Cooperative Roadmap of The Philippines

COST 201
THEORY AND COMPARATIVE

DEVELOPMENT OF COOPRATIVES
This presentation is for partial fulfillment of the

course requirements in COST 201 (Section A)
under Prof. Liezel S. Cruz
13 November 2019
OUTLINE
I. Where are we now?
II. Where do we want to go and how are we

going to get there?
III. Idea Source: Benchmarked countries and

situations
IV. Summary of the Cooperative Roadmap in

Timeline form
COOPERATIVE ROADMAP OF THE PHILIPPINES

Where are we now?
Overview
The Cooperative Statistics 2018 (Based on FY 2017
Report on Operations) which can be accessed from
the Cooperative Development Authority website,
h t t p s : / / w w w . c d a . g o v. p h / , p r o v i d e s a n o v e r v i e w o f t h e
c u r r e n t s t a t u s o f t h e P h i l i p p i n e C o o p e r a t i ve S e c t o r.
Although cooperative statistical data remains to be
limited, a challenge which international organization
would like to address, the Cooperative Statistics
2018 still provide substantial data on the follow ing:
➢ Ty p e s a n d C l u s t e r s ;
➢ Asset and Size;
➢ Employment;
➢ Membership and
➢ Net Surplus/Loss

Where are we now?
of Reporting Cooperatives according to

c l a s s i f i c a t i o n s u c h a s Ty p e , C l u s t e r ( b y r e g i o n ) , a n d
Assets.
Furthermore, it provides data on the number of

Operating Cooperatives, and on the number of
Reporting Cooperatives in the country which is also
categorized by type or by cluster (by region).
According to this report, before the start of FY 2018,

there are about 18,065 Operating Cooperatives in the
c o u n t r y. A n d o u t o f t h i s n u m b e r , t h e r e a r e o n l y a b o u t
11 , 1 3 8 R e p o r t i n g C o o p e r a t i ve s ( 6 1 . 6 6 % ≈ 6 2 % ) .
The following tables and chart shows the breakdown

of the statistical data.

Where are we now?
Operating Coops by Region
There are a total of 18,065

Operating Cooperatives in the
Philippines as of December 31,
2017. It increased by about 1.10%
as compared to the previous year
(17,866).
Region 4 (4A-CALABARZON and

4 B - M I M A R O PA ) h a s the most
number of Operating
Cooperatives with a total of
2,126 cooperatives.
https://www.cda.gov.ph/resources/updates/statistics/1205-statistics-as-of-december-31-2018

Where are we now?
Operating Coops by Type
Out of the 26 listed types, there

are 4 types with Operating Coops
of above 1,000 of the total number
of 18,065;
Only 2 types with Operating Coops

of above 2,000;
Only 1 type (Multipurpose) with

Operating Coops of above 9,000,
the highest number with 9,541
(52.8%).

Where are we now?
OPERATING COOPERATIVES
TYPE FY 2017 FY 2018 DIFFERENCE
Multipurpose 9428 9541 113
Credit 2542 2596 54
Consumers 1,098 1,148 50
Agrarian Reform 1,038 637 (401)
Producers 1,016 1,008 (8)
Marketing 669 672 3
Service 467 618 151
Meanwhile, the type of
Agriculture
Transport
455
374
678
505
223
131
cooperative which has the
Federation-Secondary 188 189 1 highest growth rate in 2017 is
Labor Service 115 56 (59)
Water Service 80 70 (10) the Agriculture Cooperative
Housing 69 58 (11)
Union-Secondary 56 59 3 S e c t o r, w i t h g r o w t h r a t e o f
Dairy 36 38 2
Fisherman 36 39 3 49.01% compared to the
Advocacy
Health Service
35
34
35
19
0
(15)
p r e vi o u s y e a r.
Workers 34 24 (10)
Small Scale Mining 32 15 (17)
Cooperative Bank 28 28 0
Elelctric 17 17 0
Education 8 7 (1)
Federation-Tertiary 4 3 (1)
Insurance-Secondary 4 4 0
Union-Tertiary 2 1 (1)
Professional 1 0 (1)
TOTAL 17,866 18,065

Where are we now?
Operating Coops
LEGEND:
New: Newly registered

coops for theyear.
Expected to report next
year.
Non-Reporting: None or
incomplete reports
submitted
Reporting: With
mandatory reports.
Cooperative Statistics
came from this group.
Note: Based on CoopRIS, there were 2,005 total registered coops from ARMM which
were not included here. Since 2016, the CDA ARMM have no further entry in the system.

