MARKET GARDENING

For research and development:

ABOUT THESE LESSONS

These lessons are mainly suitable for older learners. They introduce them to the habit of "looking before you leap" - a very good business practice! In particular, learners are encouraged to investigate the market to see if their products will sell, do a few calculations to see whether the enterprise is worth the effort, and make their financial thinking clear to themselves and outsiders. The first five lessons form a close sequence, each depending on what goes before. Lessons 6 and 7 are desirable but not essential. If there is a Business Studies syllabus, discuss with Business Studies teachers how this project can be integrated into it.

To complement this series of lessons, you will need to decide what lessons are needed on essential horticulture from Set F, and on food or food processing from Sets D and G. The project should continue and finish with the OVERVIEW lessons from Set H, including Lesson 3 Evaluation.

1. MARKET RESEARCH This introduction to market research needs a double lesson (break after Stage 2). If possible, invite local market gardeners to talk about their successes and to comment on learners� ideas.

LEARNING OBJECTIVES Learners - recognize the importance of market research - brainstorm product ideas - carry out simple market research.

RESOURCES NEEDED

- large sheets of paper, preferably shaped like pips
- large felt pens, crayons or sticks of charcoal
- the pictures from the story copied and enlarged

PREPARATION

As preparation, learners research these questions, one set per team:

- What foods in the home are bought? Can any of them be grown by us?
- Who grows food for sale? What? What is most profitable? How do they decide what to grow?
- What fruit and vegetables are on offer at local shops/markets/stalls? What are the prices?
- Are there any fruit or vegetables people would like to have which are difficult to obtain?
- If there is a school meals service, where does it buy its food? Are there any products the service would be prepared to buy from the school garden?
- Apart from food, what other things do people grow to sell?

LESSON

1. Lead-in Explain the lesson aims: to start thinking about product ideas with profit in mind.

2. Cautionary tale Tell the sad tale of Freddie, Mereby and the Tomatoes, showing the pictures as the tale is told and pausing for discussion at the starred* points. If possible, leave the pictures on display so that they can be used again in the re-telling (Follow-up 3). At the end, learners sum up what Freddie and Mereby should have done, and say what the story teaches us (We need market research!).

3. The markets The class report briefly on what they have discovered about cash crops. Ask them to check that they have considered all the possible outlets in Guide A.

4. What could WE grow to sell? Brainstorm possible products (eg. herbs, seedlings, raw food, preserved food, snacks, compost, firewood, baskets, brooms, flowers). Write specific ideas on separate large pip-shaped pieces of paper, and pin them up around the room. These are "product idea papers" or PIPs.

5. Five questions Learners choose one PIP as an example. Explain that to research the market we need to ask five important questions:

a) What will be special about our product?

b) Who will buy it and where?

c) Which markets are best?

d) What will customers pay?

e) When is the best time to sell?

Learners discuss these questions in relation to the selected PIP, using Guide B to guide the discussion. Write learners� ideas on the PIP.

6. Preparation for research Teams each choose another promising PIP, and undertake to research the five questions for it, following the hints in Guide B. Emphasize that these are still only provisional ideas: they may adopt other ideas if they wish.

FOLLOW-UP

1. Market research Teams carry out research, summarize their ideas on the PIP and prepare to present them.

2. Survey Learners extend their research with a market survey, choosing a representative sample of possible clients and asking them (e.g.) Would you buy this product? What would you pay?

3. Happy ending Learners re-tell the story of Freddy and Mereby so that the brother and sister do everything right and arrive at a happy ending. They can also take the story home and tell it to family and friends.

LESSONS IN OTHER SUBJECTS

Economics Cash crops in the local economy

FREDDIE, MEREBY AND THE TOMATOES

Change details to suit your own context and circumstances. Pause at the stars* for discussion.

MARKET OUTLETS

WHERE CAN YOU SELL SCHOOL GARDEN PRODUCE?

DO YOUR MARKET RESEARCH!

2. PRODUCT PROPOSALS This lesson follows directly from the previous lesson, Market research. Again, if possible, involve "consultants" from the world of business and market gardening: real people and real experiences are the best educators.

LEARNING OBJECTIVES

Learners

- collect information about proposed products
- consult appropriate experts (e.g. horticulturists, home economics teachers, smallholders)
- present product proposals.

RESOURCES NEEDED

- a folder which will become the Project File
- learners� PIPS (product idea papers), completed for homework

PREPARATION

- Following Lesson 1 Market research, learners should have collected market information about product ideas: what can be sold, what the particular selling points will be, which markets they should aim at and why, when they should sell and what price they should ask.
- Write up the "personality keywords" from stage 3 before the lesson.

