Types of cooperatives

1. Module 1: The Concept,
Principles, Types of
Cooperatives
By: ARD Jo B. Bitonio CDA Dagupan
Extension Office

2. OBJECTIVES:
When you finish the module, you should be able to:
1. be aware of the state of the cooperative movement,
its prospects and challenges ;
2. understand the general concept of cooperatives;
differentiate cooperative from other form of
business;
3. appreciate the cooperative principles; and
4. ascertain the types of cooperatives

3. Worldwide, some 1 Billion people (ICA,
2011) are members of cooperatives, and it is
estimated that cooperatives employ more than
100 million jobs worldwide. The United Nations
estimated in 1994 that the livelihood of nearly 3
billion people, or half of the world's population,
was made secure by co-operative enterprise.
These enterprises continue to play significant
economic and social roles in their communities.
Below are some facts about the Movement that
demonstrate their relevance and contribution to
economic and social development.

4. Source ICA: 2011
Global Perspective

5. Euros 11B
housing health
Credit union
doctor
Football
club
buying
Whole
foods
careleisure
consumers
workers
Euros 1.3 B
Source:
Mr. Bob Burlton
Midcounties Co-operative, United Kingdom
Aug. 2006
agriculture

6. • Nestle
• Dean Food
• Dairy Farmers of America - Coop
• Danone
• Fonferra - Coop
• Kraft
• Land o’Lakes - Coop
• Lactalis
• Aria Foods - Coop
• Meilli Dairies
• Friesland Foods - Coop
• Uniliver
• Morinaga Milk Industries
• Parmalat
• Campina - Coop
• Bongrain
• Human Milchunion - Coop
• Saputo
• Nordmilch - Coop
• Sodiaal - Coop
World’s Dairy Top 20 includes 8 co-operatives
Source:
Mr. Bob Burlton
Midcounties Co-operative, UK
Aug. 2006

7. • JA Chuoukal - guidance
• JA Zenchu guidance
• JA Shinren credit business
• Norinchukin Bank credit business
• JA Keizairen purchasing & marketing related business
• JA Zen-noh purchasing & marketing related business
• JA Kyosairen mutual insurance business
• JA Kosairen welfare business
• JA Zenkoren welfare business
• Nihon Nogyo Shimbun newspaper related information service
• JA Shinmbunren newspaper related information service
• ie-no Hikari Kyoki publication, educational and cultural activities
• Nokyo Kanko travel business
Activities of JA Group Organization

8. Thai
Agricultural
Coops

9. State of the
Cooperative Movement:

10. Selected Statistics
As of December 31, 2010
- 18,205 Registered under Art 144 of RA 9520
 7,196,097 Total membership
 Php 35,663,870,937.23 Paid Up
 Micro 14,135 with TA of Php 8583391.82
 Small 2,893 with TA of Php 19,599.345.803
 Medium 1,199 with TA of PhP 43,201,503,119.11
 Large 257 with TA of PhP 87,198,088,899.18
 Php 1,417,087,459 2008 GROSS REGIONAL DOMESTIC
PRODUCT At Constant 1985 Prices
 Php 83,043,820.20 COOPERATIVE REGIONAL DOMESTIC
PRODUCT Constant 1985 Prices
 5.86%% CONTRIBUTION OF COOPERATIVES TO GRDP
At Constant 1985 Prices

11. REGION
TOTAL MEMBERSHIP
OF NEWLY REGISTERED
COOPERATIVES
TOTAL NUMBER OF
NEWLY REGISTERED
COOPERATIVES
AVERAGE NUMBER OF
NEWLY REGISTERED
COOPEARTIVES
I 400,365 1,133 353
II 368,818 628 587
CAR 247,487 628 394
III 616,267 1,696 363
NCR 1,305,364 1,749 746
IV 568,293 2,175 261
V 239,330 718 333
VI 416,080 1,247 334
VII 585,996 1,431 410
VIII 276,554 634 436
IX 297,587 685 434
X 389,183 1,333 292
XI 1,098,545 1,505 730
XII 186,897 879 213
CARAGA 153,982 952 162
ARMM 45,349 812 56
TOTAL 7,196,097 18,205 395
8th

