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Mid-term Review of Cooperative Market Development Project (CMDP)
Commissioning Unit: Nepal
Evaluation Plan: 2018-2022
Evaluation Type: Project
Completion Date: 12/2021
Unit Responsible for providing Management Response: Nepal
Documents Related to overall Management Response:
 
1. Recommendation:

The cooperative market chain is a new concept at primary cooperatives, DCUs and NEFSCOV level. Capacity of market operation of such organizations is limited. In order to prepare these organizations in future after completion of this program, some immediate support for working capital management, and skilled human resources to enhance marketing function of cooperatives should be provisioned by CMDP and implementing partners.  Further, formulation of workable Business plan, and other relevant polices have to be developed by cooperatives. The project should make strong backward and forward linkages between all the stakeholders in the cooperative market value chain providing necessary support as per their need.

Management Response: [Added: 2022/01/28]

Partially agreed. The project is being implemented in a collaborative mode following the cost sharing approach. i.e., all the primary cooperatives, DCUs and NEFSCOV have participated in the project with their own money as well. Hence, support at working capital level could be a difficult task for the project. However, CMDP is supporting the participating cooperatives and unions to make their business plans and crop calendar. CMDP has already prepared and shared a model of the 'Cooperative Market Operationalization Procedure' which could educate them how the cooperative market chain could be developed and maintained by way of cooperative-to-cooperative business model. In addition, CMDP will help in building the technical capacity of the cooperatives on entrepreneurship, value chain development, and other governance related issues during the remaining period.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1.1. Provide business orientation to market actors/stakeholders for those cooperatives whose business plans have been developed.
[Added: 2022/01/28]
CMDP/UNDP/MoLCPA 2022/10 Initiated Business plan training and value-chain conducted in 2019.
1.2 Link all market actors of the cooperative markets to develop backward and forward linkages between all stakeholders along with private sector.
[Added: 2022/01/28]
CMDP/UNDP/MoLCPA 2022/12 Not Initiated
2. Recommendation:

As discussed with DCU and NEFSCOV, satellite and district markets are more concentrated to the retailing of products with sorting and grading facilities. Moreover, primary cooperatives largely concern with provision of wholesale markets where they can regularly supply fruits and vegetables collected through farmers. Hence, there should be a clear understanding among primary cooperatives and satellite markets regarding capacity of supplies and other market related terms and conditions.  CMDP should work as mediator among them and a clear cut marketing guidelines specifying the roles of different actors they have to make.

Management Response: [Added: 2022/01/28]

Agreed. CMDP has already prepared and shared a model of the 'Cooperative Market Operationalization Procedure' which could educate them how the cooperative market chain could be developed and maintained by way of cooperative-to-cooperative business model. CMDP has oriented cooperatives and markets on CMDP envisioned market approach consistently from the start of the project. In 2021, Chabahil satellite market in close coordination with CMDP, organized meetings with more than 20 primary cooperatives and briefly discussed on the collaboration and tie-up for market function. In addition, Mahalaxmisthan market of DCU Lalitpur  held discussion with cooperatives selected under CMDP in Lalitpur district for collaboration and necessary support in order to start up market.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1 Organise Interaction between satellite, regional, district, municipal markets with primary cooperatives selected under CMDP.
[Added: 2022/01/28]
CMDP/MoLCPA 2022/10 Initiated
3. Recommendation:

As the major program outcome is development of regional and district markets, which is still under construction, has created doubt among cooperatives whether the program will be successful or not. Till the cooperative market network comes into full operation, the project may adapt immediate strategies like partnering and collaborating with existing private markets, acquiring and promoting separate stalls in Kalimati Bazar for CMDP partner cooperatives. If cooperatives have dedicated stalls during absence of regional and district markets, the plan of eliminating middle-person could be achieved which enables farmers to receive additional benefits.

Management Response: [Added: 2022/01/28]

Partially Agreed. The project has already adopted strategies like partnering and collaborating with the markets other than CMDP built. CMDP held meeting with different private sector market such as Golyan group (Mato) in 2019 and Le-sherpa in 2021 for the necessary collaboration. As a result, Chabahil market made partnership with Le-sherpa and supplying vegetables in its hotel chain. Simultaneously, more than 100 farmers from Dhading are supplying their produces to Mato on their own. As per the information received from the Kalimatic Mariketing Committee, the cooperatives have to follow bidding procedure of Kalimati Bazaar to get space, which CMDP has informed to its cooperatives. CMDP will continue to approach private sector markets in order to connect cooperatives.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
3.1. Establish linkage between cooperative markets and different private sector markets for supply of farmers products.
[Added: 2022/01/28]
CMDP/MoLCPA 2022/10 Not Initiated
4. Recommendation:

Marketing function at cooperative is interrelated with other functions. To sustain the marketing function at cooperatives and district union level, a robust business plan with business analysis and investment plan have to be operationalized and translated into annual plan. In addition, Board and staff should be made fully aware about this. Business plans of CMDP markets which are under preparation should be completed timely.

