Establishing farmer-led niger seed oil refinery

Admas is established in 2003 as a cooperative Union with 7 legally registered primary cooperatives and started its actual work in 2004 as a multipurpose cooperative Union. Currently ADMAS has 55 member cooperatives. The main tasks of the Union are: 1) Importing fertilizers and distributing to primary cooperatives members on credit basis. 2) Purchasing of Agricultural products (mainly grains) at reasonable price from member farmers. 3) Agricultural inputs supply services. Admas Famers Cooperative Union works with Agriterra for the past four years on the capacity building of the union, boosting the production of oilseeds mainly niger seed and linseed and implementation of a semi-refinery plant. The production techniques of the farmers were rather traditional and farmers regard niger seed as a rotation crop not as a cash crop. The productivity was very small not more than 3 - 6 quintals (0.3- 0.6 tons) per hectare. Due to intensive training the productivity increased to 9 quintal/hectare (.9 tons) per hectare. Admas farmers' cooperative union (Wolkite town) aims to establish a semi refinery Niger seed oil business on behalf of its cooperative members. Key product is Niger seed oil, which local consumers use for cooking and baking. Next to the consumer oil, the by-product oilcake has a sound commercial value as animal feed for cattle and chickens. The oil will be bottled, branded, packed in a carton and will be marketed to the domestic market. The by-product, oil cake, will be sold locally as animal feed. The current business plan has been presented to various local banks and international investors. Though interest is there, local banks stress the importance of enhancing Admas own equity position. Therefor Admas decided to issue new shares. In order to raise awareness of this new farmer-led business, Admas has started a large awareness campaign among its members and important governmental stakeholders.