Success Story of SACDECO

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Compiled by: Cooperative Development Authority, Dagupan Extension OfficePhilippinesJanuary 2012

Text of Success Story of SACDECO

  • 1.SUCCESS STORY & HISTORY OF THE STA. CRUZ SAVINGS ANDDEVELOPMENT COOPERATIVECompiled by: Jacqueline L. De Leon& Jo B. Bitonio Cooperative Development Authority January 2012In 1983, confronted by low production, and in order to respond to the need of providingfinancial assistance and other production needs of farmers, the Federation of RuralImprovement Club of the Sta. Cruz, Ilocos Sur organized the Sta. Cruz Credit Cooperative.An orientation and Pre-membership seminars were held with the assistance of TagudinCredit Cooperative and the Department of Agriculture. The Sta. Cruz Credit cooperative wasduly registered with the BACOD on December 18, 1984 with Registration No. RI-F-109 andwas confirmed by the Cooperative Development Authority on February 14, 1991,Confirmation No. 362.The Sta. Cruz Multi Purpose Cooperative(FormerlySta.Cruz Multi-PurposeCooperative) covers the 49 barangays of Sta.Cruz, Ilocos Sur with a total area of 144sq.kilometers. The original twenty five (25)members pool their resources togetherstarting a capital of PhP5, 000.00. Withthese limited resources, it started itsoperation with only one (1) staff. It was aslow, difficult climb upward.The first big break came when the coopsponsored a MUTYA NG KOOPERATIBAin December 1987 as a capital build-upscheme where half a million pesos (PhP500,000.00) was raised.This was followed by a sacrificial merienda(snacks) in April 1989 where the coopachieved an increase of three hundredthousand pesos (PhP300, 000.00) as anadditional fixed deposit. Again a raffle drawfollowed in July 1989 with a net of fourhundred thousand pesos (PhP400, 000.00) asshare capital. Continuous capital build uphas been programmed to finance theservices of the coop.With these activities, it greatly enhanced and expanded the services to its members. Credit isthe main line business of the Cooperative. Deposits in the form of saving and time depositsare also accepted.To serve better the members, solicitation of outside support was made. Tagudin CreditCooperative entrusted some amount in the form of time deposit to expand the credit services.Philippine Business for Social Progress (PBSP) granted the coop a concessional loan ofPhP200, 000.00 to implement livelihood projects for the benefits of poverty groups. To beable to implement, underground water development project to benefits sub-marginal farmers,the coop seek financial assistance from the Dutch government and CEBEMO was able to get

