The 1st Thailand – Pacific Island Countries Forum (TPIF)9 – 10 August 2014Bangkok, Thailand

Mr.Panuwat Na NakornpanomDirector of Planning Division

Cooperative Promotion Department

Presentation Content

Effective performance of cooperative:Aow Luek Land Settlement Cooperative, Ltd.

Possible future development assistance and cooperation with Pacific Island Countries

General Information of Cooperative in Thailand

Cooperative Promotion Department andCooperative Development in Thailand

Cooperative movements and farmer groups are important

in driving economic force of the country

cooperative business volume10 percent of the country’s GDP

Role of cooperative in Thai Economy

General Information of Cooperative in Thailand

Structure of Cooperative Development in Thailand

- National Federation

- Provincial Federation

- Primary Cooperative (7 types)

Ministry of Agricultural and Cooperative

Board of National Cooperative Development

CLT(Cooperative

Leagueof Thailand)

Cooperative Movement

CPD(Cooperative

Promotion Department)

CAD(Cooperative

Auditing Department)

Cooperative Promotion Department

The Cooperative Promotion Department

is a government agency under Ministry of Agriculture and

Cooperatives

Promoting and disseminating the cooperative ideology, principles and methods to cooperative personnel, farmer groups and the public

Duties and Responsibilities

Promoting, supporting and strengthening the cooperative system

Improving cooperatives’ learning process to increase the capacity of business management as well as the

efficient of their operation

Encouraging cooperatives to upgrade the business linkages to international levels for

better living quality of cooperatives members both socio-economic aspects

Cooperative Promotion Department

Cooperative Promotion Department

75 provincial Cooperative Officers

Provincial Administration

Cooperative BusinessDevelopment Office

Fund Development OfficeCooperative Technology

Transfer and Development Office

Bangkok CooperativePromotion Office

Area 1

Bangkok CooperativePromotion Office

Area 2

Bangkok CooperativePromotion Office

Area 2

InformationTechnology

Center

Office of Secretary Personnel Division Finance Division Planning Division

Internal Auditing GroupAdministrative System

Development Group

CentralAdministration

Organization Chart

Cooperative Promotion Department

1. Expansion on cooperatives principles and ideology particularly to cooperative personnel and leaders

2. Promoting cooperatives to realized on self financing analysis:

CAMEL Analysis, CPS System

3. Realization on environment protection and community concern

4. Development the quality of products under the vocational group activities up to standard (OTOP Product Project)

CPD Policies

Cooperative Promotion Department

5. Promoting and rehabilitate the managing administration and agricultural infrastructure of cooperatives and farmer groups efficiency

6. Development the database of cooperatives and farmer groups to increase productivity and quality, develop production and marketing technology for farm products

7. Promoting the establishment of network among cooperatives and farmers for mutual help in production, marketing, and funding

CPD Policies

Cooperative Development in Thailand

Prince Phitthayalongkorn: Father of Thai Cooperative

The Cooperative in Thailand have been initiated by Royal Thai government in1915

The objectives is to improving livelihood of small farmers

Cooperative Development in Thailand

The 1st Cooperative in Thailand name:Wat Chan Cooperative Unlimited Liability

Established by government on26 Febuary 1916In Phitsanulok Province

Structure of Cooperative

National Level

Provincial Level

District Level

National Cooperative Federation

Provincial Cooperative Federation

Primary Cooperative

CLT – apex organization (technical aspects)

Type of cooperatives in Thailand

Agricultural Fishery

Land Settlement

Consumer

According to Cooperative Act B.E.2542 (1999) andMinisterial Regulation, the Cooperatives in Thailand

are divided into 7 categories as follows:

Thrift & Credit

ServicesCredit Union

Agricultural

Fishery

Thrift & Credit

Number of Active Cooperative: 3,712Number of Memberships: 6,601,495

Annual Statistics of Cooperatives, Agricultural Groups and Vocational Groups in Thailand 2014

Number of Active Cooperative: 79Number of Memberships: 15,317

Number of Active Cooperative: 1,396Number of Memberships: 2,771,351

Number of Active Cooperative: 7,093Number of Memberships: 11,275,804All Type

Annual Statistics of Cooperatives, Agricultural Groups and Vocational Groups in Thailand 2014

Land Settlement

Consumer

Services

Credit Union

Number of Active Cooperative: 90Number of Memberships: 188,427

Number of Active Cooperative: 174Number of Memberships: 731,042

Number of Active Cooperative: 1,134Number of Memberships: 461,104

Number of Active Cooperative: 508Number of Memberships: 710,812

Cooperative League of Thailand

AgriculturalCooperativeFederation ofThailand Ltd.

