Introduction
This training kit is intended for a rural women's cooperative group business with a focus on four sectors: food, wood, handicrafts and textiles. Each module of the kit contains case studies which can be adapted for different sectors using the tips given along with the handouts.
This module contains four additional case studies, one from each sector.
Case study details
Sector |
Product |
Rural women's cooperative group |
Food |
Rice-roll crackers |
Ban Chumpol |
Wood |
Bamboo furniture |
Banna Maepu |
Textile |
Cotton weaving |
Ban Tab Klai |
Handicrafts |
Artificial flowers made with sal paper |
Pishalnulok |
The trainers may adapt or use these additional case studies as alternatives.
Case study: Ban Chumpol women's cooperative Business, (rice-roll crackers)
General information
Address: 23/1 Village Chumpol, Salthingpra District, Songkla Province
Established in 1998 to produce traditional sweets, the group later added products such as rice-roll crackers.
Savings
The group's monthly savings range between 8 000 and 10 000 Baht, which are deposited with the Agricultural Cooperative in Salthingpra. The group offers a 3 percent annual interest on deposits and is not engaged in any credit activity. Pensri Yupayong is responsible for the savings activity
Production
Product |
Annual sales (Baht) |
Gathering |
Distribution |
||
|
|
Cost per unit in Baht |
Annual cost in Baht |
Price per unit in Baht |
Annual sale in Baht |
Sugar palm |
3 000 |
8.73 |
26 190 |
9 |
27 000 |
Rice cracker |
1 200 |
3.88 |
4 656 |
4 |
4 800 |
Cashew nut |
1 000 |
7.76 |
7 760 |
8 |
8 000 |
Roti-cracker |
1 200 |
6.79 |
8 148 |
7 |
8 400 |
Sweetmeat-cracker |
1 200 |
6.79 |
8 148 |
7 |
8 400 |
Raw material purchased from retail shops in Hatyai district
Item |
Volume |
Cost (Baht) |
|
|
|
Per unit in Baht |
Annual purchase in Baht |
Glutinous flour |
20 sacks |
480 |
9 600 |
Tapioca flour |
70 sacks |
280 |
19 000 |
Sugar |
36 sacks |
645 |
23 220 |
Dressing sugar |
50 kg |
400 |
19 200 |
Tools and equipment
Item |
Source |
Cost in Baht |
Grinding machine |
Subsidy from Non-formal Education Center |
4 500 |
Threshing machine |
Subsidy from Rural Development Office |
16 000 |
Electric mould |
Subsidy from Rural Development Office |
45 000 |
Oven |
Subsidy from member of parliament |
18 000 |
Stove mould |
Songkla Agricultural Cooperative |
9 000 |
Specific mould |
Purchased from group's budget |
2 000 |
Production process
The production process includes
The members design the packaging themselves.
Marketing
Neighborhood retailers are regular customers of this group. The average individual purchase ranges from 1 000 to 2 000 Baht and the group's monthly income varies between 10 000 and 21 000 Baht.
Quarterly performance
2002 |
Income in Baht |
Expenses in Baht |
June |
21 585 |
12 667 |
July |
11 413 |
8 544 |
August |
10 001 |
5 606 |
September |
14 884 |
9 049 |
Job distribution
Book-keeper |
Salowanee Buayom |
Marketing |
All members, in local markets |
Production |
All members |
Finance management |
Group Leader (Pensri Yupayong) |
Group decision-making pattern
The group's accounts were not audited for the past two years. The group retained 4 percent of the profits as working capital and distributed the remaining surplus at the rate of 10 000 to 14 000 Baht per member.
Frequency of meetings |
Once a month |
Meeting agenda |
Production, product distribution, savings |
Process of decision-making |
Discussion and comparison with other groups |
Average value of shareholders |
500 Baht |
Frequency of leader selection |
Once a year |
Training programmes attended by the group
Course |
Date |
Organizer |
Duration |
One Tambon One Product |
25-27 June 2002 |
Songkla Coop. Office |
3 days |
Product development |
24-27 April 2002 |
Coop. Training Center 9, Songkla |
4 days |
Future plans
Needs of the group
The group needs the following resources and training:
Exercise
Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan.
Case study: Bannamaepu Cooperative Women's Group Business (Bamboo furniture)
General information
Address: 349 village 19, Tambon Bangdad, Nong Buadang District, Chaiyaphum Province.
Before the group was set up on 15 August 2000, Bannamaepu villagers had to cut trees on public forest land to make furniture. To avoid this, they switched to bamboo furniture after attending a training course conducted by the Non-Formal Education Center. The bamboo furniture women's group enterprise was set up with 37 members and registered with the local agricultural cooperative.
