To provide quality agri-inputs at a reasonable price to member planters

Transcription

1 THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LTD Our Vision Our Vision Effectively assisting affiliated co-operative societies and cane planters in Effectively assisting affiliated co-operative societies and cane planters in responding to the challenges facing the sugar sector and pursuing each and responding to the challenges facing the sugar sector and pursuing each every opportunity that may be beneficial to member planters. and every opportunity that may be beneficial to member planters. Our Mission Our Mission To provide quality agri-inputs at a reasonable price to member planters To provide quality agri-inputs at a reasonable price to member planters around the island and ensure adherence to good agricultural practices while around the island and ensure adherence to good agricultural practices promoting the use of ecofriendly fertilisers and pesticides etc. while promoting the use of ecofriendly fertilisers and pesticides etc. Brief History The Mauritius Co-operative Agricultural Federation Ltd (MCAF Ltd) was registered as a secondary Co-operative Society on 16th August The necessity to do so was badly felt by some co-operative leaders grouped into Co-operative Credit Societies at that period due to the fact that grievances, especially of technical nature, encountered by the small planters were not being taken into consideration by the authorities concerned in the sugar cane sector when raised individually. The Federation acts as the spokesman of all the small sugar cane planting community grouped in cooperatives. Presently, the Federation regroups 155 Cooperative Credit Societies with a total membership of around 12,000 small sugar cane planters, who are cultivating approximately 6,074 hectares of land and producing a total of 405,546 tons of sugarcane. 1

2 Its Head Office is situated in a prime area at Caudan, Port Louis and its area is of 7000 square feet. Moreover, it owns at a building at L escalier which serves as a salespoint. Aims and objectives The aims and objectives of the Federation are inter alia as follows: To procure, store and distribute fertilizers, pesticides, herbicides, seeds, sprayers etc. and to purchase shares in Commercial Companies, Government-owned concerns to facilitate the above operations. To arrange for acquisition, dissemination and exchange of useful, pertinent and practical information among member planters in order to develop more efficient farming methods, increase in agricultural production and improve farmers living conditions. To assist the member planters of affiliated societies in harvesting, transport and sale of cane and other agricultural produce. To promote and safeguard the agricultural interests of affiliated societies in general and specialized agricultural societies in particular and to foster the development of co-operative idea and to improve the economic condition of affiliated societies by means of better business. 2

3 Chairman s Report I am pleased to present the 53rd Annual Report of the Mauritius Cooperative Agricultural Federation Ltd for the year ended 30 June 2013 on behalf of the Board of Directors. Financial Results The Federation has unfortunately registered this year a loss before taxation of Rs 1.7 million. This can be mainly attributed to a general fall in the activities of the agricultural sector. However, the Board of Directors is confident that with a review of the business strategy, this loss will be reversed and the coming years will be more fruitful. In spite of the loss, it is worth noting that our reserves stand at Rs 72 m at 30 June It should be noted that due to wrong recognition of purchases in the year 2011 and 2012 and also as grants received from Compangnie Usinière de Belle Vue Ltee (now Terra) in the year 1995 were not accounted for in the financial statement of the Federation in the past, this year s Financial Statement was restated in accordance with IAS 1 Presentation of financial Statements. The International Co-operative Year In the context of the International Year of Co-operatives, the Federation had organised a workshop on the Challenges Facing the Co-operative Credit Societies on 17 May 2012 at the Bonâme Hall, Réduit which was attended by 100 participants which included mainly secretaries of cooperative societies. 3

4 The MCAF Ltd also organised a gathering of co-operators at Gold Crest Hotel during the same event on 5th October 2012 where the chief guest was Honourable Jangbahadoorsing Seetaram and other eminent personalities were present. Marking the 100th Anniversary Celebrations of the Co-operative Movement in Mauritius. It is worth mentioning that the year 2013 has marked the centenary of the Co-operative Movement in Mauritius and the MCAF Ltd has organized various activities to commemorate this event. An elocution contest was held on 26th July 2013 at the Boname Hall, Réduit, among the finalists of the Omnicane Award 2012 and the theme of the contest was How can the Planters Cooperative Movement in Mauritius be re-engineered to meet the Challenges of the new Cane Industry? The presentations given by the participants were very interesting and the proposed solutions were very creative. I take this opportunity to thank the winners who are as follows: First Prize: Royal College of Curepipe Second Prize: Queen Elizabeth College Third Prize: Ebene SSS Girls 4