ConsumerCooperative

Federation ofThailand Ltd.

Federation ofSavings

and CreditCooperative ofThailand Ltd.

Credit UnionLeague of

Thailand Ltd.

Bus ServiceCooperative

Federation ofThailand Ltd.

AgriculturalCooperative

Land Settlement

Cooperative

FisheriesCooperative

ConsumerCooperative

Thrift & CreditCooperative

ServiceCooperative

Credit UnionCooperative

District

Province

Provincial AgriculturalCooperative Federation

Regional

National

Structure of Cooperative Movement in Thailand

General Meeting

Board of Directors

Manager

Finance & Accounting Section

Credit Section

Marketing Section

Purchasing Section

Service & Welfare Section

Election

Appointment

15 persons (max)

STRUCTURE OF PRIMARY COOPERATIVES

members members members members

member groups member groups

1. CREDIT BUSINESS

2. PURCHASING BUSINESS

3. MARKETING BUSINESS

4. AGRICULTURAL EXTENSION SERVICE

COOPERATIVE BUSINESS

LENDING

DEPOSITING

Buying necessities from others and selling them to members at reasonable prices

Collecting produces from members and selling them to others

Giving technical advice to members on planting, seeding, harvesting, etc.

Source of Fund of Cooperative

• Cooperative Own Fund

• Bank of Agriculture and Agricultural Cooperative (BAAC)

• Cooperative Development Fund (CDF)

1. To Allocate land to farmers who have no land or small

holdings to make their living on.

2. The allocation of land to farmers through the cooperative method was first practiced in 1935.

Land SettlementCooperative was set up

with the following objectives

Aow Luek Land Settlement Cooperative, Ltd. is located in Krabi Province in the southern part of Thailand

Krabi Province

The most famous visit place is PP islands.

Aow LuekLand Settlement Cooperative, Ltd.

The Cooperative was registered in 1975 under the Co-op Act B.E.2511 (1968)

With 310 members

Objectives: 1. For support members to help each other based on ethics and cooperative methods 2. To benefit economic and social in member groups

Aow LuekLand Settlement Cooperative, Ltd.

His Majesty the King realized on his people hardship in Krabi, therefore,in 1986, the project on establishing “Small Size of Palm Oil Mill” under Initiative Royal Project, was introduced to Aow Luek Land Settlement Cooperative, Ltd.

Aow Luek Land Settlement Cooperative, Ltd. has been selected as a group model for establishing experimental plantfor processing palm oil.

At the beginning of setting the cooperative under the supportive of CPD

members supported to grow palm 25 rai (40,000 square meter)/family

To grow palm, members get loan fund project from Bank for Agriculture and Agricultural Cooperative (BAAC)120,000 Baht/family which is the cooperation between CPD and BAAC

The members who didn’t join the projectwill receive only short term and medium term loan

Aow LuekLand Settlement Cooperative, Ltd.

The fresh palm must be delivered to the mill within 24 hours

can extract the fresh palm 2 tons/day (max capacity)

To support the palm farmers cover 48,000 rai (76,800,000 square meter)

Aow LuekLand Settlement Cooperative, Ltd.

Processing Food (Curry Paste) Group

To promote income generating activities of cooperative members for processing food products

Aow LuekLand Settlement Cooperative, Ltd.

Artificial Flowers Making Group

Aow LuekLand Settlement Cooperative, Ltd.

Possible future development assistance and cooperation with Pacific Island Countries

A: Training courses on cooperative development for cooperative staff and officers (course module depends on requested)Participants: about 10- 15 participants/coursesCourse Duration: within 2 weeksBudget: financial supported by 3rd party or respective countries Venue: The Cooperative Technology Transfer Development Office in Bankok and the 5th Cooperative Technology Transfer Center in Nakornratchasima Province.

B: Training course on Income generating activities for women and youth groups (processing foods, making handicraft products, weaving clothes, for sale in market and abroad.

C: Study visit program for cooperative personnel and leaders for observation cooperative activities in Thailand

• Participants: about 10- 15 participants/course• Course Duration: within 2 weeks• Budget: financial supported by 3rd party or funding by

respective countries • Venue: The Cooperative Technology Transfer

Development Office in Bankok and the 5th Cooperative Technology Transfer Center in Nakornratchasima

Some activities of the 5th Cooperative Technology Transfer Center,

Nakorn Ratchasima