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Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 1

European Union

Implemented by

Farmer

Business

School

Training Notebook and workbook

Cocoa production systems

Ghana

6th updated and revised edition

October 2016

Sustainable Smallholder Agri-Business – Cocoa-Food Link Programme


Foreword

The Farmer Business School approach has been developed for cocoa production systems in 2010 by GIZ / Sustainable Cocoa Business and local partners from Ghana, Nigeria, Côte d’Ivoire and Cameroun. Sustainable Smallholder Agri-Business Programme builds on these achievements. With the support of Federal Ministry for Economic Cooperation and Development of Germany, European Union, World Cocoa Foundation (until 2013), Nigeria Incentive-based Risk-sharing Systems for Agricultural Lending, Federal Ministry of Agriculture and Rural Development of Nigeria and 40 local partners, over 350,000 farmers have been trained in these countries.

FBS-Trainers undergo a special qualification program including class-room and learning trainings with farmers to deliver the training in line with the principles of adult and discovery learning and the quality standards of FBS.

Request your Certificate with serial number and signature of your trainer at the end of the training

Contents

1. Farmer Business School: the training ..................................................................... 4

Module 1 Is farming a business? ............................................................................................. 5

Module 2 Know the units to know your assets ......................................................................... 8

Module 3 Manage for more and better food – Part 1 .............................................................. 11

Module 4 Money-Out, Money-In: Know whether you do good business ................................. 17

Module 5 Decisions for more income ..................................................................................... 23

Module 6 Diversify your farm enterprise for more income throughout the year ....................... 30

Module 7 Manage your money throughout the year ............................................................... 33

Module 8 How to get good financial services ......................................................................... 37

Module 9 Added value from quality cocoa ............................................................................. 41

Module 10 Benefits from membership in farmer organizations ................................................. 44

Module 11 Manage for more and better Food - Part 2 ............................................................. 48

Module 12 Becoming an entrepreneur in Practice ................................................................... 54

2. Workbook Templates for application..................................................................... 55

Plan and evaluate production ........................................................................................................ 55

Evaluate the production year ........................................................................................................ 67

Managing money throughout the year ........................................................................................... 69

Manage loan and reimbursement .................................................................................................. 72


ABC of the Agricultural Business Community

A Agriculture

Asset

B Business

Bank

C Credit

Calculate

D Diversification

Debt

E Enterprise

Equipment

F Farm

Food

G Gain

Gross margin

H Harvest

Hectare

I Income

Investment

J Job

K Kilogram

Kilocalorie

L Loss

Labor

M Management

Market

N Nutrition

Negotiation

O Organization

Owner

P Plan

Productivity

Profit

Q Quality

Quantity

R Record keeping

Rice

S Savings

School fees

T Ton

Trial

U Unit

Union of producers

V Value

Variable cost

W Work

Warrantage

X EXport crop

EXpenditure

Y Yield

Z Zero

Zone


1. Farmer Business School: the training

What are the advantages?

The skills learned at the Farmer Business School will allow the farmers to become better entrepreneurs who:

- Takes advantage of improved technologies and market opportunities to increase income

- Plans and adapts his production to assure food security and quality for the family

- Targets decisions and investments in planting, replanting or regeneration of cocoa.

- Leads professional negotiations with buyers, input suppliers, credit institutions and land owners.

- Manages financial means and credit.


Module 1 Is farming a business?

What examples of businesses do you know?

Examples of businesses

Start and end of activities Capital Needs Money Entries

Construction business

One can start when one has a contract with a client

One construction site follows the next

One needs capital for the machines, the materials and the employees

Gives income when the construction is completed

Commerce One can start and stop commerce at any time.

One needs capital to buy merchandise and to pay employees

Gives income all year long

Processing of agricultural products

Examples:

Dough, cocoa butter, processed cassava

One can start the processing at any time if one has the equipment and primary materials

One stops the processing when the primary material is no longer available.

One needs capital to buy raw material and equipment

Gives income all year long as long as you have raw material

Agriculture

My farm is my business

My nursery is my business

One needs to start the agricultural work at the beginning of the season

One cannot stop the field work before the harvest (or the use of the seedlings)

One needs capital for tools, equipment, inputs and paid workers

Money is spent every day (« and is not even calculated »)

Gives income after harvest at moment of sales

What do you need and use to produce (collect examples)?

Inputs Tools and equipment

Labour Money Land

Seeds

Insecticide

Fungicide

Mineral fertilizer

Machete, hoe

Sprayer

Drying bay

Family work force

Paid workers

Own money

Credit

Own Land

Rented land

Share-cropping

Main Lesson

The agricultural entrepreneur (man or woman) plans and organises

him/herself to have inputs, tools, labour and money necessary for the

production ready at the right time.


What does one need to know about the market if one wants to do good business?

The market for agricultural produce The market for inputs and equipment

The location of the market

Who wants to buy the product?

The quality of product that is demanded by the market

The price of the product compared to other markets

The locations of sale

Who sells the inputs and equipment?

The quality of the inputs and equipment

The price of sale of the inputs and equipment.

How does the price of agricultural products change?

The prices of agriculture products change according to the season of the year

At times of abundance the prices are lowest.

At times of scarcity (during the dry season for example) the prices are highest.

The prices of agriculture products change between years.

The price of a product that is needed by more and more people will rise from one year to the next.

The price a product that is produced in greater abundance will fall from one year to the next.

Main Lesson

To do successful business, the agricultural entrepreneur (man or woman)

informs him/herself on the prices (of inputs and produce) at different

markets. This allows to plan production and to make decisions on the

purchase of inputs and the sale of produce.


Module 1- Agricultural Calendar to plan the production of maize.

The times of work…

Of the main season are shown by a square

Of the off-season are shown by a circle

The tasks of the entrepreneur

Jan

ua

ry

Feb

.

Ma

rch

Ap

ril

May

Ju

ne

Ju

ly

Au

gu

st

Se

pt.

Oc

tob

er

No

v.

De

c.

Prepare the field

Plough the field

Purchase seeds

Sow

Fertilize

Weed

Apply

insecticide

Harvest and Store

Main Lesson

For a good yield, the agricultural entrepreneur (man or woman) plans to do

the necessary work in the field and apply the inputs at the right time.


Module 2 Know the units to know your assets

Measure and calculate the surface of a field

The size or surface area of a field is measured in meters squared or hectares. 1 hectare (ha) is 10,000 meters squared (m2).


The group whose size estimate is closest to the area as measured by the decametre wins.

