BIBLIOGRAPHY TULABIS, MARY ANN P. ...
BIBLIOGRAPHY
TULABIS, MARY ANN P. APRIL 2012. Baseline Study of Cooperatives in
Kibungan, Benguet. Benguet State University, La Trinidad, Bneguet.
Adviser: David Joseph L. Bognadon, MCM.
ABSTRACT
This study was conducted to describe the profile of the cooperative to describe the
profile of the primary cooperatives as to status of operation, services offered and
composition of members, to determine the sources of funds and financial status of
cooperatives; to find out the needs and problems of the cooperatives; and to determine the
solutions employed by the primary cooperative to meet their problems and needs.
The respondents of the study were the managers of the primary cooperatives;
however, in the absence of the manager, the staff or officer who knows the information
about their cooperative served as the respondent. A survey questionnaire and personal
interview was used to gather the information.
The finding shows that the ten primary cooperatives offer different services such as
credit, consumer and food catering. The ten primary cooperatives need trainings and
seminars for the members and officers regarding the different aspects of the cooperative
operation like credit and collection management, training for storekeepers and financial
management; and financial assistance that their main source of funds come from the share
capital and membership fees of members.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
INTRODUCTION
Rationale
The cooperatives has been one of the popular forms of organizations and found in
practically all countries today and Philippines is one of them. People learned to use many
ways to improve their means of living.
In our region, we rely on agriculture as a source of livelihood but despite of this, we cannot
say that all of us are contented with our way of life. We are all forced to pursue other
alternatives or other ways to sustain our common need so there is a need for change to
uplift our economic situation. Cooperative is considered as one of the economic force for
the purpose.
Cooperatives are organized to help its members by providing goods and services at
reasonable prices. Through the cooperative, the low income members could avail of loans
at low rate of interest instead of borrowing from the creditors. The cooperative can also
serve as a marketing agent from producers who are left at the mercy of the middlemen.
Though primary cooperatives provide goods and services to its members, it should also
teach them how to increase their income and savings. In this way, their purchasing power
will increase and their economic status will be elevated.
Baseline data are essential inputs in project planning especially in the
developmental projects, in the formulation of policies and as a benchmark data for an
organization. Data base are important in allocating resources of the different activities of
an organization. Thus, result of the study could be an input to the cooperative itself and
may provide CDA to come up with programs that would help the cooperatives.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Importance of the Study
The result of the study would be useful to the cooperatives to come up with better
plans and programs to improve their operations. To the members and officers, it would
increase awareness on the different programs for their benefit.
Findings of the study could also serve as a record for the organization/cooperative and basis
in proposal development where this data are needed.
Statement of the Problem
The study aimed to provide baseline data on the different cooperatives established
in Kibungan, Benguet. In addition, the study aimed to answer the following questions:
1. What is the profile of the cooperative as to:
a. Status of the cooperative
b. Area of operation
c. Services they offer
d. Composition of members
2. What are the sources of funds of the cooperative and the financial status of the
cooperatives?
3. What are the needs of the cooperative?
4. What are the problems and solutions employed the cooperative?
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Objectives of the Study
Generally, the study was conducted to generate baseline data of the cooperatives operating
in Kibungan, Benguet.
Specifically, the study was conducted to:
1. Determine the profile of the cooperative as to:
a. Status of the cooperative
b. Area of operation
c. Services they offer
d. Composition of members
2. Determine the sources of funds and thefinancial status of the cooperative.
3. Find out the needs of the cooperative.
4. Determine the problems and solutions employed the cooperatives.
Scope and Delimitation
The study covered the whole municipality of Kibungan, Benguet. Cooperatives that are
presently operating in this area were considered in the study.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
REVIEW OF LITERATURE
Cooperative Defined
Cooperative is an autonomous and duly registered association of persons, with a
common bond of interest, who have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services and accepting a fair share of the
risks and the benefits of the undertaking in accordance with universally accepted
cooperative principle (Cooperative Code of the Philippines, 2008).
Concept of a Cooperative
The cooperative may be said to have begun as early as the period of human history
when we had ceased to be nomadic and settled in communities or as a group for the
cooperative. Spirit among members of the community and springs from the inherent
gregariousness of men thus, Webster’s International Dictionary states that the cooperative
is marked by working together and by joining efforts towards a common end; it is not
motivated by an individual’s selfish ends.
The cooperative movement of the recent years originated from the ideas espoused
by men like Robert Owen (1995), Saint –Simon (1995), Louis Blacand Fourien (1995).
Robert Owen was presently referred to as the “Father of Cooperative”. It was he who wrote
articles and books on cooperatives that have inspired the present-day cooperative
movement. It emphasized the need for cooperative instead of competition in human society
(Cooperative Code of the Philippines, 2008).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Objectives and Goals of a Cooperative
The primary objective of every cooperative is to help to improve the quality of life
of its members. Towards this end, the cooperative aim to: a. Provide goods and services to
its members to enable them to attain increased income, savings, investments, productivity,
and purchasing power, and promote among themselves equitable distribution of net surplus
through maximum utilization of economies of scale, cost-sharing and risk sharing; b.
Provide optimum social and economic benefits to its members;c. Teach them efficient ways
of doing things in a cooperative manner;d. Propagate cooperative practices and new ideas
in business and management; e. Allow the lower income and less privileged groups to
increase their ownership in the wealth of the nation; and f. Cooperative with the
government, other cooperatives and people-oriented organizations to further the attainment
of any of the foregoing objectives (Cooperative Code of the Philippines, 2008).
Cooperative Management
Management is applied in different aspects of business as well as in organization.
It is the accumulated talents of both labor and management since either to promote and
increase the production or for the future.
To contribute on the pursuit of cooperative development , the management is
therefore , designed the broader the ideas of all members involved in the organization in
order to enlightened of the cooperatives purpose to them and their roles as members , and
to become responsible, empowered, and productive (Jose, 2010).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Needs of Cooperative
Villanueva (1981), stated that the importance of cooperatives a s instruments for
socio-economic development cannot be underestimated. In their effective use, they have
succeeded in accelerating the growth of low income and less segments of the society. But
as experiences shows, most cooperatives failed to achieve this end. One major reason for
such failure is lack of proper attitude and skills on the part of the members and officers to
participate effectively in the affairs of the cooperatives. “Because a full pledge cooperative
is a business enterprise engaged in complicated activities, its demands are greater. It
requires efficient management, able leadership and vigilant members, etc. these are not
readily available, neither are they readily learned (Calixto, 2006).
