Assessment 3

Based on the “Philippine Cooperative Code of 2008”, enumerate the principles of cooperation
and define each of it.

GENERAL CONCEPTS AND PRINCIPLES

ARTICLE4. Cooperative Principles - Every cooperative shall conduct its affairs in accordance
with Filipino culture, good values and experience and the universally accepted principles of
cooperation which include, but are not limited to the following;
(1) Voluntary and Open Membership - Cooperatives are voluntary organizations, open to all
persons able to use their services and willing to accept the responsibilities of membership,
without gender, social, racial, cultural, political or religious discrimination.
Co-operatives are voluntary organizations Open to all persons who are:
 Able to use their services
 Willing to accept the responsibilities of membership
 Without gender, social, racial, political or religious discrimination.
This is the first of the seven principles of co-operation. It is very important because it
reaffirms the importance of members choosing voluntarily to make a commitment to their co-
operative. It establishes the fact that co-operatives are open to all persons who are able to use
their services and willing to accept the responsibilities of membership without gender, social,
racial, political or religious discrimination. It also acknowledges the fact that membership should
be limited to only those persons who are actively involved in that type of activity. It reminds
members that they have obligations to their co-operatives. These obligations include exercising
their voting rights, participating in the meetings and using the services of the society. This
principle also clearly specifies that there should not be any gender bias when granting
membership and women should be present as far as possible in equal numbers to men. Thus this
principle itself provides the needed opportunity for women to join co-operatives and for them to
be co-operators.
Co-operatives should not discriminate among members on the basis of class, religion or
political affiliation. Co-operatives should not exploit non-members of their communities and
they should accept the responsibility of fostering the development of the co-operative movement
in their areas.

(2) Democrative Member Control - Cooperatives are democratic organizations that are
controlled by their members who actively participate in setting their policies and making
decisions. Men and women serving as elected representatives, directors or officers are
accountable to the membership. In primary cooperatives, members have equal voting rights of
one-member, one-vote. Cooperatives at other levels are organized in the same democratic
manner.
 Co-operatives are democratic organizations controlled by their members, who actively
participate in setting their policies and making decisions.
 Elected representatives are accountable to the membership.
 In primary co-operatives, members have equal voting rights (one member - one vote)
 Co-operatives at other levels are also organised in a democratic manner.
 This principle emphasizes that the members, who are the owners, ultimately must control
their co-operatives. This control must be exercised in a democratic manner. It reaffirms the
right of members to be actively involved in setting policies and in making decisions. This active
involvement leads in many cases to policy issues being discussed, major decisions being made
and important actions being approved in the general body meetings of the co-operative.
This principle also reminds the men and women serving as elected representatives that
are accountable to their members.
The democratic basis of this principle is that every member of a primary society has
equal voting rights (one member - one vote) and that co-operatives at other levels are also
organised and run in a democratic manner.

(3) Member Economic Participation - Members contribute equitably to, and democratically
control, the capital of their cooperatives. At least part of that capital is the common property of
the cooperative. They shall receive limited compensation or limited interest, if any, on capital
subscribed and paid as a condition of membership. Members allocate surpluses for any or all of
the following purposes: developing the cooperative by setting up reserves, part of which should
at least be indivisible; benefitting members in proportion to their patronage of the cooperative's
business; and supporting other activities approved by the membership.

Members contribute to the capital through equity and democratically control

 Limited compensation to equity.
 Surpluses may be allocated:
 As reserves to develop their Co-operative
 To distribute Patronage
 To any other activity approved by the members that benefits the members.
This principle describes the reasons why and the ways in which members should invest in
their co-operatives as well as how they should decide to allocate surpluses. As the co-operative
grows they may create reserves for further development of their co-operatives. Members also
control the capital of their co-operatives. They should decide how capital should be raised and
how surpluses should be distributed. When these surpluses are distributed to the members as a
patronage bonus, it must be in proportion to their transactions with the co-operative.

(4) Autonomy and Independence - Cooperatives are autonomous, self-help organizations

controlled by their members. If they enter into agreements with other organizations, including
government, or raise capital from external sources, they shall do so on terms that ensure
democratic control of their members and maintain their cooperative autonomy.
 Co-operatives are autonomous, self-help organisations controlled by their members.
 If co-operatives enter into agreements with other organisations, including governments,
or raise capital from external sources, they should do so on terms that ensure democratic
control by members and maintain their autonomy.
Co-operatives should be autonomous and free from control by Government or any other
external body. In most countries of the world governments decide the legislative framework
under which co-operatives must function. These laws enable co-operatives to operate as legal
entities and broadly protect the members and public interest. However, good laws ensure that co-
operatives remain autonomous in the same way, as are private enterprises.
 In the case of co-operatives entering into agreements with other organisations including the
Government, such agreements should be on mutually agreeable terms and conditions.