Management Response: [Added: 2022/01/28]

Agreed. The Business plans are ready for implementation.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
4.1. Support to prepare action plan for the implementation of business plans of cooperatives and markets
[Added: 2022/01/28]
CMDP/UNDP 2022/10 Initiated
5. Recommendation:

To enhance the cooperative-to-cooperative marketing concept, the program has to focus on the practice of documentation and use of supply chain and market related data/information in the program areas. It might be important for them to analyses market demand, pricing and marketing plan. Plan and activities for increasing capacity of cooperatives and DCUs in keeping record, managing and utilizing the market and supply chain related data/figures for strengthening their business has to carried out by CMDP.

Management Response: [Added: 2022/01/28]

Partially Agreed.  CMDP has developed an interactive web-based database system that helps to navigate and analyse market demand, pricing and marketing plan for the different value chain actors in the cooperative market chain system in early 2020. However, due to pandemic and series of lockdown and movement restriction in order to curb virus, the subsequent implementation and orientation of database system is still continued. Further, krishicoopbazaar.com a digital platform will help to outreach farmers produce directly to consumers and underpin the cooperative to cooperative marketing approach.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
5.1. Make Web based database management system functional.
[Added: 2022/01/28]
CMDP 2022/12 Initiated
5.2. Organise capacity building training on database system with the support of the software developer.
[Added: 2022/01/28]
CMDP 2022/12 Not Initiated
6. Recommendation:

Capacities of primary cooperatives are not same to run marketing activities. Support has to be based on their capacity to run business and their willingness to participate in cooperative-to-cooperative marketing concept. Capacity and Need assessment of each cooperative have to be carried out. Periodic Capacity and Need assessment have to carried out, specially before providing support to the cooperatives.

Management Response: [Added: 2022/01/28]

Agreed Partially. CMDP conducted in-depth capacity and need assessment of each cooperative and DCU every year for project implementation. Based on the assessment carried out, project identifies, prioritizes and analyses the need before providing support to the cooperatives. In 2022, the project will continue the process and provide support to the most needy ones based on their demand and feasibility in close coordination with the DCU,  local governments and MoLCPA.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
6.1. Provide input support based on the capacity of cooperatives and their demand.
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Initiated CMDP has been adopting demand-based approach to support cooperatives and unions
7. Recommendation:

Coordination with other donors in implementation level can complement to achieve program results and avoid duplication of supports. The cooperative program staffs have to be oriented to be fully aware about other similar minded project being supported by other funding agencies, organizations at the field level. For this regular meetings have to be carried.

Management Response: [Added: 2022/01/28]

Agreed. CMDP is fully aware on avoiding duplication of fund. CMDP is coordinating with Value Chain Development of Fruits and Vegetables Project (VCDP) of UNDP/KOICA and MEDPA TA project to avoid such duplication and building synergies. Similarly,  Project has been receiving recommendation letter from Local Governments and other concern authorities while implementing the CMDP activities. At field level, the project has been consistently coordinating with 18 local governments and sharing the progress and support done in the cooperatives. This has helped to minimize duplication of similar kind of support by LGs to the same cooperatives. In addition to this, field staff are  organsing regular meetings with the similar nature of programmes in order to create synergy at the field level. Project will continue to coordinate with different projects and porgramme to avoid duplication and building complementarity for better results.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Coordination with local governments and other projects and programme for synergy and avoiding duplications.
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
8. Recommendation:

The MTR team recommends expanding co-financing approach while implementing the programs at field level. It will also help in addressing the funding gaps of the program.

Management Response: [Added: 2022/01/28]

Agreed.  CMDP has leveraged more than 150 Million Nepalese Rupees by adopting co-financing approach from capable cooperatives in order to minimize the funding gaps of the program. This approach will be continued in future as well.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
8.1 Project willfollow co- financing approach with partners for the construction of infrastructures
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
9. Recommendation:

Cooperative unit at local government level is weak. It requires more support for proper documentation, listing, capacity building of cooperatives and monitoring of their works. Proper dedicated separate plan have to prepared and implement for this.

Management Response: [Added: 2022/01/28]

Partially Agreed. CMDP supported cooperative units at all 18 local government with office equipment such as computer, printer and cupboard in order to deliver smooth services on time. The project also supported capacity building training on the regulation of cooperatives and initiated the institutionalization of COPOMIS software at cooperative levels in 2019 and 2020. These steps have underpinned the government agenda to establish a sound service providing system by the LGs in the context of federal structure. Cooperative related trainings were also provided to the concerned officials of the local governments. Project will continue to build capacity of LGs.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
9.1 Organise orientations to the local governments on proper documentation, record keeping and monitoring.
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
10. Recommendation:

Out of the four types of agreement types, the evaluator found RPA the best for construction of marketing outlets. For operational costs, LVGA was best suited. The LoA was only one possible option to make agreement with government entities.  Thus in future, LVGA agreements should be followed.

