BIBLIOGRAPHY BACBAC, RAMIL W. APRIL 2009....
BIBLIOGRAPHY
BACBAC, RAMIL W. APRIL 2009. Benefits Derived by Members from the
Services of La Trinidad Vegetable Trading Post Multi Purpose Cooperative.
BenguetState University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
This study was conducted to determine the benefits derived by members from the
services of the La Trinidad Vegetable Trading Post Multi Purpose Cooperative, to
identify the reasons of the members in joining the cooperative and to know if the
members are satisfied with the services of the cooperative.
This study was conducted at La Trinidad Vegetable Trading Post Multi Purpose
Cooperative from December 2008 to January 2009 with fifty respondents.
The main reason of members in joining the cooperative is to avail of the service,
gain and contribute knowledge and skills.
Most members are aware of the economic benefits and social benefit derived from
the cooperative operations though some were not aware of the inherent benefits
dependent on their relationship and support of the cooperative operations. This indicates
a lack of appreciation on their part. So it is recommended that the cooperative should
improve its member’s education program to ensure that all members truly understand the
reciprocal relation between membership and the cooperative.
Majority of the members rated the services of the cooperative as satisfactory. This
means that they are just satisfied with the all the services that the cooperative is giving
them and the cooperative could still provide more so that their level of satisfaction would
increase.
ii
TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………......
i
Abstract ………………………………………………………………………….
i
Table of Contents …………………………………………………………….....
iii
INTRODUCTION ………………………………………………………...…….
1
Background of the Study …………………………………………...…..
1
Statement of the Problem …………………………………………...….
2
Objectives of the Study ……………………………………………...…
2
Importance of the Study …………………………………………...…...
3
Scope and Delimitation …………………………………………...……
3
REVIEW OF LITERATURE …………………………………………..………
4
Cooperative Defined …………………………………………………...
4
Cooperative Principles …………………………………………..…….
4
Objectives of Cooperative ………………………………………...……
5
Key of Success in Cooperatives …………………………………...…...
6
Members Benefits ………………………………………………...……
9
METHODOLOGY ………………………………………………………………
11
Locale and Time of the Study ………………………………………….
11
Data Gathered …………………………………………………………..
11
Data Collection …………………………………………...…………….
11
iii
Data Analysis …………………………………………...……………...
12
RESULTS AND DISCUSSION ………………………………...………………
13
Profile of the Respondents ……………………………...……………….
12
Reasons in Joining the Cooperative …………………...………………...
14
Services Availed ……………………………………...…………………
15
Frequency of Patronizing the Savings
and Time Deposit ……………………………..........................................
16
Number of Times Availed Emergency Loan
for Past Two Years …………...................................................................
17
Number of Times Availed Regular Loan
for Past Two Years ………………………...……………………………
18
Benefits Received …………………………………………...……...…...
18
Reasons of Saving Money to the Cooperative ……………...…………...
21
Uses of Loans Availed from the Cooperative ……………………...…....
21
Percent Increase in Annual Income of Respondents
Who Used Their Loan for Business …………………………….………...
23
Extent of Satisfaction on Interest Rate
on Savings and Time Deposits ……….………………………………….
23
Extent of Satisfaction on Interest Rate on Loans …………...…………...
24
Level of Satisfaction Received by Members
from the Services of the Cooperative ………………………...…………
25
SUMMARY, CONCLUSIONS AND RECOMMENDATION ………………..
27
Summary ………………………………………………………...………
27
Conclusions …………………………………………………...…………
28
Recommendations …………………………………………………...…..
29
iv
LITERATURE CITED ……………………………………………………….....
30
APPENDICES ………………………………………………………………..…
31
A. Communication Letter to the Manager ……………………………..
31
B. Letter to the Respondents …………………………………………..
32
C. Survey Questionnaire ……………………………………....………
33
v
INTRODUCTION
Rationale of the Study
The La Trinidad Vegetable Trading Post Multi-Purpose Cooperative (LTVTP-
MPC) was registered on September 09, 1992 with the Cooperative Development
Authority (CDA) under Philippine laws. First as La Trinidad Vegetable Trading Post
Allied Services Cooperative (LTVTPASC) and later amended as it is named today upon
the insistence of the CDA in accordance with their new cooperative guidelines.
Records show that the cooperative started its operation with an initial paid-up
share capital of thirteen thousand five hundred pesos (P13,500.00) evenly contributed by
the 15 member incorporators at P900.00 each. The organizers were Atty. Narciso U.
Bolislis, Rose Alangdeo, Murphy Paayas, Josephine Isabelo, Adolfo Pendog, Bernadette
Santos, Marry Badilla, Ignacio Malinias, Juna Bay-an, Ofelia Igualdo, Jason Erico,
Simplicio Pocte, Cresencio Francisco, Emilia Salipan and Saturnine Gawec.
In the course of time, membership was opened to the residents of La Trinidad
who are either private or government employees, businesspersons, traders or producers
engaged in the vegetable industry. As of February 28, 2003, the total number of members
was 897. Together, they contributed a paid-up share capital of eleven million two
hundred forty thousand thirty-six pesos and eighty centavos (P11, 240,036.80). The total
assets of the cooperative for the same period was thirty six million eighty three thousand
two hundred twenty six pesos and sixty-nine centavos (P36, 083,226.69). This includes a
four (4)-story building located at Wangal, la Trinidad, Benguet. The foregoing
remarkable growth of the cooperative in ten (10) years, speaks well of the loyalty of the
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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management staff, the strong well focus determination and commitment of the board of
directors, officers and committees that had been serving the cooperative as volunteers in
the beginning years.(Pre-Membership Education Seminar Manual)
The study intends to find out if the financial growth of the cooperative benefited
the members.
Statement of the Problem
In consideration of the need to understand what the members’ perception of the
cooperative, the following must be determined:
1. What are the reasons of members in joining the cooperative?
2. What are the benefits derived by the members from cooperative’s services?
3. Are the members satisfied with the services of the cooperative?
Objectives of the Study
In pursuit of the necessity to learn more about members’ perception of the
cooperative, this study aimed to find out:
1. The reasons of members in joining the cooperative.
2. The benefits received by the members from the cooperative’s services.
Classified to:
a. Economic Benefit
b. Social Benefit
3. To find out if these services satisfied the member.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Importance of the Study
This study was conducted to provide information to the members and officers of
the Cooperative as an input for making plans and decisions to improve the operation of
the Cooperative.
This would also serve as reference to faculty members, students and other
researchers who are doing similar studies.
Scope and Limitation
This study was focused on the benefits derived by the members of La Trinidad
Vegetable Trading Post MPC.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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REVIEW OF LITERATURE
Cooperative Defined
A cooperative is a duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful common social or
economic end, making equitable contributions to the capital required and accepting a fair
share of the risks and benefits of the undertaking in accordance with universally accepted
accounting principles (Art. 3 RA 6938).
Cooperative Principles
a. Open and voluntary membership (for those who qualify)
b. Democratic control
c. Limited interest on share capital and giving patronage refund
d. Continuing cooperative among cooperative
e. Autonomy and independence
f. Concern for relevance to the community
Cooperative is not only an organization it is also an organism. As such, it has its
own nature.
1. Member- owned
2. Member- controlled
3. Member- patronized
4. Service- oriented
5. Community- oriented
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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6. Self-help organization
7. Autonomous
8. Not for charity
When one of the above is missing, the organization is not a cooperative. (Pre-
Membership Education Seminar Manual)
Objectives of Cooperative
The primary objectives of a cooperatives is to provide goods and services to its
members and thus enable them to attain increased income and savings, investments,
productivity, and purchasing power and promote among them equitable distribution of
net surplus. Through maximum utilization of economies of scale, cost sharing and risks
sharing without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes (Abasolo et al., 1996).
The objectives of La Trinidad Vegetable Trading Post Multi-Purpose Cooperative
as stated in their Pre-membership Education Seminar Manual are the following:
a. To expand the services of the cooperative to cater to the needs of the
members.
b. To maintain sustainability and competitiveness through a continuous increase
in assets.
c. To strengthen savings mobilization in order to inculcate to the members the
value of thriftiness.
d. To review and update policies.
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Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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e. To strictly implement approved policies in order to have a smooth flow of
operations.
f. To properly utilize funds in order to increase income through satisfactory
patronage refund and dividends.
g. To render social and environmental services to the community, paying need to
international cooperative principles.
h. To enhance the knowledge, capabilities and attitudes of cooperative members
through continuous education.
i. To linkage with other cooperative, lending agencies, government
organizations, non-government organizations and local government units with the
objectives.
Key of Success in Cooperatives
Onagan et al., (1993) stated that quality and responsibility of booth officers and
members of a certain cooperative would result to high arte of success. Thus, all members
have faith on their own ability. To run their business continuously, a high degree of
loyalty among members, towards their association and their responsibility in supporting
the financial needs of the cooperative give many contributions to progress of the
cooperative.
