Research and Training (Animal Health School), Moore Plantation, Ibadan and University of Ibadan.
He possesses B. Ed (Educational Management/Economics) in 1981 and M. Sc. (Economics specializing in Transport Economics) in 1988, both from University of Ibadan. He is currently pursuing Phd (transport Studies) at Olabisi Onabanjo University, Ago Iwoye, Ogun State. He also holds professional qualifications membership of Nigerian Marketing Association (NIMARK), Chartered Institute of Transport and Logistic (International), Nigerian Institute for Training and Development, Institute of Cost management among others.
He is the author of “Transport Economics applied to all modes, policy issues and logistics management” (published in 2010), Accelerated Rabbit Production and Marketing Scheme-Handbook for Members (1998 unpublished), Cooperative manufacturing and Marketing Scheme (CMMS)-Conversion of the Vision to Reality (published 2005), Hidden Treasure Investment Club Network (HTICN)-information for prospective investment clubs pioneers and members.
Mr. Akintayo has over 30 years experience (pre and post graduate) in public and private sectors (as employee and self-employed). Mr. Akintayo’s working experience spans through Oyo State Ministry of Finance (as Clerical Officer, Treasury Cash Office, Oyo), Oyo State Ministry of Agriculture and Natural Resources (Animal Health Assistant-in-Training), Nigerian Railway Corporation (Zaria, Ibadan and Lagos), Professional Courses Centre, Lagos,(founder/Chief Executive), Shipping/Commercial Manager, Mc Royal Holdings Ltd, Lagos, Great Grace Private Secondary, Ayobo-Ipaja, Lagos and Nigerian Institute of Transport Technology, a training and research institute under the supervision of Federal Ministry of Transport. He is presently the Director (Transport Research and Intelligence), at Nigerian Institute of Transport Technology, Zaria. He is due to retire from Civil Service in early part of 2016 and will relocate to Ibadan.
He has a very strong passion for developing schemes for cooperating Nigerians for social and economic transformation as his modest contribution for fostering national unity. His historical advantages of working in different parts of Nigeria and with different ethnic groups is a catalyst for this highly felt passion.
Mr. Akintayo can be contacted at Nigerian Institute of Transport Technology (NITT), Department of Transport Research and Intelligence, Basawa Road, Zaria.
APC MANIFESTO ON AGRICULTURE SECTOR.
The APC Manifesto tagged “Building a New Nigeria” contained a great vision for the agriculture sector.
The potential of agriculture which President Mohammed Buhari, our visionary leader, wishes to realize are summarized as follows:
· Boosting Nigeria’s GDP (even replacing oil) off the top of the list
· Reducing food import
· Ensuring food security
· Increasing employment opportunities and
· Generating foreign exchange earnings.
APC highlights a number of strategic to convert this a great vision to reality but I will only present three of these strategies which form the impetus for CAPMA scheme. These are:
· Delineate each state and geographical zone on the basis of soil survey and land use mapping in order to identify potential areas suitable for planting various crops, establishing various livestock and other agricultural enterprises.
· Facilitate the development of and promote appropriate crop, livestock, and fishery and food production packages for farmers in targeted areas within each state and each geographical zone.
· Encourage farmers to form co-operatives and enjoy supports including having their lands cleared as a group, while each farmer farms his own land; and pooling the supply of services and training of farmers in group
References will be made to these strategies as the scheme modus operandi is revealed.
ECONOMIES OF SCALE - THE MOTIVATION FOR CAPMA SCHEME
A business enterprise (including agriculture enterprise) is able to survive in the competitive market when it has some advantages in competing with its rivals such that it is able to earn adequate return on its investment.
To earn enough revenue to cover its cost the enterprise has to adopt cost minimization strategies. Appropriate scale of operation is an important cost minimization strategy.
Economies of scale are the advantages an enterprise derive by operating on a large scale rather small scale. Such advantages arise from technical, managerial, commercial/ marketing, financial and agglomeration economies associated with large scale production.
Technical economies scale: Technically, the acquisition of large machineries is cost affective. For example a large plantation firm may find it worthwhile to acquire tractor- to clear its farm weeds rather than using manual system. A large poultry farm may acquire a feed milling machine to produce its feed at a lower unit cost than purchasing from feed millers.
Managerial Economies: As an agriculture enterprise grows in size, it is able to have specialists in many functional areas, such as qualified and experienced farm managers, marketing manager, quality control manager. Veterinary doctors and animal scientist etc.