Where are we now?
Reporting Coops by Type

Where are we now?
Reporting Coops by Type
Multi-purpose cooperatives
dominated the total number
of reporting cooperatives
contributing 61.3% of the
total. It is followed by credit
cooperatives which
comprises 12.6%, and the
remaining 26.1% are
distributed among other
types.

Where are we now?
Reporting Coops by Region
Note: One coop in Region 9 have negative 630 Million pesos Net Loss https://www.cda.gov.ph/resources/updates/statistics/1205-statistics-as-of-december-31-2018

Where are we now?
Reporting Coops by Region
Region 04 contributed 15.1% to

the total reporting cooperatives
as of December 31, 2017. Region
03 came in second with 10.0%
contribution, followed by the
National Capital Region with
8.4%.

Where are we now?
Reporting Coops by Asset Size

Where are we now?
Of the 11 , 1 3 8 total
Reporting Coops, the total
cooperative assets
amounted to 429.7 Billion
Pesos as of Dec. 31, 2017,
76.57% of which large
cooperatives assets,
17.24% are assets of
medium cooperatives,
4.89% from small
cooperatives, and 1.30%
from micro-cooperatives.

Where are we now?

(Based on FY 2016 Report on Operations) (Based on FY 2017 Report on Operations)
The Reporting Coops have grown in terms of asset size

from the previous year: Approximately 2.40% of Medium-
Size Cooperatives have advanced into Large Cooperatives,
0.03% of Small-Size Cooperatives have advanced into
Medium-Size Cooperatives, and 2.80 % of Micro-size
Cooperatives have advanced into Small-sized
Cooperatives.

Where are we now?
Total Assets by Category

329 B
Reporting Coops by Category 350
5,708 300
6000
BILLIONS
250
5000
MILLIONS
200
4000
2,911
150
3000
1,934
100 74.1 B
2000
1000
585 50 21 B
5.6 B
0 0
MICRO SMALL MEDIUM LARGE MICRO SMALL MEDIUM LARGE
I n t e r m s o f e n t e r p r i s e c a t e g o r y, t h e r e l a t i o n s h i p
between the number of reporting coops and the total
assets is inversely proportional.

Where are we now?
The average asset of a micro cooperative is Php

981,079, Small cooperatives have an average asset of
PhP 7.2 million, medium cooperatives have an
average asset of PhP 38.3 million, and large
cooperatives have an average asset of PhP 562
million.
51.2% of the total reporting cooperatives are
categorized as micro-enterprise, 26.1% are
categorized as small-enterprise, 17.4% are
categorized as medium-enterprise and only 5.3%
categorized as large-enterprise

Where are we now?
Employment
Cooperatives generated a total
of 580,800 direct employment
in 2017.
NCR continued to contribute
the largest share of 40.0% to
the total direct employment
generated by cooperatives.
R e g i o n 11 c a m e i n s e c o n d w i t h
16.2% contribution, followed
by the Region 04 with 12.0%.

Where are we now?
Membership
The reporting cooperatives
generated a membership of
10.7M, which is 2.88% higher
than the previous year
(10.4M).
The cooperative membership
saturation is highest in NCR
(1.4M. Regions 07 and 10 (both
have 1.1M members) came in
second, then followed by
Region 04 with 1.0M members.
Meanwhile, NCR contributed
1 3 . 0 8 % t o t h e 2 0 1 7 To t a l
Cooperative Membership.

Where do we want to go and
How are we going to get there?
Vision, Goals and Strategies
VISION: “Empowerment of Cooperatives for a
Progressive Nation”
GOALS:
➢ Enhanced P o l i c y, Regulatory Environment and

Partnerships;
➢ Improved Institutional Development, Governance
and Management;
➢ Sustained Human Capital Development among
Cooperatives;
https://www.cda.gov.ph/images/PCDP2018-2022-corrected2.pdf

Strategic Goal 1: Enhance P o l i c y, Regulatory
Environment and Partnerships
Desired Outcome: Inter-agency coordination and
cooperation is strengthened to create an enabling
environment for the growth, development and
regulation of cooperatives through an enhanced
consultative mechanism
Options for Action
o Policy Review and Enhancement;
o Communication Program of Laws. Rules and
Regulations and Policies for Cooperatives and
other Stakeholders;
o Continuing Regulatory Policy Review and
Enhancement Program; and
o Regulatory Impact Assessment

Strategic Goal 2: Improved Institutional Development,
Governance and Management
Desired Outcome: Deeper internalization of
cooperative identity and increased awareness by
cooperative members, officers and management of
their privileges and duties
Options for Action
o Cooperative Education Program ( I d e o l o g y,
P h i l o s o p h y, V a l u e s , P r i n c i p l e s ) ;
o Inclusion of cooperative education within the
curriculum at all stages of education and in
broader promotion in the business schools and
professional bodies