Common Problems of a Cooperative
According to the Handbook of Agrarian Reforms (1975) on Cooperative and
Taxation (1975), as cited by Tabdi (1997), one of the main problems of cooperative
development in the lack of competent staff at various lends of qualifications. This shortage
of adequately trained staff is especially acute in the field of management of social and
economic development; assistance to training cooperative personnel and officers a swell
as the members is needed.
Lack of experience beyond training is a major problem in management of
cooperatives in the Philippines. Any training certificate, university or college diploma or
school certificate is only a passport to experiences. Experience is gained on the job and a
broad experience may take year in cooperatives’ business activities. More recruitment from
within, substituting local knowledge for experiences, as well as on job training should be
utilized (Grosby et al., 1975).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Sources of Funds for Cooperatives
Cooperatives can avail of internal and external sources of funds.
1. Internal Sources.
The primary source of funds for the cooperative is the general membership through several
programs.
a. Capital build-Up. Members may schedule registration payment of share
capital of fixed deposits to continuously increase their paid up share in the cooperative.
b. Savings mobilization. Members with idle money can deposit them in the
cooperative through savings or time deposit so that others who are in need can borrow them
for productive purposes.
c. Revolving fund. Deferred payment of dividends may be approved by the
General Assembly to allow the cooperative use it for a given period.
2. External Sources of Funds
a. Loan/borrowings. Borrowing may be valid for as a source of funds but
should be done only when additional fund is urgently needed that can not be generated by
the internal sources.
b. Donation/grant. A cooperative/organization may request solicit
financial assistance from either government or benevolent non-government agency. This
is a good source because payment is not required. However, financial assistance of this
nature requires preparation and submission of a project proposal (Buasen, 2003).
Article 73 of the Cooperative Code of the Philippines (Abasolo et al., 1996) states
that the capital sources of the cooperatives registered may be derived their capital from any
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
or all of the following sources: a) members share capital; b) loans and borrowings including
deposits; c) revolving capital; and d) subsidiaries, donations, legacies, grants-
in-aid; e) such other assistance from any local or foreign institution whether public or
private (Domingo, 2005).
Success Factors of Cooperatives
Internal and external forces combine to influence the success of cooperatives. The
factors which the members and leaders of an association have some degree of control
includes the following: a) members’ recognition of common needs, b) members’
conviction for group action, c) leaders’ dedication, d) good record keeping system,
e)frequency of audits, f) continuing cooperative education program, and h) proper
guidance.
Management. Cooperative should be properly managed. Training individual for
management is not enough. There is a need to develop proper attitudes and values such as
honesty, integrity and deep sense of social responsibility among the managers and
members. The success of any cooperative greatly depends on the performances of the
manager. For this reason, cooperative managers should be properly selected. Personal
friendship and trust should not only be the criteria for appointing a manager and its staff
(Fajardo and Abella, 1993).
Management of funds. Runkle et al. (1999) said that excellent financial record management
particularly on the management of the transaction records of income and expense is a must
to ensure the profitability and growth of a cooperative. All necessary documents should be
kept and made available for reference when needed. Punzalan (1999) strengthen the
statement of the forgoing when she said that regular audit is needed to maintain a genuine
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
financial record or requirements for a cooperative to be able to operate smoothly (Bacod,
2004).
Conduct of continuous education and training. Punzalan (1999)found in this study that that
failure of a cooperative to conduct continuous education and training to its members,
officers, and management staff among the common pitfalls which cause cooperative
business miss management.
Leadership. Habenicht and Lewn (1996) found out in their study that the kind of
leadership is shows affect the individual or group he deals with. Leaders should always
assess their leadership style to determine if it makes people hostile and turns them off. And
if it does, the leaders should change or modify their leadership style to harmonize with
people. The characteristics of a good leader are: having the ability to organize details;
willingness to render services without expected a pay; promotes fair competition among
the followers; unselfish; honest; sincere; and humble (Jose, 2010).
Good leaders came up with good plans and implement standards for appropriate for the
group. They communicate confidence with the desire with the group to grow. They clearly
explain reasons for work accomplishments standard but respect the members view points
while being firm with the principles involved. They listen to and consider the feelings of
the group, teat the group, as a partner in the attainment of their goals, talk necessary things
and have joy in doing them, and show interest in activities for the group’s development
and success. Leaders need to evaluate the group’s accomplishments and their socio-
economic impact as basis in their immediate and future actions; and they need to recognize
the Almighty God who helps and deals with their group (Fajardo and Abella, 1993).
Failures Related Factors of Cooperatives
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
According to the study conducted by Osting (1993) as cited by Begawen (2002),
the problems met by the cooperative members are: lack of funds, lack of qualified officers,
lack of cooperation, lack of management, improper payment of credit, non-implementation
of policies, and lack of training and education. It was found out that collection of additional
share and recruiting more members was done to remedy lack of funds. And for other
problems, there were no solutions adopted.
Failure of a cooperative is due to the fact that the members become loan-oriented with
financial assistance being perceived as doleouts. They lack education and training
information and practical know how regarding cooperative management. The members had
not internalized the cooperative principles and practices. The inadequate working capital;
and marketing facilities and other support services contributed to the cooperative failure.
The members’ attitudes such as disloyalty, poor management and leadership and the
absence of audit and internal control also contributed in the cooperative failure. The
insufficient and inadequate government agency supervision entrusted with development
and the presence of political influence were other contributory factors in this cooperative
failure.
Definition of Term
Baseline data. Initial collection of data which serves as a basis of comparison with the
subsequently acquired data (Business Dictionary)
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
METHODOLOGY
Locale and Time of the Study
The study was conducted in Kibungan, Benguet from November to December
2011.Kibungan is a 4th class municipality in the province of Benguet. The study area is
located 62 kilometers north of Baguio City within a cool highland mountainous zone. It
has an elevation of more than 2500 meters above sea level.
Respondents of the Study
The respondents of the study were the managers of the cooperative or any of the officers
that can provide the information needed.All the cooperatives that are operating in Kibungan
were the source of information.
Research Instruments
The research made use of primary and secondary data. Primary data were gathered from
the respondents with the use of a survey questionnaire and personal interview. Secondary
data were taken from the CDA, Barangay record and records of the cooperative.
Data Gathered
The data gathered were the profile cooperative as to their status of operation. Area of
operation, services offered and the composition of members; financial status of the
cooperative, the problems and needs and the solutions that the cooperative use to solve the
problem.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Figure 1. Provincial map showing the location of the study
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Figure 2. Municipality of Kibungan showing the location of the study
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Data Analysis
Data were tabulated and analyzed according to its objectives. Data were presented
using frequency and percentage analysis.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
RESULTS AND DISCUSSION
Profile of Cooperatives in Kibungan
This chapter presents a brief background of the primary cooperatives in Kibungan,
Benguet. It includes the status of cooperatives, date registered, starts of operation, numbers
of years in operation, area of operation, services offered, compositions of members and
sources of funds.