5 Several ideas were developed by these students and are summarised as below: Co-operatives are being advised to concentrate on internal adjustment, structural changes, improved decision process, greater emphasis on valueadded operations, mobilization of members capital, attracting new blood in the co-operative movement and deployment of advanced technologies so as to strengthen their credibility, improve their efficiency and to maintain a comparative advantage in the market place. Various other activities were organised to mark the 100th anniversary celebrations included participation in T.V and Radio programmes by some major stakeholders of the Federation. The MCAF Ltd also participated in the International Co-operative Day (ICD) on the 6th and 7th July 2013 organised by the Ministry of Business, Enterprise and Cooperatives where various agro inputs were sold at promotional prices. All the activities culminated in a gathering of co-operators on 30 November 2013 at the Paul Octave Wiehe Auditorium, Réduit. A souvenir magazine was launched to mark the event. Around 550 co-operators from across the country attended the function which was graced by His Excellency, Mr Rajkeswur Purryag, GCSK, GOSK,the President of the Republic of Mauritius and Honourable Jangbahadoorsing Seetaram, Minister of Business, Enterprise and Cooperatives. During this gathering, awards were given to the following co-operators for their contribution to the Co-operative Movement in Mauritius. 5

6 Name CCS 1 Mr. Deoduth JUWAHEER Solferino CCS 2 Mr. Dharamraz SEEBALLUCK Sada Anand CCS 3 Mr. Ramnarain SEERUTTUN, CBE Cent Gaulette CCS 4 Mr. Assenjee GURIB Bois D' Oiseaux CCS 5 Mr. Daiwokurrun KHELAWON Mongelard CCS 6 Mr. Dimul NUNDLAUL Surinam Souillac CCS 7 Mr. Seewoodarsun SANTOKHEE Gandhi CCS 8 Mr. Lavakcoomara Naidoo CHENGANNA L'Esperence CCS 9 Mr. Carl WOO YAM TUNG Sada Anand CCS 10 Mrs Aissah SEETULBOSEEA Pont Bon Dieu CCS 11 Mrs Anjanee GOPAL Union Park CCS Upcoming Projects The Bio-fertiliser Project As the Federation forms part of a world with constant change faced with various new challenges, the MCAF Ltd has also taken a proactive initiative by pioneering the introduction of Bio Fertiliser into Mauritius by importing and distributing eight new bio fertilizers and pesticides from Gujural Life Science Co Ltd, India. In line with the above, the MCAF Ltd is also setting up a bio-fertiliser plant in partnership with the Mauritius Chemical and Fertiliser Industry Limited (MCFI) Ltd. Part of the MCAF Ltd s investment has been donated by the Indian Farmers Fertilisers Co-operative Limited (IFFCO) and the following developments have taken place in the project implementation. 6

7 (a). Training The newly appointed Technical Officer has already undertaken training at Cordet Institute, India on the production of Bio-fertiliser sponsored by IFFCO. (b). Environment Impact Assessment The concerned authority has given the clearance for the project and no EIA is needed. (c). Production Unit There has been changes on the production unit. Initially the project was conceived with a production capacity of 150 MT. However, after consideration of a market analysis and cost, the production capacity has been reviewed to 50 MT. (d). Supplier Monarch Scientific Works from Chennai have been selected as the supplier of Bio-fertiliser equipments at a total cost of USD 169, 822. This includes installation and commissioning as well. Sales Agreement has already been signed between the MCAF Ltd and the, Monarch Scientific Works on October A payment of 20% has already been effected for confirmation of purchase order. A site inspection by the supplier was undertaken in December 2013 at Fort George, Port-Louis in the premises of the MCFI Ltd where the plant will be set up. 7