12. 6 %

13. REGION
AUTHORIZED SUBSCRIBED PAID-UP
I 3,768,523,210.38 1,556,743,490.73 1,260,098,478.06
II 4,179,314,112.75 1,167,750,330.24 1,135,462,664.79
CAR 8,842,644,216.50 3,287,583,281.69 2,635,725,609.88
III 8,828,265,924.82 3,673,739,808.25 2,850,093,601.88
NCR 29,398,882,551.60 9,595,443,089.40 4,711,095,325.80
IV 14,250,626,053.12 6,294,690,215.04 4,970,288,646.43
V 2,230,777,543.76 589,128,895.94 597,419,239.78
VI 4,422,908,630.92 1,334,153,786.91 1,758,724,799.99
VII 10,188,262,343.69 2,980,318,956.92 2,698,180,800.69
VIII 2,942,614,009.48 918,699,238.08 1,188,911,918.87
IX 2,770,269,552.66 1,447,380,284.34 1,147,983,644.07
X 85,324,994,955.44 22,349,725,223.05 7,184,713,004.29
XI 2,147,773,795.32 567,862,931.20 262,762,003.97
XII 4,849,727,126.12 1,280,122,281.04 1,057,127,290.22
CARAGA 2,003,383,419.00 533,284,482.75 170,522,109.97
ARMM 3,617,428,520.00 905,253,570.00 226,441,242.50
CO 7,229,113,337.00 2,315,431,436.40 1,808,320,556.04
TOTAL 196,995,509,302.56 60,797,311,301.98 35,663,870,937.23
11th 10th 11th
Capitalization of Coops Registered Under Art 144

14. 0.00
20,000,000,000.00
40,000,000,000.00
60,000,000,000.00
80,000,000,000.00
100,000,000,000.00
120,000,000,000.00
140,000,000,000.00
160,000,000,000.00
180,000,000,000.00
200,000,000,000.00
Authorized Capital Subscribed Paid Up
196,995,509,302.56
60,797,311,301.98
35,663,870,937.23
Coops Re-registered under Art 144

15. Region Micro Small Medium Large
I 985 113 37 7
II 469 102 56 5
CAR 487 95 44 12
III 1,302 295 102 16
NCR 1,103 400 230 54
IV 1,618 405 154 24
V 591 103 31 2
VI 927 229 104 5
VII 1,117 231 77 20
VIII 495 102 35 7
IX 558 90 42 4
X 1,108 169 60 13
XI 1,181 218 94 26
XII 640 176 60 12
CARAGA 782 136 42 2
ARMM 772 27 10 9
CO 2 21 39
Total 14,135 2,893 1,199 257
Categorization by Asset

16. 8,583,391,824.23
19,599,345,872.27
43,201,503,119.11
87,198,088,899.18
0.00
10,000,000,000.00
20,000,000,000.00
30,000,000,000.00
40,000,000,000.00
50,000,000,000.00
60,000,000,000.00
70,000,000,000.00
80,000,000,000.00
90,000,000,000.00
100,000,000,000.00
Total Assets of Cooperatives Categorized into Micro, Small,
Medium & Large Cooperatives
LARGE
COOPERATIVES
MEDIUM
COOPERATIVES
SMALL
COOPERATIVES
MICRO
COOPERATIVES