(5) Education, Training and Information - Cooperatives shall provide education and training
for their members, elected and appointed representatives, managers, and employees, so that they
can contribute effectively and efficiently to the development of their cooperatives.
 Co-operatives provide education and training for their members, elected representatives,
managers and employees so that, they contribute effectively to the development of their
Co-operatives.
 Inform the general public - particularly the young people and opinion leaders - about the
nature and benefit of Co-operation.
This principle emphasises the importance of educating and training co-operative members,
elected representatives, managers and employees of a co-operative. It does not mean just
distributing reading materials and correspondence but includes in educating and informing the
members, elected representatives, managers and employees the values of the co-operative
thought and action.
Education, training and information should be imparted by co-operatives on a regular
basis. More emphasis should be given to training youngsters, potential leaders, politicians, public
servants, reporters and educators about the advantages of the co-operative form of business. It is
very important that if education, training and information are imparted regularly, it will go a long
way in making co-operatives viable and sustaining it.
(6) Cooperation among Cooperatives - Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional and
 Co-operatives serve their members most effectively and strengthen the co-operative
movement by working together through
 Local.
 National.
 Regional and
 International structures.
This principle highlights the importance of co-operation among co-operatives. If co-
operatives are to grow and achieve their maximum potential, they should do so by collaborating
with other co-operatives, not only at the local level but also nationally, regionally and
internationally levels. This principle is even more important as we enter the next century and the
competition with other forms of business organizations increases.
(7) Concern for Community - Cooperatives work for the sustainable development of their
communities through policies approved by their members.
Co-operatives exist primarily for the benefit of their members. Since these members live
together in communities, it is important that they play a role in developing those communities.
This principle clearly emphasizes that co-operatives have a social responsibility in ensuring that
the communities to which their members belong develop economically, socially, and culturally.
As in many parts of the world the environment is at risk, it is important that cooperatives also
accept a responsibility of working together to keep their environment clean and free from
pollution.
 Assessment 4
1. Who are the top ten billionaire cooperatives in the Philippines?

The Top Billionaire Cooperatives in the Philippines

Interestingly enough, the top two slots in the list of billionaire cooperatives in the
Philippines are those catering to the military. The Philippine Army Finance Center Producers
Integrated Cooperative (PAFCPIC) has about 8.3 billion total assets. ACDI Multipurpose (ACDI
MPC) Cooperative, on the other hand, has about 12.29 total asset base, according to the
Cooperative Development Authority‟s website.
Members are those in active service, retirees, those in the reserved force and the regular
civilian employees. Besides loan services, PAFCPIC has their own grocery, canteen, water
refilling station and even commercial space rental. ACDI MPC has its own aviation school in
Poro Point, San Fernando La Union. They also have an agri-business, leasing of resort
condominiums and even a lab coop, which caters to youngsters aged 7-17 years old. As of
August 2015, ACDU AMP has more than 80 branches and extension offices and about 17 mobile
operations.
Here are the top ten billionaire cooperatives in the Philippines as of March 2016:
1 Philippine Army Finance Center Producers Integrated Cooperative (PAFCPIC)
2 ACDI Savings and Credit Cooperative
3 First Community Cooperative
4 Cooperative Rural Bank of Bulacan
5 Cebu CFI Community Cooperative
6 PLDT Employee‟s Credit Cooperative Inc.
7 Novaliches Development Cooperative (NOVADECI)
8 Pangasinan III Electric Cooperative (PANELCO III)
9 DSE (BSP) Credit Cooperative
10 Metro South Cooperative Bank

2. Produce a minimum seven (7) page research paper assignment on Cooperative Marketing in
your community
 NUEVA ECIJA UNIVERSITY OF SCIENCE AND TECHNOLOGY
College of Management and Business Technology

The Role of Cooperatives in Community Development of the Agricultural Sector;

Farmers, Poultry and Livestock Owner in the locality of San Leonardo

Presented By:
Ma. Angelika T. Tinaya
BSBA FM2-P

A Research Paper
Presented to Mrs. Elenita R. Paet, Ph.D.
As a Partial Fulfillment of the Requirements
For the subject Cooperative Marketing

October 2020
Introduction

Forming an organization is not easy as it entails different requirements, procedures,

sufficient number of people and a common goal to assure that the organization will be

successfully launched. An example of a cooperative is the cooperatives for agricultural sector.

