Professional Documents
Culture Documents
Agriculture Science Notes 1
Agriculture Science Notes 1
It is important that farm tools and equipment are regularly maintained and repaired if they break
down. Repair and maintenance of farm tools and equipment is important because:
i. It ensures durability hence increasing their working life.
ii. It increases efficiency in their use and that of the workman.
iii. It is a means to avoid accidents on the farm, (using faulty and defective tools and equipment
can easily lead to accidents).
iv. It is a means to avoid having to buy new tools, hence away of cutting farm costs.
10. Pruning saw For pruning woody parts e.g. Replacing cutting edge.
Coffee, fruit trees. Oiling when in storage.
Sharpening the cutting teeth.
13. Soil auger To collect soil for testing Replacing broken handles.
Oiling when in storage.
19. Pruning Knife For pruning especially tea. Sharpening the cutting
edge.Replacing broken
handles.Oiling when in storage.
Ball pane hammer Flattening rivets. Flattening metal Replace broken handles.
pieces.
17. Square: carpenter Check and mark outangles (right). Carpenters may need to
or mason ensurethat the angle is
900 bychecking
rivets.Joining blade to
stock/ handle.
19. Compass or keyhole saw To cut small holes whenfitting Sharpen the saw blade.
locks on doors. Replacing broken
handles.
20. Bow saw Cutting logs or thick piecesof Sharpen the saw
timber blade.Oiling the metal
Can be used to fell trees. saw framewhen in
storage.
1. Wire brush To scrape off dirt or rust onmetal. Proper storage away
Can also clean dirt on from wetplaces to avoid
concretewalls. rusting
22. Marking gauge Mark points on metal or woodto Replacing marking pin if
guide on where to cut. worn out.
Proper storage.
24. Centre punch Making dents on metal or wood Keeping punch tip sharp
to guide where a specific and enough for effective
precise operation is to be carried markingor making the
out, e.g. boring a hole on a dent
pieceof metal.
26. Scrapper Remove dirt and paint, oranything Keeping the scraping
sticking on a piece ofmetal to be edge sharp.
worked on.
27. Wood clamp For holding a piece of wood Oiling the clamping
inposition when it is being mechanism.Keeping it
workedon. tightly fixed on
theworking bench.
28. Soldering gun: The gun is fittedwith a cylinder Keeping kerosene jet
thatholds the kerosene. cleanOiling hand pump
Pressure is built inthe same diaphragmReplacing
cylinder,which forces thekerosene worn out
out in ajet through a burnerwhen pumpdiaphragm.
lit it producesvery hot flame.To
produce high temperatureby
burning kerosene to meldthe
solder for soldering.
29. Tin snip For cutting metal of thin gauge. Keeping cutting edges
e.g. iron sheets. sharp.
Oiling the pivot.
10. Paint brush For applying paint on wood Cleaning after use
3. Drenching gun or Dosing sun Giving oral drugs to animals. Wash thoroughly after use
5. Strip cup checking whether cow has mastitis. Wash after use
6. Spray pump spray chemical on livestock for Wash thoroughly after use.
parasite control. Oil pump shaft and valves.
Trochar and canular For piercing the rumen of an animal Keeping clean to avoid
when it is suffering from bloat. infecting other animals
Bull ring andlead stick For controlling and leading bulls. Can replace the handle of
the lead stick if broken.
Bucket For milking, drawing water or Keeping it clean.
carrying any other things on the
farm.
18 Strainer/ sieve For straining milk to remove any Thorough washing after
Milking stool For the milk man or woman to sit Keeping it clean .
on when milking.
Weighing balance To weigh things such as milk, Keeping it clean. Oiling
crops, fertilizers on the farm. parts that might get rusty
May require calibration as
required by the Law.
Teeth clipper For cutting off or clipping teeth of Keeping clean to avoid
Young animals especially the infecting other animals
piglets
Bolus gun For the administering of tablet Keeping clean to avoid
drugs orally. infecting other animals
Dehorning wire For cutting off cattle horns where Keeping clean to avoid
there is a need to dehorn an animal infecting other animals
with outgrown horns.
Chuff cutter For cutting animal fodder such as Keeping clean to avoid
Napier grass into small Pieces to infecting other animals
facilitate feeding.
iii) Ridgers
The same principle is applied as in ox- ploughs, the ridger makes ridges. Ridgers require the
following maintenance:
1. The moving parts should be oiled orgreased regularly in order to reduce frictionand
wearing.
2. The yoke should be properly maintained.
3. Tyre pressure should be checked daily before the start of the work.
The advantages and disadvantages of animal drawn implements as compared to tractor
drawn implements are:
Advantages
1. The initial costs of purchasing the animals, the yoke and the implements is much lower
than that of buying the tractor and the tractor drawn implements.
2. A person who operates theanimal drawn implements requires less training than onewho
operates the tractor.
3. Animal drawn implements can be usedwhere land is steep.
4. They are suitable for small scale farm.
Disadvantages
1. They are more tiresome than tractor drawnimplements.
2. More than one person is required to guidethe plough and the animal.
1. Yoke: a yoke is a piece of wood placed on the neck of oxen which is used for pulling
implements.
2. Stroop: the rope enclosing the neck or harnessing the animal to the yoke
3. Where the treck chain is attached
4. Skeis (wooden brackets)
Treck chain attaches the centre of the yoke
v) The sub-soilers - This is a tractor mounted implement that is used to break the hard
pan that has formed in the soil. Hard pans will form due to continuous ploughing at the
same level.
vii) Rotary tillers - These can be used both for primary and secondary. Cultivation
areoperated by power take off shaft of the tractor. They are used for breaking thickclods of
soil and weeding between rows.Normally, they do not dig deep into the soil.Rotary tillers
have many tines which rotateand break up the soil surface leaving an eventilth.
viii) Mowers - These machines are mountedto the tractor's P.T.O. shaft and are used
forcutting grass for hay making or silagemaking. Mowers are also used for
clearingvegetation form the field before ploughing.Most of them are attached at the back of
the tractor through the power take - off shaft ofthe tractor.The mowers are of three types.
- Reciprocating mowers
- Rotary mowers
- Gyro mowers
x) Cultivators - These are mainly used inharrowing- an already ploughed land or theyare
used for weeding in a plantation. Theyare mounted on the tractor.
xi) Sprayers - There are two types of sprayer in common use namely:
1. Knapsack sprayer - this is a common equipment with most farmers. They use it to
spray chemical solutions.