8 (e). Shipment According to Monarch Scientific Works, equipment will be shipped by March 2014 and their technician will start the installation process immediately after. (f). Inauguration The inauguration of the plant has been tentatively scheduled for May Accounting Software The Federation has embarked on a new technology and with a view of reinforcing the control system in place, by introducing an accounting software at Head Office. The management of the MCAF Ltd wants to extend this system by implementing a proper computer system at its different outlet. This will be aimed at strengthening the control system at the sales points and at the same time provide a better service to customers and all stakeholders. Co-operate Social Responsibility (CSR) As part of its social responsibility, the Federation donated Rs 49,052 to the Society of the Welfare of Deaf, Beau Bassin. 8

9 Mission of the Directors Selection of Suppliers A delegation comprising of Mr K. Khelawon, Mr Ellanah P. Appannah and the General Manager, Mr D.Goburdhun went to Chennai, India between 5th to 8th March 2012 to visit suppliers of the Bio-fertiliser plant. The delegation was also accompanied by Mr S.Lavoipierre and Mr R.Jatooa, Managing Director and Sales Manager at MCFI Ltd respectively. Signing of Sales Agreement In October 2013, a delegation comprising Mr K. Khelawon, Mr.Ellanah P. Appannah and the General Manager Mr D.Goburdhun and myself together with Mr R.Jatooa, sales Manager and Mr R.Rajarai, Finance Manager from MCFI Ltd went to Chennai for signing up the Sales Agreement with the Monarch Scientific Works, the supplier of the equipment for the bio-fertiliser plant. Sugarcane The number of planters of sugar cane in the co-operative sector dropped down dramatically from 9324 in 2011/2012 to 8297 in 2012/2013. These are largely attributed to heritage problems, lack of labour, inability of some planters to carry out operations in their fields because of old age and insignificant returns on marginal lands and high cost of agro-inputs. 9

10 In the Government Programme , Government took the decision to address the shrinking acreage under sugar cane cultivation. This responsibility has been entrusted to the Mauritius Cane Industry Authority (MCIA), which will explore all the possibilities to address this problem. Government has also made provision for a loan amounting to Rs200 M under the Economic Restructuring and Competitiveness Programme (ERCP) aimed to assist Planters on a factory area wide approach for the harvest and transport of canes to the mills. The Planters Harvest Scheme will complement the existing FORIP scheme. On behalf of the MCAF Ltd, I would like to express my gratitude to the Government for its unflinching support on issues of critical importance to the development of our sugarcane sector. My appreciation also goes to all those co-operative pioneers who have built up this prestigious movement. Last but not the least I would like to place on record the great contribution of the Board of Directors, the General Manager and the Staff for their performances and their continued support and collaboration. The Mauritius Co-operative Agricultural Federation Ltd is committed to offer services of quality to the planting community and will continue to serve for years. Thank you. Mr S.Muniah Chairman 10

11 BOARD OF DIRECTORS Chairman Mr. Soobas MUNIAH Directors Mr. Ellanah. P. APPANNAH Mr. Kumar KHELAWON Mr. Bholah BEHAREE Treasurer Mr. Ravindranath ROOPAH Mr. Khemraj BHURUTH Mr. Nundlall BASANT ROI, PDSM Mr. Dhunishwar CHUCKOWRY Mr. Mahendranath BHURUTH AUDIT COMMITTEE Chairman Mr. A. K. RAMNARAIN Members Mr. Nundlall BASANT ROI, PDSM Mr. Dhunishwar CHUCKOWRY Mr. Khemraj BHURUTH Mr. Bolah BEHAREE The Internal Controller 11

12 STAFF APPOINTMENT & DISCIPLINARY SUB COMMITTEE Chairman Mr. Nundall BASANT ROI, PDSM Members Mr. Ellanah. P. APPANNAH Mr. Kumar KHELAWON Mr. Mahendranath BHURUTH Mr. Dhunishwar CHUCKOWRY PESTICIDES IMPORTATION & SALES SUB COMMITTEE Chairman Mr. Kumar KHELAWON Members Mr. Ravindranath ROOPAH Mr. Ellanah. P. APPANNAH Mr. Dhunishwar CHUCKOWRY Mr. Khemraj BHURUTH 12