In large farm, the cost of remunerating management staff will be spread over a large number of units of products.
Commercial and marketing economies: It is cheaper to buy farm inputs in bulk from suppliers and obtain discount for bulk purchase. In fact most animal vaccine units serve 1000 animal stocks. If you have a stock of less than 1000, the excess is wasted.
Furthermore, large scale producers can promote its products (advertisement, sales promotion, etc) at low cost per unit of output. Thus creating production awareness and customer loyalty.
One common misconception is to think that if you produce on large scale, you will find it difficult to market the products. Paradoxically the reverse is the case; I will illustrate this misconception with my family experience with poultry. I started with 100 layers, in my car park just for interest and to learn the rope and not for profit, because I know such scale cannot generate any profit. But because we live inside my organization staff quarters we often find it difficult to sell the two to three create of eggs produced in a day. When I moved into Director’s quarters, I have sufficient land space to raise up to 2000 layers giving an average of 40 to 50 crates of eggs a day. My wife was afraid that since we cannot easily dispose of 3 crates of eggs daily how are we to dispose off average of 45 crates of eggs a day. When we raised 1000 layers yielding average 23 crate of eggs daily, we have so many customers that we have to allocate days to the numerous customers we had. We find it extremely difficult to satisfy our customers that we have to increase our production to 2000 birds. In most production process including farming, the larger your output, the easier it is to market. In our example no egg vendor will come to our staff quarters to carry less than 10 crates of eggs.
Financial Economies
In raising funds for expansion the large firm has almost all the advantages. Thus the government encourages farmers to form cooperatives in order to enjoy supports from the governments.
Agglomeration Industry/external economies of scale: These are the advantage all firms in an industries enjoy as the industry expands. For example all firms in an expanding industry will derive mutual benefits in the area of training and development, skilled labour force, provision of common services, facilities and utilities like electricity, water, factory, site, administrative officer etc and the possibility of some firms producing semi finished and raw materials for the use of other firms in the same industry.
President Mohammadu Buhari’s agriculture revolution strategies are so comprehensive in providing enabling environment for the achievement of its ambitious objectives., One of the most potent means of assuring mobilization of private and government fund for agricultural development is to encourage farmers to form cooperatives and enjoy support including having their lands cleared as a group, while each farmer farms his land area, and pooling the supply of services and training of farmers in group. These strategies will provide agglomeration economies for all farmers and marks the resuscitation of the farm settlement arrangement of the first republic. The CAPMA objectives is to complement this by including absentee farmers in order to raise the agriculture resource mobilization base and assuring internal economies of scale advantage for all members of CAPMA. In addition to agglomeration economies.
WHAT IS COOPERATIVE AGRICULTURAL PRODUCTION AND MARKETING ASSOCIATION (CAPMA) SCHEME?
CAPMA is an innovative, self-employment and agricultural entrepreneurial development scheme under which registered members, pool their financial resources, together to provide facilities for establishment of large scale agricultural enterprises (plantation farms, livestock production enterprises etc.) and the products that are jointly produced are marketed to domestic industries and foreign market, by members (individually or jointly).
All members are essentially Absentee farmers. (Even though some may have their own farm) An absentee farmer is a person who contributes to the establishment of a farm enterprise but does not participate in the management of the farm and may or may not visit the farm regularly. They include “farmers” living in urban areas and may be engaged in other full time non agriculture business now. Such absentee may in future become “presentee farmers on realizing the potential of farming as income generating venture through CAPMA membership.
At any point in time CAPMA will identify a number of agriculture projects in different parts of the country. Every registered member can participate in any of the project once he/she can satisfy the condition to be met in respect of that project.
All participants in a project will contribute to the cost of setting up and operating the farm according to his/her ability (Share holding).
In principle, output (products) of each harvest will be shared among participating members, according to each member shareholding in the project. However an absentee farmer can transfer his allocation to any other member or CAPMA to sell on his/her behalf. For products that are exportable CAPMA will arrange for exports on behalf of participating members.
BENEFITS OF CAPMA
The unique benefits of CAPMA include:
(1) The scheme will support PMB vision of transforming the agriculture sector as an alternative to the present sole dependence on oil as source of revenue and foreign exchange.