LESSON

1. Lead-in Teams report on their market research. They display and talk through their PIPs (product idea papers) and say how successful they think these ideas might be. Encourage objectivity and common sense: this is the time for keeping a level head.

2. Selection The class chooses the most promising idea and proposes a name for it.

3. Roles and teams Explain that, although everyone will do a bit of everything, we will also need specialist teams responsible for

a) production

b) accounts/ records

c) sales

d) publicity/advertising.

What kind of people does each team need? Some "personality keywords" for discussion are:

good contacts	creative	honest
loves gardening	hard worker	enthusiastic
good organiser	artistic	energetic
good with people	good writer	good head for figures

Learners can recommend each other, or volunteer for a particular team.

4. Records Hand over the folder to the "Accounts and Records" team. They should file project ideas, record team names and start a Project Log, a weekly account of events for the file.

5. Product information Further information is now needed about the selected crop. With the class, go through the Crop Factsheet in the Guide, answering the questions where possible and discussing what further information is needed about the crop to be grown. Class members/teams volunteer to find out specific information to complete the factsheet.

FOLLOW-UP

Product information Learners research product information for the following lesson. They should consult local farmers and gardeners, families, agricultural experts.

LESSONS IN OTHER SUBJECTS

Management Team-building

^* The first time round it is easier to keep track if the whole class works on the same project idea. With older learners you may want to divide into teams, each with a different product. It is also a good idea for everyone to be involved in production, with "time off" for other activities.

¹E.g. groundnut shells can be compressed for fuel; sunflower oil is good for lamps or as lubricant; pigeon pea stems make good fuel; bottle gourds can be turned into containers; bananas leaves are used for baskets and wrapping food; pawpaw leaves tenderise meat; pineapple fibre from young leaves makes fabric; coconut shells are used for bowls.

3. PRODUCT INFORMATION This third lesson brings together the information needed for drawing up the business plan in the following lessons. Bring in an expert gardener or agricultural extensionist if you can find one!

LEARNING OBJECTIVES

Learners

- assemble essential information about the product and the inputs required
- recognize the range of roles in developing a product and what they involve.

RESOURCES NEEDED

- learners� homework research on crops
- blank copies of the Crop Factsheet, Guide B and

Guide C

- flipchart paper for recording learners� decisions

PREPARATION

- Learners should have collected product information from local experts and should be ready to report on the crop, the inputs required and costs, referring to their crop factsheet.
- Display the ten questions in Guide A so they can be referred to in later lessons as well.

LESSON

1. Lead-in Explain that we are now moving towards creating a Business Plan. Ask learners to look at the ten questions in Guide A. Ask them which ones they have already discussed (1-3). Explain that we will cover questions 4, 5 and 6 in this lesson.

2. Product information Learners report on the product information they have found out. The Production Team completes a fair copy of the Crop Factsheet, which is put in the Project File.

3. Scale of production What is the size of our project? How much land do we need? How much time can we give? How much do we hope to produce? Encourage learners to produce rough figures (e.g. number of plants, number of square metres, number of kilos) so they have something to work with. They can change these estimates later. The Accounts and Records Team should record final decisions (as in Guide B).

4. Inputs What will we need? Together, draw up a list of all the inputs required for the project, where to obtain them and how much is needed. These should be recorded by the Accounts and Records Team (as in Guide C) as the discussion goes ahead. N.B. Some inputs may be begged, borrowed or free, and will not incur costs. But put them all down.

5. Responsibility for inputs Discuss and decide which teams, individuals or groups will be responsible for obtaining each input.

FOLLOW-UP

Action For homework, teams draw up a list of their responsibilities and a first list of things to do.

LESSONS IN OTHER SUBJECTS

Business Studies Business Plan

PRODUCT INFORMATION

THE QUESTIONS TO ASK OURSELVES

		What are we going to produce?
		How do we do it?
		How and where will we sell our products?
		How much do we plan to produce?
		Where will we get our inputs?
		What will our costs be?
		What will our income be?
		How much profit do we expect to make?
		What are the risks and how can we avoid them?
		What will we do with the profit?

PRODUCTION ESTIMATES

HOW MUCH CAN WE PRODUCE?

INPUTS REQUIRED

(e.g. tools, equipment, seeds, transport, packaging, labels, ingredients)

4. PROFIT BUDGET2 We come to the vital activity of predicting profit. This is done by estimating production and expected income and subtracting costs. N.B. If a double lesson is needed, break after Activity 4.