1. lnduction stroke
As shown in the diagram, the fuel-air mixture is sucked into the cylinder.
During this stroke, the inlet valve is open.
The exhaust valve is closed.
The piston moves downwards and the fuel is sucked in.
2. The compression stroke
The fuel-air mixture is compressed in the cylinder.
In this stroke, both the inlet and exhaust valves are closed.
The piston moves up to the Top-Dead Centre. The volume of fuel-air mixture is
compressed in the ration of 8:1.
3. The power stroke
As indicated in the diagram, the mixture explodes after it has been ignited by a
spark plug in petrol engine. In the diesel engine the spark plug is not needed, it is
a fine spray of diesel into highly compressed air whose temperature is at ignition
point.
In this stroke, both the inlet and outlet valves are closed.
Sparks ignition takes place on the compressed fuel. The mixture explodes.
A lot of power is produced in the cylinder.
The piston is pushed downwards.
Petrol engine
The sequence of the petrol engine is as shown in above description of the four stroke engine. For
the above to be possible the petrol must be ignited to release the energy. It is ignited as a mixture
of air and petrol vapour by means of a spark from the sparking plug. The explosion occurs
internally thus the name internal combustion engine. This explosion causes the piston to move
down wards and this then transmits the power to the crankshaft of the engine. The four-stroke cycle
is commenced by means of the electric starter motor which fires when the ignition is switched on
and the starter is pressed.
3. Has a carburetor for mixing air and petrol. Does not have a carburetor.
5. It operates at a lower compression ratio (8: I) It operates at a higher compression ratio (16: 1)
and therefore is less powerful. and is thus more powerful.
6. Power occurs when air and petrol mixture is Only diesel is ignited.
ignited.
8. It uses more fuel per unit area, e .g. per hectare, Diesel engines use less fuel than petrol engines.
for the same work done.
9. Lighter. Heavier.
10. Given tractor of the same horse power, petrol Diesel engines cost more than petrol engines to
engines cost less money to buy. buy.
12. Maintenance is more frequent and they Maintenance is less frequent. Immune to action of
usual1y, have problems in starting. weather. i.e. no plug leads to get worn, no
distributor to get wet, which would cause
problems in starting.
a) Electrical system
2. Generator: this has primary and secondary electrical coils in them and they produce
electricity needed in the tractor. The generator or the alternator charges the battery and
maintains its power when the engine is running.
3. The starter mortor: this is normally mounted close to the fly wheel. When the tractor is
ignited, it turns the fly wheel. The fly wheel starts the engine through the crank shaft.
4. The lighting circuit: this is designed in such a way that the electrical current from either
the battery or the generator will light the bulb when the lighting switch is closed. Fuses
are fitted to break current if any fault occurs in the lighting circuit.
5. Voltage regulator: this prevents over charge of the battery thus prolonging the life of the
battery. Excessive voltage in the system will burn out lights or damage the ignition coil.
6. The distributor: this houses the contact breaker points, condenser, and spark plugs. The
distributor has high voltage current that is conducted from the secondary winding of the
coil to the spark plugs according to the firing order of the engine. Most engines have a
firing order of 1342 or 1243.
7. Contact breaker points: they break the flow of current in the primary winding of the coil.
This induces high voltages (10,000 volts) in the secondary winding. The secondary
current is delivered to the spark plugs.
8. Spark plug: this provides a small gap in the circuit of high voltage current. The gap is inside
the cylinder. The high voltage forces the current to jump into the gap causing a spark that
ignites the fuel mixture.
b) Cooling system
Normally, the engine should warm up to a certain temperature. After the thermostat
regulates the temperature by opening and closing, water in the radiator circulates in the
water jackets in the engine block to cool the engine.
c) Lubrication system
Oil is the lubricant in the engine. It is mainly stored in the sump when the engine is not running.
As soon as the engine starts, the oil is splashed upwards by the crankshaft and the pump ensures
that all parts are lubricated. Oil also helps in cooling the engine. Lubricant oils are classified
based on as per their viscosity. The engine uses S.A.E. 40 (S.A.E - Society of Automobile
Engineers) while the gear box use S.A.E. 90. The number rises with the thickness of the oil.
LUBRICANTS
A lubricant is something which reduces friction between two moving surfaces in machinery.
Examples of lubricants are grease and oil.
Oil is of three types:
(i) Mineral oil---obtained by distillation of crude petroleum.
(ii) Animal oil-from animal products, e.g. tallow and Iard.
CONTAMINANTS OF OIL
These are: dust or soil, metallic particles which chip off as parts move, fuel, water, paint, carbon
deposits in the tank when oil is stored and acids formed when oil decomposes.
(vi) Do not allow the electrolyte to touch electrodes or else the latter will be corroded.
(vii) Keep the battery fully charged all the time. If it has not been used for some time,
recharging is necessary. Depending on the age of the battery, recharging should be
slow and of a long duration. Recharging an old battery in a short time usually ruins
the battery.
(viii) When a battery will not be used for a long time, it is advisable to put it on a piece of
wood and not on the bare ground or concrete because it will lose its power. It is also
advisable to empty the cells and put the battery upside down when it is not going to
be in use for a long time.
(ix) The plates should always be covered to prevent the electrolyte from spilling out and
to avoid contamination.
Agricultural economics is the study of the allocation of scarce resources to satisfy human needs
in farming context
FACTORS OF PRODUCTION:
There are four factors of production: land, capital, labour and entrepreneurship.
8.1.1.1Land:
The term land in economic terms is used to denote all natural resources. Land is a nature-given
source of food, fibre, pasture, building materials, minerals and other raw materials needed by
human beings. The availability of land varies according to population growth and technological
advances but its supply is fixed.
The return to use of land is called rent, that is,a regular payment made by a tenant to an owner or
landlord for the right to occupy or use property.
Rate is a tax levied by local authorities on all properties in their areas of jurisdiction, based on a
fixed ratable value for each property.
8.1.1.2Capital:
Capital consists of physical items such as machinery and buildings that are used to produce other
goods or services. Expenditure on capital is calculated to bring in more goods and services than
the cost of employing it. Such expenditure is called investment.
