Prelim: Cooperative

• A cooperative is an autonomous association of people united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled business
• Cooperative societies are voluntary associations started with the aim of service to members
• Cooperative marketing consists of marketing 'for the farmers' and 'by the farmers' aiming at eliminating the chain of functionaries between farmers and consumers to secure maximum prices for the farmer's produce
• Objectives of a Cooperative:

  • Provide goods and services to members to increase income, savings, investments, productivity, and purchasing power
  • Promote equitable distribution of net surplus through economies of scale, cost-sharing, and risk-sharing
  • Provide social and economic benefits to members
  • Teach efficient cooperative practices
  • Propagate cooperative practices and new business ideas
  • Increase ownership for lower income and less privileged groups
  • Cooperate with government, other cooperatives, and people-oriented organizations
• Cooperative Development Authority (CDA) is mandated to promote the viability and growth of Philippine cooperatives
• Enabling Laws:

  • REPUBLIC ACT 6939 (March 10, 1990)
  • EXECUTIVE ORDER NO. 95, Series of 1993
  • EXECUTIVE ORDER NO. 332, Series of 2004
• CDA's Reasons:

  • Chief implementer of the Cooperative Code
  • Sole registering government agency for all types of cooperatives
  • Facilitates coordination of cooperative programs and activities
• CDA's Mission & Vision:

  • Vision: Develop viable, sustainable, socially responsive, and globally competitive cooperatives
  • Mission: Ensure safe and sound operations of cooperatives
• Cooperatives are autonomous, duly registered associations of persons with a common bond of interest voluntarily joined together to achieve social, economic, and cultural needs and aspirations
• Cooperatives are democratic organizations controlled by members, ensuring equal voting rights and equitable contributions to capital
• Cooperatives are autonomous, self-help organizations that provide education and training for members and work for sustainable development through policies approved by members
• Types of cooperatives:

  • Credit Cooperative
  • Consumers Cooperative
  • Producers Cooperative
  • Marketing Cooperative
  • Service Cooperative
  • Multi-purpose Cooperative
  • Agrarian Reform Cooperative
  • Cooperative Bank
  • Dairy Cooperative
  • Education Cooperative
  • Electric Cooperative
  • Financial Service Cooperative
  • Fishermen Cooperative
  • Health Services Cooperative
  • Housing Cooperative
  • Transport Cooperative
  • Water Service Cooperative
  • Workers Cooperative
  • Other types as determined by the Authority
• Objectives of a Cooperative:

  • Encourage thrift and savings mobilization
  • Generate funds and extend credit for productive purposes
  • Encourage systematic production and marketing
  • Provide goods, services, and other requirements to members
  • Develop expertise and skills among members
  • Acquire housing for members
  • Insure against member losses
  • Promote economic, social, and educational status of members
  • Establish cooperative banks, wholesale and retail complexes, insurance, and processing enterprises
  • Coordinate and facilitate cooperative activities
  • Advocate for the cooperative movement
• • Ensure viability through new technologies
  • Promote self-help and self-employment for economic growth and poverty alleviation
  • Undertake activities for effective implementation of cooperative provisions
• Differences with other business models:

  • Single Proprietorship, Partnership, Corporation, and Cooperative have varying requirements for formation, registration, capitalization, management structure, liability, taxability, and distribution of surplus/profit