On Co-operative

Presented by:

Rohit Mishra
Prabhat Mani Tripathi

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Objective To explore employment opportunities in the growing cooperative sector.

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Introduction An autonomous association of persons united voluntarily to meet their common economic. and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. social. “International Co-operative Alliance (ICA)” Page  3 .

Types of cooperative societies Housing cooperative Building cooperative Retailers' cooperative Utility cooperative Worker cooperative Business and employment co-operative Social cooperative Consumers' cooperative Agricultural cooperative Cooperative banking (credit unions and cooperative savings banks) Federal or secondary cooperatives  Cooperative wholesale society  Cooperative Union  Co-operative party Page  4 .

    Primary producers and persons connected with primary produce can become members. processing manufacture and sale of primary produce and allied matters. Producer Companies are not vulnerable to takeover by MNCs and other companies. Existing cooperative society can be converted into a producer company and re-converted into an interstate cooperative society. if the majority so desires. but can be transferred with approval of the Board of Directors of the company. Page  5 . Members’ equity is not publicly traded. The objects of such Company should include production.Features   The Companies Amendment Act 2000 made it possible to create coop societies as companies.Producer Company or commodity company .

Characteristics of Co-operative Society Open membership Voluntary Association State control Sources of Finance Democratic Management Service motive Separate Legal Entity Distribution of Surplus Self-help through mutual cooperation Page  6 .

Scope of cooperative society worldwide (Statistics) Page  7 .

United States In the United States.400 farmer-owned co-operatives. credit unions have 84 million members and assets in excess of US$600 billion. In 2003 the top 100 US co-operatives had combined revenues of USD 117 billion. In addition. Page  8 .5 million households Nearly 10.000 independent businesses More than 6. 4 in 10 individuals is a member of a co-operative (40%).000 U. 270 telephone co-operatives provide service to two million households 250 purchasing co-operatives offer group buying and shared services to more than 50.S. approximately 30% of farmers' products in the US are marketed through 3. In the United States more than 30 co-operatives have annual revenue in excess of USD 1 billion.400 housing co-operatives provide homes for 1.

In Belgium. 21% of coffee and 16% of maize.3 billion.1 million members. 44% of barely. co-operatives are responsible for 72% of the wheat production. In Bolivia.5%. 38% of cotton. 43% of soya.South America In Argentina. Agricultural co-operatives exported over USD 1. there are over 17.3 million people are members of co-operatives or 8. Sector Cooperativo Colombiano 2005) Costa Rica count over 10% of its populations as members of co-operatives. In Benin. In Colombia over 3.941 co-operative societies with 9.01% of the population (Source: CONFECOOP. co-operative pharmacies have a market share of 19. 39% of milk. a savings and credit co-operative federation provided USD 16 million in rural loans in 2002. Cooperativa de Ahorro y Crédito "Jesús Nazareno" Ltda. (CJN) handled 25% of the savings in Bolivia in 2002. In Brazil. In Belgium. FECECAM. there were 29. Page  9 .933 co-operative societies in 2001.

Finnish co-operative groups within Pellervo were responsible for  74% of the meat products. Page  10 .  34% of forestry products  34. 8.  In Germany.000 co-operatives provide jobs to 700.000 people. 1 out of 4 people. there are 20 million people who are members of co-operatives. co-operative banks in Europe had over  150 millions population)  clients (one third of the EU 60.106 co-operatives provide jobs for 440.2% of the total deposits in Finnish banks. 21. In Germany. 50% of the egg production.Europe In 2004.000 people.000 banking desks  50 million members In France.  96% of dairy products.

9 million and and 20 million Kenyans directly or indirectly derive their livelihood from the Co-operative Movement. Kenya 1 in 5 is a member of a co-operative or 5. Page  11 .Africa Kenya co-operatives put their contribution to GDP at 45% with 31% of national savings and deposits. the Central Union of Consumer Co-operatives were responsible for 6. They have:  70% of the coffee market  76% of the dairy  90% of pyrethrum and  95% of cotton. In Moldova.8% of the consumer market.