Status of operation. The finding shows that all the primary cooperatives in Kibungan that
were registered at CDA are still operating as of the conduct of the study. Based on the study
of Calixto in 2006, there were 13 registered cooperatives in Kibungan. However, as of this
study it was found out that only 9 are still operating and one cooperative was organized.
The other four cooperatives were already dissolved.
Date organized and numbers of years in operation. Table 1 also presents the year when
these cooperatives were organized and the number of years of operation. The oldest
cooperative was the Madaymen MPC and the Poblacion Kibungan MPC. Both were
organized in 1991 and in operation for 21 years. Majority of the 10 of cooperatives were
organized in the early 1990’s. The latest cooperative organized in Kibungan was the
Kibungan Arabica Coffee Growers MPC which is only four years old in operation.
Area of operation. The area of operation refers to the scope of the place where the
cooperativesare located including members. Area of operation may be the barangay, the
whole municipality or even the whole province. The result shows that almost all the
cooperatives were operating in their respective barangays except for the KEMPC which is
an institutional cooperative. The members of this cooperative were the municipal
employee.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Services offered. The services offered by the primary cooperatives in Kibungan, Benguet
were credit or lending, consumers or sari-sari store and catering. There were two
cooperatives that offered both credit and consumer services. These were Bokes MPC, and
KACGMPC. The cooperatives that offered consumer services were Oscapa MPC, Palina
MPC and Poblacion MPC. Kibungan Mothers and Family MPC, Bobocco MPC and Lamut
Taliboy-oc MPC offered only credit while KEMPC offered consumer, credit and food
catering services (Table 1).
Compositions of members. Table 1 shows the composition of members in each
cooperative. The result shows that almost all the cooperatives in Kibungan were composed
of farmer members except the KEMPC which consist of only municipal employees of
Kibungan. As to composition of members, most of the cooperative members were female.
The table also shows that Bobocco MPC has the highest total number of members of 170
as of December 2010 and the lowest was 35.
Sources of funds. Table 2 shows the source of funds of the cooperatives in Kibungan,
Benguet. The sources of funds of the different cooperatives as claimed by the
officers/managers were from share capital and membership fees. There were 2 cooperatives
who received grants or subsidies. Results supports the study of Buasen (2003) that
cooperatives can avail of internal sources of funds through capital build-up, savings
mobilization, revolving fund, and external sources from loan/borrowings and
grants/donations.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 1. Profile of the cooperative as to status of operation, year organized, area of operation, services offered and composition of
members
NAME OF
STATUS OF
YEAR
NO.OF
AREA OF
SERVICES COMPOSITION OF MEMBERS
COOP.
OPER’N
ORG.
YRS. IN
OPER’N
OFFERED
OPER’N
Occupation
Gender
TOTAL
M
F
Bobocco MPC
Active
1991
20
Barangay
Credit
Farming
130 120
170
Bokes MPC
Active
1991
20
Barangay
Credit,
Farming
Consumer
KACGMPC
Active
2007
4
Barangay
Credit,
Farming
Consumer
17
18
35
KEMPC
Active
1994
17
Municipality
Credit,
Government
Consumer, Employee
Catering
64
85
149
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 1. continued…
NAME OF
STATUS
YEAR
NO. OF
AREA OF
SERVICES
COMPOSITION OF MEMBERS
COOP.
OF
ORG.
YRS. IN
OPER’N
OFFERED
OPER’N
OPER’N
Occupation
Gender
TOTAL
M
F
KM&F MPC
Active
1998
13
Barangay
Credit
Farming
LT MPC
Active
1992
19
Barangay
Credit
Farming
51
23
74
MMPC
Active
1990
21
Barangay
Credit
Farming
Osccpa MPC
Active
1997
14
Barangay
Consumer
Farming
43
28
71
Palina MPC
Active
1991
20
Barangay
Consumer
Farming
0
76
76
Poblacion
Active
1990
21
Barangay
Consumer
Farming
38
25
63
MPC
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 2. Sources of funds of the cooperatives
SOURCES OF FUNDS
FREQUENCY
PERCENTAGE
Internal sources
Share Capital
10
100
CETF
6
60
Development Fund
3
30
Reserved Fund
7
70
Revolving Fund
5
50
Membership Fee
8
80
Member’s Deposit
5
50
Income from operation
10
100
External sources
Loans and barrowings
5
50
Grants and donations
2
20
Financial Status of the Cooperatives.
Table 3 presents the total asset, total liabilities and total equity of the primary cooperatives.
The table shows that 30% of the cooperative did not submit their Cooperative Annual
Reports (CAPR) to CDA. Due to some officer did not do their obligation as a cooperative
as mentioned by member. The table shows that there were two cooperative increased their
asset for two years operation. These are Oscapa MPC and KEMPC. Only KEMPC
accumulated more than one million in asset. As to total liabilities, the table shows that only
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Bobocco MPC and KEMPC decreased their total liabilities. Three cooperatives increased
in total equity which includes Boboco MPC, KEMPC, and Oscapa MPC.
Needs of the Cooperatives
The identified needs of the cooperatives were categorized into training and
education, financial needs. These were presented in Table 4. Most (90%) of the respondents
mentioned that their cooperatives needs training on credit collection management for their
officers and staff, (70%) for financial management and Bookkeeping/Accounting
management, (60 %) on cooperative and management. The other training needs mentioned
were leadership training, training for storekeeper and entrepreneurial skills development,
project proposal presentation, how to organize a cooperative and field trip.
As to the financial need of the cooperatives, there were only a few respondents who
mentioned that their cooperatives need financial grants and subsidies to increase their
operating capitals and they need to come up with an effective strategy to mobilize savings
among the people in the rural areas because this would help them accumulate capital and
at the same time teach the people how to save apart their income for future needs. Half
(50%) of the respondents mentioned that they need to come up with a capital build up
strategy to increase the members paid up share capital. In this way, they could accumulate
funds for their cooperatives’ operation and at the same time increase the investment of
members in their cooperative.