Strategic Goal 3: Promote Human Capital
Development among Cooperatives
Desired Outcome: Professionalized Human Resources
Options for Action
o M a n a g e m e n t a n d / o r Te c h n i c a l S k i l l s P r o g r a m f o r
Officers and Members of Cooperatives;
o C D A C o o p e r a t i ve E d u c a t i o n a n d Tr a i n i n g P r o g r a m s ;
o A c c r e d i t a t i o n o f Tr a i n i n g P r o v i d e r s a n d I m p r o v e
Ac c e s s t o G o o d Q u a l i t y Tr a i n i n g S e r vi c e s ;
o Partnership w ith Relevant Agencies on Capability
Building Projects;
o Inclusion of cooperative youth development
programs in the Cooperative Development Plan; and
o Inclusion of allocation for the education and
training fund for youth programs to support the
activities, goals and plan of laboratory
cooperatives https://www.cda.gov.ph/images/PCDP2018-2022-corrected2.pdf

Idea Source:
Benchmarked countries and situations
http://www.woccu.org/documents/2018_Statistical_Report

Idea Source:
Overview
“The first cooperative in

Thailand was established in
1916 with the aim to improve
the livelihood of small and
indebted farmers who were
affected by the shift from self-
sufficient economy to trade
e c o n o m y. Since then,
cooperatives have been
playing an important role in
agriculture, credit, and
s e r vi c e s s e c t o r. ”
http://icaap.coop/ICANew/President/assets/Cooperatives%20in%20Thailand.pdf

Idea Source:
Contribution of cooperatives to
Thailand's economy
o “13%- Contribution of cooperatives to the GDP
(2017).
o US$ 64.9 billion business generated by all
cooperatives (2017).
o 17% (12 million) - Number of Thai people who are
members of cooperatives (2018); half of them are
members of agricultural cooperatives.
o There are over 6,600 cooperatives in Thailand
(2018).”

Idea Source:
Some Facts
o “The cooperative movement in Thailand is 103 years old!
o The first cooperative in Thailand, Wat Chan Cooperative
Unlimited L i a b i l i t y, was established in 1916, in
Phitsanulok. It was a small village credit cooperative to
help severely indebted farmers.
o T h e C o o p e r a t i v e L e a g u e o f T h a i l a n d ( C LT ) i s t h e
national apex body representing all cooperatives in
Thailand. It was established in 1968 and is based in
Bangkok.
o I C A h a s t w o m e m b e r s f r o m T h a i l a n d . C LT b e c a m e a
member in 1974 and the Association of Asian
Confederation of Credit Unions (ACCU), in 1992.
o The Cooperative Promotion Department (CPD) under the
Ministry of Agriculture and Cooperatives is responsible
for promoting and strengthening the cooperative
movement in Thailand. CPD was established in 1972 and
works at both central and provincial levels.”

Idea Source:
Evolution of the cooperative movement
“1900-1950
o The cooperative movement in Thailand, unlike its other
Southeast Asian counterparts, had been a state
sponsored initiative rather than a continuing policy of
the colonial era. The movement began in 1916 with the
government setting up small village credit cooperatives
for severely indebted farmers who suffered from the
b r u n t o f a t r a n s i t i o n i n g e c o n o m y, n a t u r a l d i s a s t e r s a n d
money-lenders foreclosing their lands.
o Cooperatives remained at a nascent stage until the late
1 9 3 0 s w i t h a r o u n d 7 0 0 c o o p e r a t i v e s i n t h e c o u n t r y. W i t h
the end of World War II, the cooperative movement took
an upsurge with almost 10,000 cooperatives running at
f u l l s c a l e i n t h e c o u n t r y. T h e s e c o o p e r a t i v e s c u t a c r o s s
different sectors including agriculture, land settlement,
f i s h e r i e s , c o n s u m e r, s e r vi c e a n d s a vi n g s a n d c r e d i t . T h e
first Cooperative Bank was established in 1947 with the
support of government capital to enable village credit
cooperatives to become owners of their own financing
c e n t e r. ” http://icaap.coop/ICANew/President/assets/Cooperatives%20in%20Thailand.pdf

Idea Source:
“1950-2000
o The period between 1955 and 1968 was characterised by
t r a n s i t i o n i n t h e e c o n o m y, a n d b r o u g h t s t a g n a t i o n t o t h e
cooperative movement. The government-cum-credit
cooperative-owned Bank for Cooperatives got
reorganised into the Bank for Agriculture and
Agricultural Cooperatives. The effort to strengthen the
cooperative movement was again initiated by the
government in the late 1960s with the establishment of
t h e C LT i n 1 9 6 8 , a s t h e a p e x o r g a n i s a t i o n o f t h e
cooperative movement.
o This period witnessed establishment of new and model
cooperatives. Many small-scale cooperatives were
restructured to become large-scale. All cooperatives that
came under C LT were registered under the New
Cooperative Act 1968. Many credit union cooperatives
were also set up in Thailand around this time.”

