Module I Concepts, Principles, Types of Cooperatives

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Basic Course on Coop

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Module I Concepts, Principles, Types of Cooperatives

  1. 1. Module 1: The Concept, Principles, Types of Cooperatives<br />By: ARD Jo B. Bitonio CDA Dagupan Extension Office<br />
  2. 2. OBJECTIVES:<br />When you finish the module, you should be able to:<br /> be aware of the state of the cooperative movement, <br /> its prospects and challenges ;<br />2. understand the general concept of cooperatives;<br /> differentiate cooperative from other form of business;<br />3. appreciate the cooperative principles; and<br />4. ascertain the types of cooperatives <br />
  3. 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.<br />
  4. 4. Global Perspective<br />Source ICA: 2011<br />
  5. 5. Euros 1.3 B<br />consumers<br />Whole foods<br />buying<br />care<br />leisure<br />workers<br />Euros 11B<br />Credit union<br />agriculture<br />housing<br />Football club<br />health<br />doctor<br />Source: <br />Mr. Bob Burlton<br />Midcounties Co-operative, United Kingdom<br />Aug. 2006<br />
  6. 6. World’s Dairy Top 20 includes 8 co-operatives<br /><ul><li>Nestle
  7. 7. Dean Food
  8. 8. Dairy Farmers of America - Coop
  9. 9. Danone
  10. 10. Fonferra- Coop
  11. 11. Kraft
  12. 12. Land o’Lakes- Coop
  13. 13. Lactalis
  14. 14. Aria Foods - Coop
  15. 15. Meilli Dairies
  16. 16. Friesland Foods - Coop
  17. 17. Uniliver
  18. 18. Morinaga Milk Industries
  19. 19. Parmalat
  20. 20. Campina - Coop
  21. 21. Bongrain
  22. 22. Human Milchunion- Coop
  23. 23. Saputo
  24. 24. Nordmilch- Coop
  25. 25. Sodiaal- Coop</li></ul>Source: <br />Mr. Bob Burlton<br />Midcounties Co-operative, UK<br />Aug. 2006<br />
  26. 26. Activities of JA Group Organization<br /><ul><li>JA Chuoukal - guidance
  27. 27. JA Zenchu guidance
  28. 28. JA Shinren credit business
  29. 29. Norinchukin Bank credit business
  30. 30. JA Keizairen purchasing & marketing related business
  31. 31. JA Zen-noh purchasing & marketing related business
  32. 32. JA Kyosairenmutual insurance business
  33. 33. JA Kosairenwelfare business
  34. 34. JA Zenkoren welfare business
  35. 35. Nihon NogyoShimbunnewspaper related information service
  36. 36. JA Shinmbunren newspaper related information service
  37. 37. ie-no HikariKyoki publication, educational and cultural activities
  38. 38. Nokyo Kanko travel business </li></li></ul><li>Thai Agricultural Coops<br />
  39. 39. State of the Cooperative Movement:<br />
  40. 40. Selected Statistics<br />As of December 31, 2010<br /><ul><li> 18,205 Registered under Art 144 of RA 9520
  41. 41. 7,196,097 Total membership
  42. 42. Php35,663,870,937.23 Paid Up
  43. 43. Micro 14,135 with TA of Php 8583391.82
  44. 44. Small 2,893 with TA of Php 19,599.345.803
  45. 45. Medium 1,199 with TA of PhP 43,201,503,119.11
  46. 46. Large 257 with TA of PhP 87,198,088,899.18
  47. 47. Php 1,417,087,459 2008 GROSS REGIONAL DOMESTIC </li></ul> PRODUCT At Constant 1985 Prices<br /><ul><li>Php 83,043,820.20 COOPERATIVE REGIONAL DOMESTIC </li></ul> PRODUCT Constant 1985 Prices<br /><ul><li> 5.86%% CONTRIBUTION OF COOPERATIVES TO GRDP</li></ul>At Constant 1985 Prices <br />- <br />
  48. 48. 8th<br />
  49. 49. 6 %<br />
  50. 50. Capitalization of Coops Registered Under Art 144<br />11th<br />10th<br />11th<br />
  51. 51. Coops Re-registered under Art 144<br />
  52. 52. Categorization by Asset<br />
  53. 53.
  54. 54.
  55. 55. 9th<br />
  56. 56. Reg. I <br />2.5 % Contribution<br />
  57. 57. 9th<br />
  58. 58. CDA Dagupan Registered Cooperatives per Type<br />As December 31, 2010<br />
  59. 59. Products<br />
  60. 60. Products<br />
  61. 61. Self-Administered Question (SAQ) 1<br /><ul><li> What is your analysis of the state of the cooperative movement of the Philippines?
  62. 62. What are the strengths/weaknesses of the cooperative movement?
  63. 63. How would you help your cooperative to increase its membership, assets and capitalization?</li></li></ul><li>Prospects<br />Prospects for the cooperative movement is bright. Sibal (2011) in his paper diagnosed the prospects of the movement:<br /> 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 <br />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;<br />
  64. 64. Prospects<br />Prospects<br /> c) increased total assets of the coop movement;<br />d) intensified campaign of the CDA to increase cooperative membership to 20 million (2011 -2013); <br />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; <br />
  65. 65. Prospects<br />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 <br />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.<br />
  66. 66. Prospects<br />Challenges<br /> From more than 80 researches which assessed the growth and development of coops from 1989 to present, Sibal (2011) listed the following challenges: <br />majority of the cooperatives are young and start up cooperatives (CDA, 2010); <br />with globalization, small, medium and big coops are exposed to strong competition; <br />
  67. 67. Prospects<br />Challenges<br />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 <br />agri-based cooperatives like those in the agrarian reform communities and plantations are not showing improvement in productivity; and <br />e) the mentality of relying state protectionism, parochialism and close-doorism still prevails among many cooperatives.<br />
  68. 68. Challenges<br />Challenges<br />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. <br />
  69. 69. Reference:<br />CDA Statistics www.cda.gov.ph<br />Prof. Jorge V. SibalThe Philippine Cooperative Movement: Problems and Prospects (1986 – present)<br /> UP-Diliman<br />RA 9520<br />4. ICA 2011<br />Mr. Bob BurltonMidcountiesCo-operative, United Kingdom, Aug. 2006 <br />
  70. 70. end of presentation<br />

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