Basic Course on Coop

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: 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. Global Perspective Source ICA: 2011

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

7. Dean Food

8. Dairy Farmers of America - Coop

9. Danone

10. Fonferra- Coop

11. Kraft

12. Land o’Lakes- Coop

13. Lactalis

14. Aria Foods - Coop

15. Meilli Dairies

16. Friesland Foods - Coop

17. Uniliver

18. Morinaga Milk Industries

19. Parmalat

20. Campina - Coop

21. Bongrain

22. Human Milchunion- Coop

23. Saputo

24. Nordmilch- Coop

25. Sodiaal- CoopSource: Mr. Bob Burlton Midcounties Co-operative, UK Aug. 2006

27. JA Zenchu guidance

28. JA Shinren credit business

29. Norinchukin Bank credit business

30. JA Keizairen purchasing & marketing related business

31. JA Zen-noh purchasing & marketing related business

32. JA Kyosairenmutual insurance business

33. JA Kosairenwelfare business

34. JA Zenkoren welfare business

35. Nihon NogyoShimbunnewspaper related information service

36. JA Shinmbunren newspaper related information service

37. ie-no HikariKyoki publication, educational and cultural activities

39. State of the Cooperative Movement:

41. 7,196,097 Total membership

42. Php35,663,870,937.23 Paid Up

43. Micro 14,135 with TA of Php 8583391.82

44. Small 2,893 with TA of Php 19,599.345.803

45. Medium 1,199 with TA of PhP 43,201,503,119.11

46. Large 257 with TA of PhP 87,198,088,899.18

48. 8th

49. 6 %

50. Capitalization of Coops Registered Under Art 144 11th 10th 11th

51. Coops Re-registered under Art 144

52. Categorization by Asset

55. 9th

56. Reg. I 2.5 % Contribution

57. 9th

58. CDA Dagupan Registered Cooperatives per Type As December 31, 2010

59. Products

60. Products

62. What are the strengths/weaknesses of the cooperative movement?

64. Prospects 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;

65. 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.

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

67. Prospects Challenges 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 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.

68. Challenges Challenges 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.

69. Reference: CDA Statistics www.cda.gov.ph Prof. Jorge V. SibalThe Philippine Cooperative Movement: Problems and Prospects (1986 – present) UP-Diliman RA 9520 4. ICA 2011 Mr. Bob BurltonMidcountiesCo-operative, United Kingdom, Aug. 2006

70. end of presentation