A return (reward) to own capital employed is called profit and a payment on borrowed capital is
called interest.A regular payment to the owner for the right to use equipment or personal
property is called rent.
a. Sources of Agricultural capital in Zambia:
Farmers in Zambia can obtain loans from the following money lending institutions:
i. Commercial Banks (e.g. Barclays Bank of Zambia, Standard Chartered
Bank (Z) ltd.); ii. Farmers’ Cooperative unions; iii. Insurance Companies;
Basically in all types of lending institutions, there are three types of loans: short-term or
seasonal; medium-term and long-term loans. Security (also called collateral) in a form of
assets of equal value to the loan is required.
i. Seasonal or Short-term Loans - The purpose of these loans is to provide
working capital such as for purchasing inputs like fertilisers, chemicals, seed, and
feed or for employing casual labour. The amount of money that may be borrowed
depends on the size and viability of the enterprise. However, the period of
repayment is one year.
ii. Medium-term Loans - Generally, this type of loan covers a period of three
to six years depending on the size and viability of the enterprise to be undertaken.
Medium term loans are meant for purchase of movable assets such as machinery,
livestock and equipment.
iii. Long-term Loans - These loans are usually for buying a farm or establishing
fixed assets such as bore holes, fencing, land improvements etc. A loan to purchase
land is called mortgage. The period of repayment depends on the amount of money
borrowed, the size of the enterprises and its viability.
8.1.1.3Labour:
Labour human effort used in the production of goods and services. It refers to able-bodied
population available for work. It excludes children below 15 and old people above 55 (retirement
age), as well those between 15 and 55 that are in education and training institutions.
Factors that affect available labour include:
i. The total population; ii. The percentage of the
AIDS; and vi. Average hours worked per day or week per
person.
8.1.1.4Entrepreneur:
A person who runs a business to make a profit is called an Entrepreneur. Entrepreneurship has
two most important functions: (1) risk bearing and (2) management control (see 8.1.2 (ii)).
The aim of any farmer is to produce the maximum net profit from a fixed unit. He/ she has to
make many decisions regarding what products to invest in, and what inputs are required to
achieve maximum output. Many of these decisions are guided entirely by the size of the farming
enterprise.
Methods of increasing production:
All farmers can practise these methods in some way since they (methods) depend
neither on mechanisation, nor on a large labour force.
ii. Improved farm management - This involves careful forward planning and
utilisation of land and labour. Knowledge of the market will also help a farm
manager. Regardless of the size of a farm, good management is essential.
Farm Management may be described as the art and science of organising and
operating a farm business. There are two aspects involved - the technical aspect
and the business aspect.
The technical aspect calls for a knowledge of the scientific principles and
practical skills of crop and livestock production.
The business aspect is a decision making and organisational process and calls for
judgement and business tact. Given a range of choices (alternatives), a farm
manager should be capable of deciding what to produce, how to produce and how
muchto produce to maximise farm profit using a given set of resources.
Capital outlay on machinery is enormous, and only when a farm is really large
can mechanisation be considered. Even then there are drawbacks. Some machines
may remove too much vegetation and produce erosion of the soil. Fewer
labourers will be required, and this may create an unemployment problem.
Recall from 8.1.1 above that the main factors of production are labour, capital, land and
entrepreneurship. The factors, because they are put into the production process of goods and
services are also termed inputs.
In practice, the four inputs are classified in two categories as either fixed inputs e.g. the size ofthe
farm or variable inputs e.g. the amount of fertiliser per hectare can be increased or reduced.
Fixed inputs cannot be varied easily within the period under consideration, while variable inputs
are applied at different rates or levels depending on the scale of production. On a farm, land is
regarded as fixed while labour, capital and entrepreneurship are variable to some extent.
Fig 8.1 below illustrates the effect of on yield of a crop for applying an additionalkilogramme
per hectare (kg/ha) of a fertiliser.
Yield increased with each additional one kg/ ha of fertiliser until about nine kg was applied. Nine
kg/ha is the optimum require for maximum yield (approx. 55kg/ ha) to be obtained. Any
additional fertiliser tends to reduce (and not increase yield against our expectations). The returns
on the crop no longer justify any additional application of fertiliser.
Yield drops probably because soil structure is damaged or soil pH is lowered plus many other
factors.
The point at which additional application of an input will not give additional output is called the
point of diminishing returns (Fig. 8.1).
The law of diminishing returns states that if a variable input is increased while all other inputs
are held constant, a point is eventually reached where the additional output for each additional
unit of input, will decline.
Notice that the law refers to additional output per additional unit of input, and not total
output. Total output could still he increasing while additional output per additional input is
On an open market, the price a farmer can obtain for the farm produce depends on the interaction
between the supplyof and demandfor the produce.
Supply is the amount of the produce that is available for sale while demand is the amount or
quantity of produce that people are willing and able to buy. The price that results from the
interaction of demand and supply is the Equilibrium price. In fig. 8.2 amount of produce
demanded at K60, 000.00 per 50kg bag (equilibrium) is equal to that supplied. Fewer bags are
bought at prices higher than K60, 000 / 50kg and very few farmers are willing to supply at prices
less than K60, 000/ 50kg bag
The quantitiesof a crop (or other commodity)which can be supplied are generally linked to the price the item
commands. If a grower knows that he/she can get a good price far his/her crop, he/she will
supply as much as he/she can. As the price falls, the supply falls too.
The supply of an item is dependent upon there being a demand for it from the consumer or
customer. Demand is also linked to price. As the quantity demanded goes up, the price per unit
falls. Thus the law of demand can be stated: the lower the price, the greater the quantity of the
product demanded.
The supply (and prices) of agricultural products vary with seasons and harvests. If very little
maize is harvested for example, the price goes up, and when there is a surplus, the price falls.
Price controls are a feature of the command or government controlled economy in which the
decisions about production and distribution are made by a central planning authority.
The authority is generally made up of large administrative machinery responsible for issuing
directives about: (1) What to produce; (2) Where to get the supply of farm inputs - seed,
fertiliser, feed etc; (3) What techniques of production to use; and (4) Where to dispose the
finished farm produce.
Positive effects:
v.Inequalities of income and wealth can be minimised thus bridging the gap between
peasant and commercial farmers using subsidies.