Fajardo and Abella (1999) mentioned several factors that have been contributing
to the success of credit cooperative in the past. The following factors were, as based on a
survey of successful credit cooperatives in the Philippines:
a. Continuous trainings and education of the officers, members, and employees,
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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b. Appropriate and adequate organizational structures to cooperative with the
varying and increasing needs and problems of the cooperative members and the
community,
c. Progressive and people-oriented policies on loans, savings, education,
management and community development,
d. Presence of effective, honest, and dedicated cooperative and community
leaders,
e. Active involvement and participation of the officers and members in the
affairs of their cooperative and the community,
f. Trust and confidence in cooperatives officers,
g. Dependence on self-help process in achieving their programs and projects,
h. Wise selection of cooperative officers,
i. Spirit of cooperative and camaraderie prevails among the officers, members
and employees of the cooperatives,
j. Efficient service from the promotion of social and economic advancement of
the cooperative members, good public relation and
k. Availability of competent and honest manager.
Bencio, et al (1999) also pointed out that the successful operation and progress of
the business or their kind of business can be achieved through seminars and training. The
motto “Education is the Key to Success” applies to all business ventures as well as to
cooperatives.
Furthermore, Batanes (2006) cited that one effective way to get the best possible
results is to include the participation of those who work for the implementation and those
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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who will be affected by the plans of the organization. Implementation is easier if workers
are consulted in planning their own work. Supportive management utilizes participation
to improve the operation of the organization. Management consults its employees about
the plans, policies, goals and problems of the organization. Through this process,
employees and members who will be affected by the plans of the organization.
Implementation is easier if workers are consulted in planning their own work. Supportive
management utilizes participation to improve the operation of the organization.
Management consults its employees about the plans, policies, goals and problem of the
organization. Through this process, employees and members feel a sense of responsibility
and involvement in the objectives of the organization. A significant factor in the
management concept of participation is that it motivates the employees, officers and
members to contribute their ideas and experiences to appropriate situations with in the
sphere of their competence. They are given the encouragement and opportunity to unfold
their resourcefulness, creativity and talents towards the goals of the organization.
Another positive effect of participation is that it encourages the officers and
members to accept responsibilities in-group activities. When people accept responsibility,
they become interested in the affairs of the organizations. They like to do job because
they feel their responsibility to accomplish it. This leads to better teamwork, which is
very important in achieving the goals of the organization.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Members Benefits
Leung (1993) explained that in a competitive market, members would
increasingly seek providers who serve them best. In order to maintain members’ loyalty
in the cooperative, it should offer prompt credit at low-interest loans to keep existing
members to attract new ones. It should provide what members’ needs at the time they
need it. Cooperative members derived several benefits from the operations of their
cooperatives. The main benefit is economic since the members get a share of the
cooperatives’ net surplus that are annually returned to the members, it is called patronage
refund. Economic benefits may come in forms of higher interest on savings accounts and
lower interest on loans, credit availability, hospitalizations and mutual assistance, and
dividends on share capital.
According to the Cooperative Development Authority, other benefits derive from
cooperatives are:
a. Cooperative members develop the habit of thrift and saving.
b. Cooperative serves as the training for its members in simple business
operation, democratic leadership and responsibilities citizenship.
c. It offers opportunities to its members’ benefits and progress, purposes that
may redound to their material benefits and progress.
d. A cooperative teachers its members and make every members a better
individual and a better members of the society. For a cooperative to receive, economic is
by way of patronizing its services. Members who do not patronize the services of the
cooperative are not entitled to patronage refund but only entitled on their capital share
invested in the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Oyang (2006) cited that benefits of cooperatives are difficult to measure since
some are tangible or direct as in the case of net margins in savings while others are
intangible or indirect such as the greater for some types of cooperatives in specific areas
that most benefits is evaluated in economic terms as well as social.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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METHODOLOGY
Locale and Time of the Study
This study was conducted at the La Trinidad Vegetable Trading Post
Multipurpose Cooperative. The study was conducted from December 2008 to January
2009.
Respondents of the Study
The respondents of the study were the members of La Trinidad Vegetable Trading
Post Multi-Purpose Cooperative. Fifty members were taken as respondents and were
chosen at random.
Data Collection
The information was collected through a survey questionnaire given to
members/respondents about their reasons in joining the cooperative, the benefits derived
from the cooperatives services and if these services satisfy the respondents.
Data Gathered
The data gathered included the benefits of members from the services, their level
of satisfaction derived, and the reasons of members in joining the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Data Analysis
The data gathered was analyzed and summarized based on the objectives of the
study. Descriptive statistics-frequency and percentage was use in the analysis.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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RESULT AND DISCUSSION
Profile of the Respondents
Table 1 presents the background information of the respondents in terms of
educational attainment, occupation, and number of years as member of the cooperative.
Educational attainment. Twenty-three or 46% of the respondents have at least
graduated from high school, 44% graduated from college and 8% graduated from
elementary. This implies that all the members had formal education.
Occupation. As to the occupation of the respondents, 78% were vegetable traders,
8% farmers, 6% vendors, 6% paper and plastic retailers, and 2% supplier of paper and
plastic materials that are used by the traders in packaging vegetables. This shows that the
members of the cooperative have different occupations. However, a significant number of
the members were traders. This is expected because most of the people at the trading post
are traders. The farmers were at the same time traders or who had been traders before but
are now engage in farming. The paper and plastic retailers are the ones providing these
materials to the farmers and have stalls within the vicinity of the trading post while the
supplier of paper and plastic is supplying the retailers.
Number of years as member of the cooperative. As to the years of membership in
the cooperative, sixteen or 32% have been a member for 2-3 years, 32% for 4-5 years,
16% for 6-7 years, 10% for 8-9 years, 6% for 10-14 years and 4% for at least a year. This
implies that a significant number of members were relatively new in the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 1. Profile of the Respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Educational Attainment
Elementary
4
8
High School
23
46
College
22
44
Vocational Course
1
2
TOTAL
50
100
Occupation
Trader
39
78
Farmer
4
8
Plastic and Paper Supplier
1
2
Plastic and Paper Retailer
3
6
Vendor
3
6
TOTAL
50
100
Number of years in the cooperative
1 month-1 year
2
4
2-3
16
32
4-5
16
32
6-7
8
16
8-9
5
10
10-11
2
4
12-14
1
2
TOTAL
50
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Reasons in Joining the Cooperative
Table 2 shows the reasons of the respondents in joining the cooperative. Majority
(76%) joined the cooperative to have easy access on savings deposit, 68% to have easy
access to credit, 38% to gain knowledge and skills through seminars, 34% to contribute
their knowledge and skills to the cooperative and 8% to visit other places through
fieldtrips.
This implies that most of the members’ reasons in joining the cooperative are to
avail of its services and gain knowledge and skills through seminars. This then implies
that the reason of joining the cooperative is not always based on economic reasons but
also on social development as well.
Table 2. Reasons in joining the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Easy access to credit
34
68
Easy access to savings deposit
48
76
Contribute knowledge and skills
17
34
Gain knowledge and skills
19
38
Visit other places through fieldtrips
4
8
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Services Availed
The services of the cooperative are savings deposit, time deposit, emergency loan
and regular loan.
Table 3 shows the services of the cooperative availed by the members for the last
two years. The finding shows that all (100%) of the respondents had savings deposit with
the cooperative. This is so because it is one of the requirement for membership. A
member should open and maintain a savings account of one thousand pesos with the
cooperative. Forty two or 84% availed of the regular loan, 50% availed of the emergency
loan, and 34% availed of the time deposit. Result shows that majority of the members are
borrowing from the regular loan than from the emergency loan. This maybe because the
emergency loan is small, could be availed in case of emergency and the time of paying is
very short.
The finding also implies that majority of the members were patronizing the
services of the cooperative.
Table 3. Services availed by the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Savings Deposit 50
100
Time Deposit 17
34
Emergency Loan 25
50
Regular Loan 42
84
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Frequency of Patronizing the Savings and Time Deposit
Savings deposit. Table 4. Shows how often the respondents patronize the savings
deposit. Their transaction could be a withdrawal or a saving with the cooperative. Most
(46%) of the respondents transact with the cooperative once a week, 16% no definite
time, 12% twice a week, 10% daily, another 10% once a month, 4% quarterly and 2%
three times a month.
This finding shows that majority of the respondents go to the cooperative almost
every week either to save or withdraw from their savings deposit. There were some that
could not determine how often they patronize the savings deposit. According to these
respondents, they go to save at the cooperative every time they have an extra cash.
Time deposit. Table 5 shows how often the respondents transact their time deposit
with the cooperative for the last two years. Five (10%) of them have no definite time in
transacting their time deposit, 10% once a month, 6% bi-monthly, another 6% quarterly,
2% once a week.
Table 4. Frequency of patronizing the savings deposit of the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Once a week 23
46
Daily
5
10
Twice a week 6
12
Once a month 2
10
Three times a month 1
2
Quarterly
2
4
No definite time 8
16
TOTAL
50
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 5. Frequency of patronizing the time deposit
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Once a week 1
5.88
Once a month 5
29.41
Bimonthly 3
17.65
Quarterly
3
17.65
No definite time 5
29.41
TOTAL
17
100
Number of Times Availed of Emergency Loan for
the Past Two Years
Table 6 shows the number of times the respondents availed emergency loan for
the past two years. Most (56%) of the respondents availed emergency loan for 1-2
times,24% for 3-4 times, 16% for 5-6 times, and 4% availed for 7-8 times. This finding
shows that emergency loan was less availed by the respondents.