Method Length Width Surface Size

Difference/ Decametre

Rank

Group 1 Estimation by steps

Estimation by steps

Decametre

Group 2 Estimation by steps

Estimation by steps

Cord with knots

Main Lessons

1. Measures of the size of field by using walking-steps are not

always accurate.

2. The agricultural entrepreneur (man or woman) knows

Who underestimates the field size may use too little fertilizer

and too little seeds. This can lead to low yields.

Who overestimates field size may use too much fertilizer and

plant too close together. This can lead to low yields and

unnecessary spending.

3. Precise knowledge of the farm size is important to plan

production, to correctly apply inputs, and to correctly space plants

and seeds.

4. The agricultural entrepreneur (man or woman) measures his/her fields

with a decametre, a cord with knots or a measure band.

5. A field in the shape of a rectangle or square is easy to measure. On

such a field it is also easier to sow or plant in lines respecting the

correct spacing distances.


Standard Measures and Units

Distance Kilometre (km) : 1 km is 1,000 meters (m) :

Length or width of a field

Meter (m) : 1 m is 100 centimetres (cm).

Surface Area Meter squared (m2)

Hectare (ha) : 1 ha is 10,000 m2

1 Acre : 4000 m2

1 Hectare : 2.5 acres

Yield per Unit Area Yield per hectare : Yield per 2.5 acres

e.g. 400kg/ha dried cocoa beans : 160kg/acre

Volume Litres (L)

Weight Grams (g)

Kilograms (kg) : 1 kg is 1,000 g

Ton (T) : 1 Ton is 1,000 kg

Time Minutes (min)

Hour (h)= 1 hour has 60 minutes

Day (D) = 1 day has 24 hours

Agricultural work Man-days (MD): The work of an adult man in one day.

Example: Work on one hectare requires 10 Man-days. (10 MD / ha). The work can be done by 1 man in 10 days or 10 men in 1 day.

It is important to specify the number of hours in a work day.

Main Lessons

Units and measures are important for the agricultural entrepreneur (man or woman). They are necessary to …

Know precisely your assets such as your land and labour.

Correctly plan production and the quantities of inputs that need to be purchased in time

Apply correct amounts of chemical inputs

Know the quantity harvested

Evaluate correctly losses or profits

Better sell the products.

Measures and units are essential to do good business in agriculture.


Module 3 Manage for more and better food – Part 1

Making money with agriculture is good, but the farm must provide also enough good food for your family. For this reason we want to tackle this issue.

Energy and physical strength to work and to

grow

Building your body and mental

force

Cassava

Yam

Beans

Groundnut

Cocoyam

Sweet potato

Poultry

Meat

Plantain

Maize

Eggs

Fish

Protective food and clean water

Oils give us energy and make the meals

tasty

Fruits give us energy (sugar) and

health

Vegetables give us health and

make meals tasty

Clean drinking water gives us

health

Source: adapted from FAO 2004. Family Nutrition Guide

Main lesson

The agricultural entrepreneur (man or woman) knows that each type of food is necessary for a good and balanced nutrition of his/her family.


Food products and their content in energy, protein and fat

Food

Energy

kcal per kg Fat

Grams per kg Protein

Grams per kg

Rice 3610 10 65

Maize 3530 38 93

Cassava 1490 2 12

Plantain 1350 3 12

Yam 1180 2 15

Sweet potato

1050 3 17

Groundnut 5670 450 258

Beans 3330 8 226

Fish (dried) 2550 470 74

Meat 1610 79 195

Eggs 1580 112 120

Fruits (oranges)

450 2 9

Vegetables

(carots) 305 0 7

Leaves

(cassava) 230 3 30

adapted from FAO 2004.Family Nutrition Guide; http://www.nutritiondata.com/facts/fats-and-oils/575/2

Explanation: The kilocalorie (Kcal or 1000 calories) is a measure for the energy of a food. The

number of kilocalories of one kg of a given food shows you whether the food is rich or poor in energy.

Main lesson

The agricultural entrepreneur (man or woman) knows that different types of food ensure a good nutrition of his/her family.

http://www.nutritiondata.com/facts/fats-and-oils/575/2


Main lessons

1. The agricultural entrepreneur (man or woman) knows that the members of his family have different needs of food.

2. Very good food for pregnant and breastfeeding women ensures good health and growth of new children.

3. From the 7th month onward children need good quality meals (without spices!) and breast feeding for good health and growth.

4. Children of a certain age need almost as much food as adult persons.


Nutritional calendar: How do you cover the food needs of your family?

Mark a square if you sell the product

Mark a circle if the product is eaten

Mark a triangle in the months you need to buy the product

Indicate by a line _____ how long the product is available from own production

What are the months of high prices and the months of low prices for a food item?

Sell

Eat Ja

nu

ary

Feb

.

Mar

ch

Ap

ril

May

Jun

e

July

Au

gu

st

Sep

t.

Oct

ob

er

No

v.

Dec

.

Cocoa

Fresh cassava

Cocoyam

Sweet Potato

Yam

Plantain


Sell

Eat Ja

nu

ary

Feb

.

Mar

ch

Ap

ril

May

Jun

e

July

Au

gu

st

Sep

t.

Oct

ob

er

No

v.

Dec

.

Maize

Beans

Groundnut

Goat

Fish

Fruits

Vegetables


How to have more and better food?

Improving yields

Diversify cropping Associate crops Improved varieties Fertilization Mulching to conserve

water

Reduce losses in storage

Manage money to buy food

Raise animals Prepare well Clean water and hygiene

Other possibilities

Produce crops that ripen early or that resist to drought; Harvest water for small irrigation Some families might have the opportunity to establish fish ponds

Source: adapted from FAO 2004.Family Nutrition Guide

Farmer Business School Note/Workbook – Cocoa production systems Ghana 17

Module 4 Money-Out, Money-In: Know whether you do good business

How to use a calculator

What is a Calculator?

A calculator is a tool you can use to do addition, subtraction, multiplication and division

To put on the calculator

Press the ON/AC

To clear a wrong number

Press C – CE

To start a new calculation

Press the ON/AC to clear

Addition (plus)

Example:

5 + 9 = 14 Type

Example:

10 + 20 = 30 Type

Subtraction (take away)

Example:

9 - 4= 5 Type

Example:

100 - 20 = 80 Type

Example: - 20 - 29= - 49

Type

If you take away a bigger number from a smaller number, the calculator will give you a take

away number as in this example. You will know that by the small dash “-“in front of the answer.

Multiplication (times)


Example:

25 x 12 = 300 Type

Example:

22 x 27 = 594 Type

Division (divide)

Example:

26 / 2 = 13 Type

Example:

123 / 3 = 41 Type

Here are some examples. Try to get the same result.