2. grant of P389, 799.00. Likewise, to cater to the needs of small fishermen, the coop asked theassistance from the Presidential Management Staff who gave a grant of more than PhP400,000.00Eighty percent (80%) of the population of Sta. Cruz is engaged in farming. For the benefit ofits farmer-cooperators, especially the tobacco growers, the cooperative entered into a contractwith the Land Bank of the Philippines (LBP) and the National Tobacco Administration(NTA). The Financial assistance came from LBP and the Supervision of the beneficiaries isunder the care of the NTA technicians.To benefit members who are engaged in cottage industries, traders, retailers, and smallmanufacturers and processing enterprises and members who want to establish projects whichwill help them augment their income, the coop availed a loan from the Department of Tradeand Industries.Through the years, the resources and services increased and this motivated the Cooperative togo into Multi-purpose Cooperative, the amendment of articles of cooperation and by-laws ofthe STA. CRUZ MULTI-PURPOSE COOPERATIVE laws duly registered with theCooperative Development Authority on July 4, 1994.A humble evidence of its progress, a land and building was acquired on April 1990 whichnow houses its office and other services rendered. A 3,000 sq. meters land was purchased onJune 1991 wherein a Feed mill was built through the Ilocos Sur Provincial GovernmentAssistance. Also a solar drying pavement was constructed to serve as post harvest facility.These were the outcome of hard work and dedication of all people involved in thecooperative.The feed mill manufactures animal feeds for hogs, broiler, cattle and tilapia known asSCMP COOP FEEDS. As a back-up project of the feed mill, SCMPC has launched a projectcalled the Baboyan sa Coop. The Coop provides each beneficiary a minimum of 5 hogs,feeds, veterinary medicines, technical supervision and assistance. Sixty percent of the projectincome will be given to the beneficiaries and 40% will be the share of the coop.Last February 1996, the SCMPC was able to get support from the Australian Agency forInternational Development-Philippine Australian Community Assistance Program (PACAP) 3. in the amount of P750, 000.00 for the implementation of the Palay Trading and SupportFacility Project. After five years of operation, the fund was transferred to the savings andcredit to be used in its agricultural loan window.After 2 years, another support was received from PACAP, for the implementation of theBalikatan sa Kabuhayan Project in the amount of PhP600, 000.00 for livestock project-hog,cattle and broiler raising.It was September 1999, when the Feed mill was stopped due to a very tight competition withcommercial feeds and low support of the members, however, members demand for feedswas responded by diverting commercial feeds to continue their project.Besides those mentioned earlier, the following services and programs were operated andoffered but after several years they were closed:1. Medical Aid Program (MEDICAID) this is similar to MEDICARE of the government. Enrollment in this program is voluntary on the members. All members are required to pay monthly premium of Php15.00 and when they are hospitalized/confined due to any kind of illness, the member will benefit an amount of P100 per day for the first 10 days or a maximum of PhP1, 000.00, the benefit can only be availed once a year, for outpatient, benefit to be given will be PhP300.00- Must present doctors certificate and Official Receipt of the medicines bought. However due to low patronage of members the coop stopped this program on January 2003.2. Birthday Regalo. This is one way of capital build-up. Each member of the program will contribute to a common fund of P20/member. Every member of the program is entitled to a gift when his/her birthday comes. For regular member, 50% will go the share capital and 50% will go the Savings Deposit. For YTM 100% will go to Savings Deposit. This program was suspended in its implementation on April 2001.3. Marketing. The marketing division is engaged in the buy and sell of agricultural inputs/products, grocery items, feeds, and other products. Due to some operational problems it was closed on December 2002.4. Tractor. The cooperative acquired a tractor in 1991 to better serve its farmer members. Tractor service is available at a lower rate than those of other individual offering the same services. However, the tractor was sold on October 2001.It was a big shift for the cooperative, since January 2003, the focus of operation is savings and credit.The services and programs currently offered are the following: 1. Savings. The coop accepts deposits in the form of savings- regular and special- and timedeposits. To help members increase their purchasing power, the cooperative become moreaggressive in its savings mobilization.Special savings products were launched on August 28, 2003. These products allow eachmember to choose the best option that suits his/her budget. a. Super Teens Savers (STS) - savings plan for youth to provide for future education needs. 4. b. Mothers Savings Plan(MSP)- Savings plan designed especially for mother (biologicalmother, adoptive mother or guardian) c. OFWs Cash Builder (OFW) - a savings and investment program specially designed forOverseas Filipino Workers. d. Golden Savers Club (GSC) - designed for retirees, senior citizens & pensioners. e. Money Maker Prime Savings (MMPS) its simple reassuring and within reach ofeveryones budget.2. Credit. The credit services answer the financial needs of members. It offers productive, provident and special loans. Since July 2001, the capacity-based lending (CBL) is gradually implemented. It was a great and difficult shift for the officers, staff and members. Lending policies were amended, forms were revised and the process and procedures were improved. The capacity of the member to pay is already the number one basis in granting loans and no longer capital leverage. The member is being rated using the 5Cs of credit- Character, Capacity, Collateral, Capital and Condition. Despite the changes and challenges brought by the implementation of CBL, there has been a considerable increase in the loan of portfolio and decrease in the delinquency rate from a Portfolio at Risk (PAR) of 40% to 8.19%. Most importantly, DOSRI (Directors, Officers, Staff and Related Interest) accounts are supervised and monitored.Car/motorcycle, farm equipment, fishing equipment, computer, cell phone and appliancefinancing are being offered. Followed by Jewelry Pledge Loan, Travelers Loan Window. Thelatest loan product that was launched is the Overseas Filipino Workers (OFW) Fast and EasyLoan.3. Youth Tipid Movement (YTM). This program designed to encourage minors to practice the virtue of frugality and save for their own future. YTM members are also given the opportunity to participate in the Mortuary Aid Program (MAP), if the parent so desires.4. Mortuary Aid Program (MAP). This is envisioned to assist financially the family of a departed member with each member contributing an amount to a common fund. Deduction is automatically made from the members mortuary deposit.The bereaved family of a MAP is entitled with the following benefit/s:A. BasicLength of membership Benefita. New member 2 yearsPhP20,000.00b. Above 2 years- 5 years 25,000.00 5. c. Above 5 years to 7 years30,000.00d. Above 7 years to 10 years 35,000.00e. Above 10 years to 15 years40,000.00f. Above