TFC has continued to use stakeholder platforms to advocate for a financial system that looks at the actual business of the cooperative member.
When SACCOS are Linked with Production, New Financial Opportunities Open Up for Members.
TFC has continued to use stakeholder platforms to advocate for a financial system that looks at the actual business of the cooperative member. In a workshop on planning and mobilizing SACCOS for women's financial empowerment, the discussion involved gender strategy, member statistics, dairy value chain loans, SACCOS liquidity, collateral, and insurance.
This is important because a cooperative member does not just need a loan. They need financing that aligns with how their business generates income. For example, a dairy farmer may have daily sales or sales at specific periods, while their costs are in livestock, feed, livestock health, equipment, and transportation. When a financial product is designed without considering this cycle, the loan can become a burden instead of a tool to grow the business.
TFC has seen an opportunity to link SACCOS and AMCOS more closely. AMCOS can have information on production, members, and markets, while SACCOS can be part of the financial solution. Cooperative Unions can increase the capacity for coordination, collection, and business negotiations on a much larger scale.
In this system, insurance and risk management become part of the business, not an afterthought. Investment in livestock, equipment, infrastructure, or production needs to be viewed alongside the ability to repay the loan and the risks that can affect income.
Currently, the discussions held do not mean that there is already a specific TFC fund or an approved loan for members. The right step is to start with verified needs, prepare statistics, and enter into discussions on products and conditions with the relevant institutions.
Cooperatives can prepare by:
1. Preparing a list and profiles of members doing dairy and livestock business
2. Collecting records of production, sales, and financial needs
3. Identifying joint projects such as collection, cooling, transportation, or inputs
4. Making clear the insurance needs and business risks
5. Appointing a contact person who will follow up on opportunities with TFC
The value of the cooperative will be seen more when finance, production, markets, and investment protection are integrated. TFC will continue to use its role of representation and coordination to help cooperatives enter into these discussions equipped with information, needs, and projects that can be understood by financial stakeholders.
TFC has continued to use stakeholder platforms to advocate for a financial system that looks at the actual business of the cooperative member. In a workshop on planning and mobilizing SACCOS for women's financial empowerment, the discussion involved gender strategy, member statistics, dairy value chain loans, SACCOS liquidity, collateral, and insurance.
This is important because a cooperative member does not just need a loan. They need financing that aligns with how their business generates income. For example, a dairy farmer may have daily sales or sales at specific periods, while their costs are in livestock, feed, livestock health, equipment, and transportation. When a financial product is designed without considering this cycle, the loan can become a burden instead of a tool to grow the business.
TFC has seen an opportunity to link SACCOS and AMCOS more closely. AMCOS can have information on production, members, and markets, while SACCOS can be part of the financial solution. Cooperative Unions can increase the capacity for coordination, collection, and business negotiations on a much larger scale.
In this system, insurance and risk management become part of the business, not an afterthought. Investment in livestock, equipment, infrastructure, or production needs to be viewed alongside the ability to repay the loan and the risks that can affect income.
Currently, the discussions held do not mean that there is already a specific TFC fund or an approved loan for members. The right step is to start with verified needs, prepare statistics, and enter into discussions on products and conditions with the relevant institutions.
Cooperatives can prepare by:
1. Preparing a list and profiles of members doing dairy and livestock business
2. Collecting records of production, sales, and financial needs
3. Identifying joint projects such as collection, cooling, transportation, or inputs
4. Making clear the insurance needs and business risks
5. Appointing a contact person who will follow up on opportunities with TFC
The value of the cooperative will be seen more when finance, production, markets, and investment protection are integrated. TFC will continue to use its role of representation and coordination to help cooperatives enter into these discussions equipped with information, needs, and projects that can be understood by financial stakeholders.