Addition (plus) Subtraction (take away)

100 + 250 350

124 + 24 + 52 200

1035 + 465 + 120 1620

33 - 13 20

175 - 35 140

1243 - 12 1231

Multiplication (times) Division (divide)

33 3 99

75 5 375

12 12 144

200 / 4 50

350 / 7 50

1100 / 8 137,5


Here we will see how to determine if business was good or bad. We will

calculate the “money in” and “money out” from different produce.

Exercise 1: Maize

Steps: - Multiply the quantity with the price in each line. - Sum the money spent (“Money-out”) on inputs and labour - Multiply the yield by the price of sale (“Money-In”) - Subtract the sum of “Money-Out” from the “Money-In” - Determine if there was a profit or a loss

1 ha of Maize local variety without fertilizer Production 650 kg Unit Quantity

Price (GH ¢)

Total (GH ¢)

1. Money-Out

Inputs

Seed Kg 22 2.5 55

Herbicide Litres 3 20 60

Insecticide (storage) Litres 3 20 60

Total costs of inputs 115

Labour

Land preparation MD 20 8 160

Sowing (Row planting) MD 15 8 120

Weeding (2 times) MD 18 8 144

Harvesting MD 15 8 120

Storage MD 14 8 112

Total labour needs and costs MD 82 GH ¢ 656

Total Money-Out (Costs of inputs + costs of labour)

GH ¢ 771

2. Money-In

Production Price of Sale Kg 650 0.8 520

3. Profit or loss? Money-In MINUS Money-Out

-251


Exercise 2: Cocoa


1 ha Cocoa No pruning; no fertilizer Unit Quantity

Price (GH ¢)

Total (GH ¢) Production: 350 kg dry cocoa

beans

1. Money-Out

Inputs

Insecticides (Akatemaster) Litres 0.5 20 10

Fungicides Sachets 8 5 40

Fertilizer Bags 50kg 0 80 0

Total Cost of inputs 50

Labour

Pruning MD 0 8 0

Removing mistletoes MD 0 8 0

Sanitary Harvesting MD 4 8 32

Weeding MD 15 8 120

Fertilization MD 0 8 0

Spraying MD 8 8 64

Harvesting MD 14 8 112

Fermentation, drying, bagging MD 8 8 64


Total Money-Out (Costs of inputs + costs of labour) GH ¢ 442

2. Money-In

Production Price of Sale kg 350 7.42 1911

3. Profit or loss? Money-In MINUS Money-Out 1469


Exercise 3: Cassava


1 ha of Cassava local variety Production: 5500 kg Unit Quantity Price (GH¢) Total(GH¢)

1. Money-Out

Inputs

Insecticides Litres 0 0 0

Fertilizer (2x) 50kg Bags 0 80 0

Cuttings Bundles 40 5 200

Total cost of inputs 200

Labour

Land clearing MD 20 8 160

Ploughing /ridging MD 14 8 112

Planting MD 14 8 112

Supplying / replanting MD 4 8 32

Fertilizing MD 0 8 0

Weeding 1 MD 13 8 104

Weeding 2 MD 12 8 96

Harvesting cassava MD 10 8 80


Total Money-Out (Costs of inputs + costs of labour) GH ¢ 896

2. Money-In

Cassava Production Price of Sale kg 5500 0.2 1100

Cuttings Price of sales Bundles 0 5 0

Total Money-In GH ¢ 1100

3. Profit or loss?

204 Money-In MINUS Money-Out


Comparing Results

Please tell what is good and what is bad business and indicate reasons.

Unit

1 ha of Maize 1 ha Cocoa 1 ha Cassava

Production Kg/ ha 650 kg 350 kg 5,500 kg

Money-In GH¢/ha 520 2,597 1,100

Money-Out GH¢/ha 831 442 896

Profit or Loss?

Money-In Minus Money-Out

GH¢/ha -311 2,155 204

Indicate the rank The best result gets number 1

Main Lessons

1. To know if you are doing successful business with a crop, you need to

know the “Money-In” and “Money-Out” with precision.

2. The agricultural entrepreneur (man or woman) records the inputs and

labour used in a field, and calculates the “Money-In” and “Money-Out”

3. From the “Money-In” the entrepreneur subtracts the Money-Out. The

result tells him if he made profit or loss.

4. The agricultural entrepreneur (man or woman) makes a profit, if the

“Money-In” is greater than the “Money-Out.” In that case he/she does

good business.

5. The agricultural entrepreneur (man or woman) makes a loss, if the

“Money-Out” is greater than the “Money-In.” In that case he/she does

bad business.

6. You recognize a loss with the minus dash in front of the number: -

7. The good agricultural entrepreneur (man or woman) will abandon this

crop or use a better technique to make a profit.

8. To make sure that he will make a profit, the agricultural entrepreneur

calculates « Money In » and « Money Out » before production.


Module 5 Decisions for more income

How to do good business?

Here we will see the possible improvements and how to make good decisions. We will use our results and do the same calculations for improved techniques.

Module 5 Exercise 1 Maize local variety without Fertilizer (1 ha)

Maize improved variety with Fertilizer (1 ha)

Unit Quantity

Price (GH¢)

Total (GH¢)

Quantity Price (GH¢)

Total (GH¢)

1. Money-Out

Inputs

Seed Kg 22 2.5 55 22 3

Herbicide Litres 3 20 60 3 20

Insecticides Litres 3 20 60 3 20

Fertilizer 50 kg Bags 0 80 0 7 80

Cost of Inputs 175

Labour

Land preparation MD 20 8 160 20 8

Sowing MD 15 8 120 15 8

Fertilization MD 0 8 0 8 8

Weeding MD 18 8 144 18 8

Harvest MD 15 8 120 22 8

Storage MD 14 8 112 20 8

Labour needs and costs MD 82 - 656 103

Total Money-Out GH¢ 831 1710

2. Money-In

Production x Price of Sale Kg 650 0.8 520 3,500 0.8 2800

3. Profit or Loss? (Money In MINUS Money Out)

-311 1090

4. Unit Cost Money-Out / Production

1.28 0.45


Module 5 Exercise 2 Cocoa without Fertilizer and pruning (1 ha)

Cocoa with Pruning and Fertilizer (1 ha)

Unit Quantity Price (GH¢)

Total (GH¢)


Total (GH¢)

