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Process of OVOP Group Formation



1. Potential Group/Products Identification


 

In a district, area and village, any of potential OVOP group can be identified from any of research, survey and environmental analysis. Some considerations for identifying potential OVOP group can be described as follows;

(1) Locally available resources
There should be locally available resources around the area under utilization for value adding. Those can be primary products from Agriculture, Fishery, Animals and Forestry. Cultural activity such as traditional dances and music, and environment can be used as locally available resources for tourism.
(2) Processed products
There might be already existing processed products around the area. The products might need to be supported in the area of quality improvement, marketing, packaging and so on.
(3) Already existing group
There might be already existing group which is producing processed products or is providing tourism services.

[Table1] Examples of Primary Products and Value Added Products
Primary Products Secondary (Expected value added products) Products
Milk Dairy product ghee, cheese, yoghurt, butter, flavoured milk juices
Beef Biltong, sausages, blood meal, livestock feeds, canned beef, medicines
Hides and skins Tannery products, shoes, leather products, brushes
Tomato Tomato juice, sauce, puree, jam, soup, paste etc
Citrus Fruits Juice, canned fruit chops, jam, milk shakes, sweets, wine, livestock feed, air freshener, aromatic detergents, body lotion, gas
Avocado fruits Cooking oil, medicinal, body lotion, soap, soup, starter, sweets, custard
Fruit trees (cashew, palm, coconut, moringa, macadamia, malambe, bwemba, masuku, amarula, masau Edible oil, confectionery products, soap, body lotion, animal feed, soup, medicinal oils, liquor, wine, fruit juice, porridge, vitamin C supplements, baking powder
Leafy vegetables, pumpkins, carrots, beet root, snap beans Packaged salads, soups, oils, vegetable crisps, juices, jams, confectionery, porridge, starch, explosives, livestock feeds, canned vegetables
Sugar cane Juice, jam, sugar, molasses, candy, custard, wine, alcohol
Gemstones Rings, necklaces, cloth coatings, interior decorations, jewelry
Soil Ceramics, pottery, cement, construction, bricks, organic fertilizer, stabilizer, iron products, medicines, salt, livestock feed
Forestry Timber, furniture, medicines, tanning, dyes, confectionery, construction materials, Formica, livestock feed, cushions, paper, briquettes, decorations, motor vehicles manufacturing, curios, bee keeping, pottery, mushroom, edible caterpillars, mining products
Maize Starch, flour, cooking oil, porridge, explosives, animal feed, alcohol, detergents, cornflakes, soups wine, tortillas, bread, cakes, medicines, soda (chidulo), hats and mats, paper
Groundnuts Cooking oil, confectionery, chidulo, animal feed, condiments (nsinjilo, nthendero), soups, peanut butter, juices
Potatoes Soup, starch, juice, crisps, chips, mashed potato, biscuits cakes, explosive, alcohol, wine, medicines, livestock feed, nsima, porridge
Bamboo Furniture, food, juice, baskets, hats, mats, trays, winnowers, alcohol, fruit and flower holders, wine, mushroom production, construction materials, crisps
Tourism Hotels, toilets, resting places along high ways, cultural heritage, museums, tour operators and car hires, game and mountain viewing, hiking
Textiles and fabrics Tailoring, embroidery, house hold decorations, cloth manufacturing, cotton wool, bandage making, upholstery, furniture manufacturing
Production of supply stock Dairy animals beef, piggery, rabbitry, poultry
Legumes (Soya beans, beans, cowpeas, p/peas, broad beans, peas, grams, ground beans) Milk, porridge, oil, soya meat with different flavors, soap, soya sauce, confectionery, animal feed, adhesive for mining rigs, ceiling boards, chidulo (soda), baked and canned beans
Sesame Confectionery, oil, condiment


2. Group Sensitization


Once any of potential group was identified, the group needs to be sensitized about OVOP before they are going to prepare OVOP proposals. Main concepts of OVOP which group members should understand on OVOP can be listed as follows;

OVOP as an activity for value addition
OVOP as a business activity with risk sharing
OVOP as an activity of solid and mutual groups members
OVOP support is based on loan from GOM for capital investment


3. Proposal Making


The OVOP Application Form can be obtained either at the Assemblies or OVOP Secretariat. The potential group shall be supported to fill the amplification either OVOP District Officers or the staff of OVOP Secretariat.
The necessary information on the form is as follows;

Group profiles (name, location, products, contacts and so on)
Strength of proposing products
Business records and projection
Market information
Necessary assistance by OVOP (items and loan amount)
Group contribution


4. Pre-assessment at Assemblies


The application should be submitted to the assemblies through OVOP District Officer. The assemblies and OVOP District Committee shall pre-assess the application from the following points; (pre-assessment sheet is attached to Appendix C)

(1) Principle Condition
Element of Value Addition
Usage of Local Resources
Group Formation & Contribution
(2) Business and Marketing Condition
Market Information (Market Demand and Competitors Information)
Business Administration (Profitability, Record Keeping, Proper Loan Amount)
Security & Collateral
(3) Environmental Condition
Land & Place
Power Supply
Water Supply
Transport
Communication Tool


5. Document Assessment at OVOP Secretariat


After pre-assessment hence endorsement by the assemblies, the application shall be sent to OVOP Secretariat. The secretariat shall assess the application from same point as indicated at 4.4.



6. Field Assessment


After the document assessment, OVOP Secretariat shall visit the applying group for field assessment. The assessment team would consist of represents from the assembly and the staff of OVOP Secretariat.
The field assessment includes interview to the members of the group and inspection of proposed sites environment such as factory shell, water supply, electricity supply, means of transport and means of communications.



7. Approval at the OVOP National Board


After the field assessment, the application form shall be submitted the OVOP National Board for final approval. The board meeting shall discuss the approval of the group one a year.

 
 


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