BIBLIOGRAPHY SARMOYAN, IRISH QUEEN B....
BIBLIOGRAPHY
SARMOYAN, IRISH QUEEN B. APRIL 2008. Documentations on the
Beginnings of Cooperative Movement in Tuba, Benguet. Benguet State University, La
Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc
ABSTRACT
This study was conducted to establish the history of the cooperative movement
in Tuba. Specifically it aimed to identify the different types of cooperatives organized as
to the year of registration, location and type, to identify the cooperatives that are currently
operating, dissolved or cancelled and non-operating, to find the factors that may have
caused the failure of some cooperatives and to find out the factors that may have
contributed to the success of some cooperatives.
The respondents of the study were the different members of cooperatives and
the cooperative pioneers.
The principle of cooperation among the people of Tuba had started even before
the organization of formal cooperative. The idea of organizing cooperative in Tuba even
started during the Spanish Colonial period when they learned of the cooperative
organized by Dr. Jose Rizal. However, this did not materialize until the first cooperatives
were organized in 1964. These cooperatives were Philex Community Consumers
Cooperative and Philex Mines Credit Cooperative both situated at Padcal, Camp 3, Tuba,
Benguet. The succeeding cooperative was organized in 1991 and from that time
cooperatives started to mushroom in the different barangays of Tuba. As of December
2007, a total of 46 cooperatives had been organized in the municipality. However, only
14 cooperatives were still operating while the other were dissolved, cancelled, and non-
operating.
The failure of the cooperative movement were due to lack of education of
members about cooperative, poor management skills of management staff, and some
cooperatives were just organized for the purpose of getting funds from the government.
The factors that leads to the success of some cooperatives were continuous
education seminar, well trained officers, committee members and management staff and
the availability of complete set of record.
The contributions of the cooperatives to the community were sponsoring
scholarships, acquiring an irrigation facility through cooperative, medical mission and
distribution of seedlings for community beautification aside from the patronage refund
and dividends that members receive every year.
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TABLE OF CONTENT
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Scope and Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE
Cooperativism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Organizing a Primary Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Purpose of Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Objectives of Primary Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Success Factors of Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Cooperative Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Economic Contribution of Cooperatives . . . . . . . . . . . . . . . . . . . . . . .
10
Role of Cooperatives in Community
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
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METHODOLOGY
Locale and Time of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
RESULTS AND DISCUSSION
The Beginning of Cooperative Movement in
Tuba, Benguet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
List of Cooperatives Organized in Tuba and
Registered with CDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Types of Cooperatives Organized in Tuba . . . . . . . . . . . . . . . . . . . . .
17
Current Status of the Cooperatives. . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Failure of the Cooperative Movement in Tuba . . . . . . . . . . . . . . . . . .
22
Factors that lead to the Success of Some Cooperative. . . . . . . . . . . . .
24
Contributions of the Cooperatives to the Community . . . . . . . . . . . .
25
Financial Asset of Currently Operating Cooperatives . . . . . . . . . . . .
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX
A: Letter to the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
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INTRODUCTION
Rationale
The prehistoric people of various races practiced some forms of cooperation
nearly similar to the present-day cooperation. This is supported by deductive and
inductive reasoning anchored on the universal needs of humankind for food, clothing and
shelter (Macaranas, 1994)
Macaranas further stated that cooperation in the Philippines is an old culture. It
spans centuries of human existence from its pristine form of mutual assistance to what we
call in the native tongue the “bayanihan”, as we know it today is a system which seeks to
harness the limited resources of people os small means and opportunities for economic
and social ends. It was first introduced in the late 1980’s by Dr. Jose P.Rizal. He was
inspired by the cooperative idea during his travels in Europe and organized in 1896 a
marketing cooperative among farmers in Dapitan during his exile there.
Subsequent attempts to introduce cooperatives in the country were mainly through
government initiatives and efforts. Cooperatives were established only after the
Philippine government had enacted laws which called for the organization of
cooperatives (Muñoz and Batulayan, 1989).