Idea Source:
“2000-Present
o Post 2000, agricultural cooperatives were given a boost
with the development of national social and economic
development plans.
o The Eleventh National Social and Economic Development
Plan (2012-16) in Thailand emphasised on developing
agricultural cooperatives amongst other enterprises as
mechanisms to enhance self-reliance and sustainability for
farmers; improving operational capacities of financial
cooperatives, and enhancing cooperation between
cooperatives.
o The current Tw e l f t h National Social and Economic
Development Plan (2017-21) focuses on encouraging
individual farmers to collaborate in the form of
cooperatives and other partnerships to achieve economies
of scale, decrease underemployment, apply appropriate
t e c h n o l o g y, a n d u s e m a r k e t m e c h a n i s m s t o m a n a g e r i s k i n
the agricult ure sector. It also emphasises on strengthening
community-based financial cooperatives in order to
encourage the availability of financial services at the
grassroots level for the people and small farmers.”
Idea Source:
Law on cooperatives
“1914 - The Amended Association Act, the first
cooperative law was passed in Thailand.
1916 - The first amendment was made to the law. The law
introduced was to register farmers’ cooperative in order
to help rice growers and indebted farmers.
1928 - Cooperative Societies Act was passed and the 1914
Act w as repealed.
1968- The first amendment to the Cooperative Societies
Act w as made. The amendment focused on business
operations and organisation of cooperatives. The
amendment allowed for an amalgamation program which
combined the small village credit cooperatives, land
improvement and land settlement cooperatives into a
largescale cooperative which were officially categorized
as agricultural cooperatives.”

Idea Source:
Law on cooperatives
“1999 - The second amendment to the law provided for the
establishment, registration, operation and management
of all cooperatives in Thailand. It also provided for
financial assistance to cooperatives through the creation
of Cooperative Development Fund and creation of National
Cooperative Development Board for promoting the
viability
and growth of cooperatives.
2010 - The third amendment to the law was made which
consisted of eighteen sections that amended the previous
Act.”

Idea Source:
Key highlights of the 2010 Amendment
o “Assigns the power and duty to the National
Cooperative Development Board to make
recommendations to the Minister of Agriculture and
Cooperative on matters of policy and guidelines for the
development of cooperatives.
o Provides that the formulation of policies and plans for
the development of cooperatives will be in accordance
with the duration of the social and economic
development plan.
o Promotes setting up of cooperatives in all seven
sectors- agriculture, fisheries, land settlement,
c o n s u m e r, t h r i f t a n d c r e d i t , s e r vi c e a n d c r e d i t u n i o n .
o Limits the cooperative membership to only Thai
nationals.”

Idea Source:
News trends in the cooperative sector in Thailand
o The Cooperative National Agenda introduced by the
government of Thailand in 2012 has brought about
a renewed focus to promote and strengthen the
cooperative movement.
o The government launched a new initiative in 2018
to promote and make cooperatives known amongst
wider population in Thailand and to promote it
among local businesses and industries. Tw o
initiatives have been undertaken by the Meetings,
Incentives, Conventions and Exhibitions (MICE)
Department in Thailand. First, publicising and
promoting cooperative venues as well products
amongst corporate groups to enhance visibility and
second, to establish market linkages between
cooperatives and corporates for improved business
returns.

Idea Source:
News trends in the cooperative sector in Thailand
o Adequate marketing support and forward linkages
are among the challenges that cooperatives in
Thailand are facing, especially agriculture-based
cooperatives. The CPD has undertaken public-
private collaboration as a part of D6 Modern
Agricultural Project 2019 to support agricultural
cooperatives in the field of management, marketing
and accounting.
o I n 2 0 11 , t h e g o v e r n m e n t r e c o g n i s e d t h e p r o d u c t i o n
of sea salt as a farming activity and its producers
as farmers. Sea salt farming has become a
strategic p r i o r i t y, and salt cooperatives are
emerging as niche and prospective business in
Thailand.