Table 6. Number of times availed emergency loan for past two years.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1-2
14
56
3-4
6
24
5-6
4
16
7-8
1
4
TOTAL
25
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Number of Times Availed of Regular Loan for
the Past Two Years
Table 7 shows the number of times the respondents availed regular loan for the
past two years. Majority (88%) of the respondents availed regular loan for 1-2 times
while 12% availed for 3-4 times. The regular loan is normally paid in 12 months and
therefore this finding shows that very few borrowed regular loan at a very short term thus
they were able to borrow 3 or 4 times in two years.
Benefits Received
Benefits received by the members from the services of the cooperative were
categorized as economic benefits and social benefits. Economic benefits may come in the
forms of higher interest on savings accounts, lower interest on loans, credit availability,
patronage refund, dividends on share capital, etc. (Leung, 1993). Social benefits received
by members could be in the form of improvement in their character traits or improved
knowledge and skill. They could be derived through continuous cooperative education
among members and stronger ties between members.
Table 7. Number of times availed regular loan for past two years.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1-2
37
88
3-4
5
12
TOTAL
42
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Economic Benefits. Table 8 shows the economic benefits received by the
respondents in patronizing the services of the cooperative. Majority of the respondents
mentioned high interest on savings deposit (82%) and lower interest on loan (72%). Some
of the respondents said, “the more we save the more we earn.” Those who mentioned
lower interest on loan as a form of economic benefit they derived from the cooperative
avoided borrowing from loan sharks that charge 10% per month. Sixteen or 32% said that
interest on share capital is high and 4% said that patronage refund is high.
Since not all have indicated patronage refund and dividend as part of the benefits
they derived, this may imply that some members were not informed on these inherent
economic benefits derived from their support of the cooperative operations or it may be
that they receive lesser amounts than what they expected.
These findings corroborate the statement of Leung about the economic benefits
derived by the members from the cooperative.
Table 8. Economic Benefits
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
High interest on savings deposits
41
82
Low interest on loan service
36
72
High interest on share capital
16
32
High patronage refund
9
18
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Social Benefits
Table 9 shows the social benefits received by the respondents from the
cooperative with the corresponding weighted average score were as follows: closer
relationship with members (2.24, satisfactory); improved camaraderie or social dealing
with people (2.12, satisfactory); improved leadership qualities (2.24, satisfactory); able to
acquire new skills (1.96, satisfactory); and able to gain additional knowledge (2.12,
satisfactory
The result implies that the cooperative’s objective to render social and
environmental services to the community and to enhance the knowledge, capabilities and
attitudes of the cooperative members through continuous education are being fulfilled.
Table 9. Social Benefits
LEVEL OF SATISFACTION
PARTICULARS
WA
D
Closer relationship with members
2.24
S
Improvement on social dealing/
camaraderie
2.12
S
Improved leadership qualities
2.24
S
Acquired skills
1.96
S
Gained knowledge
2.12
S
Legend: WA= Weighted Average
D= Qualitative description
Scale used: 1 - 1.667= Very Satisfied (VS)
1.668 - 2.334= Satisfied (S)
2.335 - 3= Not Satisfied (NS)
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Reasons in Preferring to Save Money in the Cooperative
Table 10 shows why the respondents prefer to save their money in the
Cooperative. Majority of the respondents (84%) said that the cooperative offers higher
interest on savings deposit, 50% said the cooperative has longer time allowed for
transactions compared to the banks. Normally, cooperative opened at eight o’clock and
close at 5 o’clock while banks open at 9 o’clock and close at 3 o’clock. Sixty two
percent indicated high interest on savings deposit as their reason and 44% reasoned that
their cooperative allows them to withdraw/save even without their passbook.
This implies that members have different reasons in preferring to deposit their
money in the cooperative.
Uses of Loans Availed from the Cooperative
Table 11 shows how the loans acquired from the cooperative helped the
respondents. Majority (70%) of the respondents said they used the money loaned for
business investment, 56% used their loan to support their children in school, 24% bought
farm supply, 8% purchased stocks for their store, another 8% used for their medication,
6% used it for placement fee of their children for employment abroad and 2% bought
construction materials in building a house.
This findings shows that the loan availed by the members were for varied
purposes.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 10. Reasons in saving money to the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
High interest on savings deposit
42
84
Longer time allowed for transaction
25
50
High interest on savings deposit
31
62
The cooperative allows us to save/withdraw
22
44
even without passbook
*multiple responses
Table 11. Uses of loans availed from the cooperative.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
For business investment
35
70
Is able to buy stocks for store
4
8
Is able to buy farm supply
12
24
Is able to buy construction
1
2
materials in building a house
Is able to support my
28
56
children in school
Is able to send my children
3
6
abroad to work
For medication 4
8
*multiple responses
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
24
Percent Increase in Annual Income of Respondents
Who Used Their Loan for Business
Table 12 shows how many percent did the respondent’s annual income increased
when they invested their loan. Most (42%) of the respondents said that their annual
income increased by 5-6%, 26% had an increase of 9-10%, 12% had 3-4%, and 10% had
7-8%.
This finding implies that the cooperative has contributed in uplifting the economic
status of the members. This further implies that the cooperative is partially fulfilling its
objective to cater the needs of the members with its services.
Extent of Satisfaction from Interest on Savings Deposit
Table 13 shows the extent of satisfaction by members from the interest rate on
savings deposit and time deposit. Majority of the respondents said the interest rate on
savings and time deposits were satisfactory, 28% mentioned very satisfactory while 14%
said it was unsatisfactory.
This finding presents that majority were satisfied with the current interest rate on
savings and time deposit that the cooperative offers. The respondents who indicated
unsatisfactory commented that the cooperative should make the interest higher.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 12. Percent of Annual Income Increase
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1 – 2% 9
18
3 – 4% 6
12
5 – 6% 21
42
7 – 8% 5
10
9 – 10% 13
26
Table 13. Extent of satisfaction on the interest rate on savings and time deposits
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Very Satisfactory
14
28
Satisfactory
29
58
Unsatisfactory
7
14
Extent of Satisfaction on Interest Rate on Loans
Table 14 shows the extent of satisfaction of the respondents from the interest rate
on loans. Majority of the respondents (54%) said the current interest rate on loan is
satisfactory, 18% said it is very satisfactory while 22% said it is unsatisfactory. Their
dissatisfaction was that the interest on loan is high. The accumulated interest gets higher,
this is one of the reasons why some of the debtors refused to pay their loan which makes
them delinquent.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 14. Extent of satisfaction on interest rate on loans
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Very Satisfactory
9
18
Satisfactory
27
54
Unsatisfactory
11
22
Level of Satisfaction Received by Members
from the Services of the Cooperative
Table 15 shows the rating of the respondents with the services of the cooperative.
For savings deposit, the respondents rated it as satisfactory with a weighted average of
2.20. The respondents also rated both the time deposit and the loan services as
satisfactory. The corresponding weighted averages were 2.00 and 2.26, respectively. In
the same manner, the respondents also rated the hospitalization loan and the mortuary aid
services as satisfactory with a weighted average of 2.090 and 1.55, respectively.
Table 15. Level of satisfaction received by members from the services of the cooperative.
LEVEL OF SATISFACTION
PARTICULARS
WA
D
Savings deposit
2.20
S
Time deposit
2.00
S
Loan/credit
2.26
S
Hospitalization and Fund
2.090
S
Mortuary Aid Fund
1.55
VS
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Legend:
WA= Weighted Average
D= Qualitative description
Scale used: 1 - 1.667= Very Satisfactory (VS)
1.668 - 2.334= Satisfactory (S)
2.335 - 3= Not Satisfactory (NS)
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the benefits received by the members from
the services of the La Trinidad Vegetable Trading Post Multi-Purpose Cooperative as
well as the reasons of members in joining the Cooperative and to find out whether the
members are satisfied or not with the services of the cooperative.
A survey questionnaire was used to gather the needed information. Fifty members
were taken as respondents.
Majority of the members were engaged in vegetable trading. Some were farmers
and some were vendors. Majority joined the cooperative less than five years ago.
Members joined the cooperative (LTVTPMPC) to avail of its services, gain and
contribute knowledge and skills. This then implies that the reasons of the members in
joining the cooperative is not always based on economic but on social development as
well.
The services of the cooperative that were patronized by majority of the members
were the savings deposit and the credit. It was found out that the economic benefits
received by the members, as they perceived, were the higher interest on savings and time
deposits and low interest on loan. Very few mentioned patronage refund and dividend as
part of the economic benefits they derived. This may imply that some members were not
informed on these inherent economic benefits derived from their support of the
cooperative operations. The result on social benefits implies that cooperatives’ objectives
to render social and environmental services to the community and to enhance the
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
29
knowledge, capabilities and attitudes of the cooperative members through continuous
education were fulfilled.