13 STAFF: HEAD OFFICE General Manager Accountant/Secretary 2013) Marketing Executive Mr. D.Goburdhun Mrs. R.S Gopal Jeebun (as from 31 May Mr. P.Ruggoo Technical Officer Mr. S.Sookna (as from 01 November 2012) Supervisor/ Secretary Mr. K.Hurynag (up to 31 March 2013) Accounts Clerk Computer Support Officer Clerk/WPO/Receptionist Clerk/WPO/Receptionist Head Office Attendant Messenger/ Driver Driver Goods Vehicle Helper Mrs. S. Arjoon Mr. H.Sobnauth Mrs. S. Golam Mrs N.Ramgutty Mr. S.Huree Mr. K.Seenundun Mr.V.Jakhun Mr. A.Lothay 13

14 STAFF: SALESPOINTS REGION NORTH SENIOR SALESMAN Mr. V. Mungur Salesman Assistant Salesman Goodlands Mr S.A. Gunesh Mr. T. Baldee Solitude Mr. K.K. Kaundun Mr. D. Mungur Rivière du Rempart Mr. R. Nursing D Epinay Mr. V. Gangaram REGION SENIOR SALESMAN Bon Accueil Beau Champ L Unite EAST Mr. P. Rajroop Salesman Mr. S. Sookdeal Mr. H. Dhukhi Assistant Salesman Mr. R. K. Soogrim REGION SOUTH SENIOR SALESMAN Mr. D. Rungasamy Salesman Assistant Salesman Rose Belle Mr. R. Gunnoo Mr. A. Gopala St. Felix Mr. D. Bhuruth Mr. R.K. Gowardhun L Escalier Mr. G. Boodoo REGION CENTRE SENIOR SALESMAN Mr. K. Seetohul Salesman Assistant Salesman St Pierre Mr. K.S. Gokool Mr. G. Kewul La Marie Mr. Y.Dhakoo St Martin Mr.K.Lodah 14

15 REPORT OF THE BOARD OF DIRECTORS The Board of Directors has the pleasure in submitting its 53 rd Annual Report as at 30 June 2013 Meetings The number of times the board met are summarised in the table below. COMMITTEE NO OF MEETINGS Board Meetings 12 Staff Appointment and Disciplinary Committee 7 Pesticides Importation & Sales sub Committee 5 Audit Committee 5 Membership A total of 155 Co-operative Credit Societies were affiliated to the MCAF Ltd at the close of the financial year under review. THE Mount and Beau Plan Planters Funds As from 22 March 2013, the management of the Mount and Beau Plan Planters Funds are now under the responsibility of the Mauritius Cooperative Agricultural Federation Ltd (MCAF Ltd). Mr E.P Appannah and Mr. Bolah Beharee have been nominated as Chairman of Beau Plan and Mount Planters Fund Planters Fund respectively. A disbursement committee composed of the following members have been set up to monitor the activities of the two funds: 15

16 Mr E. P Appannah Mr. Bolah BEHAREE Representing MCAF Ltd as Chairman of Beau Plan Planters Fund Representing MCAF Ltd as Chairman of Mount Planters Fund Mr M.Monvoisin (Ag Registrar) Mr N de Rosnay Mr R.Soniah Ministry of Business, Enterprise and Cooperatives Representing Terra Milling Company Limited Representing the Mauritius Cane Industry Authority (MCIA) to monitor the activities of the two funds. The day to day activities of these funds are being carried out by a pool of 5 staff who extend their support to the subcommittee. Both funds cater for the welfare of planters in these factory areas and several projects have been undertaken during the year. 16

17 Sale of Fertilisers Sales of Fertilisers 160,000, ,000, ,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000, Crops Due to insufficient rainfall especially over the first quarter of 2012, elongation of cane was 8% lower than that reached at the same period in In spite of the rainfall in April 2012, it was too late for a full recovery, As a result, 409,200 metric tons of sugar were produced from 3.5M tons of cane harvested, compared with 435,310 metric tons of sugar produced from 4.23M tons of cane for the previous year. Nevertheless, the extraction rate increased to 11.7 % compared to 10.3% in