The first stage, from 1885 to 1941, is characterized by the aborted germination of
coops of some revolutionary illustrators (or the pre-formation period), the introduction
and organization of the Raiffeisen-type agri-based cooperatives by American
missionaries and teachers, and western educated Filipinos who featured the principles of
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self-reliance (or the formation period), and the introduction of the self-initiated farmers
cooperatives by the American colonial administrator.
The second stage is from 1941 to 1986. This stage can be divided into four
phases. The first phase is the period of Japanese occupation which featured a rapid
increase in cooperatives as a result of food shortages. The second phase is the
rehabilitation period after the Second World War. The third phase is the resurgence of the
state-initiated cooperatives while the fourth phase is the introduction and rise of the non-
agricultural cooperatives. The fifth and final phase is the martial law period and the
politization of the cooperative movement.
The third movement of the revolution of the Philippine cooperative movement as
a potent political force is its allies with the NGO and the trade union movements in
pursuing the goals of people empowerment and strengthening the country’s civil society
sector. During the 1998 party list elections, the cooperative movement posted three
representatives which led other sectors, groups and non-dominant political parties in
representing the marginalized and order presented masses in the Filipino people.
Cooperatives have been organized in the Philippines in the late 1960’s and
1970’s. However, more than 50% of them failed. The major reasons for this is lack of
capital, lack of technical know how, skills education, and training on the part of the
members and officers to participate actively in the affairs of the cooperative (Patricio,
2006).
The Philippines exposure to the cooperative movement maybe said to have come
into the mainstream of Filipino life one hundred years after Robert Owen introduced the
concept in Britain. In 1820, the Philippines was performing its role as a patient and
Documentations on the Beginnings of Cooperative Movement
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obedient colony of Spain. Only the restlessness and excitement in Europe as a result of
the industrial revolution changed all that in the manner of affecting handful of Filipino
students and illustrators who were influenced by the affecting democracy, freedom,
brotherhood and equality. Their arrival in the country ushered in a new period of the
propaganda movement which labored to introduce reforms in the Philippines
(Pagdanganan, 1999).
Statement of the Problem
The study aimed to answer to following questions:
1. What is the history of the cooperative movement in Tuba, Benguet?
2. How many cooperatives were organized and how many are currently operating?
3. What is the present status of cooperatives in Tuba, Benguet?
Objectives of the Study
This study was conducted to document the developments of the cooperative
movement in the municipality of Tuba, Benguet. Specifically, it aimed to:
1. establish the history of the cooperative movement in Tuba, Benguet
2. identify the different cooperatives organized as to year of registration,
location, and type of cooperative.
3. identify the cooperatives that are currently operating, dissolved or
cancelled, and non-operating.
4. find the factors that may have caused the failure of some cooperatives,
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
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5. find out the factors that may have contributed to the success of some
cooperatives,
Importance of the Study
This study was conducted to provide information about the cooperative movement
in Tuba, Benguet. The information generated in this study would provide insights to the
Cooperative Development planners and policy makers such as CDA, Cooperative
Federations, Cooperative Unions, and other concerned entities to support and strengthen
the cooperative movement.
In addition, this study could serve as the source of information for further
research on other related studies.
Scope and Limitation of the Study
The research focused on the beginnings of cooperative movement in the
municipality of Tuba, Benguet until the present situation and this study was only limited
to this municipality.
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in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
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REVIEW OF LITERATURE
Cooperativism
Gayumma (2005) stated that cooperativism is a tool to reach out the deprived
sector of the Filipino society. The very reason why cooperatives should be established is
to be of service to its members in terms of relatively easier access to much needed
commodities.
The principle of cooperativism is observed in the Filipino culture , the
“bayanihan” or in other terms is called “palusong”. Palusong connotes that a farmer does
not have to invites other farmers to help him plow his field, he has only to let his
neighbors know that he has “palusong” and word would circulate around the village that
the farmer needs help.