Finding showed that the cooperative is fulfilling one of its objectives to
strengthen savings mobilization in order to inculcate to the members the value of
thriftiness.
Findings also showed that members availed of loan for varied purposes. However,
majority used it for business investments. These investments contributed to the increase
in the income of the respondents. This shows therefore that the cooperative has
contributed in uplifting the economic status of the members. This further showed that the
cooperative is partially fulfilling its objective to cater the needs of the members with its
services.
It was found that most of the respondents were satisfied with the services of the
cooperative. Only few were unsatisfied with the interest on savings deposit, which
according to them is low and they suggested for an increase. Some also were not satisfied
with the interest rate on loan because they found it high. They also suggested that it
should be lowered.
Conclusions
Based from the findings of the study the following conclusions were made:
1. Most of the members’ reasons in joining the cooperative are to avail of its
services and gain knowledge and skills through seminars.
2. Most of the members are aware of the economic benefits and social benefits
derived from the cooperative operations though some were not aware of the inherent
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
30
benefits dependent on their relationship and support of the cooperative operations. This
indicates a lack of understanding by the members of these factors.
3. Majority of the respondents rated the services of the cooperative as
satisfactory. This means that they are just satisfied with the all the services that the
cooperative is giving them and the cooperative could still provide more so that their level
of satisfaction would increase.
Recommendations
1. Since the cooperative is able to continuously fulfill most of its objectives as
well as the members’ intents in joining, it is recommended that the cooperative should
further strengthen its operations; this would be desirable in order to meet all of its
objectives through policy review and strategy formulation.
2. It is also recommended that the cooperative should improve its member’s
education program to ensure that the members truly grasp the cooperatives policies,
objectives, its operations and reciprocal relation between membership and the
organization.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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LITERATURE CITED
ABASOLO, P.A., RUIZ Ma. A. V. and F. B. BERTOL. 1996. Cooperatives in the
Philippines: History, Organization and Management. GIC Enterprises and Co.,
Inc., Manila, Philippines. P. #5, 8.
BATANES, J.L. 2006 Level of Understanding on the Purpose and Principles of
Cooperative by Members and Offices of Selected Cooperatives in Kibungan
Benguet. BS Thesis. BSU, La Trinidad, Benguet. P. #5.
BENCIO, A. P. and V. B. AWACAN. 2006. Topdac Multi-Purpose cooperative Case. BS
Thesis. Benguet State University, La Trinidad, Benguet. P. #5.
FAJARDO, F.R. and D. F. ABELLA. 1999. Cooperatives Fourth Edition. Rex Printing
Company, Inc. Quezon City Philippines.
LEUNG, C. 1993. Development Diary: Return to Cooperatives. Baguio Midland Courier.
Baguio City.
ONAGAN, L. D. and SIMANGAN, J. T. 1993. Cooperation Principles and Practices.
Onagan and Sons Publishing Co., Quezon City.
OYANG, J. P. 2006. Benefits Derived by the Members from the Services of Baguio
Market Vendors Multi-Purpose Cooperative. BS Thesis. Benguet State University
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
32
APPENDIX A
Communication Letter to the Manager
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
October 2008
Tanny Atayoc
Manager
La Trinidad Vegetable Trading Post Multi Purpose Cooperative
Km5 La Trinidad Trading Post
Sir:
Warm Greetings!
I, Ramil W. Bacbac, a student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Cooperative Management. I am presently conducting a
research titled “BENEFITS DERIVED BY MEMBERS FROM THE SERVICES OF LA
TRINIDAD VEGETABLE TRADING POST” as a requirement for the degree.
In connection, may I request permission to conduct my study and float my
questionnaires to your members?
Thank you very much for your favorable action regarding this request. Your
action will be highly appreciated.
Sincerely yours,
BACBAC, RAMIL W.
(Researcher)
Noted:
EVANGELINE B. CUNGIHAN
Adviser
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33
APPENDIX B
Letter to the Respondents
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
Sir/Madam,
I, Ramil W. Bacbac, a student of Benguet State University taking up Bachelor of
Science and Agribusiness major in Cooperative Management. I am presently conducting
a research titled “BENEFITS DERIVED BY MEMBERS FROM THE SERVICES OF
LA TRINIDAD VEGETABLE TRADING POST” as a requirement for the degree.
In connection, I request a portion of your most precious time to answer the
attached questionnaire and asking for your honest answer/opinion. Rest assured that all
information you provide would be treated with utmost confidentiality.
Thank you very much for sharing me a part of your time.
Sincerely Yours,
RAMIL W. BACBAC
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
34
APPENDIX C
Survey Questionnaire
I.
Respondent Profile
1. Name (optional): _________________________________________________
2. Educational Attainment:
______Elementary ______College
______High School ______Vocational Course
3. Occupation: __________________________________
4. Main source of income: ________________________________
5. Number of years as member of the cooperative________________________
II.
Reasons
1. Which of the following is a reason that made you join the cooperative?
______to have easy access to credit
______to have easy access to savings deposits
______to contribute my knowledge and skills in the cooperative
______to gain knowledge and skills through trainings seminars
______to visit other places through field trips
______others (pls. specify) ________________________________________
III.
Benefits Derived
1. What are the services of the cooperative you have availed?
______savings deposit
How often do you transact your savings deposit with the coop?
( ) Once a week
( ) twice a week
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35
( ) Daily
others (specify) __________________
______time deposit
How often do you transact your time deposit with the coop?
( ) Once a week
( ) twice a week
( ) Daily
others (specify) __________________
______credit / loan
_______a. Emergency Loan
For the last two years, how many times did you avail this
service? ________________________________________
______b. Regular Loan
For the last two years, how many times did you avail in this
service? ________________________________________
Others (pls. specify) _____________________________________
2. What benefits did you receive from the cooperative?
a. Economic Benefits
______high interest on savings deposit
______low interest on loan service
______high interest on share capital
______high patronage refund
Others (pls. specify) _________________________________________
Benefits Derived by Members from the Services of La Trinidad Vegetable
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b. Social Benefits (please rate the level of satisfaction you’ve receive)
Very
Not
Benefits
Satisfactory Satisfactory Satisfactory
1. Closer relationship with members
2. Improvement on social dealing/
camaraderie (overcome shyness)
3. Leadership qualities were develop or
improve
4. Acquired skills on (pls. specify)
___________________________
5. Gained knowledge on (pls. specify)
_____________________________
Others (pls. specify) ___________________
3. Why do you prefer to save your money in the cooperative?
______high interest on savings deposit
______longer allowed for transaction
______high interest on share capital
______the coop allows us to withdraw/save even without passbook
Others (pls. specify) _____________________________________
4. How do loan services of the cooperative help you?
______for business investment,
How much of your loan was invested to your
business? __________________
Did it contribute to your income?
_____Yes _____No
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a. If yes, how many percent did your annual income
increases?(pls. specify)___________________________
b. How many did you employ in your business investment?
(Pls. specify) _________________________________
______is able to buy stocks for store,
How much of the loan was use? _________________
______is able to buy farm supply at the time it is needed,
How much of the loan was use? _________________
______is able to buy construction materials in building a house,
How much of the loan was use? _________________
______is able to support my studies?
How much of the loan was use? _________________
______is able to support my children in school
How many children supported? ___________________
Others (pls. Specify) ________________________________________
5. What is the extent of your satisfaction in terms of:
a. Interest rate on savings and time deposits?
______very satisfactory ______Unsatisfactory
______Satisfactory ______Very Unsatisfactory
b. Interest rate on loans?
_____Very satisfactory _____Unsatisfactory
_____Satisfactory _____Very Unsatisfactory
6. Are you satisfied with the services of the cooperative?
Benefits Derived by Members from the Services of La Trinidad Vegetable
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38
_____Yes _____No
If no, what improvements would you suggest for better service of the
Cooperative?_____________________________________________________________
_______________________________________________________________________
If yes, what is your rating on the services of the cooperative? (Pls. check)
SERVICES
Very Satisfactory
Satisfactory
Not Satisfactory
Savings Deposit
Time Deposit
Loan/Credit
Hospitalization
and Fund
Mortuary Aid
Fund
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
BACBAC, RAMIL W. APRIL 2009. Benefits Derived by Members from the
Services of La Trinidad Vegetable Trading Post Multi Purpose Cooperative.
BenguetState University, La Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc.
ABSTRACT
This study was conducted to determine the benefits derived by members from the
services of the La Trinidad Vegetable Trading Post Multi Purpose Cooperative, to
identify the reasons of the members in joining the cooperative and to know if the
members are satisfied with the services of the cooperative.
This study was conducted at La Trinidad Vegetable Trading Post Multi Purpose
Cooperative from December 2008 to January 2009 with fifty respondents.
The main reason of members in joining the cooperative is to avail of the service,
gain and contribute knowledge and skills.
Most members are aware of the economic benefits and social benefit derived from
the cooperative operations though some were not aware of the inherent benefits
dependent on their relationship and support of the cooperative operations. This indicates
a lack of appreciation on their part. So it is recommended that the cooperative should
improve its member’s education program to ensure that all members truly understand the
reciprocal relation between membership and the cooperative.
