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
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 2
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
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 3
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
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 4
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 5
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 6
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 7
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 8
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).
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 9
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 10
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 11
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 12
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 13
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.
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 14
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
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 15
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
Farmer Business School Notebook and Workbook – Cocoa production systems Ghana 16
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)
Farmer Business School Note/Workbook – Cocoa production systems Ghana 18
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 19
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 20
Exercise 2: Cocoa
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 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 labour needs and costs MD 49 GH ¢ 392
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 21
Exercise 3: Cassava
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 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 labour needs and costs MD 87 GH ¢ 696
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 22
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 23
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 24
Module 5 Exercise 2 Cocoa without Fertilizer and pruning (1 ha)
Cocoa with Pruning and Fertilizer (1 ha)
Unit Quantity Price (GH¢)
Total (GH¢)
Quantity Price (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
Total Money-Out GH¢ 442 1578
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 25
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
Cost of Inputs 200 600
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
Total Money-Out GH¢ 896 1456
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
4. Unit Cost Money-Out / Production GH¢/kg
Farmer Business School Note/Workbook – Cocoa production systems Ghana 26
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 27
Module 5 Solution of 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 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
Cost of Inputs 175 746
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 28
Module 5 Solution of Exercise 2 Cocoa without Fertilizer and
pruning (1 ha) Cocoa with Pruning and
Fertilizer (1 ha)
Unit Quantity Price (GH¢)
Total (GH¢)
Quantity Price (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
Cost of Inputs 50 690
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
4. Unit Cost Money-Out / Production GH¢/kg
1.26 1.58
Farmer Business School Note/Workbook – Cocoa production systems Ghana 29
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
Cost of Inputs 200 600
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 30
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 31
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 32
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 33
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 34
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 35
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 36
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 37
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 38
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 39
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 40
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 41
Module 9 Added value from quality cocoa
The following pictures show practices on the cocoa farm that ensure quality beans.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 42
Farmer Business School Note/Workbook – Cocoa production systems Ghana 43
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 44
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 45
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 46
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?
Farmer Business School Note/Workbook – Cocoa production systems Ghana 47
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 48
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 49
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 50
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 51
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 52
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 53
What have you learnt on healthy nutrition?
What will you change to have healthy food?
Farmer Business School Note/Workbook – Cocoa production systems Ghana 54
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.
Farmer Business School Note/Workbook – Cocoa production systems Ghana 55
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 56
Profit or Loss plot 1 Expected before production Evaluation after harvest
Plot area : _______ Unit Quantity Price (GH¢)
Total (GH¢)
Quantity Price (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¢
3. Profit or Loss? Money-In MINUS Money-Out
GH¢
4. Unit Cost (GH¢/kg) Money-Out / Production
GH¢/kg
Farmer Business School Note/Workbook – Cocoa production systems Ghana 57
Tracking Money-Out for plot 1
Date Reason Amount « money out »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 58
Tracking Money-In for plot 1
Date Reason Amount « money in »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 59
Plot 2
Cropping calendar for plot 2
Size of the Plot (field)
Main Crop Variety
Associated crop 1
Associated crop 2
Work Planned Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Farmer Business School Note/Workbook – Cocoa production systems Ghana 60
Profit or Loss plot 2 Expected before production Evaluation after harvest
Plot area : _______ Unit Quantity Price (GH¢)
Total (GH¢)
Quantity Price (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¢
3. Profit or Loss? Money-In MINUS Money-Out
GH¢
4. Unit Cost (GH¢/kg) Money-Out / Production
GH¢/kg
Farmer Business School Note/Workbook – Cocoa production systems Ghana 61
Tracking Money-Out for plot 2
Date Reason Amount « Money Out »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 62
Tracking Money-In for plot 2
Date Reason Amount « Money In »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 63
Plot 3
Cropping calendar for plot 3
Size of the Plot (field)
Main Crop Variety
Associated crop 1
Associated crop 2
Work Planned Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Farmer Business School Note/Workbook – Cocoa production systems Ghana 64
Profit or Loss plot 3 Expected before production Evaluation after harvest
Plot area : _______ Unit Quantity Price (GH¢)
Total (GH¢)
Quantity Price (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¢
3. Profit or Loss? Money-In MINUS Money-Out
GH¢
4. Unit Cost (GH¢/kg) Money-Out / Production
GH¢/kg
Farmer Business School Note/Workbook – Cocoa production systems Ghana 65
Tracking Money-Out for plot 3
Date Reason Amount « Money Out »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 66
Tracking Money-In for plot 3
Date Reason Amount « Money In »
Total
Farmer Business School Note/Workbook – Cocoa production systems Ghana 67
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 68
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?
Farmer Business School Note/Workbook – Cocoa production systems Ghana 69
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 70
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 71
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
Farmer Business School Note/Workbook – Cocoa production systems Ghana 72
Manage loan and reimbursement
Purpose of loan
Interest Rate
Date of loan
Final Reimbursement date
Amount received
Amount to reimburse
Date Amount reimbursed
Farmer Business School Note/Workbook – Cocoa production systems Ghana 73
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