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AGRICULTURAL CO-OPERATIVES, ITS CONCEPT AND IMPLICATION IN NEPALESE AGRICULTURE
Prepared By:JAY NEPALRoll No 42B.Sc. Ag. 7th semester,Subject: Agribusiness management , marketing and cooperativesIAAS, PaklihawaDecember, 2014
WHAT IS A CO-OPERATIVE ??
Derived from Latin words “Co”= Together & “Operari”=Work ; Therefore, Co-Operatives means Working Together!!
Simply, Co-operative can be defined as a group of people working together to fulfill certain objectives.
“An autonomous association of persons united voluntarily to meet their common economic, social & cultural needs and aspirations through a jointly owned & democratically controlled enterprise”- Int’l Co-operative Alliance (ICA)
WORKING TOGETHER !!!
A COOPERATIVE IS A FOR-PROFIT CORPORATION
A cooperative is a user-owned and user-controlled corporate business in which benefits are received in proportion to use.Main Motto: “One for all, All for One”
In Co-Operatives
The people who own control and finance the co-operative are those who use it.
Origin of Co-Operatives
Robert Owen (1771–1858) was a social reformer and a pioneer of the cooperative movement. Also known as “Father of Co-Operative Farming.
A Global MovementOver 750 000 cooperativesOver 800 million individual members – many
of them womenOver 100 million jobs createdOver 50% of global agricultural output is
marketed through cooperatives
7 BASIC PRINCIPLES !!! Voluntary & Open Membership
Democratic member control
Member economic participation
Autonomy & Independence
Education, Training & Information
Co-operation among co-operatives
Concern for Community
Co-ops Principles and PracticesCo-operative Principles and Practices Principles PracticesVoluntary and open membership Member recruitment policy, rules of
admission, equal opportunities,
Democratic member control Constitution, voting rights, role of the board, members and management
Member economic participation Economic performance, rewards to members, capitalization and how surplus is used
Autonomy and independence Relations with government, other organisations and institutions and market position,
Education, training and information Member, board and management training and public relations
Co-operation among members Federation, networks, joint enterprises, movement building
Concern for community Policy on community development, environment and networking
5 Co-operative Values !!!
Self-help;
Self-responsibility;
Democracy;
Equality;
solidarity.
TYPES OF CO-OPERATIVES !!!
Agricultural Co-operatives
Small Farmer Cooperatives (SFCL)
Saving & Credit Cooperatives
Health Cooperatives
Science & Technology Cooperatives
Consumer Cooperatives
Multipurpose Cooperatives
Other Cooperatives
TYPES OF FARMER’SCO-OPERATIVES
Production Cooperatives
Farm Supply Cooperatives
Service Cooperatives
Marketing Cooperatives
Processing Cooperatives
Environmental Cooperatives
Tourism Cooperatives etc..
Type of activities
Economic activities agricultural marketing & supply; savings & credit consumer good supply transport shared services (business) handicrafts and small industries services
Type of activities …
Social services Housing Social reintegration HIV-AIDS care Medical services
Others Musician co-operatives Soccer fans co-operatives
Organizational Make-Up
Members
Board of Directors
Manager
Employees
Primary Co-op Structure
Co-operative
Member MemberMember
Secondary Co-op StructureCo-operative
PrimaryCo-op
MemberMember
LocalCo-op
Member Member
Tertiary Co-op StructureCo-operative
MemberMember
PrimaryCo-op
SecondaryCo-op
SecondaryCo-op
PrimaryCo-op
PrimaryCo-op
MemberMember
CO-OPERATIVES IN NEPAL
One of the successful modern, participatory and effective approach amongst farmers.
Farmers are involved from planning process up-to harvest, and the profit is shared.
Becoming popular amongst progressive farmer groups especially in rural Nepal.
Co-Operatives movement with reference of Nepal
Modern co-operative initiative date back to 1956 with the establishment of thirteen credit cooperatives in Chitwan District to assist Flood victims.