Majority of the members rated the services of the cooperative as satisfactory. This
means that they are just satisfied with the all the services that the cooperative is giving
them and the cooperative could still provide more so that their level of satisfaction would
increase.
ii
TABLE OF CONTENTS
Page
Bibliography……………………………………………………………………......
i
Abstract ………………………………………………………………………….
i
Table of Contents …………………………………………………………….....
iii
INTRODUCTION ………………………………………………………...…….
1
Background of the Study …………………………………………...…..
1
Statement of the Problem …………………………………………...….
2
Objectives of the Study ……………………………………………...…
2
Importance of the Study …………………………………………...…...
3
Scope and Delimitation …………………………………………...……
3
REVIEW OF LITERATURE …………………………………………..………
4
Cooperative Defined …………………………………………………...
4
Cooperative Principles …………………………………………..…….
4
Objectives of Cooperative ………………………………………...……
5
Key of Success in Cooperatives …………………………………...…...
6
Members Benefits ………………………………………………...……
9
METHODOLOGY ………………………………………………………………
11
Locale and Time of the Study ………………………………………….
11
Data Gathered …………………………………………………………..
11
Data Collection …………………………………………...…………….
11
iii
Data Analysis …………………………………………...……………...
12
RESULTS AND DISCUSSION ………………………………...………………
13
Profile of the Respondents ……………………………...……………….
12
Reasons in Joining the Cooperative …………………...………………...
14
Services Availed ……………………………………...…………………
15
Frequency of Patronizing the Savings
and Time Deposit ……………………………..........................................
16
Number of Times Availed Emergency Loan
for Past Two Years …………...................................................................
17
Number of Times Availed Regular Loan
for Past Two Years ………………………...……………………………
18
Benefits Received …………………………………………...……...…...
18
Reasons of Saving Money to the Cooperative ……………...…………...
21
Uses of Loans Availed from the Cooperative ……………………...…....
21
Percent Increase in Annual Income of Respondents
Who Used Their Loan for Business …………………………….………...
23
Extent of Satisfaction on Interest Rate
on Savings and Time Deposits ……….………………………………….
23
Extent of Satisfaction on Interest Rate on Loans …………...…………...
24
Level of Satisfaction Received by Members
from the Services of the Cooperative ………………………...…………
25
SUMMARY, CONCLUSIONS AND RECOMMENDATION ………………..
27
Summary ………………………………………………………...………
27
Conclusions …………………………………………………...…………
28
Recommendations …………………………………………………...…..
29
iv
LITERATURE CITED ……………………………………………………….....
30
APPENDICES ………………………………………………………………..…
31
A. Communication Letter to the Manager ……………………………..
31
B. Letter to the Respondents …………………………………………..
32
C. Survey Questionnaire ……………………………………....………
33
v
INTRODUCTION
Rationale of the Study
The La Trinidad Vegetable Trading Post Multi-Purpose Cooperative (LTVTP-
MPC) was registered on September 09, 1992 with the Cooperative Development
Authority (CDA) under Philippine laws. First as La Trinidad Vegetable Trading Post
Allied Services Cooperative (LTVTPASC) and later amended as it is named today upon
the insistence of the CDA in accordance with their new cooperative guidelines.
Records show that the cooperative started its operation with an initial paid-up
share capital of thirteen thousand five hundred pesos (P13,500.00) evenly contributed by
the 15 member incorporators at P900.00 each. The organizers were Atty. Narciso U.
Bolislis, Rose Alangdeo, Murphy Paayas, Josephine Isabelo, Adolfo Pendog, Bernadette
Santos, Marry Badilla, Ignacio Malinias, Juna Bay-an, Ofelia Igualdo, Jason Erico,
Simplicio Pocte, Cresencio Francisco, Emilia Salipan and Saturnine Gawec.
In the course of time, membership was opened to the residents of La Trinidad
who are either private or government employees, businesspersons, traders or producers
engaged in the vegetable industry. As of February 28, 2003, the total number of members
was 897. Together, they contributed a paid-up share capital of eleven million two
hundred forty thousand thirty-six pesos and eighty centavos (P11, 240,036.80). The total
assets of the cooperative for the same period was thirty six million eighty three thousand
two hundred twenty six pesos and sixty-nine centavos (P36, 083,226.69). This includes a
four (4)-story building located at Wangal, la Trinidad, Benguet. The foregoing
remarkable growth of the cooperative in ten (10) years, speaks well of the loyalty of the
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
2
management staff, the strong well focus determination and commitment of the board of
directors, officers and committees that had been serving the cooperative as volunteers in
the beginning years.(Pre-Membership Education Seminar Manual)
The study intends to find out if the financial growth of the cooperative benefited
the members.
Statement of the Problem
In consideration of the need to understand what the members’ perception of the
cooperative, the following must be determined:
1. What are the reasons of members in joining the cooperative?
2. What are the benefits derived by the members from cooperative’s services?
3. Are the members satisfied with the services of the cooperative?
Objectives of the Study
In pursuit of the necessity to learn more about members’ perception of the
cooperative, this study aimed to find out:
1. The reasons of members in joining the cooperative.
2. The benefits received by the members from the cooperative’s services.
Classified to:
a. Economic Benefit
b. Social Benefit
3. To find out if these services satisfied the member.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Importance of the Study
This study was conducted to provide information to the members and officers of
the Cooperative as an input for making plans and decisions to improve the operation of
the Cooperative.
This would also serve as reference to faculty members, students and other
researchers who are doing similar studies.
Scope and Limitation
This study was focused on the benefits derived by the members of La Trinidad
Vegetable Trading Post MPC.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
4
REVIEW OF LITERATURE
Cooperative Defined
A cooperative is a duly registered association of persons, with a common bond of
interest, who have voluntarily joined together to achieve a lawful common social or
economic end, making equitable contributions to the capital required and accepting a fair
share of the risks and benefits of the undertaking in accordance with universally accepted
accounting principles (Art. 3 RA 6938).
Cooperative Principles
a. Open and voluntary membership (for those who qualify)
b. Democratic control
c. Limited interest on share capital and giving patronage refund
d. Continuing cooperative among cooperative
e. Autonomy and independence
f. Concern for relevance to the community
Cooperative is not only an organization it is also an organism. As such, it has its
own nature.
1. Member- owned
2. Member- controlled
3. Member- patronized
4. Service- oriented
5. Community- oriented
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6. Self-help organization
7. Autonomous
8. Not for charity
When one of the above is missing, the organization is not a cooperative. (Pre-
Membership Education Seminar Manual)
Objectives of Cooperative
The primary objectives of a cooperatives is to provide goods and services to its
members and thus enable them to attain increased income and savings, investments,
productivity, and purchasing power and promote among them equitable distribution of
net surplus. Through maximum utilization of economies of scale, cost sharing and risks
sharing without, however, conducting the affairs of the cooperative for eleemosynary or
charitable purposes (Abasolo et al., 1996).
The objectives of La Trinidad Vegetable Trading Post Multi-Purpose Cooperative
as stated in their Pre-membership Education Seminar Manual are the following:
a. To expand the services of the cooperative to cater to the needs of the
members.
b. To maintain sustainability and competitiveness through a continuous increase
in assets.
c. To strengthen savings mobilization in order to inculcate to the members the
value of thriftiness.
d. To review and update policies.
Benefits Derived by Members from the Services of La Trinidad Vegetable
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6
e. To strictly implement approved policies in order to have a smooth flow of
operations.
f. To properly utilize funds in order to increase income through satisfactory
patronage refund and dividends.
g. To render social and environmental services to the community, paying need to
international cooperative principles.
h. To enhance the knowledge, capabilities and attitudes of cooperative members
through continuous education.
i. To linkage with other cooperative, lending agencies, government
organizations, non-government organizations and local government units with the
objectives.
Key of Success in Cooperatives
Onagan et al., (1993) stated that quality and responsibility of booth officers and
members of a certain cooperative would result to high arte of success. Thus, all members
have faith on their own ability. To run their business continuously, a high degree of
loyalty among members, towards their association and their responsibility in supporting
the financial needs of the cooperative give many contributions to progress of the
cooperative.
Fajardo and Abella (1999) mentioned several factors that have been contributing
to the success of credit cooperative in the past. The following factors were, as based on a
survey of successful credit cooperatives in the Philippines:
a. Continuous trainings and education of the officers, members, and employees,
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7
b. Appropriate and adequate organizational structures to cooperative with the
varying and increasing needs and problems of the cooperative members and the
community,
c. Progressive and people-oriented policies on loans, savings, education,
management and community development,
d. Presence of effective, honest, and dedicated cooperative and community
leaders,
e. Active involvement and participation of the officers and members in the
affairs of their cooperative and the community,
f. Trust and confidence in cooperatives officers,
g. Dependence on self-help process in achieving their programs and projects,
h. Wise selection of cooperative officers,
i. Spirit of cooperative and camaraderie prevails among the officers, members
and employees of the cooperatives,
j. Efficient service from the promotion of social and economic advancement of
the cooperative members, good public relation and
k. Availability of competent and honest manager.