Negative effects:
i. The cost of gathering information about what, how and for whom to produce
is likely to be very high as it requires many experts;
ii. Without price signals, it is immensely difficult to estimate the existing and
future pattern of demand for goods and services - shortages recur often;
iv. With administered prices and wages, farmers and their workers may lack
the motivation to produce more; and
Occasionally, price control is achieved by setting floor price, ceiling price and intervention
Sales are increased through activities that constitute marketing. Marketing is carried out by an
individual farmer on a large farm or by a co-operative on behalf of small farmers.
Marketing functions are tasks which must be performed if marketing takes place. Irrespective of
the
agency which performs the functions, marketing increases the value of the product but involves
costs. Efforts to reduce the cost of a given function should contribute to marketing efficiency.
There are many ways of categorising marketing functions. For ease of presentation, marketing
functions are here classified under the following nine headings.
a.Buying and assembling:
This function involves purchasing in small lots from producers or other small suppliers and
bulking up the commodity. For example, co-operative societies and marketing boards
purchase small quantities of milk, maize, coffee, cotton and paprika and assemble the
products into large quantities ready for the next operation.
A small farmer may not buy or assemble.
b. Selling:
In the broad sense, selling includes all those activities that help in the presentation of a
product or a commodity in an attractive manner to the consumer. It includes bargaining for
an advantageous price, arranging the goods in a suitable manner for display as well as
advertising.
c. Transportation:
Transportation involves the physical movement of goods from supply centres to eventual
consumption centres. For example, maize has to be moved from the farming areas to the
main urban centres where it is consumed. Flowers have to be air-freighted abroad where they
are in demand. Alternative transportation methods have to be considered, for cost efficiency
and adequacy in meeting the consumers' needs.
d. Storage:
Processing is the changing of a product from its raw form to a more acceptable or easily
utilisable form. It is largely a manufacturing activity.
For example, milk is pasteurised, separated, converted into butter, cheese, ghee and ice cream
as well as condensed or powdered milk. Wheat is ground into flour and then manufactured
into bread; animals have to be slaughtered and dressed; cotton has to be ginned and then
woven into cloth and fruits and vegetables have sometimes to be canned for ease of storage
and transportation. Literary all agricultural produce are processed in one way or another.
f. Grading and standardisation:
Grading involves the sorting out of things into uniform lots. Standardisation on the other
hand is the establishment and application of measurements, either of quality or quantity.
Grading and standardisation go hand in hand and are essential to effective marketing. They
facilitate buying and selling, especially the pricing mechanism, and this helps to transmit the
consumers' desires to the producers. For example buyers will pay more for the quality they
desire and producers will be induced to produce more of that quality. In addition,
standardisation facilitates the establishment of criteria for inspection and control to ensure
safety and avoid exploitation of consumers. g.Financing:
The process of procuring the raw product from the supplier and transforming the product to a
commodity ready for consumption takes both time and resources. The time factor implies
that whereas money has to be paid today in the procurement of the raw product, the final sale
of the finished commodity and hence receipt of the returns will take place only at a future
date. Capital is therefore required to finance all the activities from original buying of the raw
product to the final sale of the finished good. Most of the marketing agencies have to borrow
the necessary capital from both public and commercial institutions such as banks. A few are
able to meet all their capital needs. In either case, tying up of capital resources is involved
and there is opportunity cost in financing.
h. Bearing of risk:
Owing to the time lag between the original procurement of the raw product to the final sale
of the finished goods, there is uncertainty regarding the final outcome of the marketing
process. The product may suffer physical damage such as destruction by fire, theft or merely
deterioration in quality. On the other hand, consumers' taste may change or other events may
lead to a decrease in demand for the final product. The marketing agency must accept the risk
involved and be prepared to bear the risk.
i. Collection and analysis of market information:
Efficient marketing depends on the availability of market information to all concerned with
the marketing process. Knowledge of supply and demand conditions of a commodity helps
both sellers and buyers to determine the appropriate price. Such questions as where and when
to buy or sell can only be answered if information on the market conditions and trends is
available. Everyone involved in the marketing process must therefore be involved in the
Population growth causes an increase in the number of consumers as well as an expansion of the
labour force; the rate of economic growth caused by population growth must exceed the rate of
population growth if output per head (and therefore potential social welfare) is to increase.
8.2.3 AGRICULTURAL MARKETING POLICIES IN AGRICULTURAL
DEVELOPMENT:
Unlike in a state-run economy (see 8.1.5), in a liberalised economy, the economy's decisions of
what, how and for whom to produce are not taken consciously by individual farmers or
consumers - both prices and output levels are determined by the interaction of the free forces of
demand and supply.
Farmers supply produce (input suppliers supply inputs) and services motivated by their desire for
profit and consumers demand those goods and services that will maximise their satisfaction.
Farmers are free to sell within the country or export produce even at the expense of local demand
just like input suppliers and consumers will import commodities (at lower prices) even when the
same are available in the country.
8.2.4 ADVANTAGES AND DISADVANTAGES OF LIBERALISING MARKETING OF
PRODUCE AND INPUTS:
Advantages:
i. It is argued that a liberalised marketing system fulfils both the farmer and
consumer's choices of goods and services more accurately by providing goods and
services of high quality at reasonable price;
ii. Competition among farmers (and suppliers of inputs) give rise to large
number of goods and services being offered for sell hence the consumer has greater
freedom of choice;
Disadvantages:
i. Scarce resources are diverted to the production of luxury goods like flowers
just on the strength that they are very profitable;
ii. Where the country's manufacturing industry is still young, like Zambia, the
free inflow of imports of capital goods from outside the country reduces the
development of local ones;
iii. Because large profitable enterprises are owned by foreigners, profits are
usually externalised and do not benefit the country; and
A co-operative society is a registered organisation of people who have decided to work together
for mutual economic benefits. A co-operative society may consist of people who want to join
together to do something that they may not be able to do successfully as individuals. These
members of the co-operative must be relatively of the same interest in terms of the type of
enterprises the co-operative would like to pursue.