(2) CAPMA will be in better position to access government and other international and multinational incentives (financial and technical) to agricultural industry. The strongest point for absentee farmers concept embedded in CAPMA is the fact that individual members occupy positions in various sectors of the economy cutting across public and private sector of Nigerian economy and even international/ multinational agencies with diversified knowledge, experience and influence. CAPMA if well packaged and supported would have access to available financial and technical support from government and non government Institutions. Indeed, I foresee a bright future in which CAPMA agricultural projects will be almost fully funded by non member’s fund.
(3). The scheme provides unique opportunity for financially weak individuals to participate in large scale agricultural projects with higher profits than if he farms on his own. For instance raising chicken layers of less than 500 is stressful (since the farmer cannot afford employment of additional workers to assist him) and yet unprofitable at the end of the day. Whereas if 20 of such individual farmers pooled their financial resources together to raise 10,000 birds, They will be able to employ farm workers (avoid or minimising the physical stress) and in addition generating substantial profit to be shared by all the cooperating members.
(4) CAPMA provides convenient starting and learning point for future entrepreneurs in agricultural business. Members who had cultivated market for a particular farm product may become independent by setting up his/her own farm business. In fact CAPMA encourages those who are farmers to register for membership to have an additional source of income and experience.
Furthermore CAPMA members can set up agriculture product processing enterprise with ready raw materials from CAPMA farmers.
(5) Low unit cost of production resulting in high profit and competitive pricing for CAPMA products due to:
- Internal economies of scale due to large scale production financed by large number of market
- Minimum expenditure on marketing and sales force since members are joint producers and marketers.
- External economies of scale since projects share common facilities like office and management
- A high portion of the capital (contribution by members ) is interest free.
- Access to credit facilities for working capital as well as prospect of purchasing raw materials and other components on credit.
(5) Quick product awareness, customer loyalty and market promotion since members are strategically mobilized to cover all parts of the country. Thus scheme products will penetrate Nigerian market faster and at lower cost than one man large scale farming enterprise.
Furthermore since most of the absentee farmers are located in urban areas where markets for the product are concentrated, It will be easy to penetrate the market easily.
(6) CAPMA will encourage public and private sector workers especially civil servants to retire early thereby creating job opportunities for our young graduates to be employed. The value chain that will be created in the agriculture sector as a result of this imitative will also create additional job opportunities etc. In this way we will contribute to realisation of President Mohammed Buhari vision of using agriculture and mining as agents for mass employment creation.
(7) Unlike other employment generating initiative of governments NGO and multinational agencies which can only accommodate limited number of beneficiaries , CAPMA scheme has very high employment generating potential since the larger and more geographical spread of members the more the resources that will be pooled together for employment generation. The CAPMA Motto is “The more we are the merrier”.
(8) CAPMA will foster unity among Nigerians of different regional and ethno-religious backgrounds.
PROCESS OF CONVERTING THE VISION INTO REALITY
“To take the first step of faith, you don’t have to see the whole” (Martin Luther)
“Think big start small” (Anonymous)
Up to this point what I have been able to do is present my vision as the originator and promotion of this revolutionary idea. I do not on my own have the wherewithal to realize such great vision without the support of Nigerians with varied status and experience. Cooperative societies by nature are democratic and require the team spirit successes of the scheme are hinged on the individual members spiritual gift, financial resources, skills, talents, experience and level of influence etc. The process of converting the vision to reality requires the contribution of all members. What I present under this section is my own personal suggestions which can be modified and reviewed by collective decisions of all members. My presentation also serves as a convenient agenda for our inaugural and initial meetings that will lead to appropriate organization structure and modus operandi for the realization of CAPMA objectives.
ACTION PLANS.
Like I said earlier, the action plan, I will propose are not set on stone but both the plans and their sequence may be reviewed and modified by collective decisions of members.
Step I: Promotion of the scheme and mobilization of pioneer member of CAPMA by the visionnist, Mr. S.B. Akintayo This is ongoing through advertisement in national newspapers and sending of this information to the email addresses of prospective pioneer members.
Step 2: Holding of inaugural meeting at a convenient venue. Mr. S.B. Akintayo will arrange for the venue since he will be the host. At the inaugural meeting agenda will be drawn up and circulated to all members who registered before the date of the meeting.
Step 3: Drawing up of legal framework for the operation of the scheme. There is the need to set up a committee and commission a competent lawyer to do this.
Step 4: Formal registration of CAPMA with Registrar of Cooperative Societies and other government agencies as may be suggested by pioneer members.