Other needs mentioned by the respondents were infrastructure like building and
bookkeeper.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 3. Total assets, total liabilities and total equity of the primary cooperatives
NAME
OF
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
COOPERATIVE
2009
2010
2009
2010
2009
2010
Boboco MPC
225,400.39
313,980
50,500.00
48,000
174,900.38
361,980
Bokes MPC
NO DATA
KACGMPC
131,304.98
10,000
17,588.04
12,000
113,716.94
22,000
KEMPC
7,657,941.33
8,300,358.87 1,472,833.55
356,267.57 6,185,007.79 6,656,441.55
Kibungan Mothers MPC
298,065.00
286,318
28,447.000
30,063.00
269,618.00
256,255.00
LamutTaliboy-oc MPC
162,907.80
16,050.65
146,857.15
Madaymen PMC
No Primary and secondary data
Oscapa MPC
577,156.14 694,428.62
58,471.26
125,942.04 518,684.88
117,689.95
Palina MPC
165,086.00
143,000
59,840.00
143,000
105,246
587,749.21
Poblacion MPC
NO DATA
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 4. Needs of the cooperatives
PARTICULAR
FREQUENCY
PERCENTAGE
Training and Education
Credit and collection management
9
90
Financial management
7
70
Bookkeeping/accounting training
7
70
Cooperation and management
6
60
Entrepreneurial skill
5
50
Leadership training
4
40
Training for storekeepers
4
40
Trainer’s training
3
30
Project proposal presentation
3
30
How to organize cooperative
1
10
Field trip
1
10
Financial Needs
More paid-up share capital
5
50
Subsidies, grants and donations
2
20
Other Needs
Building
5
50
Bookkeeper
2
20
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Problems Encountered by
the Cooperatives
Table 5 presents the identified problems of the cooperatives were categorized into
education, management and finance. As to education, the table shows that members are
lack on cooperative education and training. Lack of skill to evaluate financial operation.
As to management problems, 60% mentioned that their members are delinquent in paying
their loans. Half of the respondent mentioned that their members do not patronized their
cooperative due to the reason that the price of the cooperative is higher than the price
offered of sari-sari stores. Other problems mentioned were records are not updated, limited
knowledge on cooperative management. Inactive participations of members due to lack of
information dissemination.
Solutions to the Cooperative
Problems and Needs
Table 6 presents some solutions to the problems and needs of the cooperatives. These
solutions were suggested by the respondents. In order to encourage the members to
patronize their cooperatives and participate in all their activities, cooperative member and
officers should continuously be educate by sending them to attend seminars and trainings
and second, by conducting seminar in their respective cooperative.
As solutions to their management problems, the major solutions suggested by the
respondents were as follows: let co-maker pay, give early notice to the members regarding
the cooperative activities for the members to participate, motivate members to patronize
their product or services in the cooperative. Other mentioned solutions were sent staff to
seminar and training on record keeping, hire bookkeeper and training on financial analysis.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
As to finance, 70% of the respondents suggested to encourage member to add their share
capital and 30% conduct fund raising activities.
Table 5. Problems encountered by the cooperatives
PARTICULAR
FREQUENCY PERCENTAGE
On education
Lack of education and training of members
3
30
Lack of cooperative education and training of
5
50
members
Lack of skill to evaluate financial operation
3
30
As to management
Inactive participation of members in activities
4
40
Most members did not patronize the cooperative
5
50
Members are delinquent in paying loans
6
60
Limited knowledge on cooperative analysis
3
30
Records are not updated
3
30
As to finance
Limited capital to sustain the operation
9
90
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 6. Suggested solutions to the cooperative needs and problems
SOLUTIONS
FREQUENCY
PERCENTAGE
As to education
Conduct continuous education of members,
6
60
officers and staffs
Conduct orientation and training to members,
4
40
officers and staff
Send members to field trip to other cooperatives
1
10
As to management
Give early notice to the cooperative activities
5
50
Sent staff to seminar on record keeping 3
30
Hire bookkeeper 3
30
Let co-maker pay 5
50
Motive members to patronize their Cooperative
4
40
Send staff to seminar on financial analysis 3
30
As to finance
Encourage members to add their capital 7
70
Do fund raising activities 3
30
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study covered 10 cooperatives of Kibungan. This study was conducted to
determine the profile of the primary cooperatives, determine their financial status, their
needs and their problems and the solutions employed to solve their problems.
As to area of operations most of the cooperatives were operating in the barangay
and there were 2 to 3 cooperatives operating in the same barangay with the same services
offered. There were 7 cooperatives offering single service but registered as a multipurpose.
Most of the members of the cooperatives were farmers. Sources of funds of the
cooperatives mainly came from share capital and membership fees.
The cooperative needs more training on credit collection management, financial
management and bookkeeping/accounting management. Problems encountered by the
cooperatives are members are delinquent in paying their loans, lack of education and
trainings of members and officers, most members do not patronize their cooperatives,
inactive participation of members in cooperative activities and limited capital to sustain
their operation. Solutions to these needs and problems according to the respondents were:
encourage their members to patronize their cooperatives most especially to their consumer
service and participate in all activities. Members also should be continuously educated
through seminars and trainings.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Conclusions
Based on the result of the study, the following conclusions were made:
1. Cooperative memberships were composed mostly members.
2. Cooperative is registered as a Multipurpose cooperative but offering a single service.
3. All of the cooperatives main source of funds were share capital and membership fee.
4. Cooperative problems were lack of cooperative management, limited knowledge about
the cooperative and delinquent in paying loans and limited capital to sustain their operation.
5. The cooperative needs trainings and seminars for leaders, members and staffs.
Recommendations
1. Cooperative should not limit their members, they should accept associate
members.
3. Cooperative should offer/add more services.
4. The cooperative should send their members, officers and staffs to cooperative training
and seminars to gain more knowledge which they could use in the improvement of their
cooperatives.
6. Members and officers should understand what cooperative is, thus a follow-up training
similar with PMES should be conducted
7. The cooperative should offer/conduct seminars.
8. Strict implementation of the cooperative policies.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
LITERATURE CITED
BACOD, L. M. 2004. Profile of the Primary Cooperatives in Kabayan, Benguet. BS
Thesis.Benguet State University. La Trinidad, Benguet. P. 9
BEGAWEN, P.M. 2002. Evaluation of Cooperative Policies Managed and Practiced by
Amionget Multi-Purpose Cooperative (AMCO) in Amionget, Kapangan, Benguet.
Pp.25-27
BUASEN, C. T. 2003. Brief Guide in Financial Management and Analysis for
Cooperatives. Pp.3-6
CALIXTO, S. T. 2006. Profile of the Primary Cooperatives in Kibungan, Benguet. P. 9
CONGRESS OF THE PHILIPPINES, 2008. Philippine Cooperative Code of 2008.R.A
9520 Pp.24,28
DOMINGO, W. D. 2005.Profile of Primary Cooperatives in Western Baguio City.