The main important factors of forming a co-operative society are that (1) it enables the co-
operators to operate at a lower cost by reducing overhead costs and (2) it provides services to
members on sound economic lines. The two factors are achieved in the following ways:
i. Farmers can produce market or consume products at low costs. They can
benefit from the economies of large scale production and spend less money on
commodities because they can be able to buy commodities in bulk as a cooperative
society.
ii. Members of the co-operative society can share overhead costs such as
depreciation of machinery, buildings etc., house rent, permanent labour etc. As a
result of this, a higher net income can be realized by the individual Farmer.
iii. Members of the co-operative society can have access to loan facilities to
help them in their farming activities much more easily: It is possible, for instance
for a co-operative society to secure agricultural inputs on credit and pay for them at
the end of the marketing season. This type of arrangement may not be possible with
an individual farmer.
iv. Members of a co-operative society have better bargaining power for better
prices of their products. This is particularly the case when they want to obtain
agricultural credit, inputs or when they want to purchase capital items such as
tractors which need big capital investment.
vii. Co-operative society members can employ well trained and experienced
staff such as managers, cashiers etc., to do specialised jobs which may not be done
by an individual farmer.
1947 The colonial government was forced to recognize cooperatives amongst indigenous
Africans under a cooperative ordinance
1964 Independence
1966 A new act abolishes the colonial definition of a "farmer" and all assets, liabilities and
obligations of the Northern Rhodesia Farmers' Union (NRFU) were transformed into the
Commercial Farmers Bureau of Zambia (CFB).
1973 Formation in of the Zambia Cooperative Federation (ZCF), the cooperative apex
organization, to coordinate the development, representative and business functions of the
cooperative movement.
1979 Established of the Cooperative College through funding from SIDA, situated in Lusaka
and owned by the Government, is the major institution carrying out cooperative education
and training. The only other institution, which is involved on a much smaller scale, is the
government owned President Citizenship College. The Cooperative College runs
residential, correspondence and field training courses. The training is aimed at educating
cooperative members, elected cooperative leaders, and cooperative staff in the areas of
cooperative organization, leadership and management.
Cooperatives were declared a mass movement by Zambia's sole political party, the United
National Independence Party (UNIP). Through this measure, which included cooperative
representation in the highest decision making body of UNIP, the cooperative movement
became affiliated to the party.
1984 The government adopted as a deliberate policy the formation of Provincial Cooperative
Unions (PCUs) in all the nine provinces of Zambia. As a result six unions were formed in
addition to the three already existing. The main function of the PCUs was agricultural
marketing, initially as agents of the National Agricultural Marketing Board (Namboard).
1988 Government decided, partly as a result of lobbying from the cooperative movement, that
all marketing functions were to be performed by cooperatives only, while Namboard
would be responsible for importation of fertilizer and maintenance of strategic maize
reserves.
1989 Namboard was abolished and all its functions were transferred to the ZCF, which for some
time had been actively advocating this course of action.
Government decided that District Cooperative Unions (DCUs) should be formed and
within less than a year such unions were established in about half of Zambia's over 50
districts.
1990 Government agreed to transfer the Cooperative College to the cooperative movement, in line
with the original intention of the donor.
1991 Zambia Cooperative College Society Ltd (ZCCS) was established with PCSs, cooperative
unions and national level cooperatives as members
1992 CFB changed its name to the Zambia National Farmers’ Union (ZNFU).
iv. Leaving or joining freely - Members must be able to join or leave the co-
operative society at their own free will.
Formation of Co-operatives:
When farmers in a given area feel the need for forming a co-operative society, they come
together, discuss among themselves and declare their intention to form a co-operative society.
The members draft the co-operative rules or bylaws which specify the objects of the society, how
the society will be run as well as the rights and obligations of the members. At the same time, the
society should elect its officials - Chairman, Secretary, Treasurer and Committee Members who
form the Management Committee. The society would normally also have a paid manager, clerk
or clerks and drivers if the society owns vehicles.
If the number is enough (In Zambia, the minimum number of eligible persons who can form a
co-operative society is ten
(10), the prospective members should then apply for legal registration of the society to the
government (Registrar of Societies). Legal registration of a society gives it a corporate existence
enabling it to own property, invest money, engage in buying and selling and conduct any other
approved activity in its own name.
Types of co-operatives:
Co-operative societies at the local level are known as primary societies and are joined by
individuals with similar interests. Local societies join into district co-operative unions which
further join to form the National Cooperative Federation and later the International Co-operative
Alliance.
Primary co-operatives are mainly for production and marketing and to a very small extent
trading. A primary cooperative that is engaged in all the three functions is called a multi-
purpose co-operative.
a. Aims:
A co-operative society needs adequate funds for erecting buildings such as offices, stores
etc., as well as for buying agricultural inputs. Furthermore, a co-operative society needs
money for making prompt payment whenever their members take their farm produce for sell.
c. Volume of business
The volume of business should be large enough to enable a co-operative society to benefit
from economies of large scale operations.
d. Entrepreneurial ability
A high level of entrepreneurial ability is necessary for the success of the co-operative society.
The following factors are very important:
i. Management - Insufficient management can lead to a collapse of a co-
operative society.
a.Processing:
All kinds of farm products such as crops or animals can be produced by a co-operative
society. Livestock products such as milk can be processed into cheese or butter. Crops such
as fruits can be processed into juice and marketed by the cooperative society.
Production and processing of produce can be done more efficiently and cheaply when people
work as a group because a co-operative society may be able to afford better processing
equipment than an individual farmer.
b.Marketing:
MUCHINGA PROVINCE@2018 Page 48
Marketing is sometimes linked with processing of farm products in the same co-operative
society. A co-operative society may open up a shop where it sells the products such as
cheese, butter or fruit juices after processing them.
Co-operative shops help to improve the standard of living for the members as they enable
members buy products at reduced prices. Transport and storage costs are cheaper per article
or unit of weight when large quantities are involved. Some customers too, often prefer to
grade and buy in large quantities. Co-operative marketing is better than bargaining as an
individual.
c. Buying:
Farm inputs such as seeds, sprayers, farm implements, fertilizers etc, cost less if they are
bought in large quantities. A buying co-operative can save its members money by purchasing
these goods in large quantities at discounted prices.
d.Machine sharing:
One of the best ways in which small scale farmers are able to use power machinery on
society would be able to purchase or hire farm machinery which would not be profitable if
used on a single small farm. The fixed costs are spread over several fragmented ‘farms’
which will give a large total form production at low cost.
e.Other Services:
A farmers' co-operative society can provide other services such as improved bulls, artificial
insemination services and other breeding livestock can be owned by a co-operative and used
by all members.
f.Banking:
When farmers put their savings together, the amount of money may become a large sum. Out
of this sum, members are able to borrow money as individuals.
