Cooperative movement: how to organize a farmers' cooperative association

Title

Creator

Silayan, Hilarion S.

Language

English

Year

1946

Subject

Agriculture—Philippines.

Cooperative societies—Philippines.

Rights

In Copyright - Educational Use Permitted

Fulltext

COOPERATIVE MOVEMENT By HI LARI ON S. SILA YAN HOW TO ORGANIZE A FARMERS' COOPERATIVE ASSOCIATION INTRODUCTION There is no fixed formula for organizing a farmers' cooperative association. The organization of a cooperati\·e in itself is not a hard task. But to make of the cooperative a going concern. that is, to maintain and run it for the attainment of maximum benefits to the organizers and members and the community in general is a task that requires all the planning and executive ingenuity of the organizers and officers of the association. It is necessary that the pitfalls of hasty organization be avoided. This can best be accomplished by conducting a survey of economic condition$ in the area to be served by the co· operative. PRELIMINARY SURVEY The preliminary survey of economic conditions may be undertaken either by cooperative supervisors of the Bureau of Plant Industry in closscollaboration with organizers of thP proposed association, or by a committee formed from among the or·· ganizers. An important feature of this survey is information regarding the quantity of agricultural products available in the territory. The agricultural extension service of the Bureau of Plant Industry, teachers of vocational agriculture, and other agencies may be of material assist· ance in planning the survey. A form t.'1at may be used in obtaining such information is shown hereunder: ~AME ADORFS5 Pedro Santos Munoz ·, 4 4 with organization. a more- detailed survey including history of coopera1 ive efforts in the territorv should be made. · SURVEY It is essential to understand the farmers' present and p8st experience in cooperation. 1. Number and kind of cooperatives operating in the area, if any:There are four basic kinds of farmo-rs' cooperatives. to' wit: (a) producers' cooperative. (b) marketing cooperative, ( c) financing cooperative, and ( d) consumers' cooperative. Is any or are al! of these cooperatives organized and functioning in the area? Study each cooperative. Are there other cooperatives? What are the effects of the associations on the community? 2. How long has each been in operation?-In order to determine the causes. of failure or success of an association or associations, their length of service should be looked into carefully. 3. Estimated volume· of business handled by each.-The life of the as~ociation is practically, if not largely, dependent upon the volume of business to be handled. Sufficient volume of business is essential to permit economical operation and competition with other existing market :ogioncies, and for realizing reasonable margin. If, on the other hand, the " 4. Facilities for operation, such as w:ird1ous!"s. ctc.-Of equal impo1tance as the volu1ne of business, are the !acilil ies for operation. There should be a warehouse for storage, classification and standardization of th·~ products ie seasonal and it varies in accord;rnce with the presence of tl•e rnriou'.oi factors affecting it. Thus a certain product may be abundant at H cenain season and its supply insufficient at another. This condition results in either periodicfll surplus or shor1:3~€ of the product. On the other hand, consumption is relativdy uniform. Storage then of the products is ('.Ssential in adjusting the varieblc s;_1ppl~.' to the relatively cnn'...;l".'1nt needs of consumers. Do these conperatives have warehousf's of thc-ir own or are they le<1sing them? Do they usr ot!wr buildings? Give estiinatcd cost a~ci rent of each. 5. Sources of finn11L·e:.\ whether private or governmentc11.-Are the sources of finance aclequa~e? Whac are the sources of finan.:e in the proposed area? Farmers and producer~ of all kinds of commodities have need of the service of financing. Without the cash or credit which financing provides. both commercial farming and marketing are utterly impossible. The service of finCJncing shauld be adequately rendered to provide capital for efficient operation of the business of the association. Macklin (I) classified the capital needs of an as' ~ t v -T Cabanutuan ! 120 cav. PlOO :..;i;; r. . ... c :: Y. ~ c r. /' ~ ------p- - -- --- - -I ! I No Yes Will assist in organization work ·----·-----··--------!