Cooperative
Onagan et al. (1973) stated that the cooperative is a dynamic from of business
enterprise that embodies the philosophy of cooperation. It signifies the voluntary access
of people to form themselves to group for the promotion of their common needs by
mutual action, democratic control and sharing economic benefits on patronage by the
members. It is a business enterprise with the aim of promoting economic welfare, its
structure and functions are similar to other form of business organization. By organizing
themselves into business, the members create their own middlemen. He also mentioned
that because it is democratically controlled and operated by the members, the cooperative
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is engaged only in providing merchandise and services specifically needed by the
members of the right quality, and price.
Racho (2007) quoted that a cooperative is an immerse organization of an ideal
society in microcosm where self interest and common welfare; where investment is with
but capital and where collective endeavor achieves that availment of cheaper goods and
services . It is purely in the rendering of the maximum, satisfactory and unselfish services
for the benefits and welfare of its members. It is also a way where the poor may actively
enter the economy at large. Further, it may be the best school for learning, practicing and
internalizing the democratic ideals. This holds the key in solving our basic economics,
political and social problems.
Organizing a Primary Cooperative
Article 10 of the Cooperative Code of the Philippines stated that a primary
cooperative must be composed of at least fifteen (15) natural person, who are citizen of
the Philippines, having a common bond of interest and are residing or working in the
intended area of operation may organize a cooperative under this code. A cooperative
registered under this code shall have the following power and capacities such as: to sue
and be sued in its cooperative name of succession; to amend its articles of cooperation in
accordance with the provision of this code; to adopt by laws not contrary to law, morals
or public policy and to amend and repeal the same in accordance with this code; to
purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and
otherwise deal with real and personal property as the transaction of the lawful affairs of
the cooperative may reasonably and necessarily require, subject to the limitations
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prescribed by law and the constitution; to enter into division, merger, or consolidation as
provided in this code; to adopt and accept and receive grants donations and assistance
from foreign and domestic sources; asnd to exercise such other powers granted by the
code or necessary to carry out its purpose as stated in its articles of cooperation.
Purpose of Cooperatives
Economic growth and development have been elusive goals of the Philippines.
The overall development goal is for the improved quality of life for every Filipino
through international competitiveness and people empowerment through cooperatives. A
cooperative is a businessand social organization that espouses the spirit and value of self-
help and working together in the pursuit of social and economic ends (Pasigon and
Gonzaga, 1996).
Gayumma (2005) stated that the purpose for which cooperative may be formed is
to engage in the business of cooperative banks, wholesale and retail complexes,
insurance, marketing enterprise and even public markets.
Rodriguez et al. (1988) also stated that though cooperatives are not visually
regarded as “business” in the ordinary sense, many cooperatives today trade goods and
services not only with their members but also with the general public and consciously
attempts to generate surplus that they may be regarded as business organization in many
aspects.
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Objectives of Primary Cooperatives
Abasolo et al. (1996) stated that the primary objectives of every cooperative is to
provide goods and services to its members and thus enable them to attain increase income
and savings, investment, productivity and purchasing power and promote among them
equitable distribution of net surplus through maximum utilization of economies of scale,
cost sharing and risk sharing, without however conducting the affairs of the cooperative
for eleemosynary or charitable purposes.
A cooperative shall provide maximum economic benefit to its member. Teach
them the efficient ways of doing things. And propagate cooperative practices and new
ideas in business and management and allow the lower income groups to increase their
ownership in the wealth of this nation.
Onagan et al. (1973) stated that cooperatives are business enterprise formed by
the spontaneous and voluntary action of consumers within a community, plant or office
who have identical needs. Their association is motivated by the spirit of mutual services
and mutual benefit through their mutual action. They achieved this be dedicating their
enterprise to unselfish struggle for an ultimate goal of economic sufficiency for all. A
cooperative societies constitute the biggest of all cooperative enterprise, at the same time
the most fundamental and it involves all people, since all people are consumers.