Idea Source:
Strengthened collaboration among
cooperatives in ASEAN countries
“Thailand is taking active measures to develop and

promote the market for agricultural and other
products among ASEAN cooperatives. In 2019, the
CPD hosted the 8th ASEAN Cooperative Business
Forum to exchange and share experiences of Thai
agricultural cooperatives with other ASEAN
c o u n t r i e s . C LT h a s e s t a b l i s h e d t h e T h a i - A S E A N
C e n t e r a n d I n f o r m a t i o n H u b i n t h e C LT c a m p u s t o
h e l p e n h a n c e b u s i n e s s , t r a d e , i n d u s t r y, s e r v i c e a n d
coordination amongst cooperatives.”

Idea Source:
Engagement with ICA-AP
o “Since 2010, Thailand has been the host for and
p arti ci p an t o f se ver al o f th e IC A- AP ’s t r ai n i n g and
k n o w l e d g e s h a r i n g p r o g r a m s . C LT i s a k e y p a r t n e r
in the ICA – Ministry of Agriculture, Forestry and
Fisheries, Government of Japan, training program
which focuses on leadership and w o m e n ’s
e m p o w e r m e n t i n t h e a g r i c u l t u r e s e c t o r. T h e w o m e n
participants from Thailand are successfully using
the technical expertise acquired from the trainings
to streamline marketing of rice, aloe vera drinks
and other agricultural products.”

Idea Source:
Engagement with ICA-AP
o “The 9th Asia-Pacific Co-operative Ministers’
Conference held in Bangkok in 2012, recognised
the strategic role of cooperatives in Thailand and
other countries as a countervailing force to
rampant privatisation and in facilitating the growth
of fair globalisation. The conference underscored
the urgent need to reform the cooperative laws and
policies to bring about the desired dynamic role.
The Bangkok conference brought about a
consensus to develop large and professionally
managed multipurpose cooperatives and embrace
self-help groups within the ambit of cooperatives
by suitable changes in laws and policies.”

Summary of the Cooperative Roadmap
(Timeline form)
2020 2021 2022 2023 2024 2025 2026
Promote Improved
Human Institutional Promote
Enhance Enhance
Capital Development, Human
Policy, Improved Policy,
Development Governance Capital Enhance
Regulatory Institutional Regulatory
among and Development Policy,
Environment Development, Environment
Cooperatives Management; among Regulatory
and Governance and
Promote Cooperatives Environment
Partnerships and Partnerships;
Human and
Management; Promote
Capital Partnerships;
Promote Human
Development Promote
Human Capital
among Human
Capital Development
Cooperatives Capital
Development among
Cooperatives Development
among
among
Cooperatives
Cooperatives

COST 201
THEORY AND COMPARATIVE
DEVELOPMENT OF COOPRATIVES
Eric Luis F. Cabrido

MM-CM Graduate Student
Email address: efcabrido@up.edu.ph

Cooperative Roadmap of The Philippines

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COST 201

THEORY AND COMPARATIVE

This presentation is for partial fulfillment of the

I. Where are we now?

II. Where do we want to go and how are we

III. Idea Source: Benchmarked countries and

IV. Summary of the Cooperative Roadmap in

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

of Reporting Cooperatives according to

Furthermore, it provides data on the number of

According to this report, before the start of FY 2018,

The following tables and chart shows the breakdown

COOPERATIVE ROADMAP OF THE PHILIPPINES

Operating Coops by Region

There are a total of 18,065

Region 4 (4A-CALABARZON and

COOPERATIVE ROADMAP OF THE PHILIPPINES

Operating Coops by Type

Out of the 26 listed types, there

Only 2 types with Operating Coops

Only 1 type (Multipurpose) with

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

New: Newly registered

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

Reporting Coops by Region

COOPERATIVE ROADMAP OF THE PHILIPPINES

Reporting Coops by Region

Region 04 contributed 15.1% to

COOPERATIVE ROADMAP OF THE PHILIPPINES

Reporting Coops by Asset Size

COOPERATIVE ROADMAP OF THE PHILIPPINES

Reporting Coops by Asset Size

COOPERATIVE ROADMAP OF THE PHILIPPINES

Reporting Coops by Asset Size

The Reporting Coops have grown in terms of asset size

COOPERATIVE ROADMAP OF THE PHILIPPINES

Total Assets by Category

MICRO SMALL MEDIUM LARGE MICRO SMALL MEDIUM LARGE

COOPERATIVE ROADMAP OF THE PHILIPPINES

The average asset of a micro cooperative is Php

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

➢ Enhanced P o l i c y, Regulatory Environment and

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

“The first cooperative in

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES

COOPERATIVE ROADMAP OF THE PHILIPPINES