Step 5: Holding of election to the elective positions of the Association
Step 6: Acquisition of office space as secretariat of CAPMA and employment of personnel to man the secretariat.
OTHER SUGGESTIONS FROM MR.S.B. AKINTAYO
(1). Organisation structure for CAPMA,
CAPMA will be an umbrella Cooperative Society or “union” in cooperative parlance. CAPMA will coordinate the process leading to identification of agricultural projects for member’s participation. As a union it will coordinate the activities of projects based cooperative societies. For example if a poultry project is set up in Kano, a Kano poultry project cooperative society will be constituted.
Finally we shall have commodity based cooperative society for example consisting of all poultry projects cooperative societies in the country as members. Mr. S. B. Akintayo will not hold any elective position but shall be the pioneer Executive Secretary of CAPMA
(2) Pioneer Members Status
Pioneer membership status should be conferred on those that registered before the inaugural meeting as reward for their contribution towards the take off of the scheme in Nigeria. This membership grade and that of the Founder shall be recognized in the constitution of CAPMA. The suggested benefits that will be attached to this membership grades include:
(a) Board of Trustees members shall be appointed among the founder. Mr. S.B. Akintayo and the pioneer members.
(b) Only pioneer members can be elected to elective position for the first five years of CAPMA
(c) Pioneer members shall be given first consideration into elective positions in the project or commodity based cooperative societies.
(d) As a mark of honour when the scheme is fully established the portraits of the founder, Mr. S. B. Akintayo and the pioneer members shall be displayed in all operating offices of CAPMA and its associated cooperative societies.
(3) Pioneer Project(s)
In order not take the heat off the scheme by the long process of converting the vision to reality, I suggest that CAPMA pioneer members should identify at least one project to which all members are required to participate in 2016. More importantly, the pioneer project will enable CAPMA to key into President Mohammed Buhari transformation incentive while hopefully will be a major component of 2016 fiscal budget.
4. Sources of finance for CAPMA Operation
(a). Membership mobilization and inauguration expenses
(i). The promoter, Mr. Akintayo provided initial fund for call for membership advertisements in daily national newspapers.
(ii) Pioneer Member Application form fee proceed will be used to organise inauguration event and if possible to register the association.
(b). CAPMA Registration and Development Levy
(c). Annual subscription to be paid once or instalmentally
(d). Member’s shareholding in commodity projects
(e). Government, financial institutions and other agencies financial and technical supports.
(f). Other sources of finance that may be identified.
CONCLUSION
Given the experience I have gained in promoting cooperative activities and the calibre, present and previous positions of some Nigerians who expressed their interest in CAPMA scheme through telephone contacts, I am highly optimistic that the scheme has a bright future. But the challenge to be met is enormous and requires strong men of means and idea to pioneer the scheme. All we need to do is to harness the financial strength, technical skill, idea, position of influence of individual members to actualize this dream. To this end I want appeal to individual prospective members to forward their suggestions and information’s that may help us to realize our collective objective for our common interest. I wish to commit the post retirement phase of my life to this noble cause.
Thank you and God bless you as we unite to support our leader, President Muhammed Buhari, to take our nation to the promised land, where we shall stand shoulder to shoulder with other great nations of the world.
S.B. Akintayo
Promoter CAPMA
COOPERATIVE AGRICULTURAL PRODUCTION AND MARKETING ASSOCIATION (CAPMA)
SLOGAN: “Soil is a bank, invest in it”
MOTTO: “The more we are the merrier”
CONTACT: [email protected]
+2348033507166
INTRODUCTION: GENESIS OF THE VISION
The evolution of the vision behind CAPMA Scheme is intrinsically linked to my struggle in life to fulfill God purpose for my life as revealed to me during my period of trial/travail which I choose to call “wilderness experience”. In carrying out God given assignment of enlisting in the army of those fighting to eradicate poverty from the lives of low and middle class members of Nigerians society, I was determined to abide by the Psalmist injunction, “search for God and His strength and keep on searching” (Psalm 105:4). These words encouraged me to keep on searching for practical solutions to “vicious cycle” of poverty in Nigeria. In the same book of David the reward for persistence search for God and His strength was stated thus “I will give you the land of Canaan as your inheritance” (Psalm 105:11). It is these Biblical admonition and provision that kept me focused and persistent.
Over the years, I have conceived and developed cooperative schemes and involved myself in two cooperative activities aimed at eradicating poverty from the lives of Nigerian downtrodden masses and ensuring financial wellbeing of middle class.