Success Factors of Cooperatives
Pagdanganan (1999) enumerated the following factor to the success of a
cooperative. These are: (1) merging and consolidation of Primary Cooperatives; (2)
professionalization of management; (3) training and education program; (4) effective
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auditing system for cooperatives and cooperative banks; and (7) government support to
cooperatives based on the principle of subsidiary.
Cooperative Failure
A failed cooperative is one that has been unsuccessful, unable to perform this
programs or activities and unable to carry on with their goals or objectives for a number
of years and service formed. Despite the importance and progress brought about by
cooperatives, there are problems and constraints within the cooperative itself, which may
contribute to its success or failure. One of this is lack of funds for production loans.
Cooperatives are meant only to serve as channels for government financial and technical
assistance to small farmers. Another problem is the policy of the government to allow
NGO’s to organize cooperatives in any part of the country without outlining appropriate
policies and regulations, which results to an overlapping with the cooperatives function
of the government. There is a weak institutional structure for providing sustained
cooperative education and training leading to lack of qualified managers in the system.
There is also a lack of government incentives in terms of financial assistance, and most of
all cooperatives suffer from the fact that there is a negative impact of government policies
particularly in delivering agricultural credit and pricing (Castillo, 1983).
Every cooperative shall conduct its affairs in accordance with Filipino culture and
experience and universally accepted principles which include the following: open and
voluntary membership, democratic control, limited interest on capital, division of net
surplus, continuous cooperative education, cooperation among cooperatives and
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subsidiary, and self-help. Without these principles, a cooperative may not be successful
and will only lead to its failure (Pasigon and Gonzaga, 1996).
Economic Contribution of Cooperatives
Dawawa (2004) found out that there was an increase in agricultural production
output because former members were able to engage in more business opportunities; as a
result of availability of more capital inputs with lesser interest. Socially, cooperatives
give equal treatment to both rich and poor. Culturally, they enhance the relationship
among members even those who belong to other cultures. Politically, the members were
provided opportunities to exercise their right of suffrage during their assemblies.
Role of Cooperative in Community Development
Community development is a way for people to work in order to build better
community and thereby improve the welfare of all. They organize themselves under their
free will and work as a team to solve problems of their community development. They
are concerned with the development of human resources and consider man as the most
important factor of development. Cooperative develops values of their members. They
teach and practice wise use of money to be self-reliant, which is one key concept of the
cooperative program. Cooperatives demonstrate the value of group cooperation and
social awareness. Farmers’ negative attitudes and values can be changed through
continuous training and education.
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Definition of Terms
The following terms were defined as they were used in this study:
Cancelled Cooperatives – refers to those cooperative whose certificate of
registration was revoked by the Cooperative Development Authority due to non-
submission of annual report for two consecutive years.
Dissolved Cooperatives- refers to those cooperatives whose voluntarily stopped
operation due to bankruptcy.
Non-Operating Cooperatives – refers to those cooperatives whose registrations
were not yet cancelled but stopped operation due to lack of funds.
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METHODOLOGY
Locale and Time of the Study
The research was conducted in the locality of Tuba, Benguet, Philippines from
October until December 2007.
Respondents of the Study
The information needed for the study were gathered from key informants. These
were cooperative leaders, members, and officers of the cooperatives that were formed
including the Municipal Agriculture Officer.
Data Collection
The primary data for this study was collected through interview of the key
informants. Secondary data were also collected from the Cooperative Development
Authority office, from the Municipal Agriculture Office and from the primary
cooperatives.
Data Analysis
The data gathered was summarized and tabulated based of the objectives of the
study.
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Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
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RESULTS AND DISCUSSION
The Beginning of Cooperative Movement
in Tuba, Benguet
Cooperation in Tuba is an old culture. It spans centuries of human existence from
pristine form of mutual assistance to what is now called in the native tongue “bayanihan,”
Cooperation as it is known today is a system which seeks to harness the limited resources
of people of small means and opportunities for economic and social ends.