1. Money-Out

Inputs Insecticides (Akatemaster) Litres 0.5 20 10 0.5 20

Fungicides Sachets 8 5 40 8 5

Fertilizer 50 kg Bags 0 80 0 8 80

Cost of Inputs 50 690

Labour

Pruning MD 0 8 0 24 8

Removing mistletoes MD 0 8 0 15 8

Sanitary Harvesting MD 4 8 32 4 8

Weeding MD 15 8 120 15 8

Fertilization MD 0 8 0 3 8

Spraying MD 8 8 64 8 8

Harvesting MD 14 8 112 26 8

Fermenting. drying. bagging MD 8 8 64 16 8

Labour needs and costs MD 49 392 111 888


2. Money-In

Production x Price of Sale Kg 350 7.42 2,597 1,000 7.42

3. Profit or Loss? (Money In MINUS Money Out) GH¢/ha 2,155 3882

4. Unit Cost Money-Out / Production GH¢/kg


Module 5 - Exercise 3 Cassava local variety

without Fertilizer (1 ha) Cassava improved variety

with Fertilizer (1 ha)

Unit Quantity Price

(GH ¢) Total

(GH ¢) Quantity

Price (GH¢)

Total (GH¢)

1. Money-Out

Inputs

Insecticides Litres 0 0 0 0 0

Fertilizer Bags 50kg 0 80 0 5 80

Cuttings Bundles 40 5 200 40 5


Labour

Land clearing MD 20 8 160 20 8

Ploughing /ridging MD 14 8 112 14 8

Planting MD 14 8 112 14 8

Supplying / replanting MD 4 8 32 4 8

Fertilizing MD 0 8 0 12 8

Weeding 1 MD 13 8 104 13 8

Weeding 2 MD 12 8 96 12 8

Harvesting cassava MD 10 8 80 18 8

Labour needs + costs MD 87 696 107 856


2. Money-In

Cassava production x Price of Sale Kg 5500 0.2 1,100 30,000 0.2

Cuttings Bundles 0 5 0 120 5

Total Money-In GH ¢ 1,100 6600

3. Profit or Loss? (Money In MINUS Money Out) GH¢/ha 204 5144



Explanation of Fixed Costs

Certain costs are called « fixed costs ». These are costs for equipment and tools that the farmer owns and are used on various crops or over various years, such as sprayers or irrigation pumps. The Fixed Costs do not vary with the size of the field.

Main Lessons

1. The Difference between Money-in and Money-out indicates whether we

are making a loss or profit from the use of the land.

2. The Unit Cost of a crop indicates if it can compete on the international

market with the same crop produced elsewhere. In the case of food

crops, the Unit Cost indicates if it is better to buy the crop on the market.

3. The good agricultural entrepreneur (man or woman) calculates well

ahead of the season to decide what he/she will produce and which

techniques to use.

4. During the production season the good agricultural entrepreneur (man or

women) registers money spent for farm operations and inputs.

5. After the harvest, the good agricultural entrepreneur evaluates his/her

profit and identifies what changes are needed to improve the planning

and profit for the next production season.


Module 5 Solution of Exercise 1 Maize local variety without

Fertilizer (1 ha) Maize improved variety with

Fertilizer (1 ha)


Total (GH¢)


Total (GH¢)

1. Money-Out

Inputs

Seed Kg 22 2.5 55 22 3 66

Herbicide Litres 3 20 60 3 20 60

Insecticides Litres 3 20 60 3 20 60

Fertilizer 50 kg Bags 0 80 0 7 80 560


Labour

Land preparation MD 20 8 160 20 8 160

Sowing MD 15 8 120 15 8 120

Fertilization MD 0 8 0 8 8 64

Weeding MD 18 8 144 18 8 144

Harvest MD 15 8 120 22 8 176

Storage MD 14 8 112 20 8 160

Labour needs and costs MD 82 - 656 103 824

Total Money-Out GH¢ 831 1,570

2. Money-In

Production x Price of Sale Kg 650 0.8 520 3,500 0.8 2,800

3. Profit or Loss? (Money In MINUS Money Out) GH¢/ha -311

1,230

4. Unit Cost Money-Out / Production GH¢/kg 1.28 0.45


Module 5 Solution of Exercise 2 Cocoa without Fertilizer and

pruning (1 ha) Cocoa with Pruning and

Fertilizer (1 ha)


Total (GH¢)


Total (GH¢)

1. Money-Out

Inputs Insecticides (Akatemaster) Litres 0.5 20 10 0.5 20 10

Fungicides Sachets 8 5 40 8 5 40

Fertilizer 50 kg Bags 0 80 0 8 80 640


Labour

Pruning MD 0 8 0 24 8 192

Removing mistletoes MD 0 8 0 15 8 120

Sanitary Harvesting MD 4 8 32 4 8 32

Weeding MD 15 8 120 15 8 120

Fertilization MD 0 8 0 3 8 24

Spraying MD 8 8 64 8 8 64

Harvesting MD 14 8 112 26 8 208

Fermenting. drying. bagging MD 8 8 64 16 8 128

Labour needs and costs MD 49 392 111 888

Money-Out GH¢ 442 1,578

2. Money-In (Gross revenue)

Production x Price of Sale Kg 350 7.42 2,597 1,000 7.42 7,420

3. Profit or Loss? (Money In MINUS Money Out) GH¢/ha

2,155 5,842


1.26 1.58


Module 5 Solution of Exercise 3 Cassava local variety

without Fertilizer (1 ha) Cassava improved variety

with Fertilizer (1 ha)

Unit

Quantity

Price (GH ¢)

Total (GH ¢)

Quantity Price

(GH¢)

Total (GH¢)

1. Money-Out

Inputs

Insecticides Litres 0 0 0 0 0 0

Fertilizer Bags 50kg 0 80 0 5 80 400

Cuttings Bundles 40 5 200 40 5 200


Labour

Land clearing MD 20 8 160 20 8 160

Ploughing /ridging MD 14 8 112 14 8 112

Planting MD 14 8 112 14 8 112

Supplying / replanting MD 4 8 32 4 8 32

Fertilizing MD 0 8 0 12 8 96

Weeding 1 MD 13 8 104 13 8 104

Weeding 2 MD 12 8 96 12 8 96

Harvesting cassava MD 10 8 80 18 8 144 Labour needs + costs MD 87 696 107 856

Total Money-Out GH¢ 896 1,456

2. Money-In

Cassava production x Price of Sale Kg 5500 0.2 1100 30000 0.2 6,000

Cuttings Bundles 0 5 0 120 5 600

Total Money-In GH ¢ 1100 6,600

3. Profit or Loss? (Money In MINUS Money Out) GH¢/ha 204 5,144

4. Unit Cost Money-Out / Production GH¢/kg 0.16 0.05


Module 6 Diversify your farm enterprise for more income throughout the year

After all the calculations, we will determine the opportunities to increase revenues. By looking at the numbers on this page we will learn how to make investment decisions. We will determine the best opportunities by using Gross Margin, Labour Productivity and Capital Productivity.