·_ ·-· ·-The information called for in the aforementioned form may be easily obtained at local meetings. Ordinarily it will not be necessary to make 2 -house-to-house canvass. If the preliminary survey shows a volume of business sufficient for the purposes of an association, and the farmers manifest a desire to proceed 12 volume is inadequate, the costs of ooeration are greater than those ot p~ivate concerns. The very farmers then who established the association soon find that the financial advantages from private concerns are greater than those gained through the association and as a result their interest in the association wanes, sociation as (a) need for equipment or relatively fixed and permanent capital, as office equipment or relatively fixed and permanent capital, as office equipment, machinery, buildings, and all permanent facilities for transacting and housing the business or storing its raw materials and finished products; and (b) need for supplies or relatively free and therefore changeable or circulating capital. The second need for capital refers to the money required for supplies of raw materials handled or stored, to meet operating expenses, and to cope with all unforeseen problems confronting the business, including the storage of products as may be required to stabilize prices and marketing. What are the sources of capital of these associations? Individual members? Banks or other institutions of credit? Furnished by the government? Or furnished by moneyed individuals. Are they adequate? 6. Do the farmers feel that these associations have been successful?Jones( 2) gives three outstanding indications of the success of cooperative associations: (a) sound financial set-up and financial operating policies; (b) skill in merchandising; and <c) satisfactory membership relations. Are these indications strongly manifested in the association? If they are, the farmers will feel that the associations are successful on account of the beneficial effects that could be derived therefrom. 7. If the farmers are not satisfied with the association, what are the causes for the dissatisfaction?The failure of an association may be due to the following causes as givt<n in ''Formation of Cooperative Associations": (a) Organization mistakes: ( 1) Failure to study the needs of an or· ganization and the problems to be met; l 2) creation of an organization out of proportion to the business to be handled; (3) organization extravagance in the matter of equipment needed, promotion'!! expenses, and initial salaries paid. (b) Mismanagement: Due to (I) lack of understanding of local conditions, (2) marketing problems, (3) financial requirements, and ( 4) inexperienced officers and managers. (c) Lack of membership support: Due to ( 1) dissatisfaction with results obtained, (2) loss of interest, and (3) failure of association to establish local points of contact with members, all of which results in an insufficient volume of business. (d) Economic conditions: Such as price declines and falling off in demand either in domestic or export ,markets. ( e) Internal dissensions: Due to FARMING AND COOPERATIVES selfish motives and the playing of politics on the part of officials. The .other causes of failure of cooperatives according to Burley(3) are: (a) Small Capital. (b) Small Membership (c) Small business volume. ( d) Conflicting methods, particularly as regards ( 1 ) Extension of credit (2) Pricing policy ( e) Lack of strong wholesale groups. ( f) Poor location of stores. (g) Lack of proper accounting and auditing methods. (h) Lack of adequate education in cooperation. (i) Waning of &nthusiasm of members, frequently because of failure to receive large dividends. (j) Chain store competition. Summarizing the causes of failure of cooperatives, Burley(3) made four general classifications: (a) Faults of management. (b) Inadequacies surrounding membership. ( c) Industrial and economic factors in !!'.eneral. (d) Acts of God. 8. What percentage of the farmers in the area utilize the services of the cooperatives?-The percentage is determined by the number of farmers affiliated with the association. Nonmembers may utilize the services of the association in proportion to the benefits they derive from the cooperative. 9. Transportation facilities for the products-farm to warehouse or assembling points; farm to market centers; warehouse or assembling points to market centers. Transportation facilities very often soell success or failure for the business organization. What transportation facilities are used by these associations in transporting their products from the farm to the ware1->ouse or assembling points; from the farm to the market centers; from the warehouse or assembling points to the market centers; and other busiIn Lighter Vein SHOT DOWN IN FLAMES By PAQUITO SERRANO, Albay On the table top A pile of old letters lays Beside is a note Returned with pleasure-it says. Seated at the table Is a fellow of ewtnty Whose handsome face is now A pie of gilded misery. FLIGHT A MOON, A BOY, A GIRL, A BENCH. THE MOON SHINES IN ALL HER SPLENDOR ... THE BOY AND THE GIRL SAT IN CLOSE FORMATION. MY PIN-UP GIRL P-is for PULCHRITUDINOUS ... You make the other girls look like apologies I-is for INTOXICATING ... That is what I always think of your kisses N-is for NYMPHAL ... The proofs are your pies in thrilling poses, U-is for UNCTUOUS ... Your voice haunts me whenever you call P-is for PANACEA ... Indeed you are to an afflicted soul. ness places? What are the freight or transportation charge or charges? Are all- means of transportation, e.g., carts, sledges, trucks, railroad or water, available? Are the roads good? P.·P. GOCHECO & Co., Inc. LUMBER DEALER BUILDING CONTRACTOR CIGAR BOXES FACTORY 1219 AZCARRAGA ST. MANILA 13

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