Agriterra supported AFCU in 2010 together with SNV and FORMIN Finland on training 600 farmers with the objective of increasing oilseed production quantities and quality (project 09afc-5527). AFCU presented that project to Agriterra in the framework of its business aspirations to establish an oilseed refinery plant. A draft of the business plan for this plant was shared with Agriterra and the contents and potential of the plan provided Agriterra with sufficient reasons to organise a company assessment to AFCU in March 2011. During this mission both the management capacity and the potential business plan were analyzed and gaps were identified. Overcoming these gaps requires technical expertise and finance and therefore an action plan has been developed for 2011 which will serve as a roadmap for AFCU to develop a bankable and realistic business plan for the oilseed refinery plant. The targets of this plan are as follows; - AFCU will improve its financial management according to the recommendations that were made as part of the company assessment mission - AFCU will increase its support base which becomes visible in an increase in share capital by 15% - AFCU will contract and train its production coordinator - 50 trainers will be trained to improve production and supply of oilseeds - 1.200 farmers will be trained - 225 best performing farmers will produce selected seeds of niger, lin and sesame. This production will be sold back to AFCU for distribution for further distribution. - 1.800 farmers will produce at east 540 tons of oilseeds that will be bought by AFCU against a premium price (partly financed by own capital and partly by a loan from a commercial bank). - The primary societies will ensure quality standards. - AFCU will either store this produce for processing by the refinery plant, or in case the construction of the plant delays AFCU will find market for the seeds and sell for a better price than was paid to the farmers. - AFCU will contract a marketing officer and with the help of external experts they will develop marketing plans for domestic and export markets for seeds and refined oil. - AFCU will contract mechanical, electrical, hydraulic and civil engineers for the actual drawings and design of the plant and the sourcing of the machinery and equipments required. - AFCU will acquire the land for the plant from the local government.

Admas Famers Cooperatives Union was established in May 2003 as a cooperative Union with 7 legally registered primary cooperatives and started its actual work on November 2004 as a multipurpose cooperative Union. Presently, the union has 46 primary cooperative members with capital of Birr 3.5 million. Within these 46 cooperatives, it has 13,029 (12,169 male & 860 female) members. The objectives of Admas Farmers cooperative union are: • Supply agricultural inputs contributes in order to increment of productivity • To supply oil seeds to foreign market ( exporting) • To import different kinds of agricultural inputs • To provide market information to the members • Supply consumption goods • Provide fair price to the product of the members The Union has been supplying agricultural inputs such as fertilizer and selected seed to the farmers. In addition, the union purchases the produce of the member’s in order to provide a fair price by selling the produce to consumers, processing industries and exporters. Due to the above mentioned activities, carried out by the union in the past five years, the union has become profitable.