Rank crops based on Profit or Loss

What crops and techniques will you choose?

Make a choice based on this ranking

Unit Local variety no Fertilizer

Improved variety with

fertilizer

No Fertilizer + no pruning

With Pruning and Fertilizer

Local variety without Fertilizer

Improved variety with Fertilizer

Surface Area ha 1 1 1 1 1 1

Production Kg 650 3,500 350 1,000 5,500 30,000

1. Money-Out Gh¢/ha 831 1,570 442 1,578 896 1,456

2. Money-In Gh¢/ha 520 2,800 2,597 7,420 1,100 6,600

3. Profit or Loss? Without risk Gh¢/ha -311 1,230 2,155 5,842 204 5,144

Indicate the rank

The best result gets number 1 6 3 4 2 5 1

4. Profit or Loss? With risk Gh¢/ha -311 1,230 2,155 5,842

Indicate the rank

The best result gets number 1

6 3 2 4 5 1


What is a risk in agriculture?

The agricultural entrepreneur (man or woman) does not like risks because they are difficult to predict. However, one can determine during the planning what the impact of risks could be on revenues.

We use an example to learn this.

Market Risks Production Risks

The market price of Cassava

may fall

from 0.20 Gh¢ per kg

to 0.10 Gh¢ per kg

A lack of rains may reduce the cassava yields:

- The yield of the local variety is only 3,000 kg/ha instead of 5,500 kg/ha

- The yield of the improved variety is only 15,000 kg/ha instead of 30,000 kg/ha

- You get only half the number of bundles of cuttings

Let us determine the impact of these risks on business with a small calculation.

The Money-Out does not change, because the money has already been spent.

Unit Cassava

Local variety no Fertilizer

Cassava Improved variety

with Fertilizer

Surface Area Ha 1 1

1. Money-Out Gh¢ 896 1,456

2. Money-In 330 975

Yield (lower) Kg/ha 3,000 15,000

Price (lower) Gh¢/kg 0.1 0.1

Cassava production Price of Sale

Gh¢/ha

300 1,500

Cassava cuttings Price of sale

Gh¢/ha

0 300

Total Money-In 300 1,800

3. Profit or Loss? Money-In MINUS Money-Out

Gh¢/ha -596 344

Are the two risks acceptable?

Register the result in the preceding table (page 30) to compare the results with the situation without risk.


Main Lessons

1. Comparing profits of different crops and production techniques helps to

make decisions on using the land to maximize revenue. This

comparison is important to all agricultural entrepreneurs (man or

woman)

2. Production decisions are based on these comparisons.

3. The good agricultural entrepreneur knows that a fluctuation in prices

constitutes a risk on revenue. Risks are a concern for traditional as well

as improved varieties and techniques.

4. To evaluate the impacts of this Market Risk, the entrepreneur calculates

the Money-In with a much lower price (“pessimistic”) than the current

price (or last season’s price). If the “pessimistic” profit can still satisfy

the income objectives, then the risk is acceptable.


Module 7 Manage your money throughout the year

Bad management of money

How does one know if the money is managed badly?

What are the causes?

What must one do to manage money well during the year?

One must Plan! The person, who fails to plan, plans to fail!

First Step: We have looked at « Money-In » and « Money-Out » for different crops on the farm.

Now we look at Money-Out of the household. We take as example the expenditures of a household of 6 persons (2 children not yet in school, 2 children in primary school). We discuss if we can predict all these expenditures.

Money Needs Expenditures (GH¢)

Period Can be foreseen

Matches 2 Each month Yes

Salt 3 Each month Yes

Soap 6 Each month Yes

Kerosene 8 Each month Yes

Purchase food 120 Each month Yes

Sub-total 139 Each month Must be calculated

School fees 20 GH¢ for 1 child and 1 term 40 GH¢ for 2 children and 1 term

40 January Yes

40 April Yes

40 September Yes

Clothing

School uniforms for 2 children 120 September Yes

Clothing at end of the year 140 December Yes

Happy events

Easter 100 March Yes

Christmas 300 December Yes

Unexpected events 12 Each month No

Health expenditure No

Second Step:

Let us put these numbers into a financial calendar. In the next page you will see the numbers calculated in Module 5.

How much money is left at the end of each month?

How much money is left at the end of the year?

The trainer explains how to do it.


Module 7 - Financial Calendar based on a farm using current practices (GH¢) - Exercise

Money-Out Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Cocoa (1 ha)

Inputs

40

10

Labour 80

32 64 40

24 24 24 80 24

Maize (1 ha)

Inputs 55

60

60

Labour 160

200

64

232

Cassava (growth, 0.5 ha)

Inputs

Labour

Cassava (harvest; 0.5 ha)

Household 139 139 139 139 139 139 139 139 139 139 139 139

School fees and material

40

40

40

Happy events

100

300

Clothing

120

140

Unexpected events 12 12 12 12 12 12 12 12 12 12 12 12

Total per month

Money-In Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Cocoa

Maize

Cassava (0.5 ha)

Total per month

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Monthly balance Money-In minus- Money-Out

Cumulative balance


Module 7 - Financial Calendar based on a farm using improved practices (GH¢) - Exercise Money out Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Cocoa (1 ha)

Inputs 640 40 10

Labour 192 120 64 32 60 60 64 40 40 176 40

Maize (1 ha)

Inputs 66 60 560 60

Labour 160 120 64 144 176 160

Cassava (growth, 0.5 ha)

Inputs

Labour

Cassava (harvest; 0.5 ha)

Household 139 139 139 139 139 139 139 139 139 139 139 139

School fees and material 40

40

40

Happy events

100

300

Clothing

120

140

Unexpected events 12 12 12 12 12 12 12 12 12 12 12 12

Total per month

Money in Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Cocoa

Maize

Cassava (0.5 ha)

Total per month

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Monthly balance Money-In minus- Money-Out

Cumulative balance


Discussion of the Results

Note: In this example all product from the farm is sold! We have not yet deducted what the family eats!

Third Step:

Fill out the second financial calendar. The expenditures for Inputs and Labour are those from the Exercise Sheets in Module 5 – using improved practices.

Fourth Step:

Discuss the differences and which situation is preferable. What changes are necessary?

Main Lessons

1. In the agricultural enterprise, expenditures (Money-Out) for the farm

and the household are made each month, but the revenue (Money In)

comes only during the months of harvest or sale of produce.

2. Therefore there are months of the year where Money-Out is greater

than Money-In. These months are called “deficit months.”