Pp. 5-6
FAJARDO, F.R and F.D. ABELLA. 1993. Cooperatives, Qeuzon City Rex Printing
Company,
Inc. Pp. 3-4
GROSBY, R. HOGAN, J.; ROSE J., and O. SHELLEY. 1975. Cooperative Rice
Marketing
Study. Agricultural Cooperative Development International
Washington D.
HABENICHT R. L.and LEWN J. P. 1996. What kind of leader are you? Health an
Home. Pp.
44-47
JOSE, E.F. 2010.Management of the Municipal Cooperative Development Council of
Santa, Maria, Bulacan. Pp. 17-20
PUNZALAN, A.D.T. 1999. Honoring Cooperatives Madrid Agribusiness. Pp. 31-33
TABDI, R. A. 1997. Baseline Survey of Cooperatives in Atok, Benguet. P. 6
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
TULABIS, MARY ANN P. APRIL 2012. Baseline Study of Cooperatives in
Kibungan, Benguet. Benguet State University, La Trinidad, Bneguet.
Adviser: David Joseph L. Bognadon, MCM.
ABSTRACT
This study was conducted to describe the profile of the cooperative to describe the
profile of the primary cooperatives as to status of operation, services offered and
composition of members, to determine the sources of funds and financial status of
cooperatives; to find out the needs and problems of the cooperatives; and to determine the
solutions employed by the primary cooperative to meet their problems and needs.
The respondents of the study were the managers of the primary cooperatives;
however, in the absence of the manager, the staff or officer who knows the information
about their cooperative served as the respondent. A survey questionnaire and personal
interview was used to gather the information.
The finding shows that the ten primary cooperatives offer different services such as
credit, consumer and food catering. The ten primary cooperatives need trainings and
seminars for the members and officers regarding the different aspects of the cooperative
operation like credit and collection management, training for storekeepers and financial
management; and financial assistance that their main source of funds come from the share
capital and membership fees of members.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
INTRODUCTION
Rationale
The cooperatives has been one of the popular forms of organizations and found in
practically all countries today and Philippines is one of them. People learned to use many
ways to improve their means of living.
In our region, we rely on agriculture as a source of livelihood but despite of this, we cannot
say that all of us are contented with our way of life. We are all forced to pursue other
alternatives or other ways to sustain our common need so there is a need for change to
uplift our economic situation. Cooperative is considered as one of the economic force for
the purpose.
Cooperatives are organized to help its members by providing goods and services at
reasonable prices. Through the cooperative, the low income members could avail of loans
at low rate of interest instead of borrowing from the creditors. The cooperative can also
serve as a marketing agent from producers who are left at the mercy of the middlemen.
Though primary cooperatives provide goods and services to its members, it should also
teach them how to increase their income and savings. In this way, their purchasing power
will increase and their economic status will be elevated.
Baseline data are essential inputs in project planning especially in the
developmental projects, in the formulation of policies and as a benchmark data for an
organization. Data base are important in allocating resources of the different activities of
an organization. Thus, result of the study could be an input to the cooperative itself and
may provide CDA to come up with programs that would help the cooperatives.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Importance of the Study
The result of the study would be useful to the cooperatives to come up with better
plans and programs to improve their operations. To the members and officers, it would
increase awareness on the different programs for their benefit.
Findings of the study could also serve as a record for the organization/cooperative and basis
in proposal development where this data are needed.
Statement of the Problem
The study aimed to provide baseline data on the different cooperatives established
in Kibungan, Benguet. In addition, the study aimed to answer the following questions:
1. What is the profile of the cooperative as to:
a. Status of the cooperative
b. Area of operation
c. Services they offer
d. Composition of members
2. What are the sources of funds of the cooperative and the financial status of the
cooperatives?
3. What are the needs of the cooperative?
4. What are the problems and solutions employed the cooperative?
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Objectives of the Study
Generally, the study was conducted to generate baseline data of the cooperatives operating
in Kibungan, Benguet.
Specifically, the study was conducted to:
1. Determine the profile of the cooperative as to:
a. Status of the cooperative
b. Area of operation
c. Services they offer
d. Composition of members
2. Determine the sources of funds and thefinancial status of the cooperative.
3. Find out the needs of the cooperative.
4. Determine the problems and solutions employed the cooperatives.
Scope and Delimitation
The study covered the whole municipality of Kibungan, Benguet. Cooperatives that are
presently operating in this area were considered in the study.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
REVIEW OF LITERATURE
Cooperative Defined
Cooperative is an autonomous and duly registered association of persons, with a
common bond of interest, who have voluntarily joined together to achieve their social,
economic, and cultural needs and aspirations by making equitable contributions to the
capital required, patronizing their products and services and accepting a fair share of the
risks and the benefits of the undertaking in accordance with universally accepted
cooperative principle (Cooperative Code of the Philippines, 2008).
Concept of a Cooperative
The cooperative may be said to have begun as early as the period of human history
when we had ceased to be nomadic and settled in communities or as a group for the
cooperative. Spirit among members of the community and springs from the inherent
gregariousness of men thus, Webster’s International Dictionary states that the cooperative
is marked by working together and by joining efforts towards a common end; it is not
motivated by an individual’s selfish ends.
The cooperative movement of the recent years originated from the ideas espoused
by men like Robert Owen (1995), Saint –Simon (1995), Louis Blacand Fourien (1995).
Robert Owen was presently referred to as the “Father of Cooperative”. It was he who wrote
articles and books on cooperatives that have inspired the present-day cooperative
movement. It emphasized the need for cooperative instead of competition in human society
(Cooperative Code of the Philippines, 2008).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Objectives and Goals of a Cooperative
The primary objective of every cooperative is to help to improve the quality of life
of its members. Towards this end, the cooperative aim to: a. Provide goods and services to
its members to enable them to attain increased income, savings, investments, productivity,
and purchasing power, and promote among themselves equitable distribution of net surplus
through maximum utilization of economies of scale, cost-sharing and risk sharing; b.
Provide optimum social and economic benefits to its members;c. Teach them efficient ways
of doing things in a cooperative manner;d. Propagate cooperative practices and new ideas
in business and management; e. Allow the lower income and less privileged groups to
increase their ownership in the wealth of the nation; and f. Cooperative with the
government, other cooperatives and people-oriented organizations to further the attainment
of any of the foregoing objectives (Cooperative Code of the Philippines, 2008).
Cooperative Management
Management is applied in different aspects of business as well as in organization.
It is the accumulated talents of both labor and management since either to promote and
increase the production or for the future.