Mr. Birang, a native of Tuba, related that during the Spanish Colonial period the
people in Tuba planned to put up a cooperative because they have heard about the
cooperatives initiated by our national heroes, Dr. Jose Rizal and Emilio Jacinto but failed
to take root due to the intense revolutionary struggles of our countrymen with the
Spaniards.
During the Japanese Occupation, the people did not attempt to organize
cooperatives because they were busy looking for their foods due to severe food shortage.
Besides, they were not allowed and were afraid to gather together with their neighbors
because of the Japanese rule, according to Flores, also a native of Tuba, Benguet.
After World War II, organizing cooperatives was now out of their mind because
of the crisis they were suffering. They were busy fixing the damages that the war brought
. They were searching for place to settle down and start again.
However, in 1989, the first cooperatives of Tuba was organized. These was the
Philex Mines Consumers Cooperative and the Philex Community Credit Cooperative
This was followed by Taloy Norte Multipurpose Cooperative in 1991 and other seventeen
cooperatives organized during that year. Table 1 shows that every year from 1991 to
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2000 there were new cooperatives organized in the municipality. In 1991 alone there
were 18 cooperatives organized in the place, three in 1992, four in 1994, two each in
1994, 995, and 2005, only one each in 1996, 1999, 2000 and 2003, three in 1997, and six
in 1998. On the average, there were two cooperatives organized in the place yearly.
Table 1. Number of cooperatives organized per year from 1989 to present
YEAR
NUMBER OF
INCREMENT
COOPERATIVES
1989
2
1990
2
0
1991
20
18
1992
23
3
1993
27
4
1994
29
2
1995
31
2
1996
32
1
1997
35
3
1998
41
6
1999
42
1
2000
43
1
2001
43
0
2002
43
0
2003
44
1
2004
44
0
2005
46
2
2006
46
0
2007
46
0
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List of Cooperatives Organized in Tuba and
Registered with CDA
Table 2 shows the list of cooperative organized in various locations of Tuba and
the year they were registered with CDA. The finding shows that in Philex Mines alone
there were six cooperatives organized. The same is true for Ansagan. The highest number
(10) of cooperative organized was in Badiwan, Poblacvion. In Tadiangan there were 4
cooperatives organized, three each in Bayayeng, Taloy Norte, Camp 1, and Nangalisan.
There were cooperatives each in Tabaan Norte, Camp 4, Kennon Road, and Poyopoy
Proper, Taloy Sur.
Table 2. List of cooperative by location and date of registration
NAME OF COOPERATIVE
DATE
LOCATION
REGISTERED
Camp 1 Tuba MPC
May 17, 1991
Camp 1
El Dorado MPC
May 10, 1991
Camp 1
Lasong Farmers MPC
Sept. 27, 1991
Tadiangan
Nangalisan Farmers MPC
Sept 20, 1991
Nanaglisan
Parasipis, MPC
April 16, 1991
Tabaan Norte
Philex Mines Community Consumers Coop
March 19, 1991
Camp 3
Philex Community Credit Coop
March 19,1991
Camp 3
Balangbang Tabaan Norte MPC
March 22, 1991
Tabaan Norte
Pacac MPC
Sept. 18, 1991
Tadiangan
Poblacion Tuba MPC
Jan. 29, 1991
Poblacion
PSDA MPC
April 8, 1991
Poblacion
San Pascual MPC
May 17, 1991
San Pascual
Taloy Norte MPC
May 17, 1991
Taloy Norte
Twin Peaks MPC
Nov. 14,1991
Twin Peaks
Ub-ubbo MPC
Aug. 7, 1991
Camp 6
Taloy Sur MPC
May 15, 1991
Taloy Sur
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Table 2. Continued ...