These Schemes Include:
1. Accelerated Rabbit Production and Marketing Scheme .
2. Cooperative Manufacturing and Marketing Scheme (CMMS).
3. Hidden Treasures Investment Clubs network.
4. Member and former president of Ifesowapo Multipurpose Cooperative Society, Zaria.
5. Founder and current Chairman of NITT Multipurpose Cooperative Society, Zaria.
Scheme 1, 2 and 3 have been published in booklet form which will be available to members who eventually register for membership of CAPMA.
On the entrepreneurial aspect, my family operates an integrated poultry and rabbit farm where we raise layers chickens, broilers chicken, cockrel, turkey, geese and rabbit in Zaria.
MR. SALIU BABATUNDE AKINTAYO, THE PROMOTER OF CAPMA
In order for prospective members to build confidence in the scheme, I believe they should know Mr. Akintayo and his antecedents.
Mr. Akintayo was born in Ode-Omu, Osun State of Nigeria. He attended the Apostolic Primary School, Ode-Omu; Nigerian Model Primary School, Mushin Lagos; Zumuratul Islamiyyah Primary School, Ajegunle, Lagos; Gbongan Ode-Omu Anglican Grammar School, Osun State; Institute of Agricultural Research and Training (Animal Health School), Moore Plantation, Ibadan and University of Ibadan.
He possesses B. Ed (Educational Management/Economics) in 1981 and M. Sc. (Economics specializing in Transport Economics) in 1988, both from University of Ibadan. He is currently pursuing Phd (transport Studies) at Olabisi Onabanjo University, Ago Iwoye, Ogun State. He also holds professional qualifications membership of Nigerian Marketing Association (NIMARK), Chartered Institute of Transport and Logistic (International), Nigerian Institute for Training and Development, Institute of Cost management among others.
He is the author of “Transport Economics applied to all modes, policy issues and logistics management” (published in 2010), Accelerated Rabbit Production and Marketing Scheme-Handbook for Members (1998 unpublished), Cooperative manufacturing and Marketing Scheme (CMMS)-Conversion of the Vision to Reality (published 2005), Hidden Treasure Investment Club Network (HTICN)-information for prospective investment clubs pioneers and members.
Mr. Akintayo has over 30 years experience (pre and post graduate) in public and private sectors (as employee and self-employed). Mr. Akintayo’s working experience spans through Oyo State Ministry of Finance (as Clerical Officer, Treasury Cash Office, Oyo), Oyo State Ministry of Agriculture and Natural Resources (Animal Health Assistant-in-Training), Nigerian Railway Corporation (Zaria, Ibadan and Lagos), Professional Courses Centre, Lagos,(founder/Chief Executive), Shipping/Commercial Manager, Mc Royal Holdings Ltd, Lagos, Great Grace Private Secondary, Ayobo-Ipaja, Lagos and Nigerian Institute of Transport Technology, a training and research institute under the supervision of Federal Ministry of Transport. He is presently the Director (Transport Research and Intelligence), at Nigerian Institute of Transport Technology, Zaria. He is due to retire from Civil Service in early part of 2016 and will relocate to Ibadan.
He has a very strong passion for developing schemes for cooperating Nigerians for social and economic transformation as his modest contribution for fostering national unity. His historical advantages of working in different parts of Nigeria and with different ethnic groups is a catalyst for this highly felt passion.
Mr. Akintayo can be contacted at Nigerian Institute of Transport Technology (NITT), Department of Transport Research and Intelligence, Basawa Road, Zaria.
APC MANIFESTO ON AGRICULTURE SECTOR.
The APC Manifesto tagged “Building a New Nigeria” contained a great vision for the agriculture sector.
The potential of agriculture which President Mohammed Buhari, our visionary leader, wishes to realize are summarized as follows:
· Boosting Nigeria’s GDP (even replacing oil) off the top of the list
· Reducing food import
· Ensuring food security
· Increasing employment opportunities and
· Generating foreign exchange earnings.
APC highlights a number of strategic to convert this a great vision to reality but I will only present three of these strategies which form the impetus for CAPMA scheme. These are:
· Delineate each state and geographical zone on the basis of soil survey and land use mapping in order to identify potential areas suitable for planting various crops, establishing various livestock and other agricultural enterprises.
· Facilitate the development of and promote appropriate crop, livestock, and fishery and food production packages for farmers in targeted areas within each state and each geographical zone.