Government and other organisations are more willing to support co-operative banks by
lending them money. In this way, the co-operative banks can then be able to help the
members of the co-operative society as it may be possible for members to obtain larger sums
of money in form of loans.
ZCF has 15 affiliates. Besides the nine PCUs, one for each province, the following organizations
are affiliates: Credit Union and Savings Association of Zambia (CUSA Zambia), National
Marketers Cooperative Union, Zambia Agricultural Trading Cooperative, Zambia Army Multi-
purpose Cooperative Society, Zambia Farmers Cooperative Society and Zambia National
Farmers Union (ZNFU).
Two specialized national cooperative apex organizations, the Cooperative Bank of Zambia
(COBZ) and the Zambia Cooperative College Society Ltd (ZCCS) are closely related to ZCF but
not formal affiliates.
In addition to being a spokesman for the cooperative movement ZCF serves as a coordinator of
foreign aid and development programs for cooperatives. National level cooperative business
activities are also carried out through ZCF and its subsidiary companies. ZCF Finance Services
(ZCF FS) provides mainly short and medium term agricultural input loans; ZCF Professional
Services (ZCF PS) renders computer, audit and accounting services; the newly established ZCF
Insurance Services (ZCF IS) is already a major actor in the insurance market, and ZCF Properties
administers ZCF's real estate.
ZCF also operates the following autonomous divisions: ZCF Commercial Services for
agricultural inputs and implements, as well as consumer goods; ZCF Transport and Engineering
Division operating a sizeable fleet of trucks for transporting mostly of agricultural commodities;
ZCF Agri-Business Division, currently primarily involved in national maize storage operations;
and ZCF Development Services Division with a focus on the development of PCSs in the rural
areas.
c. Cooperative College is the major institution carrying out cooperative education and
training. The Cooperative College runs residential, correspondence and field training
courses. The training is aimed at educating cooperative members, elected cooperative
leaders, and cooperative staff in the areas of cooperative organization, leadership and
management.
d. Collaboration is an area which the cooperative movement has not yet given
sufficient attention. Such organizations, with which preliminary contacts have been taken,
include the ZNFU, other farmer organizations, the National Confederation of Chambers of
Commerce, the National Federation of Employers, and a number of special interest NGOs.
After areas of mutual interest have been identified, the organizations can be instrumental
in influencing public opinion and in assisting in applying pressure for the desired change
on the government and the political system
e. Financial institutions and donors – External organizations have for many years
provided finance and technical assistance for the implementation of the previous
cooperative policies of government.
Explain budgeting
Prepare a budget for an enterprise.
Prepare a cash flow budget for an enterprise.
8.4.1 A BUDGET:
A budget is an estimate of how much you are going to have to spend, and how much you are
likely to get back, for each farming enterprise.
8.4.2 PREPARING A BUDGET:
To prepare a budget, write down in detail the maximum expected costs and all the minimum
expected returns. It is wise to estimate cautiously to be on the safe side. These two lists can be
put side by side, as in an account sheet.
Examples of budgets are complete, breakeven, partial, capital and cash-flow budgets.
On a farm, a complete budget may take the following form:
Cash flow budgets have different names such as cash budgets, cash statements, cash-flow plans,
cash-flow profiles and cash diaries. In a chart form, they are often called cash flow charts or
Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept.
2004 2004 2004 2005 2005 2005 2005 2005 2005 2005 2005 2005
Cash inflows
(receipts) (+)
Opening cash
balance
(K696)
Maize 261 480
Tobacco 174 383 17
Groundnuts 63
Orchard 52 52 52
Livestock 44 11 14 17 17 17
Total 44 261 0 480 0 11 0 240 452 86 80
inflows
Cash outflows
(expenses) (-)
Seed 26
Fertilizer 188
Pesticides 7
Labour 24 24 24 24 24 24 24 24 24
Capital 44 1832
cost
Personal 94 21 21 21 21 21 21 35 21 21 21
Others 7 70 35 38
a. Direct costs:
They are also called direct enterprise costs, variable costs, operating costs or prime costs.
Direct costs are all the purchases of items used in the process of producing crops and
livestock i.e. they are all those costs that vary in roughly direct proportion to the level of
activity and are specific to a given enterprise.
Examples:
i. Raw materials:
• Seed,
• Fertiliser,
• Chemicals.
• Livestock purchases,
• Stock feed. ii. Contract hire:
• Machinery,
• Transport, • Labour
dip fees,
They apply to the farm as a whole and therefore do not vary according to the number, kind or
size of the enterprises. They are also called common costs, overhead costs or fixed costs.
Examples:
i. Administrative office expenses:
•
Accountancy fees,
•
Post, fax and telephones
ii. General overheads:
•
Roads and other rates,
•
Licences,
•
General insurance;
•
Liming.
•
Depreciation
machines and buildings,
•
Licences and
repayments e.g.
mortgage,
Price is the cost of one unit of a good or service. It is usually expressed in money but not always
- the price of a bride may be 25 herds of cattle.
The selling price of a product is vital in marketing because sales depend on consumers’ attitudes
to the selling price.
The attitudes of consumers are expressed in the demand for the product while the willingness to
sell at any given price is shown by the supply. Price of a product in an open market is therefore
determined by the interaction of the supply and demand. (See 8.1.4 above)
The complexity and importance of deciding the ‘right price' varies with the size of the business
and the product to be sold. This difficult decision is easier for those, like stall-holders, who are
continually facing their customers and can quickly adjust their prices.
Two basic factors affect price of a product are therefore the cost of production and the market
(consumer attitude).
The most common pricing methods are as follows:
For example,
In the last method the estimated costs of K120, 000, 000 covered both variable costs and a share of common
costs, say K20, 000,000. The sale of 833 bags (K20, 000,000/ K24, 000) will cover the common costs to be met by
the contribution from
the crop enterprise.
Since the common costs have already been met, any price over the variable cost of production will add to
profit.
Price is fixed after considering the price range among competitors offering the same or substitute products
and after allowing for any difference in quality. If Farmer A is selling maize at K30, 000 and the rest are
selling at K25, 000.
Any price below or equal to K30, 000 will attract consumers than one above K30, 000.
The product is priced according to assessments of how much consumers would be willing to pay. A balance
must be found between too high a price, which might attract competition, and too low a one to yield
inadequate return.
A farm is often viewed as groups of independent, productive units called enterprises. Gross
margin (also called gross profit) is the difference between enterprise production and the marginal
cost of that production.