18 During the crop 2012, 378, tons of sugarcane was supplied by planters grouped in Co-operative Societies which yielded 30, tons of sugar under a total area of hectares of land. Price of sugar The gradual decrease in the price of sugar from crop 2006 to a cumulative cut down of 36% for crop 2009, the sugar price guaranteed by the European Union has become versatile. In order to remain competitive the sugar industry has re-invented itself to become the cane industry. Millers are now producing high value sugars like plantation white and refined sugars which are supplied to the EU market under the partnership agreement with the German group Suedzucker AG. This explains the price of sugar at the rate of Rs.17, per ton obtained for the crop season Price per ton of sugar The final price of sugar inclusive of the sugar insurance premium obtained during the past five years are as hereunder: Crop 2009 Rs 14, Crop 2010 Rs 13, Crop 2011 Rs 16, Crop 2012 Rs 17, Crop 2013 Rs 16,000 (Estimate) 18

19 Price of Molasses The price of molasses at 86 Brix and the tonnage produced for the past five years are given below: Crop Year CCS Production/Ton molasse Price of Molasses (Rs/Ton) ,542 2, , , , , Price of Bagasse Crop Year Price of Bagasse (Rs/Ton)

20 New products The MCAF Ltd has embarked in the importation of three new agro-inputs in order to increase its portfolio of products and also facilitating the task of planters in procuring these items at very competitive prices. These items are:- Sprayers of 20, 16, 5, 1 Litres. Anti-Bird Nets Mesh Bags The three items had a very good demand and all anti-bird Nets were sold out within two months most probably due to the fact that a subsidy of 75% was given by the Agricultural Research and Extension Unit (AREU) in its campaign of Fruit Protection against bats. Visits to MCAF Ltd A delegation comprising of Mr Arbinda Roy, Marketing Director and Mr Vijay Shankar Rai, Senior Delegate, respectively from IFFCO visited the MCAF Ltd on 29 th and 30 th October The management of the Federation had a two days working session with them where, among others, new means of sugarcane plantation in Mauritius were discussed. On the same occasion, Mr Roy announced that IFFCO has agreed to donate two Rotovators to the Federation. 20

21 Acknowledgements The Board wishes to put on record its deep appreciation for the manner in which the General Manager and the entire staff of the Federation have carried out their duties during the year under review and strongly believe that the work will continue in the same manner, if not better during the years to come. By order of the Board of Directors D. Goburdhun General Manager 21

22 APPENDIX 22

23 PRODUCTION OF THE CO-OPERATIVE MOVEMENT Crop Year Sugar Cane Sugar Produced (tons) (tons) ,264 34, ,748 35, ,988 34, ,546 33, ,577 30,814 LAND AREA HARVESTED AND NUMBER OF PLANTERS (CCS) Crop Year Extent harvested Number of (Hectares) Planters ,624 10, ,374 10, ,302 9, ,074 8, ,623 8,297 23

24 EXTERNAL BOARD AND COMMITTEES 1. Mauritius Chamber of Agriculture : Mr. K. Khelawon (Bureau) Mr. K. Bhuruth Mr. D. Chuckowry Mr. B. Beharee Mr. R. Roopah 2. Sugar Insurance Fund Board : Mr. K. Khelawon 3. Mauritius Sugar Syndicate : Mr. S. Muniah 4. Cane Planters & Millers Arbitration and Control Board : Mr. S. Muniah 5. Irrigation Authority : Mr. E. P. Appannah 6. St Antoine Planters Co-operative Trust Fund : Mr. J. Ramguth 7. Mauritius Molasses Co. Ltd : Mr. N. Basant Roi, PDSM 8. National Pension Fund : Mr. N. Basant Roi, PDSM 9. FANRPAN : Mr. K. Khelawon 10. Mauritius Post & Co-operative : Mr. D. Goburdhun Bank Ltd 24

25 THE MAURITIUS CO-OPERATIVE AGRICULTURAL FEDERATION LIMITED FINANCIAL STATEMENT FOR THE YEAR ENDED 30 JUNE