Cooperative Can Differentiate Themselves in the Market Place

Prepared by:Jo B. BitonioPresenter /Discussant

Philippines

• Cooperatives play a vital role in the Philippine economy. As may be gleaned below, the

• cooperative sector made significant contribution to the country’s economy

From an agribusiness standpoint, the business activities and scope of the agricultural cooperatives in the Philippines cover the functions including input supply, production, post-harvest, processing and marketing.

Credit and financing are also engaged in by the agricultural cooperatives inasmuch as most of the production cooperatives undertake re-lending to its members. This is the reason why most cooperative are registered as multi-purpose.

Most of the agricultural cooperatives however are engaged into production. Input supply is likewise being undertaken by the multipurpose cooperatives by providing the input requirements of its members.

Very few cooperatives however engage in bulk purchase of input supply. Needless to say, most of the agricultural cooperatives in the Philippines are either too small or have not yet fully matured to take on agro-industrial activities such as processing.

Clearly, the agricultural cooperatives play a vital role in the growth of the economy of the Philippines. While there are areas for improvement, the most recent innovations that exhaust opportunities for strengthening the agricultural cooperative movement are slowly being felt.

These innovations are responsive to the need to strengthen the agricultural cooperatives and address the root causes such as weak enabling policy environment, lack of government support, weak capability building systems, absence of strong centralized agricultural cooperative financial, production and marketing systems.

Mr. Dennis B. Araullo, Sept. 2006

Identifying and highlighting

cooperative difference would become the defining characteristic of ACs throughout the 21st century

Finding the appropriate mix between machinery and people would become an ongoing challenge for cooperatives as they sought to differentiate themselves from proprietary firms.

Farmers should “go it alone,” trusting no one but themselves. So, within the yardstick philosophy, farmer control had to be expressed—or objectified—through an investment.

Farmers should exert control over their market situation through asset ownership and technological prowess—ownership equaled control.

Farmer autonomy and organizational tangibility were conceptualized on how a cooperative should look like and how it should relate to the rest of the business world.

Making commitments to rural communities through a federated system of ownership and control;

Providing a “home” for growers’ product;

Setting the “pace” of competition;

Facilitating stabilized, orderly marketing—interfered with the streamlining and focus of industrialization, manifested through efficiency, turnover, repetition, predictability, and standardization.

Traditional Cooperative Norm

cooperatives on their own terms as organizations should bring producers the higher margins from raw materials held within the cooperative system tobe processed and marketed as branded or identity preserved products.

• Branding

• Interconnectivity

• Advertising

• Marketing

Given this global competition, cooperatives to develop stronger networking and integration

The challenge to move from independence to interdependence

Influence on legislative and policy reforms

Co-op Values Cooperatives are based on the values of self-help, self -responsibility,

democracy, equality, equity, and solidarity. In the tradition of their founders, cooperative members believe in the ethical values of honesty, openness, social responsibility, and caring for others.

Cooperative values captured this difference. This attitude segregates cooperatives from the rest of the business community.

How we’re different

At Food Front anyone can be an owner of the store and everyone is welcome to shop. Unlike regular grocery stores, cooperatively owned grocery stores are democratically-run organizations that exist to benefit their owners and their communities. Cooperative values reach far beyond the bottom line. That’s why we are committed to supporting local farmers and producers, sustaining our environment, and building a stronger community.

 

• LIMCOMA Multi Purpose Cooperative has an efficient marketing network, as evidenced by its three branches and nine modified branches spread across the Batangas, Quezon and Laguna provinces. It also established the LIMCOMA Food Store in Calamba Laguna and service outlets to deliver business products and supplies at members’ doorsteps.