3. For this reason, the good agricultural entrepreneur (man or woman)

makes a financial calendar. He or she plans with the spouse(s) the

expenditures for production and household needs.

4. To be able to cover the expenditures in deficit months, the good

agricultural entrepreneur saves money from sales of produce

(“surplus months”).

5. Good Agricultural Practice and quality inputs can contribute to

improve the revenues of the agricultural entrepreneur.

6. The money needed in certain months for inputs can be calculated

using the right quantity for the measured farm.

7. This information helps to plan with the Financial Calendar, to make

savings in a targeted way or to solicit credit for production.


Module 8 How to get good financial services

Savings

Why is it important to create savings?

With savings you can invest in your enterprise and thereby make greater revenue. For example, by buying fertilizer or improved seeds.

If you save on a bank account, your money is safe.

With the interests on savings that you receive, you protect your money against inflation (inflation is when the cost of living increases).

Savings on an account are often necessary to obtain a loan.

How can you create savings? What are the advantages and disadvantages?

Hide money at Home Bring money to a rural bank

Advantage

1. The Money is immediately available

1. The money is safe at the bank

2. The bank pays interests on your savings

3. Having savings at the bank facilitates a loan from the bank

4. Saving at the bank reduces the risk of spending money impulsively because it is not immediately available

Disadvantage 1. Money is not safe and can be stolen

2. Money can be destroyed (by a fire, for example).

3. The money does not produce interest.

4. There is increased risk of making impulsive expenditures

1. The money is not immediately available

Paying money into your bank account Removing money from your bank account

Go to the bank or village financial institution

Think why you need money, and how much

Go to the bank or the village financial institution

Fill out the deposit form Fill out the money withdrawal form

Your deposit is registered in your savings booklet

Your withdrawal amount is registered in your savings booklet


Bank deposits

Commercial Banks, Rural Banks, Development Banks and Savings and Loans Companies collect money from people who have it to spare or who are saving it from their income. They keep the money safe on your account.

If you want to put your money in the bank, you can choose one of the following accounts:

1. A Current Account is an account for business people like you. Money put in this account can be taken out without telling the bank to be prepared for your coming to take out money. You use a cheque to take out money or to pay a bill. The bank pays no interest on this account, rather charges commission for the services it has given to you.

2. Savings Account. You will open a savings account to save money, to keep it safe or with objective to get a loan. You can take money only when you are present at the bank. The bank pays interest on the money in this account either every three months, every six months or every year. As owner of a savings account you receive passbook from the bank into which money put in and money taken out is recorded.

3. The Fixed Deposit Account helps you to keep money safe and to earn more interest. You can only take out your money at a time you have agreed with the bank, let us say six months. The interest that is paid on the amount in this account depends on how long the money will be in this account. If for any reason, you want to take out the money before the time you have agreed with the bank, the bank charges you a fee. This type of account could be used by a farmer business person planning to put in more money into say the replanting of cocoa.

What is Credit (Lending)

It is money you borrow from a person or a bank promising to pay back this money. This is service you get and to pay this service some money to the amount you have borrowed. This is called interest rate.

The bank gives you a letter telling you it has agreed to give you the money you have asked for. The bank also shows when you have to pay back the total amount of money.

You, the borrower and the bank know what will be the payments of the loan and how much interest is being paid, and when is it to be paid. This makes planning very simple for all.

Example

Akwasi is a farmer in Biakoye. He needs GH¢ 560 to buy fertilizer for his maize crop (1 hectare or 2.5 acres). He decides to go to the bank to borrow this money.

The bank agrees to give Akwasi the money but told him, he has to pay back 600 GH¢ in 5 months.

The 560 GH¢ Akwasi borrowed is the credit. The 40 GH¢ Akwasi will have to add to the money he borrowed is the interest.

The 5 months is how long it will take Akwasi to pay back the money.


A common example of Credit is a Loan

A loan is money you borrow (credit) from a person or a bank.

Money can be borrowed for a very short time (1 month to 12 months).

Money can be borrowed for a short time (1 to 2 years)

Money can also be borrowed for a long time 3 years onwards.

Interest can be charged every week or every two weeks, every month or every year on the money you borrowed.

There are two common types of loans:

1. Business Loan. This loan is given to business men and women like farmers to make their business (farming) better or to increase the size of their business (farm increasing from 1 ha to 2 ha).

These are examples of farm business loans:

Input Loan This is a short time loan that can be used to buy seeds, fertilizer, insecticides or herbicides.

Expansion Loan This loan helps farmers to increase their farming business by increasing the cropping area.

Other investment loans

For planting or replanting of cocoa or other tree crops, you might need a loan for at least 3 years (see Module 11 Investment calendar)

2. Personal Loans are not for business. It is rather used to buy things that are needed for the home like a fridge or to pay school fees.

The good agricultural entrepreneur (man or woman) takes a loan only when he/she is sure to be able to repay on time. For this reason he/she plans the investments and expenditures required.

Once the good agricultural entrepreneur (man or woman) has taken a loan, he/she sticks to the objective of the investment. Otherwise, the agricultural entrepreneur is likely to have repayment problems.

Ways by which money can be borrowed

1. You can borrow money as a single person (individual loan). In this case, the bank always asks for things like a building, a car or land to be put down before giving out the money. If you pay the loan back and the interest in time, the bank will be happy to serve you in the future.

2. You can borrow money as a member of Group (group solidarity loan). The group can be a cooperative or a registered Farmers’ Association. If you pay the loan back and the interest in time, the other group members will be happy to keep you in the group.


Main Lessons

1. The good agricultural entrepreneur (man or woman) plans his/her

expenditures and money entries all along the year to avoid shortages of

money and unforeseen loans that are expensive.

2. To meet the needs of money in deficit months, the good agricultural

entrepreneur (male or female) makes savings with the surplus money

from product sales. It takes discipline to do so.

3. Saving money with a rural bank or a micro-finance institution which is

close by has the advantage that money is safe. Another advantage is

that one is obliged to plan for expenses before withdrawing money.

4. There are different types of savings that offer various benefits. Rural

banks and institutions of micro-finance provide information and advice to

inform their customers.

5. There are different types of loans. Choose the type of credit that offers a

convenient interest rate and delay for reimbursement.

6. The good agricultural entrepreneur (male or female) inquires about the

possibilities and conditions for savings and loans before making a

decision.

7. The good agricultural entrepreneur (male or female) takes a loan only

when he/she is sure to be able to repay on time. For this reason he/she

plans the investments and expenditures required. The Gross Margin and

the Financial Calendar are the appropriate tools for this planning.

8. Once a loan is received, the good agricultural entrepreneur (male or

female) sticks to the objective of the investment. Otherwise, the

agricultural entrepreneur is likely to have repayment problems.