In Japan. In India.Asia Region In Korea agricultural co-operatives have  A membership of over 2 million farmers (90% of all farmers)  An output of US$11 billion. over 239 million people are members of a co-operative. the agricultural co-operatives report outputs of USD 90 billion with 91% of all Japanese farmers in membership China has180 million members Page  12 .  The Korean fishery co-operatives also report a market share of 71%.

1 out of every 3 families is a member of a cooperative and there are 14 million consumer co-op members. Page  13 . 50% of the population (1.Asia Region Malaysia has 5. Japan Around 1 in 5 of all Japanese households belongs to a local retail co-op and 90% of all co-op members are women.4 million members which is 20% of the population In Malaysia.788.000 Han groups. consumer co-operatives hold 55% of the market in supermarket purchases and have a turnover of USD 700 million In Singapore. Agricultural cooperatives report outputs of US$90 billion with 91% of all Japanese farmers in membership.6 million people) are members of a co-operative. In Singapore. 5. Nearly 6 million households belong to one of the 1.5 million people or 20% of the total population are members of co-operatives (2005).

13% in the worker/industrial sector. 18% of the jobs in the transport sector.000 as owner-workers in workers cooperatives. Page  14 . The Desjardins movement (savings and credit co-operatives) is the largest employer in the province of Québec. In Canada. co-operatives and credit unions employ over 160. 20% more than multinational enterprises.000 people.Co-operatives create Employment Co-operatives provide over 100 million jobs around the world. They provide 23% of jobs in the health sector. In Colombia.000 jobs and an additional 379. 11% in the financial sector and 9% in the agricultural sector. the co-operative movement provides 109.

the Co-operative Union represents more than 700 co-operatives who employ nearly 75. In Slovakia. 250. In Kenya.Employment In Slovakia.000 individuals.000 individuals. Page  15 . the Co-operative Union represents more 700 cooperatives who employ nearly 75.000 people are employed by co-operatives.

Major problem of India is related with population in case of industry limited capacity can’t serve greater employment demand.13 billion people (March 10. India's population of approximately 1. 2008) comprises approximately one-sixth of the world's population. India is basically an agrarian economy with 72% of its total population residing in rural areas . India is having huge opportunity since it is a geographically diverse and major part of our economy is undeveloped so there is a great scope .Demographic Profile of India The Demographics of India are overall remarkably diverse. Page  16 . Due to lack of Facilities Indian villagers and labors are facing disgust unemployment this can be understood as over employed capacity or natural resources .

Nicholson a British Officer in India suggested to introduce Raiffersen model of German agricultural credit Cooperatives in India. Cooperatives were to get a direct legal identity as every agricultural Cooperative was to be registered under that Act only. As a follow-up of that recommendation. The National Cooperative Union of India (NCUI) was established in 1929 as an apex promotional organization for strengthening of cooperatives.Presence of Cooperatives in India During the British rule . Page  17 . National Cooperative Development and Warehousing Board was set up in 1956. With the enactment of 1904 Act. the first Cooperative Society Act of 1904 was enacted to enable formation of “Agricultural Credit Cooperatives" in villages in India under Government sponsorship.

Cooperatives accounted for:  46% of Agriculture Credit disbursement.  36% of fertilizer distribution. Page  18 . Number of Cooperatives Societies increased from 35 thousand in 1965-66 to 545 thousand in 2002-03. Role of Cooperatives in Indian Economy During the year 2002-03.  65% of Storage facility. marketing and export of agricultural produce.Growth of Cooperatives in India National Cooperative Development Corporation (NCDC) was established in 1963 under NCDC Act 1962 to promote production.  32% of Wheat procurement. Cooperatives cover each & every village of India. Today.  59% of Sugar production.

In the production of sugar the cooperative share of the market is over 58 percent and in the marketing and distribution of cotton they have a share of around 60 percent.3 million tonnes of phosphatic fertilizers and 4.  The cooperative sector accounts for 55 percent of the looms in the hand-weaving sector.Developments so far In fertilizer production and distribution the Indian Farmers Fertiliser Cooperative (IFFCO) with a domestic annual capacity of producing 4.  Dairy cooperatives operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations has now become the largest producer of milk in the world.  Cooperatives process. (operation flood) Page  19 . market and distribute 50 percent of edible oils.2 million tonnes of nitrogenous fertilizers commands over 35 percent of the market with more than 50 million farmers associated with it and.