For practical purposes, however, gross margin is taken as the surplus (or deficit) remaining after
variable costs have been deducted from the value of production or gross income.
Gross income (total value of production) the value of the produce sold and value of produce
consumed by the farm household or farm labour, less livestock purchases, adjusted for changes
in value of growing crops, livestock and stocks in hand.
8.5.4 INCREASING GROSS MARGINS:
the level of activity without raising the variable and fixed costs
An inventory is a list of crops, livestock and ‘deadstock'. Deadstock consists of assets other than
growing crops and animals e.g. buildings, machinery, inputs and produce in store.
An inventory involves taking physical measurement and counts of assets.
The procedure of carrying out an inventory involves listing all the assets found on the farm: (1)
Fixed and part fixed capital assets like land, buildings, improvements, plant and machinery; (2)
Purchased stores like seed, feed, fertilisers and chemicals; (3) Harvested produce on hand;
whether for sale or feeding and fodder; and (4) Growing crops and Livestock.
8.6.2 VALUATION:
Valuation or ‘stocktaking’ means costing the identified business assets. It is the process of
estimating the current value of the farm.
Reasons for valuations:
ii. To find the value of the stock used during the period concerned.
Considering annual valuations for an ‘on going concern’ (any business that will, and can
financially stay in business) valuation, or `stocktaking' means attaching money value of the
business assets identified when the farm inventory was taken.
i. A new farm - The total value of the assets at the beginning of the financial
year is called opening valuation. On a new farm, it entails determining the value
all the assets present and finding their sum as follow:
ii. An on-going concern - The opening valuation is the closing value of the
The closing valuation is carried out at the end of the financial year. The procedure is similar
to that of opening valuation.
An outgoing/ incoming valuation is quite different as it relates to an actual sale/ purchase of
assets - the end of one business and the start of another - and requires professional valuators.
8.6.4 METHODS OF DEPRECIATING MACHINERY:
in technology and consumer taste; and iii. Gradual deterioration with age.
of the asset.
c. Methods of depreciation:
Depreciation is calculated as the estimated total loss of value of the asset divided by the
Depreciation is calculated by writing off a fixed percentage from the falling written down book
value each year; not of the original cost. Annual depreciation falls as the asset ages.
Example:
Calculate the depreciation of an asset worth K5, 000, 000 over a period of 5 years by reducing
or diminishing balance method. Assume the asset depreciates at 5% per annum.
Depreciation is calculated as a fraction that drops each year so that the total depreciation is
covered during the asset’s useful life. The denominator is the sum of the individual years of
expected useful life and the numerator is the years of life still left at the start of the year (table
8c).
Example:
Calculate the depreciation of an asset worth K5, 000, 000 over a period of 10 years by sum of
digit method. Plot a graph of annual depreciation.
This is a way of adjusting the straight line method to allow for interest on the reducing balance.
It adjusts the asset value to the time value of money.
v. Use adjusted methods:
This method considers use and not the passage of time. The expected loss of value is divided by
the output that it is a likely to process produce.
Alternatively, the amount written off may be divided by the hour that the machine is likely to
work or if it is a vehicle by its estimated life in kilometres. This method considers tear and wear
only.
vi. Revaluation:
8.6 INSURANCE:
There are many variables outside the producer's control which influence agricultural production.
Because the farmer will not know everything about future events, he/ she is often uncertain of
the outcome, in the future, of his production decisions at the present time. The farmer can only
predict based on his experience and on information available to him about what is most likely to
happen. A farm Manager has to constantly deal with elements of risk and uncertainty.
a.Risk:
Risk is the difference between the expected and actual outcome. A risk is measurable. Risk is
therefore an eventuality to whose occurrence, a probability can be attached. For example if
drought occurs, on average, every two years out of five, the probability of drought occurring
is 2/5.
Example of risks:
i.Weather changes,
ii.Fire,
iii.Theft,
iv.Accidents,
iv. Pests and diseases,
his/her family.
b.Uncertainties:
This refers to the unpredictable impact on output of weather, pests, and diseases and other natural
calamities. Natural hazards may also be described as yield or output uncertainty. For example,
rains may fail, as happened in 2004/5 growing season, or disease and pest outbreaks may occur.
ii. Market Fluctuations:
This refers to the rise and fall of prices of commodities on the market. The price of a product
may rise when it is in short supply and many producers are attracted to the idea of producing this
commodity. As a result, the supply becomes excessive and the price falls. The problem is more
severe where information is lacking and markets are imperfect. Market fluctuation is also called
Price uncertainty.
iii. Social uncertainty:
Social uncertainty refers to insecurity caused by differences over control of resources that
farmers depend on. This occurs where there is unequal ownership of land especially among
peasant farmers. A farmer renting land may experience insecurity of tenure. Where a farmer is
leasing land from a landlord, the farmer is never sure whether after he/ she has to put their
money and effort into improving the land, the landlord may cancel the lease and ask the farmer
to leave the land.
iv. State actions and Wars:
The peasant farmer is not only uncertain about the weather, the market and the local behaviour of
the Land lord or money lender. Peasant economy is susceptible to the various decisions by
agencies of the state. A coup, a visit by IMF, globalisation of economies, political party
manifestoes, and warfare all affect agriculture in unpredictable ways.
v. Innovations:
In addition, when a new crop or production technique is being adopted, there is the added
uncertainty associated with incomplete understanding of the crop or technique. Example a farmer
doing mixed farming for the first, if he/she does not have experience on how to manage he can
record a loss.
8.7.2 WAYS IN WHICH FARMERS ADJUST TO UNCERTAINTY:
Some farmers are more willing to take risks than others. Farmers with more resources at their
disposal are more able to bear the risk than those who have very limited resources. Nevertheless,
all producers tend to adjust their production plans to take account of uncertainties and risks. The
adjustments are intended either to reduce the degree of uncertainty, or to increase the farmer
ability to bear risk. The following are the most common measures that farmers may adopt.