This paper will discuss the idea on how Co-operatives specifically their roles can be considered

as an important part of a community development, particularly the town of San Leonardo as

they are formed for a special advocate which can benefit for the people especially on the

agricultural sector.

Agriculture is the primary industry in the small town of San Leonardo which is a first

class municipality in the province of Nueva Ecija, of which became the Food Bowl and Rice

Granary of Central Luzon. San Leonardo is politically subdivided into 15 barangays. And it is

located between Gapan City and Santa Rosa. The area of San Leonardo has a farming economy

and it also have a vast rice fields and land for growing vegetables, poultry and other livestock

products. Most of the people live in here are farmers and some is poultry and hog growers. The

primary agricultural products in San Leonardo are rice, corn, calamansi, mango, vegetables and

as well as the poultry, piggery and other livestock products. And there are various agricultural

cooperatives in San Leonardo which helps the farmers, poultry and livestock owners to have a

capital for them to open up, establish and maintain their business. And also with the help of

Cooperative banks which plays a vital role for providing need-based finance, especially for

people in the town of San Leonardo who engaged in agriculture and agricultural-based

operations including farming and other self-employment driven activities.

And nowadays, it is observed that various farmers and different people who engage their

business with agriculture are lack of knowledge on what can cooperative do specifically their
roles that may help them on engaging with their business. Which could be the reason why they

do not have any idea on how or what can a cooperative do to help develop not only for their

business but on their community as well. .

Hence, this study will be conducted as an eye-opener to the farmers, poultry and livestock

owners on how a cooperative can help them in engaging their business and also how a

cooperative can help on the community development in the town of San Leonardo. Moreover,

respondents which are the people who engage in the agriculture will be enlightened about the

functions of Cooperatives.

This study will provide questionnaire and survey forms to farmers, poultry, and livestock

owners within the locality of San Leonardo. Furthermore, beneficiaries of this study will also be

them since this will provide knowledge in assessing them and also their business companies by

means on instruct them about the roles and function of a cooperative that will help them to utilize

it on their business as well as on their community.

Review of Related Literature

The Nebraska Cooperative Development Center (2020), defines cooperative as “an

association of persons (organization) that is owned and controlled by the people to meet their

common economic, social, and/or cultural needs and aspirations through a jointly-owned and

democratically controlled business (enterprise)”. The people of the cooperative are those who

use its products, supplies, and/or services. Profits are also often returned back to the members of

the cooperatives; however, cooperatives are often more focused on services for members than for

investments. In the light of the above values, cooperatives can then be described as a distinct,
mutual-based association or group of people with varied capital and membership base which is

democratically managed.

A cooperative is distinct form from a socio-professional body and its mission is to defend

the interests of its members or a community development association whose activities are similar

to those of a pressure group. Grashuis (2018) every member is responsible for the preservation of

its autonomous identity, as an association of people formally engaged in private enterprise with a

strict beneficial economic purpose. As this research study, is all about the roles of cooperatives

on community development, for the purpose of these research (Majee and Hoyt, 2011), define

community as a diverse group of people who live in a commonly understood location or place.

The place may be a neighborhood, a town/city, or a country. Some see community development

as a process that helps a community to sustain itself socially, economically, culturally, or even

environmentally.

Today, in this new period when many people feel powerless about their lives specially

those people below the poverty line, cooperatives represents a strong, vibrant, and attainable

which also possible economic alternatives. Cooperatives are formed to meet people‟s mutual

needs. They are based on the powerful ideas of the people who can achieve goals that none of

them could achieve alone (Dogarawa, 2010). For over years, cooperatives have been an effective

avenue for the people to apply their control over their livelihoods. Additionally, this provides a

unique tool for achieving one sustainable and economic goal in an increasingly competitive

global economy. And also according to (Dogarawa, 2010), as the governments around the world

cut services and withdraw from regulating markets, cooperatives are being considered as useful

mechanisms to manage risks for members in agricultural and other similar cooperatives.
 Cooperatives exist for different purposes in human societies. As such, they can sustain

livelihoods of rural communities in many different ways. Tchami (2007) observes that the main

purpose of a cooperative is to allow individuals to come together and pool their resources in

order to reach a common goal, which would be difficult for them to achieve as individuals.

Furthermore, cooperation in most cases occurs when external factors threaten a certain number

of individuals; hence, cooperatives are the best possible means of defence against the worsening

social and economic conditions affecting a section of the population. In this way, cooperatives

are enterprises which help their members to cooperate in solving social problems they share.

Agriculture continues to be the engine of economic growth in most developing countries.