Bencio, et al (1999) also pointed out that the successful operation and progress of
the business or their kind of business can be achieved through seminars and training. The
motto “Education is the Key to Success” applies to all business ventures as well as to
cooperatives.
Furthermore, Batanes (2006) cited that one effective way to get the best possible
results is to include the participation of those who work for the implementation and those
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
8
who will be affected by the plans of the organization. Implementation is easier if workers
are consulted in planning their own work. Supportive management utilizes participation
to improve the operation of the organization. Management consults its employees about
the plans, policies, goals and problems of the organization. Through this process,
employees and members who will be affected by the plans of the organization.
Implementation is easier if workers are consulted in planning their own work. Supportive
management utilizes participation to improve the operation of the organization.
Management consults its employees about the plans, policies, goals and problem of the
organization. Through this process, employees and members feel a sense of responsibility
and involvement in the objectives of the organization. A significant factor in the
management concept of participation is that it motivates the employees, officers and
members to contribute their ideas and experiences to appropriate situations with in the
sphere of their competence. They are given the encouragement and opportunity to unfold
their resourcefulness, creativity and talents towards the goals of the organization.
Another positive effect of participation is that it encourages the officers and
members to accept responsibilities in-group activities. When people accept responsibility,
they become interested in the affairs of the organizations. They like to do job because
they feel their responsibility to accomplish it. This leads to better teamwork, which is
very important in achieving the goals of the organization.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
9
Members Benefits
Leung (1993) explained that in a competitive market, members would
increasingly seek providers who serve them best. In order to maintain members’ loyalty
in the cooperative, it should offer prompt credit at low-interest loans to keep existing
members to attract new ones. It should provide what members’ needs at the time they
need it. Cooperative members derived several benefits from the operations of their
cooperatives. The main benefit is economic since the members get a share of the
cooperatives’ net surplus that are annually returned to the members, it is called patronage
refund. Economic benefits may come in forms of higher interest on savings accounts and
lower interest on loans, credit availability, hospitalizations and mutual assistance, and
dividends on share capital.
According to the Cooperative Development Authority, other benefits derive from
cooperatives are:
a. Cooperative members develop the habit of thrift and saving.
b. Cooperative serves as the training for its members in simple business
operation, democratic leadership and responsibilities citizenship.
c. It offers opportunities to its members’ benefits and progress, purposes that
may redound to their material benefits and progress.
d. A cooperative teachers its members and make every members a better
individual and a better members of the society. For a cooperative to receive, economic is
by way of patronizing its services. Members who do not patronize the services of the
cooperative are not entitled to patronage refund but only entitled on their capital share
invested in the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
10
Oyang (2006) cited that benefits of cooperatives are difficult to measure since
some are tangible or direct as in the case of net margins in savings while others are
intangible or indirect such as the greater for some types of cooperatives in specific areas
that most benefits is evaluated in economic terms as well as social.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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METHODOLOGY
Locale and Time of the Study
This study was conducted at the La Trinidad Vegetable Trading Post
Multipurpose Cooperative. The study was conducted from December 2008 to January
2009.
Respondents of the Study
The respondents of the study were the members of La Trinidad Vegetable Trading
Post Multi-Purpose Cooperative. Fifty members were taken as respondents and were
chosen at random.
Data Collection
The information was collected through a survey questionnaire given to
members/respondents about their reasons in joining the cooperative, the benefits derived
from the cooperatives services and if these services satisfy the respondents.
Data Gathered
The data gathered included the benefits of members from the services, their level
of satisfaction derived, and the reasons of members in joining the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Data Analysis
The data gathered was analyzed and summarized based on the objectives of the
study. Descriptive statistics-frequency and percentage was use in the analysis.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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RESULT AND DISCUSSION
Profile of the Respondents
Table 1 presents the background information of the respondents in terms of
educational attainment, occupation, and number of years as member of the cooperative.
Educational attainment. Twenty-three or 46% of the respondents have at least
graduated from high school, 44% graduated from college and 8% graduated from
elementary. This implies that all the members had formal education.
Occupation. As to the occupation of the respondents, 78% were vegetable traders,
8% farmers, 6% vendors, 6% paper and plastic retailers, and 2% supplier of paper and
plastic materials that are used by the traders in packaging vegetables. This shows that the
members of the cooperative have different occupations. However, a significant number of
the members were traders. This is expected because most of the people at the trading post
are traders. The farmers were at the same time traders or who had been traders before but
are now engage in farming. The paper and plastic retailers are the ones providing these
materials to the farmers and have stalls within the vicinity of the trading post while the
supplier of paper and plastic is supplying the retailers.
Number of years as member of the cooperative. As to the years of membership in
the cooperative, sixteen or 32% have been a member for 2-3 years, 32% for 4-5 years,
16% for 6-7 years, 10% for 8-9 years, 6% for 10-14 years and 4% for at least a year. This
implies that a significant number of members were relatively new in the cooperative.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
14
Table 1. Profile of the Respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Educational Attainment
Elementary
4
8
High School
23
46
College
22
44
Vocational Course
1
2
TOTAL
50
100
Occupation
Trader
39
78
Farmer
4
8
Plastic and Paper Supplier
1
2
Plastic and Paper Retailer
3
6
Vendor
3
6
TOTAL
50
100
Number of years in the cooperative
1 month-1 year
2
4
2-3
16
32
4-5
16
32
6-7
8
16
8-9
5
10
10-11
2
4
12-14
1
2
TOTAL
50
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
15
Reasons in Joining the Cooperative
Table 2 shows the reasons of the respondents in joining the cooperative. Majority
(76%) joined the cooperative to have easy access on savings deposit, 68% to have easy
access to credit, 38% to gain knowledge and skills through seminars, 34% to contribute
their knowledge and skills to the cooperative and 8% to visit other places through
fieldtrips.
This implies that most of the members’ reasons in joining the cooperative are to
avail of its services and gain knowledge and skills through seminars. This then implies
that the reason of joining the cooperative is not always based on economic reasons but
also on social development as well.
Table 2. Reasons in joining the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Easy access to credit
34
68
Easy access to savings deposit
48
76
Contribute knowledge and skills
17
34
Gain knowledge and skills
19
38
Visit other places through fieldtrips
4
8
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
16
Services Availed
The services of the cooperative are savings deposit, time deposit, emergency loan
and regular loan.
Table 3 shows the services of the cooperative availed by the members for the last
two years. The finding shows that all (100%) of the respondents had savings deposit with
the cooperative. This is so because it is one of the requirement for membership. A
member should open and maintain a savings account of one thousand pesos with the
cooperative. Forty two or 84% availed of the regular loan, 50% availed of the emergency
loan, and 34% availed of the time deposit. Result shows that majority of the members are
borrowing from the regular loan than from the emergency loan. This maybe because the
emergency loan is small, could be availed in case of emergency and the time of paying is
very short.
The finding also implies that majority of the members were patronizing the
services of the cooperative.
Table 3. Services availed by the respondents
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Savings Deposit 50
100
Time Deposit 17
34
Emergency Loan 25
50
Regular Loan 42
84
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
17
Frequency of Patronizing the Savings and Time Deposit
Savings deposit. Table 4. Shows how often the respondents patronize the savings
deposit. Their transaction could be a withdrawal or a saving with the cooperative. Most
(46%) of the respondents transact with the cooperative once a week, 16% no definite
time, 12% twice a week, 10% daily, another 10% once a month, 4% quarterly and 2%
three times a month.
This finding shows that majority of the respondents go to the cooperative almost
every week either to save or withdraw from their savings deposit. There were some that
could not determine how often they patronize the savings deposit. According to these
respondents, they go to save at the cooperative every time they have an extra cash.
Time deposit. Table 5 shows how often the respondents transact their time deposit
with the cooperative for the last two years. Five (10%) of them have no definite time in
transacting their time deposit, 10% once a month, 6% bi-monthly, another 6% quarterly,
2% once a week.
Table 4. Frequency of patronizing the savings deposit of the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Once a week 23
46
Daily
5
10
Twice a week 6
12
Once a month 2
10
Three times a month 1
2
Quarterly
2
4
No definite time 8
16
TOTAL
50
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
18
Table 5. Frequency of patronizing the time deposit
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Once a week 1
5.88
Once a month 5
29.41
Bimonthly 3
17.65
Quarterly
3
17.65
No definite time 5
29.41
TOTAL
17
100
Number of Times Availed of Emergency Loan for
the Past Two Years
Table 6 shows the number of times the respondents availed emergency loan for
the past two years. Most (56%) of the respondents availed emergency loan for 1-2
times,24% for 3-4 times, 16% for 5-6 times, and 4% availed for 7-8 times. This finding
shows that emergency loan was less availed by the respondents.
Table 6. Number of times availed emergency loan for past two years.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1-2
14
56
3-4
6
24
5-6
4
16
7-8
1
4
TOTAL
25
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
19
Number of Times Availed of Regular Loan for
the Past Two Years
Table 7 shows the number of times the respondents availed regular loan for the
past two years. Majority (88%) of the respondents availed regular loan for 1-2 times
while 12% availed for 3-4 times. The regular loan is normally paid in 12 months and
therefore this finding shows that very few borrowed regular loan at a very short term thus
they were able to borrow 3 or 4 times in two years.