Establishment of Co-operative Bank in 1963 (later ADB in 1968)
Establishment of National Cooperatives Development Board in 1991.
Co-Operatives Act- 1992
Formed in August.1991 for designing a strategy for revitalizing the cooperative movement so as to make it self-reliant and people managed.
More specifically, the main tasks of NCDB included the following:
formulate cooperative policies;
help set up the structure of the cooperative movement from bottom to top;
coordinate the activities of cooperatives in different sectors; and
establish necessary infrastructures required for facilitating the process of cooperative development.
CURRENT SITUATION IN NEPAL
Total Number of Cooperative in Nepal : 26,501
Total Number of Member : 4,647,549
Total Number of employment by Cooperative: 39,752
Total Share capital of Cooperative : NPR 27,095,151.00
Total Deposit in cooperative : NPR 139,543,971.00
Total Loan disburse by Cooperative : 134,033,495.00 Source: Department of Cooperatives Fiscal year 2068/69
SUCCESSFUL CO-OPs
Integrated Cooperative Development Program in Nawalparasi district.
Amliso (Bamboo grass) Production and Marketing in Ilam an Jhapa districts.
Ginger Production and Marketing in Salyan district.
Institutional Marketing of coffee in Gulmi district.
Goat rearing activities and Marketing in Tanahu district.
Cardamom Production and Marketing in Panchthar district. Etc.
Example…
Panchakanya Agriculture Cooperative Ltd.
Run exclusively by women
Advantages of Cooperatives
Economic and social growth in communities Creates more employment opportunities Possibility to change something that’s not working Better access to products and services Strong customer loyalty Access to new markets Bring solutions to problems Land integration We-Feeling amongst farmers etc
AGRICULTURAL CO-OPs
The importance of food means there has to be maximum and safe utilisation of agricultural land.
The best way to achieve proper organisation of agricultural land is on a cooperative basis.
The land in Nepal is fragmented, hence not suitable for Commercial Agriculture.
Land is very important in the psychology of farmers, so a proper cooperative system has to be built up to give farmers a sense of ownership of their land and permanent rights to the land while it is managed cooperatively. This will also give a better outturn.
Impact of Co-Ops in Nepalese Agriculture
Direct & Indirect impacts on Socio-economic development.
Creation of Productive employment.
Women Participation & Mobilization.
Important role in Crop production, Marketing , Processing and also Seed Production.
Easy access to Savings & Credit at low cost.
Social & economic protection/insurance to Farmers.
Role in Conflict solving & peace building.
Cont..
Source of Loan and Loan Utilization.
Diversification, Profitability & Profit use.
Increasing in Purchasing capacity of local farmers.
Market extension.
Uplifting of living status
Participation & Empowerment
Present Scenario & Challenges
Despite the efforts by governmental agencies, international institutions, Non-governmental Organizations and other Stakeholders, The results are far from Satisfactory.
Most profitable co-operatives are urban based
Rural co-operatives lack regular guidance , trainings, credits & insurance etc. from GON, NGOs etc.
Lack of Creditability, managerial skills & professionalism.
cont…
Governmental negligence and lack of clear policies.
Lack of Proper Monitoring and Evaluation
Lack of inclusion of every sector of the society including Dalits, Janjatis, Women etc.
Lack of vision, commitment and willingness by Political Parties and non-profit organizations.
Lack of training, research and extension outreach to co-operative formation, feasibility studies, management and their promotion.
THE WAY OUT…FUTURE AGENDA
Making MONITORING and EVALUATION act professional and independent.
Periodic, special themes, big projects and not driven by donors.
Carrying out impact evaluation of donor assisted projects through independent evaluation sponsored by the government/client-ownership building.
Participatory and involvement of donors
Strong organization of evaluators/networking
Code of conduct for the evaluators.
Dissemination of results/priority.
THANK-YOU !!!