Module 9 Added value from quality cocoa

The following pictures show practices on the cocoa farm that ensure quality beans.


Module 9: Calculating the Profit or Loss from post-harvest processing of cocoa - Exercise

What is the profit of good fermenting and drying of cocoa beans?

400 kg of fresh cocoa beans give 200 kg of dried cocoa beans if fermented for too short and without proper drying. These beans are of poor quality and the buyer will make a discount (50%).

400 kg of fresh cocoa beans give 120 kg of dried cocoa if well fermented and dried. No discount is made for these beans because their quality is good.

1. Bad Fermentation and drying 2. Good Fermentation and drying

Unit Quantity Price GH¢

Total GH¢

Unit Quantity Price GH¢

Total GH¢

Fresh cocoa beans

Kg 400 Kg 400

Length of fermentation

Days 3 Days 6

Fermentation Labour (turning)

MD 1 8 MD 2 8

Length of drying Days 2 Days 7

Drying Labour (turning)

MD 1 8 MD 4 8

Quantity and value of dried beans

Kg 200 7.42 Kg 120 7.42

- Discount Kg 100 7.42 Kg 0 7.42

- Labour cost of drying and fermenting

GH¢ GH¢

Profit

GH¢ GH¢

Main Lesson

1. The quality of Cocoa Beans determines the income of producers, exporters and chocolate producers.

2. In case of defects in the quality of beans, the Producer Price is reduced because defects result in losses or additional costs during processing of cocoa. For this reason you, cocoa traders and cocoa industry have a common interest to ensure that cocoa be of good quality.

3. The analysis of quality defects of Cocoa has shown that a good agricultural entrepreneur (male or female) can avoid these defects.

4. Calculations showed that correct fermenting and drying of cocoa beans is good business for agricultural entrepreneurs.


Module 10 Benefits from membership in farmer organizations

- What is the use of being in a farmer organisation?

- What are the problems and risks of an organization that you know?

- How do you avoid these problems?

- What is your conclusion?

How can one know if a farmer organization works well?

1. Members pay their annual contributions without pressure

2. Members understand deductions on sales for services and accept the costs without complaining

3. Existence and respect of Rules

4. Existence and respect of rules on the control of accounts

5. Regular Report Production

6. Group business increases: more production, more sales, more inputs purchased at lower prices

In the next section we will look at the advantages of being a member of a farmer organization.


Module 10: Exercise 1: Additional profits from group sales – in the case of improved farm production

Maize

Improved variety with fertilizer Cassava

improved variety with fertilizer

Unit Individual Sale Group Sale Individual Sale Group Sale

Surface Area Ha 1 1 1 1

1. Money-Out GH¢ 1,570 1,570 1,456 1,456

Production Kg 3,500 3,500 30,000 30,000

Price GH¢/kg 0.80 0.90 0.20 0.23

2. Money-In GH¢ 2,800 6,000

3. Profit of group sales

GH¢ 0 0

Profit of the group sale 79.000 Gh¢

NB: In Ghana, price per kg of cocoa is fixed by the COCOBOD and is applicable in all cocoa producing regions in the country.


Module 10 Exercise 2: Profit from group purchase of inputs – in the case of Improved farming techniques

Inputs can be provided less 10% less expensive through grouped purchase. Let’s see how much the benefit is for one group member, if all required inputs are bought by the group at lower price.

Maize Improved variety with Fertilizer

Cocoa with pruning and fertilizer

Cassava improved variety with fertilizer

Unit Individual input

purchase Group input purchase

Individual input purchase

Group input purchase

Individual input purchase

Group input purchase (less

10%

Surface Area Ha 1 1 1 1 1 1

Cost of Inputs GH¢ 746 700 690 655 600 564

Profit of group purchase GH¢ 0 0 0

Profit from group purchase of inputs 79.000 Gh¢

What lessons can you learn from these examples?


Main Lessons

1. Agricultural entrepreneurs (men or women) form groups or

associations to do things they are not able to do alone.

2. Groups or associations of agricultural entrepreneurs (men or women)

have a common business objective. To achieve their common goal,

the members learn together, from each other and support each other.

3. For service providers, it is easier and cheaper to work with farmer

groups or associations than with individuals. A group of agricultural

entrepreneurs (men or women) can more easily seek financial

services or information on production techniques from extension.

4. For input suppliers, it is easier and cheaper to work with farmer

groups or associations than with individuals. A group of agricultural

entrepreneurs (men or women) can organize grouped purchases of

agricultural inputs and can better prices from the input supplier.

5. For buyers of agricultural products, it is easier and cheaper to work

with farmer groups or associations than with individuals. A group of

agricultural entrepreneurs (men or women) can organize grouped

sales of agricultural products like cocoa. The group can get better

prices from the buyer – if the quality of the product is correct.

6. Associations or groups of agricultural entrepreneurs that function well

have clear rules that are respected. When the rules are broken by

members, sanctions are applied.

7. Good leaders of farmer associations play their role to improve the

business of all members.

8. Agricultural entrepreneurs (men or women) that are members of well-

functioning associations or groups do better business.

9. Agricultural Entrepreneurs that are doing better business with the

support of their association pay their membership fees without

reluctance.


Module 11 Manage for more and better Food - Part 2

Reminder: How to have more and better food?

Improving yields

Diversify cropping Associate crops Improved varieties Fertilization Mulching to conserve

water

Reduce losses in storage

Manage money to buy food

Raise animals Prepare well Clean water and hygiene

Other possibilities

Produce crops that ripen early or that resist to drought; Harvest water for small irrigation Some families might have the opportunity to establish fish ponds

Source: adapted from FAO 2004.Family Nutrition Guide


Main lessons

Good preservation and storage help to

have healthy food for a longer time in the

lean season.

Dry fresh vegetables like leaves for a

short time to maintain nutrients

Store food in a clean place to prevent

contamination and insect attacks

Use only chemicals approved for food

preservation and storage. Please ask

your extension officer when in doubt.

Do not use smoke for drying grains

because smoked grains are harmful for

health

Main lessons

Keep your animals in a fenced place

where they also have shade.

Supply regularly water and feed to your

animals


What is a healthy meal?

Main Lessons

A healthy meal should always comprise Body Building, Energy providing

and Protective Foods in the right quantity.

Different foods from the food types are used according to the season for

healthy meals

Fruits are protective food. Always remember: A piece of fruit each day

keeps the doctor away!

Drink only boiled water or portable water.