· Encourage farmers to form co-operatives and enjoy supports including having their lands cleared as a group, while each farmer farms his own land; and pooling the supply of services and training of farmers in group
References will be made to these strategies as the scheme modus operandi is revealed.
ECONOMIES OF SCALE - THE MOTIVATION FOR CAPMA SCHEME
A business enterprise (including agriculture enterprise) is able to survive in the competitive market when it has some advantages in competing with its rivals such that it is able to earn adequate return on its investment.
To earn enough revenue to cover its cost the enterprise has to adopt cost minimization strategies. Appropriate scale of operation is an important cost minimization strategy.
Economies of scale are the advantages an enterprise derive by operating on a large scale rather small scale. Such advantages arise from technical, managerial, commercial/ marketing, financial and agglomeration economies associated with large scale production.
Technical economies scale: Technically, the acquisition of large machineries is cost affective. For example a large plantation firm may find it worthwhile to acquire tractor- to clear its farm weeds rather than using manual system. A large poultry farm may acquire a feed milling machine to produce its feed at a lower unit cost than purchasing from feed millers.
Managerial Economies: As an agriculture enterprise grows in size, it is able to have specialists in many functional areas, such as qualified and experienced farm managers, marketing manager, quality control manager. Veterinary doctors and animal scientist etc.
In large farm, the cost of remunerating management staff will be spread over a large number of units of products.
Commercial and marketing economies: It is cheaper to buy farm inputs in bulk from suppliers and obtain discount for bulk purchase. In fact most animal vaccine units serve 1000 animal stocks. If you have a stock of less than 1000, the excess is wasted.
Furthermore, large scale producers can promote its products (advertisement, sales promotion, etc) at low cost per unit of output. Thus creating production awareness and customer loyalty.
One common misconception is to think that if you produce on large scale, you will find it difficult to market the products. Paradoxically the reverse is the case; I will illustrate this misconception with my family experience with poultry. I started with 100 layers, in my car park just for interest and to learn the rope and not for profit, because I know such scale cannot generate any profit. But because we live inside my organization staff quarters we often find it difficult to sell the two to three create of eggs produced in a day. When I moved into Director’s quarters, I have sufficient land space to raise up to 2000 layers giving an average of 40 to 50 crates of eggs a day. My wife was afraid that since we cannot easily dispose of 3 crates of eggs daily how are we to dispose off average of 45 crates of eggs a day. When we raised 1000 layers yielding average 23 crate of eggs daily, we have so many customers that we have to allocate days to the numerous customers we had. We find it extremely difficult to satisfy our customers that we have to increase our production to 2000 birds. In most production process including farming, the larger your output, the easier it is to market. In our example no egg vendor will come to our staff quarters to carry less than 10 crates of eggs.
Financial Economies
In raising funds for expansion the large firm has almost all the advantages. Thus the government encourages farmers to form cooperatives in order to enjoy supports from the governments.
Agglomeration Industry/external economies of scale: These are the advantage all firms in an industries enjoy as the industry expands. For example all firms in an expanding industry will derive mutual benefits in the area of training and development, skilled labour force, provision of common services, facilities and utilities like electricity, water, factory, site, administrative officer etc and the possibility of some firms producing semi finished and raw materials for the use of other firms in the same industry.
President Mohammadu Buhari’s agriculture revolution strategies are so comprehensive in providing enabling environment for the achievement of its ambitious objectives., One of the most potent means of assuring mobilization of private and government fund for agricultural development is to encourage farmers to form cooperatives and enjoy support including having their lands cleared as a group, while each farmer farms his land area, and pooling the supply of services and training of farmers in group. These strategies will provide agglomeration economies for all farmers and marks the resuscitation of the farm settlement arrangement of the first republic. The CAPMA objectives is to complement this by including absentee farmers in order to raise the agriculture resource mobilization base and assuring internal economies of scale advantage for all members of CAPMA. In addition to agglomeration economies.
WHAT IS COOPERATIVE AGRICULTURAL PRODUCTION AND MARKETING ASSOCIATION (CAPMA) SCHEME?
CAPMA is an innovative, self-employment and agricultural entrepreneurial development scheme under which registered members, pool their financial resources, together to provide facilities for establishment of large scale agricultural enterprises (plantation farms, livestock production enterprises etc.) and the products that are jointly produced are marketed to domestic industries and foreign market, by members (individually or jointly).