Strong cooperatives are able to overcome many of the difficulties faced by the farmers; wherein

in a country like India 85% are small and marginal farmers. Cooperatives work on the set seven

principles, among these principles the seventh principle - Concern for the community derives

cooperatives to work for the sustainable development of the community (Kumar, Wankhede, and

Gena, 2015). However, as the government had even considered the cooperative sector as a

„Cooperative Commonwealth‟. In this way cooperatives developed as a special sector combining

the strengths of both the public and private sectors, especially serving the needs of small and

marginal farmers and weaker groups. At present it is the largest Movement in the world. Self-

help, self-responsibility, democracy, equality, equity and solidarity which helps in Cooperatives

are democratically-managed economic institutions with social objectives providing every kind of

services that the members need based on the principles of the Cooperation. In the economic

development of the country, Cooperation was accorded a place of prominence in the Five-Year

Plan Documents until the 8th Plan. In accordance with the policies laid down and the budget

allocations provided, the Cooperative Movement has made tremendous achievements e.g., Dairy
Cooperatives, Fertiliser Cooperatives, Rural Credit sector, Environment up gradation and

livelihood improvement etc.

According to Kumar, Wankhede, and Gena, (2015) in an article entitled, “Role of

Cooperatives in Improving Livelihood of Farmers on Sustainable Basis”, farming cooperative

societies is a development of farming sector was given major emphasis after independence for

ensuring food and employment security in rural India. While various land reforms were enforced

to ensure equitable distribution of natural resources, consolidation of small and fragmented

holdings was considered necessary for improving agricultural production. Hence concept of

Cooperative farming was mooted by the Planning Commission to pool the land owned by small

farmers for joint management. The proposed approach was either to retain individual ownership

of the land and lease to the cooperative or transfer land ownership to the Cooperative and collect

shares worth the value of the land. The Cooperative could then pool the holdings for land

improvement and intensive cultivation, using modern technologies. These farming cooperatives

were supported with financial resources to develop land and water resources.

Thus cooperatives, aim to increase member‟s production and incomes by helping better link

them with finance, agricultural inputs, information, and output markets. Specialisation may be in

production, service provision, production or marketing or offer all or some combination of,

support within the various stages. Collective action is the core resource of agricultural

cooperatives. Cooperatives create social relations that enable individuals to achieve goals that

they may not otherwise be able to achieve by themselves (Agriculture form Impact, 2020).

Additionally, Agricultural cooperatives also enable farmers to improve product and service

quality and reduce risks. They may also empower their members economically and socially by
involving them in decision-making processes that create additional rural employment

opportunities, or enable them to become more resilient to economic and environmental shocks.

Statement of the Problem

This seeks to answer and determine how the roles of cooperatives can really help on the

development of a community specifically on the agricultural sector based on the responses of the

farmers, poultry and livestock owners in the locality of San Leonardo.

Specifically, this seeks to answer the following questions:

1. What is the owner‟s demographic profile?

a. Age

b. Area (Urban or Rural)

c. Educational Attainment

d. Monthly Income

2. How does the their livelihood or business in differ in terms of:

a. Longevity

b. Income

3. What is/are the perspectives of farmers, poultry and livestock owners regarding on the

cooperatives?

4. Is there a significant difference among the responses of the respondents regarding on the

cooperatives?

5. Based on the findings, what intervention or action must be proposed for the farmers,

poultry and business owners to encourage them to engage in a cooperative?

Hypothesis

There is a significant difference among the responses of the farmers, poultry, and

livestock owners in San Leonardo regarding the roles of cooperatives in the community

development of the agricultural sector.

There is no significant difference among the responses of the farmers, poultry, and

livestock owners in San Leonardo regarding the roles of cooperatives in the community

development of the agricultural sector.

Significance of the Study

The purpose of Cooperatives is to meet member needs, and members need to understand

that fulfilling that purpose takes capital. Members own and invest in their cooperative because

they trust that doing so is in their best interest.

This study will be implemented to determine how the roles of cooperatives can really

help on the development of a community specifically on the agricultural sector in the locality of

San Leonardo. Accomplishment of this study will lead on the enrichment of farmers, poultry,

and livestock owners on the how can a cooperative help them in in their business establishments

as well as on the livelihood in their community also, to broaden their ideas and perspective

regarding this matter. Moreover, this will also serve as a background for the future entrepreneurs

who want to engage their business on agriculture especially with the help of a cooperative on

establishing a business. Lastly, future researchers can also use this as their reference or

secondary data for the following research studies in line with cooperatives.
Scope and Limitation

This research study will seek to determine the role of cooperatives in community

development of the agricultural sector specifically on the farmers, poultry and livestock owners

on the locality of San Leonardo who engages in a cooperative and also the effectiveness on

engaging there business or livelihood in a cooperative.