Group capital
1. The Cooperative Promotion Department provided two grants of 45 000 and 85 000 Baht to the group.
2. Members mobilized 3 700 Baht on their own with each member contributing 100 Baht.
Production
Item |
Monthly purchase in Baht |
Monthly sales in Baht |
Margin to group in Baht |
Small cot |
44 400 |
48 100 |
3 700 |
Large cot |
55 500 |
66 600 |
11 100 |
Shelf |
14 800 |
18 500 |
3 700 |
Lamp shade |
7 400 |
11 100 |
3 700 |
Traditional tray |
3 700 |
4 400 |
740 |
Input supply
Goods |
Cost in Baht |
Price of goods sold to groups |
Plastic rope |
20 000 |
40 000 |
Colour |
10 000 |
20 000 |
Glue |
3 000 |
5 000 |
Clay rich in alumina |
1 000 |
2 000 |
Wood |
30 180 |
51 800 |
Sales
Product |
Monthly sales (units) |
Monthly sales (Baht) |
Small bed |
30 |
60 000 |
Large bed |
10 |
40 000 |
Shelf |
30 |
3 000 |
Total |
|
103 000 |
Total annual sale is 700 000 Baht.
Raw material
Item |
Monthly amount |
Monthly expense (Baht) |
Bamboo |
7 tonnes |
49 000 |
Colour |
55 litres |
30 000 |
Clay rich in alumina |
90 kg |
810 |
The raw material is purchased from a neighbourhood wholesale shop.
Tools
Item |
Source |
Cost (Baht) |
2 Drill machines (Boss) |
Construction shop in Chaiyaphum |
8 600 |
2 Drill machines (Makita) |
Construction shop in Chaiyaphum |
8 600 |
5 Clamps |
Construction shop in Chaiyaphum |
2 000 |
1 Drill set |
Construction shop in Chaiyaphum |
2 800 |
Process of production
The production process includes:
The entire production process takes about 15 days. Workers with elementary carpentry skills are hired. The current products were designed after discussions among members. The group requested training for advanced skill development from the Provincial Labor Skill Development Center.
Marketing
Channel |
Annual volume sale (Baht) |
Sales by group |
330 000 |
Exhibitions |
120 000 |
Irregular clients |
250 000 |
Total sales |
700 000 |
The group has clients in several provinces such as Chonburi, Korat, Lopburi, Khonkaen, and Bangkok. Generally, high-income clients prefer larger furniture, while low-income customers buy smaller pieces. The group's products enjoy a reputation for good quality at low price. Its competitors are in Pimai District, Korat, and Chong Salmmoe District.
Savings
The group treasurer is responsible for savings and credit activities. The group offers 4 percent annual interest on savings and charges its members 12 percent yearly interest on credit.
Credit
Purpose of credit application |
Scale of credit (Baht/head) |
Working capital |
2 000 |
Health care treatment |
3 000 |
Job distribution
The secretary of the group is responsible for bookkeeping, even though she has no training in this.
The group's business accounts were audited over the past two years, but a report from the auditor had not been received.
Marketing is handled by three marketing sub-committees.
Production is handled by two sub-committees.
Finance is handled by three sub-committees.
Promotion is handled by two sub-committees.
Decision-making pattern of the group
Training
Content |
Year |
Organizer |
Period |
Quality of life development |
2001 |
Cooperative promotion department (CPD) |
5 days |
Group strengthening |
2002 |
CPD |
5 days |
Future training needs
Future plans
Current production exceeds sales and as a result, the group holds large stocks. The group wants to decrease production by 30 percent to reduce stock-carrying costs.
Other needs
The group felt the need for the following additional resources:
Item |
Amount |
Working capital |
800 000 Baht |
Equipment |
100 000 Baht |
Raw material |
50 000 Baht |
Training |
40 000 Baht |
Skill development |
20 000 Baht |
Land |
100 000 Baht |
Building |
200 000 Baht |
Stationery |
100 000 Baht |
Exercise
Discuss and analyse the strengths and weaknesses of this group. Make a suitable business plan for this group based on the strengths and weaknesses.
Case study: Ban Tab Klai - Cooperative Women's Group Business
General information
Address: Village Rai District, Uthai Thani
Province
Year established: 28 April 1994
Number of members: 54
Number
of active members: 25
The people of Tab Klai village in Uthai Thani province have a distinctive tradition of hand weaving and once used to weave textiles for themselves. However, now they often lack the funds to buy the raw material.
Savings
The savings of group members ranges from 300 to 600 Baht. The group offers 4 percent interest per annum on savings. Kunya Pengun is responsible for this activity.
Raw material
Item |
Cost in Baht |
Cotton yarn No. 10/12 |
33 753.50 |
Cotton yarn No. 20/20 |
|
Cotton yarn No. 40/2 |
|
Large cotton yarn for Matmi (ikat) |
|
Product gathering and distribution
The group collects products from its members for distribution.
Product |
Cost in Baht |
Sales in Baht |
Weaving cotton |
166 454 |
195 828 |
Process of production
The process of production involves five steps:
The group uses traditional looms for weaving.
Designing
While the weaving skills have been transferred from generation to generation, the weave patterns are a blend of the old and the new to attract customers. However, the group does not want to switch to new designs completely because it wants to conserve traditional weaving patterns.
Packaging
Paper and cotton bags designed by the Cooperative Promotion Department are used for packaging.
Marketing
Market channel |
Annual sales (Baht) |
Through the group |
195 828 |
Exhibitions |
1 000 000 |
Costing
A 23 cm x 2 mt piece cloth woven with an animal design, costs 2 045 Baht.