LEARNING OBJECTIVES

Learners

- estimate the profitability of possible products.

RESOURCES NEEDED

- list of inputs, sources, prices from the previous lesson
- (optional) two cardboard "postboxes" for learners to post ideas for the next lesson
- the ten questions from Product Information (Guide A in the previous lesson)
- copies of the blank Cost Analysis form (Guide B in this lesson)

PREPARATION

Teams prepare lists of team responsibilities and a list of things to do.

LESSON

1. Lead-in Learners look again at the ten questions in Product Information (Guide A in the last lesson). Which have we discussed and answered? (1-6) We now come to the big money questions (7 and 8). Can our project make a good profit?

2. Demonstration of cost analysis Referring to Guide A in this lesson, show how to draw up a table of projected costs and income and calculate potential profit. Explain that we only deal here with inputs which cost money.

3. Own cost analysis Learners should have a list of project inputs from the previous lesson. They select only those which cost money. In groups, they do a cost analysis for their project using the form in Guide B, and present their results. When the whole class agrees on the figures, file the cost analysis. Say that we will look at this again later to see if our estimates were right.

4. Team activities Discuss teams� responsibilities (some possibilities are in Guide C), trying to even out the workload. Emphasize that teams will need to help each other out, and should consult each other frequently.

5. Risks and profits Remind learners that we have two of the ten questions left, dealing with risks and use of profit. Recall the story of Mereby and Freddie. For the following lesson learners should think about

a) what risks there may be

b) what to do with the profit they make (if any).

Set up two "postboxes" with slots in the top, labelled RISKS and HOW TO USE THE PROFITS. Invite learners to post ideas in the boxes before the next lesson.

FOLLOW-UP

Risks and profits Learners think of risks and of what to do with profits.

LESSONS IN OTHER SUBJECTS

Business Studies Cost analysis, fixed and variable costs

² N.B. To calculate economies of scale we need to recognize the difference between fixed costs (the same whatever you do) and variable costs (which change according to the scale of production). For simplicity we have left out this element, but if your students can handle it, ask them to calculate the profit margin with different production levels; they will soon see that higher output can mean a proportionally greater profit, when the fixed costs remain the same.

COST ANALYSIS OF TOMATO PROJECT

INCOME

COSTS

COST ANALYSIS FORM

DO YOUR OWN COST ANALYSIS ON THIS FORM.

INCOME

Costs

RESPONSIBILITIES OF PROJECT TEAMS

WHAT ARE YOU GOOD AT?

5. BUSINESS PLAN This lesson brings together the learners� work so far in a form that could be presented to the public or to a funding agency. It also discusses what to do with the profits, an absorbing subject which raises practical, ethical and business questions. This can be given a separate lesson, or can be dealt with again when the project looks likely to make a profit.

LEARNING OBJECTIVES

Learners

- anticipate risks
- discuss how to use the profits
- draw up a business plan
- present a business plan.

RESOURCES NEEDED

- cost analysis of the project from the previous lesson
- the ten questions from Product Information (Lesson 3, Guide A) used in the previous lessons

PREPARATION

Learners should have submitted suggestions about potential risks and what to do with profits. Before the lesson, sort their suggestions into groups.

LESSON

1. Lead-in Refer back to the ten questions in Product Information (Lesson 3, Guide A). Say that in this lesson we will deal with the last two questions, and will then be ready to draw up a Business Plan.

2. Risks Each team describes the risks it has thought of and says how it plans to avoid them. Ideas for action should be noted by each team. For example:

Production: Water may be a real problem in June. Can we get it from the river?

Sales: The markets may not want to sell our product. We must find a willing stallholder at once.

Publicity: People may not want our product. We should do a survey to see if they are interested.

Accounts and records: Anyone might steal our money. We need a secure cash box.

3. What to do with the profits? Learners select a few good ideas and discuss them. At the end they sum up the points raised and record the ideas in the project file. Suggest discussing the ideas again later in the project: this gives learners time to reflect.

4. Business Plan Proforma Introduce learners to the Business Plan Proforma and example in Guides A and B. Discuss the purpose of such a document (to clarify, to summarise, to present when applying for credit). It is very important that it is realistic and well-researched.

5. Own business plan The class checks through the form, supplying information about their own projects verbally.

6. Things to do Teams outline their immediate action priorities, say who will be responsible for carrying them out, and indicate probable deadlines. The Records team keeps brief notes.