17. 14,135
2,893
1,199 257
3M & Below
3M - 15 M
15M- 100
Above 100M

18. 9th

19. Reg. I
2.5 % Contribution

20. REGION
2008 GROSS REGIONAL
DOMESTIC PRODUCT
COOPERATIVE REGIONAL
DOMESTIC PRODUCT
% CONTRIBUTION OF
COOPERATIVES TO GRDP
At Constant 1985 Prices At Constant 1985 Prices
(In Thousand Pesos) (In Thousand Pesos) At Constant 1985 Prices
I 41,168,347.00 1,445,256 3.51%
II 27,638,771.00 1,230,609 4.45%
CAR 30,920,809.00 4,103,711 13.27%
III 117,622,250.00 3,652,250 3.11%
NCR 467,453,002.00 11,360,522 2.43%
IV 206,986,903.00 22,933,346 11.08%
V 39,634,904.00 765,190 1.93%
VI 103,145,489.00 4,959,302 4.81%
VII 101,292,120.00 1,085,922 1.07%
VIII 29,939,775.00 3,642,438 12.17%
IX 35,761,837.00 1,457,983 4.08%
X 71,133,097.00 7,790,653 10.95%
XI 63,928,106.00 11,510,777 18.01%
XII 49,896,778.00 2,672,483 5.36%
CARAGA 18,466,367.00 2,042,358 11.06%
ARMM 12,098,904.00 2,391,021 19.76%
TOTAL 1,417,087,459.00 83,043,820.20 5.86%
9th

21. 0
200
400
600
800
1000
1200
98 67
9 12 14
931
3 8
1,142
CDA Dagupan Registered Cooperatives per Type
As December 31, 2010

22. Products

23. Products

24. Self-Administered Question (SAQ) 1
• What is your analysis of the state of the
cooperative movement of the Philippines?
•What are the strengths/weaknesses of the
cooperative movement?
•How would you help your cooperative to
increase its membership, assets and
capitalization?

25. Prospects
Prospects for the cooperative movement is bright. Sibal (2011) in his
paper diagnosed the prospects of the movement:
a) No less than the President of the Republic Benigno S. Aquino III
(2010) made a pronouncement that cooperatives have played a crucial
role in democratizing opportunities, capital, and investments in the
country by complementing the efforts of government to alleviate poverty
and achieve social justice
b) Multi-purpose coops increased by 8 folds, service coops by 4.5 folds,
and coop federation by 4 folds. Marketing coops increased by 3 folds
and producers coops by 2 folds this manifest that cooperatives have
engaged in high value operations dramatically and their number
increased higher than credit coops;

26. Prospects
c) increased total assets of the coop movement;
d) intensified campaign of the CDA to increase
cooperative membership to 20 million (2011 -2013);
e) “Big brother, small brother” cooperation among
cooperatives will further the growth of the coop sector. This
means more intensive Federation and union work and
advocacy that will not compete but will strengthen the
operations of the primary coops;
Prospects

27. Prospects
f) The coop group within the party list bloc in Congress should
play its cards well. Although in the minority bloc, the coop legislators
are actually representatives of the marginalized sectors of society
which comprise the majority of the country’s population; and
g) strengthening of partnership with all the development partners
of the CDA from the NGAs, LGUs, NGOs and Councils at the
national/regional/provincial/city and municipal.

28. Prospects
From more than 80 researches which
assessed the growth and development of
coops from 1989 to present, Sibal (2011)
listed the following challenges:
a) majority of the cooperatives are young and
start up cooperatives (CDA, 2010);
b) with globalization, small, medium and big
coops are exposed to strong competition;
Challenges

29. ProspectsChallenges
c. unionization in some medium and big size coops
continues. This implies that the coop management
practices in some cooperatives are still very reactive
and less participative
d) agri-based cooperatives like those in the agrarian
reform communities and plantations are not showing
improvement in productivity; and
e) the mentality of relying state protectionism,
parochialism and close-doorism still prevails among
many cooperatives.

30. f. As the global economy reels under the financial crisis,
the cooperative movement is not immune to it. The
primary impact of the financial crisis on coops is that it
has led to a significant decrease in much needed capital
by members/clients as many of them depend on its for
resource economic demands. The long term effect of the
financial crisis on coops would be: more stringent
lending policies, tighter filtering of clients, liquidity
shortages and increasing costs of funds amidst declining
economies (Llanto et al; 2009). The deposits of coops
members/clients are expected to decrease due to the
increase in food and fuel prices that are dwindling as
coops struggle with low profit margins.
ChallengesChallenges

31. Reference:
1. CDA Statistics www.cda.gov.ph
2. Prof. Jorge V. Sibal The Philippine Cooperative
Movement:
Problems and Prospects (1986 – present)
UP-Diliman
2. RA 9520
4. ICA 2011
5. Mr. Bob Burlton Midcounties Co-operative, United
Kingdom, Aug. 2006

32. end of
presentation