Natural hazards:
i. Irrigation:
Irrigation is an answer to rainfall shortage. Note that irrigation serves both to reduce the risk of
drought between one season and the next season due to fluctuations of water supply to plants. In
This is the sector that helps to assist the farmers who are the members to the insurance company
on the impact of natural hazards occurring in agriculture. It is a requirement in Zambia that
farmers, who are advanced in cash for the production eg: maize and wheat under the seasonal
credit system, also insure their crops. Premium is collected from members and paid only to the
risk bearers
iii. Resistant Varieties and breeds:
Coming up with new varieties and breeds in plant breeding and selection helps to come up
withcrop and animals resistant to pests,diseases, drought and therefore stability of yields.
iv. Diversification:
Diversification is having more than one enterprise within the same farm for example rearing
livestock alongside crops one product would achieve maximum profits, uncertainty will
influencethe farmer to engage in the production of several products.
Incase a disease wipe one enterprise, or the price of one product fall to an unprofitable
level, the farmer will not suffer total loss, since the other products will bring him/ her
some revenue.
Enterprises selected for diversification should not be influenced in the same manner by the same
factors, nor should their prices rise and fall together. For example, grains and legumes as well as
crop and livestock enterprises should be good combinations for diversification, rather than a
grain and another grain.
v. Input rationing
The farmer applies less than the optimum quantity of input, so that should unfavourable
production conditions lower yield, or prices become reduced, the loss the farmer suffers is less
than the maximum he/ she could have suffered.
For example, if 10 units of a compound fertiliser are the most profitable application in potato
production, the farmer may only apply eight units. If conditions are favourable, he/she will forgo
the additional output the ninth and tenth units would have brought. But should conditions be
unfavourable, his/ her loss will be the cost of eight units instead of ten.
vi. Flexibility in production methods:
This involves selecting less than optimum production methods which will make it possible to
switch from one product to another should production or market conditions dictate a change.
For example, livestock buildings would be such that, with minor modifications, they could be
used for pigs, dairy cattle or poultry. Similarly, a farmer with dual purpose cattle can emphasise
either dairying or beef production, depending upon which production conditions favour him/her.
A wheat farmer may decide to hire a combine rather that buy his own, so that when wheat is no
longer profitable, he may shift to maize production without incurring losses on fixed costs of
machinery.
In general, annual crops are more flexible than either perennial crops or livestock enterprises.
The farmer selects an enterprise which is more certain to yield a return than a more profitable
one. For example, a poultry enterprise may be more profitable than a dairy enterprise, but it is
more likely for poultry to be wiped out by disease than dairy cattle. Hence the farmer may select
the more reliable dairy enterprise and forego the high profits of poultry production. This again
involves opportunity cost.
Market Stability:
i. Price stabilisation:
It takes many forms that contributes to price stabilization such as state intervention, from issuing
minimum floor prices for key strategic staple food crops to fixed producer prices across a wide
range of crops.
ii. Information:
Where risk occurrence is attributed to inadequate information (about new seed, prices, use of
inputs etc.) the information provision is a useful component of a risk reduction policy.
Transmission of information to peasant farmers may take the form of extension work, farmer
training and visitation programs, radio, bulk leaflets, and Agricultural science teachers in
schools.
iii. Credit Subsidies:
Where risk aversion is related to disaster avoidance and when the farmer fails to adopt higher
productive technologies like use of new seed varieties and other inputs that go with them e.g.
fertiliser and pesticides because of the same, easier credit is seen as a means of overcoming the
barrier.
Social and State Hazards:
There are no single policy solutions but rather a matter of politics.
The development of the Agricultural sector to attain self-sufficiency and exportable surplus in all
areas has necessitated large capital investment, both short and medium term, making insurance
an important consideration for farmers at all levels. While the details of the policies offered by
different insurance companies may differ, there are two types of insurance: crop and livestock
insurance. (Note that the outline given below is typical for Zambia State Insurance Company
only, other companies may have different packages under the same headings.)
8.7.3.1Crop Insurance:
The basic protection available covers loss or damage due to fire and lightening and is suitable for
both irrigated and rain-fed crops
The following crops are insurable against the exposure to fire and lightening: Maize, Wheat,
Sunflower, cotton Groundnuts, Soya beans, Barley, Sorghum, Sugar cane and Tobacco (from
harvest to auction).
This covers a range of animals and birds under All Risks Mortality (A. R. M):
a. Beef and dairy herds - The three levels of cover cater for the dependence which a
farmer requires and can afford, and cover death of the insured animal(s) resulting from
accident, illness and disease or epidemics and emergency slaughter of the insured animal
on the advice of the qualified veterinary surgeon.
i. Single Animal Cover - Designed to cover the high valued breeding animals
especially bulls. Imported animals are restricted to accidental death only for the first
three months.
ii. Scaled Indemnity Cover - It is designed for small to medium sized herds of
8 to 60 animals, especially dairy stock. As the title suggests indemnity increases are
dependent on the number of animals lost.
iii. Large Herd Catastrophe Cover - It is suitable for large herds of over 100
animals. Cover is in respect of major tosses e.g. Epidemics able to endanger farm
success. Extension can be made to cover theft, calving and transit risks.
N.B. In all forms of cover, calves under 6 months and animals of over 10 years
are not insured.
b. Game ranching - The cover under All Risks Mortality can also be used for game
animals in respect of the original wild stock and those bred in captivity.
c. Ostrich farming - The same cover is available for ostriches whether original wild
stock or bred in captivity. Cover can also be provided for poultry, pigs, horses, dogs and
sheep.
d. Lima ox - Where commercial Banks provided loans for purchase of oxen, cover
under All Risks Mortality (A.R.M) can be arranged during the loan repayment period. In
respect of the above scheme claim settlements are made to the bank.
e. Aquaculture - Fish farming is now a major new Agriculture Development and cover
can be arranged to meet the individual requirements of each operation.
f. Farm pack - This package Cover provides for the major types of risks that a farmer
needs to consider protecting assets and liabilities. With one Proposal, one Renewal and one
Premium, Administration costs are reduced enabling the Insurance Company to give
discounted rates, dependent on the number of sections effected. A unique concept under
the fire and exposure Cover is deletion of the condition of average. The proposer (farmer)
decides the value of building and in the event of damage the claim settlement will be the
percentage loss against the sum insured.
•
Householders
•
Employers Liability
•
Public Liability
•
Cash In Transit
•
Livestock
•
Farm workers Personal accidents
•
Cold Rooms
•
Plant all Risks
•
Motor vehicles
•
Goods in Transit
LIVESTOCK PRODUCTION
Economic Importance of livestock
State the economic importance of the types of livestock
• Source of manure
• Oxen are a source of farm