The study will be accomplished through the selection of farmers, poultry and livestock

owners in line with agricultural sector within the locality of San Leonardo. These respondents

which will be the foundation of data that will be needed on this study will underwent in an

assessment with the use of validated and modified survey forms and questionnaires.

Descriptive-Survey Research will be the research method that the researcher will employ

in this investigation. Furthermore, the researcher will determine whether there is a significant

difference among the responses on the perception of the farmers, poultry and livestock owners in

San Leonardo which will be the respondents on this research study regarding the roles of

cooperatives in the community development of the agricultural sector.

Conceptual Framework

Farmers, Poultry, and

Agricultural Sector Livestock Owners in
San Leonardo

Role of Cooperatives in
Community Development

Figure1. Research Paradigm

 In this study, the independent variable was the agricultural sector .This may be the reason

or cause of changes in the role of cooperatives in community development that could be a

positive, negative or a neutral one.

Farmers, poultry, and livestock owners are the dependent variable since from their

perception or responses, the researcher could analyse if there is a significant difference among

the responses of the farmers, poultry, and livestock owners in San Leonardo regarding the roles

of cooperatives in the community development of the agricultural sector.

Identify and determine how the roles of cooperatives can really help on the development

of a community specifically on the agricultural sector in the locality of San Leonardo.

There is only one intervening variable in this study which is the role of cooperatives in

community development which is the main purpose of this study. The intervening variable could

identify variances between the dependent and independent variable in this research.

Definition of Terms

Agricultural Sector- It comprise establishments primarily engaged in growing crops, raising

animals, and harvesting fish and other animals from a farm, ranch, or their natural habitats. And

this is the primary focused of the researcher to determine the role of cooperatives in community

development on the agricultural sector in the locality of San Leonardo.

Cooperatives- The association of persons or organization that is owned and controlled by the

people to meet their common economic, social and/or cultural needs and aspirations through a

jointly-owned and democratically controlled business or enterprise.

Cooperative Bank- Is a type of financial institution that is owned and operated by its members.

The goal of a financial cooperative is to act on behalf of a unified group to offer traditional

banking services. These institutions attempt to differentiate themselves by offering above-

average services along with competitive rates in the areas of insurance, lending, and investment

dealings.

Community Development- It is define as a process where community members come together

to take collective action and generate solutions to common problems. Community wellbeing

(economic, social, environmental and cultural) often evolves from this type of collective action

being taken at a grassroots level. Community development ranges from small initiatives within a

small group to large initiatives that involve the broader community.

Farmers- An individual whose primary job function involves livestock and/or agriculture. A

farmer takes all the necessary steps to ensure proper nourishment of the items that he/she raises

and then sells the items to purchasers. Some farmers have been able to capitalize on the need for

high-demand products that they produce, such as organic vegetables and livestock. And these

serve as one of the researcher‟s respondent.

Livestock Owner- They are the person who has business regarding about livestock production

which is closely interrelated with crop production. Their business is all about farm animals such

as; pigs, cows, goats and many more. And they are also serves as respondents in this study.

Poultry Owner- Is a person who engages his or her business in poultry farming which is the

process of raising birds domestically or commercially, primarily for meat and eggs of chickens,

turkeys, ducks and many more. This also serves as a respondent in this research study.
Livestock Owner- They are the person who has business regarding about livestock production

which is closely interrelated with crop production. Their business is all about farm animals such

as; pigs, cows, goats and many more. And they are also serves as respondents in this study.
REFERENCES

Wilson Majee & Ann Hoyt (2011) Cooperatives and Community Development: A Perspective

on the Use of Cooperatives in Development, Journal of Community Practice, 19:1, 48-61 To link

to this article: https://doi.org/10.1080/10705422.2011.550260

Bello Dogarawa, Ahmad. (2005). The Role of Cooperative Societies in Economic Development.

University Library of Munich, Germany, MPRA Paper. 10.2139/ssrn.1622149.

Deffenition of Cooperatives Retrived from NEBRASKA COOPERATIVE DEVELOPMENT

CENTER Agricultural Economics 2020 https://ncdc.unl.edu/what-cooperative

Mhembwe, S. & Dube, E., 2017, „The role of cooperatives in sustaining the livelihoods of rural

communities: The case of rural cooperatives in Shurugwi District, Zimbabwe‟, Jàmbá: Journal of

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Agricultural Cooperatives Retrieved from AGRICULTURE FOR IMPACT/Growing

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