Laying foundation by increasing milk volumes

In June 2015 company assessment of Muruny Farmers' Cooperative Society was conducted. The mission team concluded: That there is no clear business case (in the sense that there is an investment needed by a financial institution) to work on since the basic practice of the company are not solid enough. The milk intake is very low and there is a huge over capacity in the cooling units. Furthermore the organization needs to professionalize their operations urgently. One of the weak points is the financial organization. A dedicated senior accountant is missing and there is no ICT infrastructure to facilitated accurate management information. Amongst the members there is a low level of professional knowledge to manage good fodder which results in low yields per farmer. Currently the organization is not supporting their members with necessary education since an extension department is not operational. Finally both board and management need to be trained in governance, finance, strategy and operational excellence. The mission team advise Agriterra to start a partnership with Muruny by helping them to strengthen their people & organization and to improve the quantity of milk supply.