Hygiene for healthy nutrition: Main Lessons

Use clean water Wash water containers with clean water

Prepare food on a clean table Wash hands with soap before touching food

Cover pans to keep flies and dust away and serve on clean plates

Use clean spoons and bowls to feed babies

Drink only boiled or portable water

Wash all fruits and vegetables in clean salt water before eating

To keep healthy food clean,

always wash hands with soap before preparation and eating

served food on a clean plate Wash dishes after meal in clean

water


Prepare food well and conserve nutrients and vitamins during cooking

Main Lessons

1. Different food types have different cooking times.

2. Vegetables are Protective Food. Only when cooked shortly they really

protect you.

3. Beans, cow peas, groundnuts are Body-building Food. To reduce their

cooking time

Soak them overnight

Cook them without salt.

By doing so you save also fire wood.

4. Healthy food is prepared in a clean cooking place

5. Wash all fruits and vegetables in clean salt water before eating

6. To prepare healthy foods hands, dishes and cooking tools are washed

with clean water

7. To reduce cooking time and to save fire wood cover the cooking pot with

a lid


What have you learnt on healthy nutrition?

What will you change to have healthy food?


Module 12 Becoming an entrepreneur in Practice

Key questions after this training are

- What have you learned? - What will you change? - What do you need to succeed and do good business?

The FBS workbook has been integrated in this book.

Please use the following pages FBS workbook

To plan production

To record labour and inputs for each plot

To calculate Money-Out, Money-In and your profit

To calculate your profit and to plan expenditure and money-in over the year.


2. Workbook Templates for application

Plan and evaluate production

Cropping calendar for plot 1

Size of the Plot (field)

Main Crop Variety

Associated mixed crop 1

Associated mixed crop 2

Work Planned Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec


Profit or Loss plot 1 Expected before production Evaluation after harvest

Plot area : _______ Unit Quantity Price (GH¢)

Total (GH¢)


Total (GH¢)

1. Money-Out

Inputs

15.000

15.000

15.000

9.000

Total cost of inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000

Total Labour needs and costs

M/D 74.000

Total Money-Out Costs of inputs + Cost of Labour

GH¢

2. Money-In Production X sales price

GH¢


GH¢

4. Unit Cost (GH¢/kg) Money-Out / Production

GH¢/kg


Tracking Money-Out for plot 1

Date Reason Amount « money out »

Total


Tracking Money-In for plot 1

Date Reason Amount « money in »

Total


Plot 2



Main Crop Variety

Associated crop 1

Associated crop 2





Total (GH¢)


Total (GH¢)

1. Money Out

Inputs

15.000

15.000

15.000

9.000

Total cost of Inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000


M/D 74.000


GH¢


GH¢


GH¢


GH¢/kg



Date Reason Amount « Money Out »

Total



Date Reason Amount « Money In »

Total


Plot 3



Main Crop Variety

Associated crop 1

Associated crop 2





Total (GH¢)


Total (GH¢)

1. Money Out

Inputs

15.000

15.000

15.000

9.000

Total Cost of Inputs 96.000

Labour (Man-Days)

M/D 46.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 6.000

M/D 8.000

M/D 5.000

M/D 5.000


M/D 74.000


GH¢


GH¢


GH¢


GH¢/kg



Date Reason Amount « Money Out »

Total



Date Reason Amount « Money In »

Total


Evaluate the production year

Plot number

Main Crop Area (Size) Money-Out Production Unit of production

Sales Price per unit

Money-In Profit or Loss

1

2

3

Total


Plot 1 Plot 2 Plot 3 Plot 4 Plot 5

Main crop

Am I satisfied with the results of the year?

Yes No

Yes No

Yes No

Yes No

Yes No

What is the most important improvement to make for the next year?

What purpose has this change?

How will I make this change? How much will it cost?

How much money can I raise?

Do I need credit?


Managing money throughout the year

Planning of household expenditure

Financial Needs Expenditures (GH¢) When

Matches Monthly

Salt Monthly

Soap Monthly

Petrol Monthly

Food Monthly

Water Monthly

Sub-total Monthly

School fees Once per year

Clothing Once per year

Financial Needs Expenditures (GH¢) When

Happy Events

Christmas

December

Easter March/April

Reserves for unforeseen expenditures

Monthly


My Financial Calendar for Planning Money-Out

Crop Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Inputs

Labour

Inputs

Labour

Inputs

Labour

Inputs

Labour

Inputs

Labour

Inputs

Labour

Equipment and tools

Household

School fees

Happy Events

Clothing

Total Money-Out per month


Money-In

Crop Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Other revenues

Total Money-In per month

Monthly balance Money In – Money Out

Cumulative Balance


Manage loan and reimbursement

Purpose of loan

Interest Rate

Date of loan

Final Reimbursement date

Amount received

Amount to reimburse

Date Amount reimbursed


The partners

Ghana Cocoa Board has launched the Cocoa Extension Public-Private Partnership in 2011 to

make latest know-how on cocoa production available to Ghanaian cocoa producers in a cost-

effective way. Cocoa Health and Extension Division (CHED) of COCOBOD coordinates the

partnership. COCOBOD cooperates closely with GIZ since 2010 on cost-effective FBS training and

cocoa extension.

Cocoa buying companies have joined as partners and provide FBS as business service to

producers: Touton S. A. (since 2015) and AgroEcom Ghana Ltd. (since 2016).

The Federal Ministry for Economic Cooperation and Development of Germany has

commissioned the Sustainable Smallholder Agri-Business Programme (SSAB). The

federally owned German International Cooperation (GIZ) implements the programme. It

supports 60 public and private partners in Côte d’Ivoire, Ghana, Togo, Nigeria and Cameroon to

provide basic business skills training and business services including cost-effective extension on

GAP for food crops for 350,000 farmers mainly operating in cocoa production zones.

The European Union supports GIZ-SSAB and its partners with funding since 2015 in the framework

of its New Commodities for countries of the Africa, Caribbean and Asia group (ACP). The Cocoa-

Food Link Programme West and Central Africa is implemented by GIZ/SSAB.

Contacts:

Benjamin H. Asare, Technical Advisor GIZ/SSAB, Accra - +233 244 311 609

William Mintah Wiafe, Technical Manager, CHED/COCOBOD, +233 501 316 802

Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Registered offices

Bonn and Eschborn, Germany

Sustainable Smallholder Agri-Business

Dag-Hammarskjöld-Weg 1-5

65760 Eschborn, Germany

Contact [email protected]

www.giz.de

Author A. Matthess with contributions from D. Stanculescu, M. Buama, B. Asare

Layout A. Matthess

Illustration P. Ebode Cameroon; Cargill

As at October 2016

GIZ is responsible for the content of this publication

mailto:[email protected]

http://www.giz.de/

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