To contribute on the pursuit of cooperative development , the management is
therefore , designed the broader the ideas of all members involved in the organization in
order to enlightened of the cooperatives purpose to them and their roles as members , and
to become responsible, empowered, and productive (Jose, 2010).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Needs of Cooperative
Villanueva (1981), stated that the importance of cooperatives a s instruments for
socio-economic development cannot be underestimated. In their effective use, they have
succeeded in accelerating the growth of low income and less segments of the society. But
as experiences shows, most cooperatives failed to achieve this end. One major reason for
such failure is lack of proper attitude and skills on the part of the members and officers to
participate effectively in the affairs of the cooperatives. “Because a full pledge cooperative
is a business enterprise engaged in complicated activities, its demands are greater. It
requires efficient management, able leadership and vigilant members, etc. these are not
readily available, neither are they readily learned (Calixto, 2006).
Common Problems of a Cooperative
According to the Handbook of Agrarian Reforms (1975) on Cooperative and
Taxation (1975), as cited by Tabdi (1997), one of the main problems of cooperative
development in the lack of competent staff at various lends of qualifications. This shortage
of adequately trained staff is especially acute in the field of management of social and
economic development; assistance to training cooperative personnel and officers a swell
as the members is needed.
Lack of experience beyond training is a major problem in management of
cooperatives in the Philippines. Any training certificate, university or college diploma or
school certificate is only a passport to experiences. Experience is gained on the job and a
broad experience may take year in cooperatives’ business activities. More recruitment from
within, substituting local knowledge for experiences, as well as on job training should be
utilized (Grosby et al., 1975).
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Sources of Funds for Cooperatives
Cooperatives can avail of internal and external sources of funds.
1. Internal Sources.
The primary source of funds for the cooperative is the general membership through several
programs.
a. Capital build-Up. Members may schedule registration payment of share
capital of fixed deposits to continuously increase their paid up share in the cooperative.
b. Savings mobilization. Members with idle money can deposit them in the
cooperative through savings or time deposit so that others who are in need can borrow them
for productive purposes.
c. Revolving fund. Deferred payment of dividends may be approved by the
General Assembly to allow the cooperative use it for a given period.
2. External Sources of Funds
a. Loan/borrowings. Borrowing may be valid for as a source of funds but
should be done only when additional fund is urgently needed that can not be generated by
the internal sources.
b. Donation/grant. A cooperative/organization may request solicit
financial assistance from either government or benevolent non-government agency. This
is a good source because payment is not required. However, financial assistance of this
nature requires preparation and submission of a project proposal (Buasen, 2003).
Article 73 of the Cooperative Code of the Philippines (Abasolo et al., 1996) states
that the capital sources of the cooperatives registered may be derived their capital from any
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
or all of the following sources: a) members share capital; b) loans and borrowings including
deposits; c) revolving capital; and d) subsidiaries, donations, legacies, grants-
in-aid; e) such other assistance from any local or foreign institution whether public or
private (Domingo, 2005).
Success Factors of Cooperatives
Internal and external forces combine to influence the success of cooperatives. The
factors which the members and leaders of an association have some degree of control
includes the following: a) members’ recognition of common needs, b) members’
conviction for group action, c) leaders’ dedication, d) good record keeping system,
e)frequency of audits, f) continuing cooperative education program, and h) proper
guidance.
Management. Cooperative should be properly managed. Training individual for
management is not enough. There is a need to develop proper attitudes and values such as
honesty, integrity and deep sense of social responsibility among the managers and
members. The success of any cooperative greatly depends on the performances of the
manager. For this reason, cooperative managers should be properly selected. Personal
friendship and trust should not only be the criteria for appointing a manager and its staff
(Fajardo and Abella, 1993).
Management of funds. Runkle et al. (1999) said that excellent financial record management
particularly on the management of the transaction records of income and expense is a must
to ensure the profitability and growth of a cooperative. All necessary documents should be
kept and made available for reference when needed. Punzalan (1999) strengthen the
statement of the forgoing when she said that regular audit is needed to maintain a genuine
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
financial record or requirements for a cooperative to be able to operate smoothly (Bacod,
2004).
Conduct of continuous education and training. Punzalan (1999)found in this study that that
failure of a cooperative to conduct continuous education and training to its members,
officers, and management staff among the common pitfalls which cause cooperative
business miss management.
Leadership. Habenicht and Lewn (1996) found out in their study that the kind of
leadership is shows affect the individual or group he deals with. Leaders should always
assess their leadership style to determine if it makes people hostile and turns them off. And
if it does, the leaders should change or modify their leadership style to harmonize with
people. The characteristics of a good leader are: having the ability to organize details;
willingness to render services without expected a pay; promotes fair competition among
the followers; unselfish; honest; sincere; and humble (Jose, 2010).
Good leaders came up with good plans and implement standards for appropriate for the
group. They communicate confidence with the desire with the group to grow. They clearly
explain reasons for work accomplishments standard but respect the members view points
while being firm with the principles involved. They listen to and consider the feelings of
the group, teat the group, as a partner in the attainment of their goals, talk necessary things
and have joy in doing them, and show interest in activities for the group’s development
and success. Leaders need to evaluate the group’s accomplishments and their socio-
economic impact as basis in their immediate and future actions; and they need to recognize
the Almighty God who helps and deals with their group (Fajardo and Abella, 1993).
Failures Related Factors of Cooperatives
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
According to the study conducted by Osting (1993) as cited by Begawen (2002),
the problems met by the cooperative members are: lack of funds, lack of qualified officers,
lack of cooperation, lack of management, improper payment of credit, non-implementation
of policies, and lack of training and education. It was found out that collection of additional
share and recruiting more members was done to remedy lack of funds. And for other
problems, there were no solutions adopted.
Failure of a cooperative is due to the fact that the members become loan-oriented with
financial assistance being perceived as doleouts. They lack education and training
information and practical know how regarding cooperative management. The members had
not internalized the cooperative principles and practices. The inadequate working capital;
and marketing facilities and other support services contributed to the cooperative failure.
The members’ attitudes such as disloyalty, poor management and leadership and the
absence of audit and internal control also contributed in the cooperative failure. The
insufficient and inadequate government agency supervision entrusted with development
and the presence of political influence were other contributory factors in this cooperative
failure.
Definition of Term
Baseline data. Initial collection of data which serves as a basis of comparison with the
subsequently acquired data (Business Dictionary)
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
METHODOLOGY
Locale and Time of the Study
The study was conducted in Kibungan, Benguet from November to December
2011.Kibungan is a 4th class municipality in the province of Benguet. The study area is
located 62 kilometers north of Baguio City within a cool highland mountainous zone. It
has an elevation of more than 2500 meters above sea level.
