Strengthening agricultural dev’t through cooperative empowerment in PH

Cooperatives play a crucial role in the Philippine economy, fostering socio-economic development, empowering communities, and enhancing financial inclusion. As of 2022, there were over 20,105 registered cooperatives in the Philippines, covering various sectors including agriculture, finance, consumer goods, and services. These cooperatives range from small community-based initiatives to larger, multi-sectoral organizations.

Cooperatives date back to the early 1900s. According to the Cooperative Development Authority (CDA), from 1915 to 1927, there were laws that were enacted strengthening the organization of cooperatives in the country. There was also a recorded existence of an agricultural marketing cooperative in Dapitan, organized by Dr. Jose Rizal. However, not much record was left.

The cooperative is a unique association since it involves people pooling their resources and being co-owners of the enterprise. Given the proper management of a cooperative, it can become successful and beneficial to the owner-members and the community.

Based on government records, credit and financial services cooperatives will account for more than half of the total cooperatives in 2022. This is followed by agriculture, consumers, and marketing cooperatives. In 2022, the cooperative industry generated an estimated 335,000 jobs.

The Philippines is an agricultural country. It is no surprise, then, that a significant portion of cooperatives center around agriculture. Agricultural cooperatives support farmers and rural communities. Through the cooperatives, the members can access resources, technology, and markets, which improves their livelihoods.

President Ferdinand R. Marcos Jr. recognizes the important role of cooperatives in agricultural development. He has, in fact, called for the consolidation of farmer cooperative associations (FCAs) and expressed his avowed support.

In organizing FCAs, they will form bigger associations, which gives them more voice in government.
I believe the President is on the right track in urging the formation of bigger cooperative associations, especially those in agriculture.

A bigger cooperative association means more resources pooled from the contributions of member cooperatives. When resources are pooled together, it will be beneficial to the members, thus invigorating the agricultural sector.

It is lamentable that, up to now, our country remains remiss in modernizing or mechanizing agriculture. This may be due to the fact that our farms are small and tenanted, and many farmers continue to use carabaos or cows on their farms. Our neighboring countries continue to modernize their agricultural sectors. As a result, we are now importing rice from them.

Hopefully, with farmer cooperative associations, we can see a better agricultural industry that can respond to the needs of our country.

One strength that cooperatives provide is the empowerment of people and communities. One positive trait of Filipinos is their inherent love to belong to an organization and their patriotic duty to love our country.

In November this year, the CDA Region IV-A Extension Office published on its Facebook page a list of canceled registrations from the following provinces: Cavite (96), Laguna (271), Batangas (77), Rizal (3), and Quezon (28), for a total of 475 cooperatives.

The reason cited is that these cooperatives cannot be located at their registered principal address. The order of cancellation was dated September 25, 2023. For whatever reason, these cooperatives may have folded up, considering that it is not easy for a cooperative to start up.

It should be taken as positive that the desire of the members to set up or organize a cooperative fell short of the capability to push forward, especially the leaders. There is therefore a need for the government to address challenges faced by cooperatives, such as the following:

Capacity building: Continuous training programs and technical assistance to improve management, governance, and operational capabilities. This should involve the mentoring of CDA staff to newly organized cooperatives so as to instill in the officers their responsibilities and functions on how to run a cooperative business.

Access to finance: Creating avenues for cooperatives to access capital through government programs, partnerships with financial institutions, and donor support. Access should include newly created cooperatives and not just large cooperatives. Most large cooperatives can easily access financial assistance from government agencies simply because they already have a track record to prove their worth. Start-ups and surviving cooperatives are often denied this opportunity.

Policy support: Simplifying regulatory procedures and providing incentives for compliance can alleviate administrative burdens on cooperatives.

Market linkages: Facilitating market access and providing support for value chain integration can help cooperatives reach larger markets and improve their competitiveness.

Collaborative partnerships: Encouraging collaborations among cooperatives, government agencies, NGOs, and private sector entities can harness collective strengths to address common challenges.

A large number of cooperatives are located in rural areas. Successful, large cooperatives should be encouraged to focus their resources on spurring agricultural development, so our country will not be dependent on imported agricultural products.

For example, cooperatives can invest in dairy production. It is unfortunate that the Philippines imports 99% of the country's dairy supply. Rice production has stagnated. The Philippines has overtaken China as the world's top importer of rice, according to the United States Department of Agriculture (USDA). Cabbage, onions, and all sorts of vegetables are imported and smuggled into the country. It is a fact that when we buy imported agricultural products, we are helping the farmers of that particular country.

Agricultural cooperatives are organizations of agricultural producers. They are very well entrenched in their communities and have the vision to promote local production. With proper guidance and assistance from the government, they are efficient partners in developing agriculture in the countryside, generating jobs and livelihoods for the rural population.

Editor’s note: The opinions expressed in the foregoing article are solely the author’s and do not reflect the opinions and beliefs of the Philippine News Agency (PNA) or any other office under the Presidential Communications Office.