Management Response: [Added: 2022/01/28]

Partially agreed. All the types of the agreements have their own values and importance depending upon the nature of stakeholders, size of budget, time frame of implementation. CMDP will adopt different agreement types based on the nature of the work.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
10.1 Adopt appropriate contract / grant model as per the need in compliance with NIM guideline.
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
11. Recommendation:

Though the program activities were somewhat hampered during the Covid period in 2020, the progress in the year 2021 seems quite satisfactory and the project has been back to its track. The construction of different levels of markets viz. municipal, district, regional and satellite market have been slowed down. The year 2022 which is the last year for the project may not be enough to smoothly run the cooperative market chain as it required some time (gestation period) for the cooperatives to get set to run their market. It is recommended to compensate certain timeframe for operationalization of markets in cooperative-to-cooperative approach. Time extension of program for additional years can be considered. UNDP and MOLCPA have to work on it.

Management Response: [Added: 2022/01/28]

Agreed. In the 14th PEB meeting of CMDP held on 21st January, 2022, both GoN and UNDP have agreed to explore the resources for the possibility of project extension beyond 2022. The construction work of the markets will be completed within July, 2022 and market operated then after. The DCUs/ cooperatives will be capacitated  to operate the markets.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
11.1. Continue to build the capacity of DCUs and cooperatives to run the markets.
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
11.2. Organise a Steering committee meeting to explore resources and possibility of extension beyond 2022.
[Added: 2022/01/28]
CMDP/UNDP 2022/10 Not Initiated
12. Recommendation:

The MTR team recommends following aspects should be considered while implementing the activities at different level.

1. CMDP should support Primary cooperatives by followings:

-          Providing  Business and marketing skill trainings to cooperatives

-          Providing Financial management software and related trainings

-          Supporting to needy farmers for production related small infrastructures like Irrigation facilities and equipment related to markets ,

-          Supporting for management of additional collection points within cooperatives, this will help in increasing volume of collection of fruits and vegetables.

-          Providing sorting, grading, and packaging support to cooperatives

-          Training required to development of skills related with scale of production based on market demand

-          Increasing coverage area of members specially fruits and vegetable farmers so that larger numbers of cooperative members could be introduced..

2. CMDP should support DCUs/NEFSCOV by followings:

-          Providing short term support like working capital management, staffing for running district/satellite markets

-          Supporting in Policy formulation and preparation of  long term plan

-          CMDP should make sure engagement of program staffs are more focused on market management activities. Currently, numbers of staffs supported are not sufficient so additional staffs supports have to be provided in DCUs.

-          Activities for capacity building on procurement of goods and services have to be carried out. This could include orientation and training to staffs.

-          Continuous supports in internalizing capacity building activities of primary cooperative business level have to be carried out. For this CMDP should carry out frequent monitoring activities, and provide support for analyzing the record kept.

-          Coordination with local governments for mainstreaming cooperative market chain approach and leveraging resources has to be carried out. Number of coordination meetings among stakeholders had been decreased due to COVID, the frequency of meeting should be increased.

Only completion of planned activities is not sufficient to achieve results, DCUs should focus on results of program. Engagement of program staff should focus more on market management activities.

Management Response: [Added: 2022/01/28]

Partially Agreed. CMDP  has already provided input support as well as training  support to primary cooperatives/ DCUs in   Business and marketing skill, financial management and  cooperative management. In addition, CMDP has been regularly guiding & supporting the DCUs/ NESFCOV for their capacity development. Furthermore, CMDP has supported two staff to each DCUs to run CMDP activities as well as DCUs other regular programmes. CMDP will continue to provide staff and operation costs to DCUs for the remaining period of project. In addition, CMDP will continue to build capacity of DCUs.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
12.1 Continue to support operational cost of DCUs for the remaining period of the project
[Added: 2022/01/28]
CMDP/UNDP 2022/12 Not Initiated
13. Recommendation:

Based on our findings and field observations, the program has been able to achieve its goals and is highly successful, it is recommended to expand the program coverage in additional districts focusing regional market of Pokhara and Butwal. This will help in expansion of markets for existing cooperatives and markets will have more volume of vegetables and fruits for sale. UNDP and MOLCPA have to work towards this direction.

Management Response: [Added: 2022/01/28]

Agreed. In the 14th PEB meeting of CMDP held on 21st January 2022, both GoN and UNDP have agreed to explore the possibility of the project expansion to other provinces. CMDP had already carried out feasibility study in 2019 to expand the project to Gandaki Province and a joint proposal was already submitted to the MoF.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
13.1 Organise a Steering committee meeting to explore the possibility of expansion of the project to other provinces
[Added: 2022/01/28]
CMDP/UNDP 2022/10 Not Initiated

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