Benefits Received
Benefits received by the members from the services of the cooperative were
categorized as economic benefits and social benefits. Economic benefits may come in the
forms of higher interest on savings accounts, lower interest on loans, credit availability,
patronage refund, dividends on share capital, etc. (Leung, 1993). Social benefits received
by members could be in the form of improvement in their character traits or improved
knowledge and skill. They could be derived through continuous cooperative education
among members and stronger ties between members.
Table 7. Number of times availed regular loan for past two years.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1-2
37
88
3-4
5
12
TOTAL
42
100
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
20
Economic Benefits. Table 8 shows the economic benefits received by the
respondents in patronizing the services of the cooperative. Majority of the respondents
mentioned high interest on savings deposit (82%) and lower interest on loan (72%). Some
of the respondents said, “the more we save the more we earn.” Those who mentioned
lower interest on loan as a form of economic benefit they derived from the cooperative
avoided borrowing from loan sharks that charge 10% per month. Sixteen or 32% said that
interest on share capital is high and 4% said that patronage refund is high.
Since not all have indicated patronage refund and dividend as part of the benefits
they derived, this may imply that some members were not informed on these inherent
economic benefits derived from their support of the cooperative operations or it may be
that they receive lesser amounts than what they expected.
These findings corroborate the statement of Leung about the economic benefits
derived by the members from the cooperative.
Table 8. Economic Benefits
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
High interest on savings deposits
41
82
Low interest on loan service
36
72
High interest on share capital
16
32
High patronage refund
9
18
*multiple response
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
21
Social Benefits
Table 9 shows the social benefits received by the respondents from the
cooperative with the corresponding weighted average score were as follows: closer
relationship with members (2.24, satisfactory); improved camaraderie or social dealing
with people (2.12, satisfactory); improved leadership qualities (2.24, satisfactory); able to
acquire new skills (1.96, satisfactory); and able to gain additional knowledge (2.12,
satisfactory
The result implies that the cooperative’s objective to render social and
environmental services to the community and to enhance the knowledge, capabilities and
attitudes of the cooperative members through continuous education are being fulfilled.
Table 9. Social Benefits
LEVEL OF SATISFACTION
PARTICULARS
WA
D
Closer relationship with members
2.24
S
Improvement on social dealing/
camaraderie
2.12
S
Improved leadership qualities
2.24
S
Acquired skills
1.96
S
Gained knowledge
2.12
S
Legend: WA= Weighted Average
D= Qualitative description
Scale used: 1 - 1.667= Very Satisfied (VS)
1.668 - 2.334= Satisfied (S)
2.335 - 3= Not Satisfied (NS)
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Reasons in Preferring to Save Money in the Cooperative
Table 10 shows why the respondents prefer to save their money in the
Cooperative. Majority of the respondents (84%) said that the cooperative offers higher
interest on savings deposit, 50% said the cooperative has longer time allowed for
transactions compared to the banks. Normally, cooperative opened at eight o’clock and
close at 5 o’clock while banks open at 9 o’clock and close at 3 o’clock. Sixty two
percent indicated high interest on savings deposit as their reason and 44% reasoned that
their cooperative allows them to withdraw/save even without their passbook.
This implies that members have different reasons in preferring to deposit their
money in the cooperative.
Uses of Loans Availed from the Cooperative
Table 11 shows how the loans acquired from the cooperative helped the
respondents. Majority (70%) of the respondents said they used the money loaned for
business investment, 56% used their loan to support their children in school, 24% bought
farm supply, 8% purchased stocks for their store, another 8% used for their medication,
6% used it for placement fee of their children for employment abroad and 2% bought
construction materials in building a house.
This findings shows that the loan availed by the members were for varied
purposes.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
23
Table 10. Reasons in saving money to the cooperative
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
High interest on savings deposit
42
84
Longer time allowed for transaction
25
50
High interest on savings deposit
31
62
The cooperative allows us to save/withdraw
22
44
even without passbook
*multiple responses
Table 11. Uses of loans availed from the cooperative.
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
For business investment
35
70
Is able to buy stocks for store
4
8
Is able to buy farm supply
12
24
Is able to buy construction
1
2
materials in building a house
Is able to support my
28
56
children in school
Is able to send my children
3
6
abroad to work
For medication 4
8
*multiple responses
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Percent Increase in Annual Income of Respondents
Who Used Their Loan for Business
Table 12 shows how many percent did the respondent’s annual income increased
when they invested their loan. Most (42%) of the respondents said that their annual
income increased by 5-6%, 26% had an increase of 9-10%, 12% had 3-4%, and 10% had
7-8%.
This finding implies that the cooperative has contributed in uplifting the economic
status of the members. This further implies that the cooperative is partially fulfilling its
objective to cater the needs of the members with its services.
Extent of Satisfaction from Interest on Savings Deposit
Table 13 shows the extent of satisfaction by members from the interest rate on
savings deposit and time deposit. Majority of the respondents said the interest rate on
savings and time deposits were satisfactory, 28% mentioned very satisfactory while 14%
said it was unsatisfactory.
This finding presents that majority were satisfied with the current interest rate on
savings and time deposit that the cooperative offers. The respondents who indicated
unsatisfactory commented that the cooperative should make the interest higher.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
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Table 12. Percent of Annual Income Increase
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
1 – 2% 9
18
3 – 4% 6
12
5 – 6% 21
42
7 – 8% 5
10
9 – 10% 13
26
Table 13. Extent of satisfaction on the interest rate on savings and time deposits
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Very Satisfactory
14
28
Satisfactory
29
58
Unsatisfactory
7
14
Extent of Satisfaction on Interest Rate on Loans
Table 14 shows the extent of satisfaction of the respondents from the interest rate
on loans. Majority of the respondents (54%) said the current interest rate on loan is
satisfactory, 18% said it is very satisfactory while 22% said it is unsatisfactory. Their
dissatisfaction was that the interest on loan is high. The accumulated interest gets higher,
this is one of the reasons why some of the debtors refused to pay their loan which makes
them delinquent.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
26
Table 14. Extent of satisfaction on interest rate on loans
PARTICULARS
FREQUENCY
PERCENTAGE
(F)
(%)
Very Satisfactory
9
18
Satisfactory
27
54
Unsatisfactory
11
22
Level of Satisfaction Received by Members
from the Services of the Cooperative
Table 15 shows the rating of the respondents with the services of the cooperative.
For savings deposit, the respondents rated it as satisfactory with a weighted average of
2.20. The respondents also rated both the time deposit and the loan services as
satisfactory. The corresponding weighted averages were 2.00 and 2.26, respectively. In
the same manner, the respondents also rated the hospitalization loan and the mortuary aid
services as satisfactory with a weighted average of 2.090 and 1.55, respectively.
Table 15. Level of satisfaction received by members from the services of the cooperative.
LEVEL OF SATISFACTION
PARTICULARS
WA
D
Savings deposit
2.20
S
Time deposit
2.00
S
Loan/credit
2.26
S
Hospitalization and Fund
2.090
S
Mortuary Aid Fund
1.55
VS
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
27
Legend:
WA= Weighted Average
D= Qualitative description
Scale used: 1 - 1.667= Very Satisfactory (VS)
1.668 - 2.334= Satisfactory (S)
2.335 - 3= Not Satisfactory (NS)
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the benefits received by the members from
the services of the La Trinidad Vegetable Trading Post Multi-Purpose Cooperative as
well as the reasons of members in joining the Cooperative and to find out whether the
members are satisfied or not with the services of the cooperative.
A survey questionnaire was used to gather the needed information. Fifty members
were taken as respondents.
Majority of the members were engaged in vegetable trading. Some were farmers
and some were vendors. Majority joined the cooperative less than five years ago.
Members joined the cooperative (LTVTPMPC) to avail of its services, gain and
contribute knowledge and skills. This then implies that the reasons of the members in
joining the cooperative is not always based on economic but on social development as
well.
The services of the cooperative that were patronized by majority of the members
were the savings deposit and the credit. It was found out that the economic benefits
received by the members, as they perceived, were the higher interest on savings and time
deposits and low interest on loan. Very few mentioned patronage refund and dividend as
part of the economic benefits they derived. This may imply that some members were not
informed on these inherent economic benefits derived from their support of the
cooperative operations. The result on social benefits implies that cooperatives’ objectives
to render social and environmental services to the community and to enhance the
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
29
knowledge, capabilities and attitudes of the cooperative members through continuous
education were fulfilled.
Finding showed that the cooperative is fulfilling one of its objectives to
strengthen savings mobilization in order to inculcate to the members the value of
thriftiness.
Findings also showed that members availed of loan for varied purposes. However,
majority used it for business investments. These investments contributed to the increase
in the income of the respondents. This shows therefore that the cooperative has
contributed in uplifting the economic status of the members. This further showed that the
cooperative is partially fulfilling its objective to cater the needs of the members with its
services.
It was found that most of the respondents were satisfied with the services of the
cooperative. Only few were unsatisfied with the interest on savings deposit, which
according to them is low and they suggested for an increase. Some also were not satisfied
with the interest rate on loan because they found it high. They also suggested that it
should be lowered.