FOLLOW-UP

1. Drawing up a Business Plan In teams, learners write up their Business Plans based on the form in Guide A. They display them in class and select the most impressive for the project file.

2.Presenting Business Plans In teams, learners present their Business Plans to outside groups � other classes, the PTA, the Garden Group, the school staff, the school governors, potential sponsors etc. Rehearse presentations beforehand, showing how to divide up the talk into phases, distribute it between several presenters, use pictures and flip-charts, involve the audience etc.

LESSONS IN OTHER SUBJECTS

Maths Basic arithmetic

Language and communication Presentations

BUSINESS PLAN PROFORMA

Adapted from Heney, J. (2000)

Name of group ..................... Class ............... Name of project and product .............................

Project description .............................................................................................................................

Period of project: from .............. ............ (month, year) to ................. .............. (month, year)

1. Estimate the profitability of the enterprise:

INCOME

COSTS

2. Where we will get our inputs....................................................................................................

3. How and where we will sell our products ........................................................................

4. What we will do with our profit ...........................................................................................

5. What the main risks are and how we will reduce them...............................................................

EXAMPLE OF BUSINESS PLAN

FRONT PAGE

Name of group Class       5, Business Studies

Period of project      June to September

Name of project and product     Micro-enterprise: Mango Chews

Project description

We plan to collect mangoes from the three big trees in the school grounds, slice them and dry strips in a solar drier. They will be sold in 200g packets to schoolchildren and to families through their children.

SECOND PAGE

1. Estimate the profitability of the enterprise

INCOME

COSTS

N.B Trees, stall and weighing machine will be lent by the school and knives will be borrowed from home.

THIRD PAGE

2. Where we will get our inputs

- plastic sheet, cellophane and sugar from the market

- the chemist�s shop for potassium metabisulphite

- donations (we have an offer for the wood)

3. How and where we will sell our products

They will be sold to learners and families: learners will take them home and the project team will sell them at school in break time. Products will be promoted by free samples, word of mouth and packaging. The selling points will be taste, nutritional value and long life.

4. What we will do with our profit

- 50% for the project team (half for a celebratory party)

- 30% for the School Fund, for outdoor tables for eating and studying

- 20% for reinvesting in garden enterprises

5. What the main risks are and how we will reduce them

Risk 1

The solar drier may not work well (we have not used one before).

Solution: get technical advice.

Risk 2

People may not see the value of the product.

Solution: good promotion, keeping people informed about the project, informing them of the nutritional value and giving out free samples. Our product label will have nutritional information.

Risk 3

We don�t know how long the product will last: if it goes bad, people will be angry.

Solution: This will not be a selling point in the first year; we will save some of the product to see how long it lasts.

6. MARKETING AND PUBLICITY There�s always scope for sales talk! Promoting a product is also educational for the promoters themselves. Do this lesson while the crops are growing.

LEARNING OBJECTIVES

Learners

- are aware of the value of marketing and promotion in their own context
- adopt a coherent marketing programme, including a follow-up evaluation
- study, select and implement marketing strategies.

RESOURCES NEEDED

- a flipchart if possible
- a display copy of the Marketing Cycle (Guide A)

PREPARATION

If possible, hand over stages 2 and 3 of this lesson to the publicity team. This is their opportunity to gather ideas for their marketing plan. Alternatively, ask all learners to look at Guide B before the lesson and to think of suitable marketing strategies for their product.

LESSON

1. Lead-in Present the Marketing Cycle (Guide A) and ask the class to recall their decisions after their early market research.

2. The marketing process Ask learners to explain all the stages of the Marketing Cycle, then to focus on Stage 2 � the marketing plan.

3. Karara School Present, or ask learners to present, Karara School�s marketing strategy (Guide B).

4. Our marketing strategies Say our strategies will be different, but should also be cheap and effective. Brainstorm ideas. Take each area of Guide B in order, but don�t expect ideas to respect the order!

The publicity team make a note of ideas, preferably on a flipchart (so that the class can see them and also so that they can be used again). Learners select the best ideas.

5. Will it make a difference? Is marketing worth it? Is it a waste of time? (In areas where there is little spending money there is also little room for persuasion, so expect some hard realism in discussing this question.) How can we find out afterwards if our marketing efforts were worth it? Encourage learners to think of a follow-up survey (Guide A, Stage 4).

FOLLOW-UP

Marketing The publicity team prepares and presents a marketing plan with ideas from the lesson.

Labels Learners collect labels from similar products, paste them into a collage and write a paragraph describing and evaluating their publicity strategies.