Respondents of the Study
The respondents of the study were the managers of the cooperative or any of the officers
that can provide the information needed.All the cooperatives that are operating in Kibungan
were the source of information.
Research Instruments
The research made use of primary and secondary data. Primary data were gathered from
the respondents with the use of a survey questionnaire and personal interview. Secondary
data were taken from the CDA, Barangay record and records of the cooperative.
Data Gathered
The data gathered were the profile cooperative as to their status of operation. Area of
operation, services offered and the composition of members; financial status of the
cooperative, the problems and needs and the solutions that the cooperative use to solve the
problem.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Figure 1. Provincial map showing the location of the study
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Figure 2. Municipality of Kibungan showing the location of the study
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Data Analysis
Data were tabulated and analyzed according to its objectives. Data were presented
using frequency and percentage analysis.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
RESULTS AND DISCUSSION
Profile of Cooperatives in Kibungan
This chapter presents a brief background of the primary cooperatives in Kibungan,
Benguet. It includes the status of cooperatives, date registered, starts of operation, numbers
of years in operation, area of operation, services offered, compositions of members and
sources of funds.
Status of operation. The finding shows that all the primary cooperatives in Kibungan that
were registered at CDA are still operating as of the conduct of the study. Based on the study
of Calixto in 2006, there were 13 registered cooperatives in Kibungan. However, as of this
study it was found out that only 9 are still operating and one cooperative was organized.
The other four cooperatives were already dissolved.
Date organized and numbers of years in operation. Table 1 also presents the year when
these cooperatives were organized and the number of years of operation. The oldest
cooperative was the Madaymen MPC and the Poblacion Kibungan MPC. Both were
organized in 1991 and in operation for 21 years. Majority of the 10 of cooperatives were
organized in the early 1990’s. The latest cooperative organized in Kibungan was the
Kibungan Arabica Coffee Growers MPC which is only four years old in operation.
Area of operation. The area of operation refers to the scope of the place where the
cooperativesare located including members. Area of operation may be the barangay, the
whole municipality or even the whole province. The result shows that almost all the
cooperatives were operating in their respective barangays except for the KEMPC which is
an institutional cooperative. The members of this cooperative were the municipal
employee.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Services offered. The services offered by the primary cooperatives in Kibungan, Benguet
were credit or lending, consumers or sari-sari store and catering. There were two
cooperatives that offered both credit and consumer services. These were Bokes MPC, and
KACGMPC. The cooperatives that offered consumer services were Oscapa MPC, Palina
MPC and Poblacion MPC. Kibungan Mothers and Family MPC, Bobocco MPC and Lamut
Taliboy-oc MPC offered only credit while KEMPC offered consumer, credit and food
catering services (Table 1).
Compositions of members. Table 1 shows the composition of members in each
cooperative. The result shows that almost all the cooperatives in Kibungan were composed
of farmer members except the KEMPC which consist of only municipal employees of
Kibungan. As to composition of members, most of the cooperative members were female.
The table also shows that Bobocco MPC has the highest total number of members of 170
as of December 2010 and the lowest was 35.
Sources of funds. Table 2 shows the source of funds of the cooperatives in Kibungan,
Benguet. The sources of funds of the different cooperatives as claimed by the
officers/managers were from share capital and membership fees. There were 2 cooperatives
who received grants or subsidies. Results supports the study of Buasen (2003) that
cooperatives can avail of internal sources of funds through capital build-up, savings
mobilization, revolving fund, and external sources from loan/borrowings and
grants/donations.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 1. Profile of the cooperative as to status of operation, year organized, area of operation, services offered and composition of
members
NAME OF
STATUS OF
YEAR
NO.OF
AREA OF
SERVICES COMPOSITION OF MEMBERS
COOP.
OPER’N
ORG.
YRS. IN
OPER’N
OFFERED
OPER’N
Occupation
Gender
TOTAL
M
F
Bobocco MPC
Active
1991
20
Barangay
Credit
Farming
130 120
170
Bokes MPC
Active
1991
20
Barangay
Credit,
Farming
Consumer
KACGMPC
Active
2007
4
Barangay
Credit,
Farming
Consumer
17
18
35
KEMPC
Active
1994
17
Municipality
Credit,
Government
Consumer, Employee
Catering
64
85
149
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 1. continued…
NAME OF
STATUS
YEAR
NO. OF
AREA OF
SERVICES
COMPOSITION OF MEMBERS
COOP.
OF
ORG.
YRS. IN
OPER’N
OFFERED
OPER’N
OPER’N
Occupation
Gender
TOTAL
M
F
KM&F MPC
Active
1998
13
Barangay
Credit
Farming
LT MPC
Active
1992
19
Barangay
Credit
Farming
51
23
74
MMPC
Active
1990
21
Barangay
Credit
Farming
Osccpa MPC
Active
1997
14
Barangay
Consumer
Farming
43
28
71
Palina MPC
Active
1991
20
Barangay
Consumer
Farming
0
76
76
Poblacion
Active
1990
21
Barangay
Consumer
Farming
38
25
63
MPC
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 2. Sources of funds of the cooperatives
SOURCES OF FUNDS
FREQUENCY
PERCENTAGE
Internal sources
Share Capital
10
100
CETF
6
60
Development Fund
3
30
Reserved Fund
7
70
Revolving Fund
5
50
Membership Fee
8
80
Member’s Deposit
5
50
Income from operation
10
100
External sources
Loans and barrowings
5
50
Grants and donations
2
20
Financial Status of the Cooperatives.
Table 3 presents the total asset, total liabilities and total equity of the primary cooperatives.
The table shows that 30% of the cooperative did not submit their Cooperative Annual
Reports (CAPR) to CDA. Due to some officer did not do their obligation as a cooperative
as mentioned by member. The table shows that there were two cooperative increased their
asset for two years operation. These are Oscapa MPC and KEMPC. Only KEMPC
accumulated more than one million in asset. As to total liabilities, the table shows that only
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Bobocco MPC and KEMPC decreased their total liabilities. Three cooperatives increased
in total equity which includes Boboco MPC, KEMPC, and Oscapa MPC.
Needs of the Cooperatives
The identified needs of the cooperatives were categorized into training and
education, financial needs. These were presented in Table 4. Most (90%) of the respondents
mentioned that their cooperatives needs training on credit collection management for their
officers and staff, (70%) for financial management and Bookkeeping/Accounting
management, (60 %) on cooperative and management. The other training needs mentioned
were leadership training, training for storekeeper and entrepreneurial skills development,
project proposal presentation, how to organize a cooperative and field trip.