Conclusions
Based from the findings of the study the following conclusions were made:
1. Most of the members’ reasons in joining the cooperative are to avail of its
services and gain knowledge and skills through seminars.
2. Most of the members are aware of the economic benefits and social benefits
derived from the cooperative operations though some were not aware of the inherent
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
30
benefits dependent on their relationship and support of the cooperative operations. This
indicates a lack of understanding by the members of these factors.
3. Majority of the respondents rated the services of the cooperative as
satisfactory. This means that they are just satisfied with the all the services that the
cooperative is giving them and the cooperative could still provide more so that their level
of satisfaction would increase.
Recommendations
1. Since the cooperative is able to continuously fulfill most of its objectives as
well as the members’ intents in joining, it is recommended that the cooperative should
further strengthen its operations; this would be desirable in order to meet all of its
objectives through policy review and strategy formulation.
2. It is also recommended that the cooperative should improve its member’s
education program to ensure that the members truly grasp the cooperatives policies,
objectives, its operations and reciprocal relation between membership and the
organization.
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
31
LITERATURE CITED
ABASOLO, P.A., RUIZ Ma. A. V. and F. B. BERTOL. 1996. Cooperatives in the
Philippines: History, Organization and Management. GIC Enterprises and Co.,
Inc., Manila, Philippines. P. #5, 8.
BATANES, J.L. 2006 Level of Understanding on the Purpose and Principles of
Cooperative by Members and Offices of Selected Cooperatives in Kibungan
Benguet. BS Thesis. BSU, La Trinidad, Benguet. P. #5.
BENCIO, A. P. and V. B. AWACAN. 2006. Topdac Multi-Purpose cooperative Case. BS
Thesis. Benguet State University, La Trinidad, Benguet. P. #5.
FAJARDO, F.R. and D. F. ABELLA. 1999. Cooperatives Fourth Edition. Rex Printing
Company, Inc. Quezon City Philippines.
LEUNG, C. 1993. Development Diary: Return to Cooperatives. Baguio Midland Courier.
Baguio City.
ONAGAN, L. D. and SIMANGAN, J. T. 1993. Cooperation Principles and Practices.
Onagan and Sons Publishing Co., Quezon City.
OYANG, J. P. 2006. Benefits Derived by the Members from the Services of Baguio
Market Vendors Multi-Purpose Cooperative. BS Thesis. Benguet State University
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
32
APPENDIX A
Communication Letter to the Manager
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
October 2008
Tanny Atayoc
Manager
La Trinidad Vegetable Trading Post Multi Purpose Cooperative
Km5 La Trinidad Trading Post
Sir:
Warm Greetings!
I, Ramil W. Bacbac, a student of Benguet State University taking up Bachelor of
Science in Agribusiness major in Cooperative Management. I am presently conducting a
research titled “BENEFITS DERIVED BY MEMBERS FROM THE SERVICES OF LA
TRINIDAD VEGETABLE TRADING POST” as a requirement for the degree.
In connection, may I request permission to conduct my study and float my
questionnaires to your members?
Thank you very much for your favorable action regarding this request. Your
action will be highly appreciated.
Sincerely yours,
BACBAC, RAMIL W.
(Researcher)
Noted:
EVANGELINE B. CUNGIHAN
Adviser
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
33
APPENDIX B
Letter to the Respondents
DEPARTMENT OF AGRICULTURAL ECONOMICS
AND AGRIBUSINESS MANAGEMENT (DAEAM)
Benguet State University
La Trinidad, Benguet
Sir/Madam,
I, Ramil W. Bacbac, a student of Benguet State University taking up Bachelor of
Science and Agribusiness major in Cooperative Management. I am presently conducting
a research titled “BENEFITS DERIVED BY MEMBERS FROM THE SERVICES OF
LA TRINIDAD VEGETABLE TRADING POST” as a requirement for the degree.
In connection, I request a portion of your most precious time to answer the
attached questionnaire and asking for your honest answer/opinion. Rest assured that all
information you provide would be treated with utmost confidentiality.
Thank you very much for sharing me a part of your time.
Sincerely Yours,
RAMIL W. BACBAC
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
34
APPENDIX C
Survey Questionnaire
I.
Respondent Profile
1. Name (optional): _________________________________________________
2. Educational Attainment:
______Elementary ______College
______High School ______Vocational Course
3. Occupation: __________________________________
4. Main source of income: ________________________________
5. Number of years as member of the cooperative________________________
II.
Reasons
1. Which of the following is a reason that made you join the cooperative?
______to have easy access to credit
______to have easy access to savings deposits
______to contribute my knowledge and skills in the cooperative
______to gain knowledge and skills through trainings seminars
______to visit other places through field trips
______others (pls. specify) ________________________________________
III.
Benefits Derived
1. What are the services of the cooperative you have availed?
______savings deposit
How often do you transact your savings deposit with the coop?
( ) Once a week
( ) twice a week
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
35
( ) Daily
others (specify) __________________
______time deposit
How often do you transact your time deposit with the coop?
( ) Once a week
( ) twice a week
( ) Daily
others (specify) __________________
______credit / loan
_______a. Emergency Loan
For the last two years, how many times did you avail this
service? ________________________________________
______b. Regular Loan
For the last two years, how many times did you avail in this
service? ________________________________________
Others (pls. specify) _____________________________________
2. What benefits did you receive from the cooperative?
a. Economic Benefits
______high interest on savings deposit
______low interest on loan service
______high interest on share capital
______high patronage refund
Others (pls. specify) _________________________________________
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
36
b. Social Benefits (please rate the level of satisfaction you’ve receive)
Very
Not
Benefits
Satisfactory Satisfactory Satisfactory
1. Closer relationship with members
2. Improvement on social dealing/
camaraderie (overcome shyness)
3. Leadership qualities were develop or
improve
4. Acquired skills on (pls. specify)
___________________________
5. Gained knowledge on (pls. specify)
_____________________________
Others (pls. specify) ___________________
3. Why do you prefer to save your money in the cooperative?
______high interest on savings deposit
______longer allowed for transaction
______high interest on share capital
______the coop allows us to withdraw/save even without passbook
Others (pls. specify) _____________________________________
4. How do loan services of the cooperative help you?
______for business investment,
How much of your loan was invested to your
business? __________________
Did it contribute to your income?
_____Yes _____No
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
37
a. If yes, how many percent did your annual income
increases?(pls. specify)___________________________
b. How many did you employ in your business investment?
(Pls. specify) _________________________________
______is able to buy stocks for store,
How much of the loan was use? _________________
______is able to buy farm supply at the time it is needed,
How much of the loan was use? _________________
______is able to buy construction materials in building a house,
How much of the loan was use? _________________
______is able to support my studies?
How much of the loan was use? _________________
______is able to support my children in school
How many children supported? ___________________
Others (pls. Specify) ________________________________________
5. What is the extent of your satisfaction in terms of:
a. Interest rate on savings and time deposits?
______very satisfactory ______Unsatisfactory
______Satisfactory ______Very Unsatisfactory
b. Interest rate on loans?
_____Very satisfactory _____Unsatisfactory
_____Satisfactory _____Very Unsatisfactory
6. Are you satisfied with the services of the cooperative?
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
38
_____Yes _____No
If no, what improvements would you suggest for better service of the
Cooperative?_____________________________________________________________
_______________________________________________________________________
If yes, what is your rating on the services of the cooperative? (Pls. check)
SERVICES
Very Satisfactory
Satisfactory
Not Satisfactory
Savings Deposit
Time Deposit
Loan/Credit
Hospitalization
and Fund
Mortuary Aid
Fund
Benefits Derived by Members from the Services of La Trinidad Vegetable
Trading Post Multi Purpose Cooperative / Ramil W. Bacbac. 2010
Document Outline
- Benefits Derived by Members from theServices of La Trinidad Vegetable Trading Post Multi Purpose Cooperative
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENTS
- INTRODUCTION
- Rationale of the Study
- Statement of the Problem
- Objectives of the Study
- Importance of the Study
- Scope and Limitation
- REVIEW OF LITERATURE
- Cooperative Defined
- Cooperative Principles
- Objectives of Cooperative
- Key of Success in Cooperatives
- Members Benefits
- METHODOLOGY
- RESULT AND DISCUSSION
- Profile of the Respondents
- Reasons in Joining the Cooperative
- Services Availed
- Frequency of Patronizing the Savings and Time Deposit
- Number of Times Availed of Emergency Loan forthe Past Two Years
- Number of Times Availed of Regular Loan forthe Past Two Years
- Benefits Received
- Social Benefits
- Reasons in Preferring to Save Money in the Cooperative
- Uses of Loans Availed from the Cooperative
- Percent Increase in Annual Income of RespondentsWho Used Their Loan for Business
- Extent of Satisfaction from Interest on Savings Deposit
- Extent of Satisfaction on Interest Rate on Loans
- Level of Satisfaction Received by Membersfrom the Services of the Cooperative
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- Summary
- Conclusions
- Recommendations
- LITERATURE CITED
- APPENDIX