All members are essentially Absentee farmers. (Even though some may have their own farm) An absentee farmer is a person who contributes to the establishment of a farm enterprise but does not participate in the management of the farm and may or may not visit the farm regularly. They include “farmers” living in urban areas and may be engaged in other full time non agriculture business now. Such absentee may in future become “presentee farmers on realizing the potential of farming as income generating venture through CAPMA membership.
At any point in time CAPMA will identify a number of agriculture projects in different parts of the country. Every registered member can participate in any of the project once he/she can satisfy the condition to be met in respect of that project.
All participants in a project will contribute to the cost of setting up and operating the farm according to his/her ability (Share holding).
In principle, output (products) of each harvest will be shared among participating members, according to each member shareholding in the project. However an absentee farmer can transfer his allocation to any other member or CAPMA to sell on his/her behalf. For products that are exportable CAPMA will arrange for exports on behalf of participating members.
BENEFITS OF CAPMA
The unique benefits of CAPMA include:
(1) The scheme will support PMB vision of transforming the agriculture sector as an alternative to the present sole dependence on oil as source of revenue and foreign exchange.
(2) CAPMA will be in better position to access government and other international and multinational incentives (financial and technical) to agricultural industry. The strongest point for absentee farmers concept embedded in CAPMA is the fact that individual members occupy positions in various sectors of the economy cutting across public and private sector of Nigerian economy and even international/ multinational agencies with diversified knowledge, experience and influence. CAPMA if well packaged and supported would have access to available financial and technical support from government and non government Institutions. Indeed, I foresee a bright future in which CAPMA agricultural projects will be almost fully funded by non member’s fund.
(3). The scheme provides unique opportunity for financially weak individuals to participate in large scale agricultural projects with higher profits than if he farms on his own. For instance raising chicken layers of less than 500 is stressful (since the farmer cannot afford employment of additional workers to assist him) and yet unprofitable at the end of the day. Whereas if 20 of such individual farmers pooled their financial resources together to raise 10,000 birds, They will be able to employ farm workers (avoid or minimising the physical stress) and in addition generating substantial profit to be shared by all the cooperating members.
(4) CAPMA provides convenient starting and learning point for future entrepreneurs in agricultural business. Members who had cultivated market for a particular farm product may become independent by setting up his/her own farm business. In fact CAPMA encourages those who are farmers to register for membership to have an additional source of income and experience.
Furthermore CAPMA members can set up agriculture product processing enterprise with ready raw materials from CAPMA farmers.
(5) Low unit cost of production resulting in high profit and competitive pricing for CAPMA products due to:
- Internal economies of scale due to large scale production financed by large number of market
- Minimum expenditure on marketing and sales force since members are joint producers and marketers.
- External economies of scale since projects share common facilities like office and management
- A high portion of the capital (contribution by members ) is interest free.
- Access to credit facilities for working capital as well as prospect of purchasing raw materials and other components on credit.
(5) Quick product awareness, customer loyalty and market promotion since members are strategically mobilized to cover all parts of the country. Thus scheme products will penetrate Nigerian market faster and at lower cost than one man large scale farming enterprise.
Furthermore since most of the absentee farmers are located in urban areas where markets for the product are concentrated, It will be easy to penetrate the market easily.
(6) CAPMA will encourage public and private sector workers especially civil servants to retire early thereby creating job opportunities for our young graduates to be employed. The value chain that will be created in the agriculture sector as a result of this imitative will also create additional job opportunities etc. In this way we will contribute to realisation of President Mohammed Buhari vision of using agriculture and mining as agents for mass employment creation.
(7) Unlike other employment generating initiative of governments NGO and multinational agencies which can only accommodate limited number of beneficiaries , CAPMA scheme has very high employment generating potential since the larger and more geographical spread of members the more the resources that will be pooled together for employment generation. The CAPMA Motto is “The more we are the merrier”.
(8) CAPMA will foster unity among Nigerians of different regional and ethno-religious backgrounds.
PROCESS OF CONVERTING THE VISION INTO REALITY
“To take the first step of faith, you don’t have to see the whole” (Martin Luther)
“Think big start small” (Anonymous)
Up to this point what I have been able to do is present my vision as the originator and promotion of this revolutionary idea. I do not on my own have the wherewithal to realize such great vision without the support of Nigerians with varied status and experience. Cooperative societies by nature are democratic and require the team spirit successes of the scheme are hinged on the individual members spiritual gift, financial resources, skills, talents, experience and level of influence etc. The process of converting the vision to reality requires the contribution of all members. What I present under this section is my own personal suggestions which can be modified and reviewed by collective decisions of all members. My presentation also serves as a convenient agenda for our inaugural and initial meetings that will lead to appropriate organization structure and modus operandi for the realization of CAPMA objectives.