Societies as a facilitator for Coop.Government Policies The Union Cabinet first time approved the National Cooperative Policy.  Redefining the role of Registrar of Coop.2002 ensures functioning of Cooperatives as autonomous Institutions on sound Cooperative Principles. Societies.  The new legislation reduces the role of Government and provides professionalism in Cooperatives to withstand competition.  Repatriation of the Government’s equity in the Cooperatives infusion of equivalent cooperative shares. aiming at:  Minimizing the say of the Government in Cooperatives.  Government participation in the equity is allowed only when requested by the Society. Page  20 by . Cooperative Law  Multi-State Cooperative Societies Act.

Neglect of professionalism. Lack of awareness. Lack of strong human resources policy. Over-dependence on government.Grey Areas Of Cooperative Sector Poor infrastructure. Non-conduct of elections. Lack of quality management. Page  21 . Dormant membership. Restricted coverage Cooperatives are also unable to evolve strong communication and public relations strategies which can promote the concept of cooperation among the masses.

Role of Managers Motivating cooperatives Enabling employee high performance Creating an environment for innovation Team leadership Organizational issues:  Direction to organization  Goals. vision. mission and values Functional Management ( Financial . Operational etc ) Facilitate Communication and Public relations Quality management Page  22 .

Asian development bank. Effective deposit mobilization will help them to build their own bendable resources. Page  23 . both in urban and rural areas.Suggestions Large-scale enterprises in the cooperative sector require huge funds. EEC. it should intensify its linkages with NGOs or Self-help Groups or panchayats and promotional bodies like NCDC to attract funds and other forms of assistance from international agencies like world bank. Cooperatives should be encouraged to enter capital market and mobilize funds by means of deposits. debentures etc. FAO. for profitable and diversified lending. to instill confidence among the depositors. etc. ILO. The state governments can act as venture capitalists Cooperatives can evolve deposit-insurance scheme. for specific development projects in the cooperative sector. In order to complete in the new economic environment.

consultancy. mergers. division. audit HRD. liquidation Page  24 .Suggestions Recommended by Expert committee Incorporates co-op principles Ensures autonomy & independence of co-ops Specifies role of federation No Gov’t control – participation in equity Incorporates provisions for self-regulation Enables co-ops to create their support services e.g. financial systems Incorporates provisions for simplifying registration.

Being Agriculture based India’s most population is situated in rural areas nearly 2/3 of total . India is Employees more employee than to any other country in the world . Much can be done to improve efficiency in cooperative society with proper management implementation and Government policies . Page  25 . while population growth is in A. Cooperative Society is one of the Largest sector Provides nearly 800 million. So this gives clear indication of scope of cooperative society also Employment opportunities in this area .So in this regard tendency toward primary sector can minimize this problem with proper cooperation. So this creates disequilibrium between subsistence need and population growth in developing countries .Conclusion Malthusian theory suggest the relationship between population growth and food production (production of food grains in G.P.P.).

Professionalism in the management of the cooperative enterprises will upgrade the quality of the staff with latest developments and also develop a proper and cordial relationship between the managers and members of board of directors. vegetables.. The leadership with vision. commitment and above all innovative approach can help in preserving Cooperative Identity in an Era of Competition. Page  26 . The Corporate culture will also bring sustainable efficiency and thereby cooperatives can compete with strong private players. dedication.Conclusion Cont. fruits. There must be proper and continuous training for both cooperative leaders and profession executives. sugar. There are a number of agricultural commodities like rice. Agricultural cooperatives can take this advantage in foreign market. that have strong competitive advantage in export markets. spices etc.

coop/al-ica/  http://www.nic.html  ICA2005  ICA2006   Annual Reports : http://www.Sources   Book:  Managing The Cooperative Difference : by Peter Davis Page  27 .ica.

Peace and social well-being are not only relevant to cooperatives but co-operatives are relevant to the peace making process in communities and societies throughout the world. Yehssusdah Paz. winner of the 2006 Dove of Peace award Thank you Page  28 .