This is made up of:
Material cost |
145 Baht (weft 50 Baht, warp 65 Baht, dying colour 30 Baht) |
Labour cost |
1 600 Baht (20 days, 4 hours per day) |
Administrative cost |
50 Baht (2 to 3 percent of total costs) |
Professional cost |
250 Baht |
Total cost |
2 045 Baht per piece |
Business performance for the year 2001 - 2002
Income |
276 116.50 Baht |
Expense |
233 184.50 Baht |
Profit |
42 932 Baht |
Job distribution
Accounts |
Salnit Jumpeeyao |
Marketing |
Kunya Peng-un, Ms. Jongruk Junton |
Production |
Kunya Peng-un, Ms. Jongruk Junton |
Finance |
Kunya Peng-un, Ms. Pradab Leongtong |
Promotion |
Kornnisal Khuntae |
Committees
Number of committee members |
seven |
Terms of regular meeting |
once a month |
Meeting agenda |
business management |
Process of decision-making |
vote |
Election of leader |
once a year |
Shareholder value |
380 to 600 Baht per head |
The group distributes 15 percent of the total profits to members
Training programmes attended by the group
Course |
Date |
Organizer |
Duration |
Natural dyeing |
20-22 September 2001 |
Coop Provincial Office |
3 days, including field visit (weaving cotton group in Roi-et province) |
The group needs training on product design and market identification.
Group needs
The group needs the following resources:
Exercise
Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan based on these.
Case study: Pitsanulok - Cooperative Women's Group Business (artificial flowers from sal paper)
General information
Address: NakhonThai District, Pitsanulok Province
The group was established on 20 September 1999 within the mandated area of Nakhonthai Agricultural Cooperatives. The people of Ban-Yeang village were encouraged to start producing and selling artificial flowers made from sal paper after they visited other sal paper businesses and realized that their village had the necessary raw material kenaf.
The group then began improving its product quality and won an award in a 'new occupations' contest at the district level.
However, as their product quality was still not good enough for the market, the group took samples to the government's Industrial Promotion Center 2 (IPC) in Pitsanulok Province, which was set up to promote local craft and industry. There, the women attended a two-day training course on product quality improvement. In 2001, they attended additional training courses on dyeing and artificial flower making for a period of 10 days at IPC 2.
By 2002, the group had 52 members, with 37 of them active in business.
Group capital
1. Miyazawa fund for training 20 000 Baht; working capital of 90 000 Baht in 1999.
2. One Tambon One Product training fund of 50 000 Baht; working capital of 700 000 Baht.
3. Mobilization of 1 560 Baht from 52 group members
Committee
The group is represented by a seven-member committee. The term of each elected leader is one year. Production is supervised by the group leader and the group's consultant; finance management by the administrative committee and the accountant, while promotional tasks are handled by some members of the committee. The secretary keeps all bookkeeping records while marketing is conducted by a team of members. The accountant was trained by the cooperative's auditor as well as officials of the cooperative.
The division of duties is based on the five steps of the business:
1. Producing sal paper
2. Processing products from sal paper
3. Making artificial flowers
4. Promotion of Kenaf planting (raw material)
5. Marketing
Group activities
Credit
The group charges 3 percent interest per year on credit. The credit is used mostly for household expenses, sal paper production and making other products like artificial flowers.
Steps in the production process
1. Boiling the kenaf with sodium hydroxide for three hours
2. Washing with fresh water
3. Grinding
4. Screening and moulding the grounded kenaf in a net frame
5. Drying
Raw material
Item |
Monthly purchase (kg) |
Cost (Baht) |
Kenaf |
1 500 |
37 500 |
Sodium hydroxide |
150 |
9 000 |
Chlorine |
100 |
12 000 |
Tools
The grinding machine was bought from Lampang Province at a cost of 40 000 Baht.
Marketing
The main customers are the Thai Craft Company, Exporters.
Sales by area and channel (Baht)
Local |
Regional |
Group |
Exhibition |
75 000 |
315,753 |
220 253 |
170 500 |
TOTAL |
390 753 |
Most of the competitors are private companies with access to more working capital, modern technology and a variety of products.
Income-Expense statement as on 31 March 2002
Expense |
Income |
||
Item |
Amount (Baht) |
Item |
Amount (Baht) |
Kenaf |
104 000 |
Sale of sal paper |
110 753 |
Sodium hydroxide |
25 600 |
Sales of processed products (artificial flowers) |
280 000 |
Chlorine |
13 200 |
|
|
Equipment |
25 370 |
|
|
Labour costs |
164 680 |
|
|
Per diem |
5 800 |
|
|
Water |
2 500 |
|
|
Electricity |
7 240 |
|
|
Depreciation |
17 700 |
|
|
Total expenses |
366 290 |
Total Income |
390 753 |
Net profit |
24 463 |
|
|
Use of profits
The group distributed the profits among its members at 100 Baht per head. A total of 5 200 Baht was given out as profit to 52 members.
Problems
The group has both financial as well as marketing problems.
Further needs
Exercise
Discuss and analyse the strengths and weaknesses of this group and make a suitable business plan for the group based on this.