ACTION PLANS.
Like I said earlier, the action plan, I will propose are not set on stone but both the plans and their sequence may be reviewed and modified by collective decisions of members.
Step I: Promotion of the scheme and mobilization of pioneer member of CAPMA by the visionnist, Mr. S.B. Akintayo This is ongoing through advertisement in national newspapers and sending of this information to the email addresses of prospective pioneer members.
Step 2: Holding of inaugural meeting at a convenient venue. Mr. S.B. Akintayo will arrange for the venue since he will be the host. At the inaugural meeting agenda will be drawn up and circulated to all members who registered before the date of the meeting.
Step 3: Drawing up of legal framework for the operation of the scheme. There is the need to set up a committee and commission a competent lawyer to do this.
Step 4: Formal registration of CAPMA with Registrar of Cooperative Societies and other government agencies as may be suggested by pioneer members.
Step 5: Holding of election to the elective positions of the Association
Step 6: Acquisition of office space as secretariat of CAPMA and employment of personnel to man the secretariat.
OTHER SUGGESTIONS FROM MR.S.B. AKINTAYO
(1). Organisation structure for CAPMA,
CAPMA will be an umbrella Cooperative Society or “union” in cooperative parlance. CAPMA will coordinate the process leading to identification of agricultural projects for member’s participation. As a union it will coordinate the activities of projects based cooperative societies. For example if a poultry project is set up in Kano, a Kano poultry project cooperative society will be constituted.
Finally we shall have commodity based cooperative society for example consisting of all poultry projects cooperative societies in the country as members. Mr. S. B. Akintayo will not hold any elective position but shall be the pioneer Executive Secretary of CAPMA
(2) Pioneer Members Status
Pioneer membership status should be conferred on those that registered before the inaugural meeting as reward for their contribution towards the take off of the scheme in Nigeria. This membership grade and that of the Founder shall be recognized in the constitution of CAPMA. The suggested benefits that will be attached to this membership grades include:
(a) Board of Trustees members shall be appointed among the founder. Mr. S.B. Akintayo and the pioneer members.
(b) Only pioneer members can be elected to elective position for the first five years of CAPMA
(c) Pioneer members shall be given first consideration into elective positions in the project or commodity based cooperative societies.
(d) As a mark of honour when the scheme is fully established the portraits of the founder, Mr. S. B. Akintayo and the pioneer members shall be displayed in all operating offices of CAPMA and its associated cooperative societies.
(3) Pioneer Project(s)
In order not take the heat off the scheme by the long process of converting the vision to reality, I suggest that CAPMA pioneer members should identify at least one project to which all members are required to participate in 2016. More importantly, the pioneer project will enable CAPMA to key into President Mohammed Buhari transformation incentive while hopefully will be a major component of 2016 fiscal budget.
4. Sources of finance for CAPMA Operation
(a). Membership mobilization and inauguration expenses
(i). The promoter, Mr. Akintayo provided initial fund for call for membership advertisements in daily national newspapers.
(ii) Pioneer Member Application form fee proceed will be used to organise inauguration event and if possible to register the association.
(b). CAPMA Registration and Development Levy
(c). Annual subscription to be paid once or instalmentally
(d). Member’s shareholding in commodity projects
(e). Government, financial institutions and other agencies financial and technical supports.
(f). Other sources of finance that may be identified.
CONCLUSION
Given the experience I have gained in promoting cooperative activities and the calibre, present and previous positions of some Nigerians who expressed their interest in CAPMA scheme through telephone contacts, I am highly optimistic that the scheme has a bright future. But the challenge to be met is enormous and requires strong men of means and idea to pioneer the scheme. All we need to do is to harness the financial strength, technical skill, idea, position of influence of individual members to actualize this dream. To this end I want appeal to individual prospective members to forward their suggestions and information’s that may help us to realize our collective objective for our common interest. I wish to commit the post retirement phase of my life to this noble cause.
Thank you and God bless you as we unite to support our leader, President Muhammed Buhari, to take our nation to the promised land, where we shall stand shoulder to shoulder with other great nations of the world.
S.B. Akintayo
Promoter CAPMA