As to the financial need of the cooperatives, there were only a few respondents who
mentioned that their cooperatives need financial grants and subsidies to increase their
operating capitals and they need to come up with an effective strategy to mobilize savings
among the people in the rural areas because this would help them accumulate capital and
at the same time teach the people how to save apart their income for future needs. Half
(50%) of the respondents mentioned that they need to come up with a capital build up
strategy to increase the members paid up share capital. In this way, they could accumulate
funds for their cooperatives’ operation and at the same time increase the investment of
members in their cooperative.
Other needs mentioned by the respondents were infrastructure like building and
bookkeeper.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 3. Total assets, total liabilities and total equity of the primary cooperatives
NAME
OF
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
COOPERATIVE
2009
2010
2009
2010
2009
2010
Boboco MPC
225,400.39
313,980
50,500.00
48,000
174,900.38
361,980
Bokes MPC
NO DATA
KACGMPC
131,304.98
10,000
17,588.04
12,000
113,716.94
22,000
KEMPC
7,657,941.33
8,300,358.87 1,472,833.55
356,267.57 6,185,007.79 6,656,441.55
Kibungan Mothers MPC
298,065.00
286,318
28,447.000
30,063.00
269,618.00
256,255.00
LamutTaliboy-oc MPC
162,907.80
16,050.65
146,857.15
Madaymen PMC
No Primary and secondary data
Oscapa MPC
577,156.14 694,428.62
58,471.26
125,942.04 518,684.88
117,689.95
Palina MPC
165,086.00
143,000
59,840.00
143,000
105,246
587,749.21
Poblacion MPC
NO DATA
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 4. Needs of the cooperatives
PARTICULAR
FREQUENCY
PERCENTAGE
Training and Education
Credit and collection management
9
90
Financial management
7
70
Bookkeeping/accounting training
7
70
Cooperation and management
6
60
Entrepreneurial skill
5
50
Leadership training
4
40
Training for storekeepers
4
40
Trainer’s training
3
30
Project proposal presentation
3
30
How to organize cooperative
1
10
Field trip
1
10
Financial Needs
More paid-up share capital
5
50
Subsidies, grants and donations
2
20
Other Needs
Building
5
50
Bookkeeper
2
20
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Problems Encountered by
the Cooperatives
Table 5 presents the identified problems of the cooperatives were categorized into
education, management and finance. As to education, the table shows that members are
lack on cooperative education and training. Lack of skill to evaluate financial operation.
As to management problems, 60% mentioned that their members are delinquent in paying
their loans. Half of the respondent mentioned that their members do not patronized their
cooperative due to the reason that the price of the cooperative is higher than the price
offered of sari-sari stores. Other problems mentioned were records are not updated, limited
knowledge on cooperative management. Inactive participations of members due to lack of
information dissemination.
Solutions to the Cooperative
Problems and Needs
Table 6 presents some solutions to the problems and needs of the cooperatives. These
solutions were suggested by the respondents. In order to encourage the members to
patronize their cooperatives and participate in all their activities, cooperative member and
officers should continuously be educate by sending them to attend seminars and trainings
and second, by conducting seminar in their respective cooperative.
As solutions to their management problems, the major solutions suggested by the
respondents were as follows: let co-maker pay, give early notice to the members regarding
the cooperative activities for the members to participate, motivate members to patronize
their product or services in the cooperative. Other mentioned solutions were sent staff to
seminar and training on record keeping, hire bookkeeper and training on financial analysis.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
As to finance, 70% of the respondents suggested to encourage member to add their share
capital and 30% conduct fund raising activities.
Table 5. Problems encountered by the cooperatives
PARTICULAR
FREQUENCY PERCENTAGE
On education
Lack of education and training of members
3
30
Lack of cooperative education and training of
5
50
members
Lack of skill to evaluate financial operation
3
30
As to management
Inactive participation of members in activities
4
40
Most members did not patronize the cooperative
5
50
Members are delinquent in paying loans
6
60
Limited knowledge on cooperative analysis
3
30
Records are not updated
3
30
As to finance
Limited capital to sustain the operation
9
90
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Table 6. Suggested solutions to the cooperative needs and problems
SOLUTIONS
FREQUENCY
PERCENTAGE
As to education
Conduct continuous education of members,
6
60
officers and staffs
Conduct orientation and training to members,
4
40
officers and staff
Send members to field trip to other cooperatives
1
10
As to management
Give early notice to the cooperative activities
5
50
Sent staff to seminar on record keeping 3
30
Hire bookkeeper 3
30
Let co-maker pay 5
50
Motive members to patronize their Cooperative
4
40
Send staff to seminar on financial analysis 3
30
As to finance
Encourage members to add their capital 7
70
Do fund raising activities 3
30
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
The study covered 10 cooperatives of Kibungan. This study was conducted to
determine the profile of the primary cooperatives, determine their financial status, their
needs and their problems and the solutions employed to solve their problems.
As to area of operations most of the cooperatives were operating in the barangay
and there were 2 to 3 cooperatives operating in the same barangay with the same services
offered. There were 7 cooperatives offering single service but registered as a multipurpose.
Most of the members of the cooperatives were farmers. Sources of funds of the
cooperatives mainly came from share capital and membership fees.
The cooperative needs more training on credit collection management, financial
management and bookkeeping/accounting management. Problems encountered by the
cooperatives are members are delinquent in paying their loans, lack of education and
trainings of members and officers, most members do not patronize their cooperatives,
inactive participation of members in cooperative activities and limited capital to sustain
their operation. Solutions to these needs and problems according to the respondents were:
encourage their members to patronize their cooperatives most especially to their consumer
service and participate in all activities. Members also should be continuously educated
through seminars and trainings.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
Conclusions
Based on the result of the study, the following conclusions were made:
1. Cooperative memberships were composed mostly members.
2. Cooperative is registered as a Multipurpose cooperative but offering a single service.
3. All of the cooperatives main source of funds were share capital and membership fee.
4. Cooperative problems were lack of cooperative management, limited knowledge about
the cooperative and delinquent in paying loans and limited capital to sustain their operation.
5. The cooperative needs trainings and seminars for leaders, members and staffs.
Recommendations
1. Cooperative should not limit their members, they should accept associate
members.
3. Cooperative should offer/add more services.
4. The cooperative should send their members, officers and staffs to cooperative training
and seminars to gain more knowledge which they could use in the improvement of their
cooperatives.
6. Members and officers should understand what cooperative is, thus a follow-up training
similar with PMES should be conducted
7. The cooperative should offer/conduct seminars.
8. Strict implementation of the cooperative policies.
Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012
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Baseline Study of Cooperatives in Kibungan, Benguet |
TULABIS, MARY ANN P. APRIL 2012