Marketing strategies Learners make a book of the marketing strategies they see around them, including social marketing (e.g. public health notices). Each entry describes or pictures the strategy and discusses if it is effective. The criteria are whether it is attention-catching, convincing and honest.

Publicising the project If the project is successful it is worth publicising for itself, not just for sales. Make sure the lesson Showing and telling (Lesson H2) is part of your programme.

LESSONS IN OTHER SUBJECTS

Business Studies Marketing, advertising

THE MARKETING CYCLE

KARARA SCHOOL�S MARKETING STRATEGIES

WHAT WE DO AT KARARA SCHOOL

	1 Decide overall marketing approach (e.g. knocking on doors, poster campaign, word of mouth, appeal to support the school, pretty packaging, special services, special offers)		"Our main strategy is talking. We talk to school learners and families and they talk to others. We also give out a flier about tomatoes."
	2 Get a product name, a logo and a slogan. They should reflect your main selling points.		"Our product name is Top Taste Tomatoes (TTT). Our logo is a tomato shape on packaging, fliers and banners. It�s easy to make and it shows buyers what they are going to get."
	3 Design packaging and labelling. Products to be kept must have airtight pest-proof packaging. Food labels should give contents, weight and price. They can also give information about food value etc.		"Our packaging looks good and costs nothing. Our labels give the date and the care instructions."
	4 Create advertising and promotions � e.g. banners, posters, fliers, displays, gimmicks, special offers.		"Everyone in the school takes home a tomato flier. The customer writes their name and address on the back and the children bring it back to the sales team. After making the delivery we file the flier."
	5 Brief project personnel and sales-people on marketing strategy and points to emphasize.		"We brief our sales team, and they brief everyone else in the school. They teach them how to grow tomatoes so they can do it at home."

7. BOOK-KEEPING AND RECORDS Even if there is very little cash-flow, learners should be trained to keep the accounts. It is an excellent exercise, useful in normal life as well as in business, and makes a good impression on families, visitors and officials.

LEARNING OBJECTIVES

Learners

- keep track of daily income and expenditure in a cash book
- recognize the need for transparency in accounting, and act on it.

RESOURCES NEEDED

- a new cash book - write CASH BOOK in large letters on the front
- a display copy of Guide A

PREPARATION

- Learners find out from market traders how they keep track of their daily income and expenses.
- Make a large copy of Guide A for display.

LESSON

1. Lead-in Cash book Show the cash book and discuss what it is for (to record income and expenditure). Learners discuss reasons, e.g.

a) We must be able to show where the money went, and how much we received (accountability and transparency).

b) We always need to know where we stand financially.

c) When you are trying to make a profit, you can�t rely on memory.

2. How do we do it? Show Guide A (Elizabeth�s Cash Book). Point out that it uses symbols instead of words. First let learners try to work out what it all means and try to explain it. Explain it again yourself while learners follow the pictures:

a) On 1 September Elizabeth starts with 8,000 cash in hand (the 1000 means cash).

In the morning she buys:

- 2 baskets of tomatoes at 2,000 each
- 1 bag of onions at 2,500
- 1 basket of okra at 1,200

During the day she sells:

- tomatoes for 1,000
- onions for 600
- okra for 400

b) She also takes 600 for herself to buy food for the household.

c) At the end of the day she has 1,700 left. So next day she will start with 1,700 cash in hand.

d) On the plus side she has 10,000, but she has spent or taken out 8,300. To check that she hasn�t made a mistake, she adds the difference to the minus side so that the two sides match.

3. Simon�s accounts Tell the story in Guide B, or let learners read it in small groups. As they hear/read the story, learners make the entries in Simon�s cash book for the week. Check with the Key.

4. Organizing accounts Discuss and decide

a) who is to keep the accounts for the project

b) who will control petty cash (if any)

c) where the cashbook will be kept

d) who should see the accounts, how often, and how.

FOLLOW-UP

1. Cash-flow scenarios Learners invent other cash-flow stories for their classmates to record in cash books.

2. Monthly summary The accounts team present and explain a monthly cash flow summary to show where the money has gone, what has come in, and what the balance is.

LESSONS IN OTHER SUBJECTS

Maths Arithmetic

ELIZABETH�S CASH BOOK

Elizabeth sells tomatoes, onions and okra in the market.

This is one day�s page from her cash-book. (N.B. The boxed 1000s mean notes)

Adapted from Heney, J. (2000)

* This means cash

SIMON & CO.

Fill in Simon�s cash book for the week!

SIMON & CO: INCOME AND OUTGOINGS

KEY TO SIMON & CO