3. Agriculture Sector today in Sri Lanka
• Low contribution to GDP, 8% in 2016 & Declining gradually
• Low Productivity and Production
• Poverty index is very high in Agriculture sector
• Threat to food security
• Some foods items are still importing (Around 120 billion Rs annually)
• Low economic of scale ( Farm size, Investment, Savings)
• Inadequate of high tech application
• Degradation of Agricultural infrastructure due Inappropriate management
systems
• Huge Vacuum of Structural and Organizational mechanism
4. Resource Allocation to Agriculture
lands
More than 60% of land use for agriculture
800,000 Hect. of Land comes under irrigation
Human Resources
Farmers & Agricultural Labors (Skilled &Unskilled)
30% directly involved, 80% Rural population involved in agriculture
Government Sector Employees( professional, Technical, Skilled &
semiskilled)
Private Sector Employees
Finance Resource
Government (Direct, Subsidy), Farmers(Cash, Labor), Private
5. Need of an institution for Agriculture
Development
• It can’t be adopt agriculture into market mechanism
- Due Uncertainty (Climate condition, Nature of the resources, Nature of the
goods)
- Individual farmers can’t compete to the market due to their scale
• To scale up the industry
• Application of High Tech into agriculture
• To undertake common property into their previewed(Common Property Management)
• To Develop Value chain
• To apply Government policy
• Prepare Agriculture Production Plan Based on the demand
• Arrange inputs & basic facilities
• Develop common interest among farmers
• Share ownership & sharing benefits
6. Cooperative
HISTORY
Robert Owen Fenwick Weavers’ Society in 1771
Rochdale the pioneer of cooperative in 1844
Sri lanka
Cooperative societies system was started in 1906 to grant loans to
rural farmers
First cooperative society was Dumbara Mitiyawatha
Director of Agriculture was appointed as the first Registrar in 1911
7. Definition
•Cooperative is an Autonomous
association of people united voluntarily
to meet their common economic, social
and cultural needs and aspiration
through jointly owned and
Democratically control business
8. Principles & Values
• Voluntary & open membership
• Democratic member control
• Economic participation by members
• Autonomy & Independence
• Cooperation among cooperatives
• Concern for community
• Legal entity
• Economic stability
9. Types of cooperatives
• Non monitory, welfare and social cooperatives
• Workers cooperatives
• Consumer cooperatives
• Service providing cooperatives
• Construction cooperatives
• Marketing cooperative
• Banking & Insurance cooperatives
• Producer cooperatives( Agriculture & Industries)
• New generation cooperatives
10. Agriculture Cooperatives
Agriculture cooperative is a cooperative where
farmers pool their resources to extend the
economic of scale, allocate resources based on
the demand (local & foreign market) enhance the
capacity of the men and machines, improve the
process and systems to produce Quality product
& services to get maximum profit in order to
share benefit among the members
11. Success stories
Japan Agriculture Cooperatives
• 95% of Japanese main crops handled by the JAC
• 71% of agricultural inputs
• 52% Farm protection materials
• 38% of Agricultural machineries
• 65% Irrigation service
12. Success stories
Vietnam
• 8,322 Cooperatives
• Irrigation service 80.5%
• Plant protection 57%
• Input supply 46.2%
• Extension service 46.3%
• Electricity 43.2%
• Internal credit 8%
• Seeds production 50%
• Profit sharing ratio 30-50%
13. International cooperative alliance
• The ICA is an Independence Nom-governmental organization that
unites, represent and service cooperatives worldwide.
• Raises Awareness
• As voice
• Ensure right policy
• Gives information
• Technical assistance
14. Policy and guidance
Agriculture policy
Cooperative policy
Cooperative acts
2017 budget speech
Polices developed by other countries
ICA policy guideline
Concepts and frameworks given by the development programs and
projects
