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Agricultural Cooperativesand
Main Problems of Cooperatives in Turkey
Res. Asst. Asaf zalp
Prof. Dr. brahim Ylmaz
Antalya-2014
T.C.
AKDENZ UNIVERSITY
AGRICULTURAL FACULTY
AGRICULTURAL ECONOMICS DEPARTMENT
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Contents
What is a cooperative?
Cooperatives in Turkey
Cooperation Problems
2
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Objectives of the study
Objectives of the study;
Give general information on cooperatives Reveal the current status of agricultural
cooperatives in Turkey
Examine issues about cooperation
3
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Material
It is aimed to undertake a review.
Research findings have been obtained from
the relevant secondary data (reports,websites, records of cooperatives, companycatalogues)
4
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Cooperatives
Nowadaysnitiativessucceed in economic
and commercial lives
At first
Inter Individuals Help
5
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Agriculture
Trade
House
Banking and Insurance
Cooperative Areas
6
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Market Organizer Role
Assemblers Role of Small Enterprises
Enhancing the Role of Market Power
Contributions to Economic Decision
Service to partners needs
Stakeholder Benefit
Management Skills
Economic Integration
It is advantageous for Local Markets
Contributes to stability
democratic governance
Regional Development
7Source: Commission of the European Communities, 2001
Economic and social functions of cooperatives
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Cooperatives in TURKEY
It is agreed that the first implementation ofthe modern cooperatives in Turkey startedwith the Country Funds (similar to
agricultural credit cooperatives) which wasestablished by the State in 1863.
However, the first significant development
was realized after Turkish Republic wasestablished.
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Number Of Cooperatve And Partners
Today, there are 88.232cooperatives with 26different types .
Total number of members of thesecooperatives is 8.109.225.
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Cooperatives ofAgriculture
Relevant Ministry Type of Cooperative
Cooperative Union Central Union
NumberNumber of
MembersNumber
Number of
Member
Cooperati
ves*
Number
Number
of
Member
Unions*
MinistryofFood,
Agricultureand
Livestock
Agricultural Development Cooperatives 8.173 842.563 82 4.939 4 77
Irrigation Cooperatives 2.497 295.984 13 733 1 10
Fisheries Cooperatives 522 29.972 14 202 1 12
Beet Planters Cooperatives 31 1.638.981 1 31 - -
Agricultural Credit Cooperatives 1.767 1.082.978 16 1.767 1 16
SUB TOTAL 12.990 3.890.478 126 7.672 7 115
Ministryof
Customsand
Trade
Agricultural Sales Cooperatives 322 602.248 17 322 - -
Free Agr. Sales Coop. 22 2.245 - - - -
Tobacco Agricultural Sales Cooperatives 66 23.414 - - - -Raw Vegetables and Fruit Cooperatives 37 2.886 - - - -
SUB TOTAL 447 630.793 17 322
Source: Turkish Cooperative Association , 2013
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Established and dissolved cooperatives
Economic
Activity
Sector
ESTABLISHED DSSOLVED
20062007200820092010 (2006
-2010)
20062007200820092010 (2006
-2010)
Agriculture,
Hunting, Fisheries
and Forestry
352 258 154 233 445 1.442 19 22 191 21 107 360
Source: Turkish Cooperative Association , 2013
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Organisation or in-organisation?
In the Cooperatives Act No. 1163, superior organization hierarchy ofthe cooperatives is defined as cooperative, union, central unionand national union.
As of today, this structure of the superior organization has beencompleted. However, the participation of the cooperatives in the
organizations which were established is quite low. In general, the participation rate of the cooperatives to the
superior organizations is about 25 per cent.
When the superior organization in terms of the cooperative typesis examined, the participation of the Agricultural Credits, BeetPlanters and Agricultural Sales and Turkish Tradesmen andCraftsmen Credit and Guarantee Cooperativesin the superiororganizations is high, whereas for the other cooperatives apart fromthese, this rate is not in the desired level.
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Chart 1. The Participation Levels of Cooperatives inSuperior Organizations According to Type of Cooperative
Source: Turkish Cooperative Development Strategy and Action Plan, 2013
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What is the problems?
Main problems according to Turkish
Cooperative Development Strategy and ActionPlan
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1. Troubles faced in terms of providing service to
publicand establishing an atmosphere convenient for
cooperatives
Since the start of institutionalization of the cooperativesmovement in Turkey, an interventionist approach hasalways been experienced.
Controlled cooperatives that are financially supported bythe state and are under the supervision of it, havebecome widespread and developed.
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2. Inadequacies in the training, awareness raising and
research activities
For the success of the cooperatives movement, trainingof members, managers, and the local peopleis of greatimportance.
One of the most important problems of the cooperativessector in Turkey is that the cooperatives training is not atthe required level and has not been institutionalized yet.
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3. Problem of Organization and Cooperation among
the Cooperatives
In Turkey, the number of cooperatives is highbut membership to these cooperatives is low.
Cooperation culture differs from country tocountry and is related with many cultural,economic, psychological, historical, social andcultural issues.
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4. Lack of capital and problem in access to finance
As every economic undertaking, cooperatives needfinancial resources to achieve their targets.
Because of their specific qualities, financial problems of a
cooperative are more serious and diversified than anormal enterprise. The most important result of this isthe lack of capital.
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5. Problem of Audit and Image
The activities under the framework ofcooperatives serve public welfare.Unfortunately, there is not an effective audit
in the cooperatives sector in Turkey.
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6. Lack of institutional and professional management
In Turkey, cooperatives are managed by peopleacting far from being profeesional and sparing littletime for managerial issues.
There is no other condition (certificate, experience,training, expertise, etc.) necessitating anymanagement skills, for the person to be elected asthe member of the executive board.
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7. Problems stemming from the legislation and the
implementation
The Cooperatives Law No. 1163 serves as the basis ofthe legislation on cooperatives in Turkey.
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Results & Recommendations
Organized society means developed and socialcountry
Family-owned businesses against multinational giant
companies have lost their power in input supply andmarketing
National policies with all the parties in the sectorshould be set up
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Thanks for your attention