NAME OF COOPERATIVE
DATE
LOCATION
REGISTERED
Catbak MPC
Sept. 30, 1991
Camp 3
Sto. Tomas MPC
May 13, 1991
Poblacion
Camp 4 MPC
May 16, 1991
Camp 4
Yagyagan Anthorium MPC
Dec. 17, 1991
Tadiangan
Ansagan Proper MPC
April 27, 1992
Ansagan
Cabuyao MPC
Sept. 9, 1992
Poblacion
Camp 4 Credit Cooperative
March 3, 1992
Camp 4
Thanksgiving MPC
July 16, 1993
Camp 6
Tuba National High School MPC
March 29, 1993
Nangalisan
Saguitlang Community Development Coop
Oct. 7, 2003
Ansagan
Camp 3 MPC
March 4, 1993
Camp 3
Pibasa MPC
Sept.30, 1993
Ansagan
Sto. Tomas Small Farmers MPC
May 23, 1994
Poblacion
Bayayeng Taloy Norte MPC
May 30, 1994
Taloy Norte
Sinco MPC
Nov. 21, 1995
Tadiangan
Elpaso Credit Cooperative
Sept. 12, 1995
Camp 3
Pedped Farmers MPC
Nov. 27, 1996
Ansagan
Poyopoy MPC
Aug, 11,1997
Taloy Sur
Twin Peaks Teachers MPC
Sept. 17, 1997
Twin Peaks
Badiwan Multipurpose Coop
Sept 17, 1997
Poblacion
Klondykes Farmers MPC
Jan 13,1998
Camp 1
Tuba District Teachers Credit Cooperative
Jan. 13, 1998
Poblacion
Camp 3 Brgy Health workers MPC
Sept 13, 1998
Camp 3
Kasaranay Dagiti Umili ti Ansagan MPC
Feb. 11, 1998
Ansagan
Sayangan MPC
Feb. 17, 1998
Taloy Norte
Taloy Norte Farmers MPC
May 18, 1999
Taloy Norte
Caballeros MPC
May 10, 2005
Ansagan
Tinakday MPC
Nov. 18, 2005
Taloy Sur
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Types of Cooperatives Organized in Tuba
As of December 2007, a total of 46 cooperatives was organized in Tuba, Benguet.
Table 3 presents the distribution of these cooperatives based on their type. Majority
(84.78%) of the cooperative organized in Tuba were Multipurpose Cooperative. Five or
10.87% were credit cooperative, one consumer and one federation..
Current Status of the Cooperatives
The current status of the cooperatives pertains to whether they are still operating,
non-operating, registration cancelled, or dissolved. Non-operating cooperatives are those
whose registration is not cancelled but they stop operation. Dissolved and cancelled
cooperatives are those officially pronounced by CDA as dissolved or cancelled. Table 4
shows that 20 cooperatives were already dissolved as of December 2007, 10 had
cancelled registration, and 2 were non-operating. Only 20 cooperatives were still
operating.
Table 3. Distribution of cooperatives organized in Tuba as to type
TYPE
NUMBER
PERCENTAGE
Multipurpose
39
84.78
Consumer
1
2.17
Credit
5
10.87
Federation
1
2.17
Total
46
100.00
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19
Table 4. Status of cooperatives as of December, 2007
TYPE
NUMBER
PERCENTAGE
Operating Cooperatives
14
30.43
Non-operating Cooperatives
2
4.35
Dissolved
20
43.48
Cancelled
10
21.74
Total
46
100.00
Operating cooperatives. Table 5 presents the list of cooperatives that were still
operating. Majority of these cooperative were officially registered with the Cooperative
Development Authority in 1991. Two cooperatives each were registered in 1993 and
1995. One cooperative was registered in 2003 and two were registered in 2005. Except
for the two cooperatives located at Philex Mines, all the cooperatives that are still
operating were multipurpose type of cooperative.
Table 5. List of operating cooperatives as of December 2008
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Camp 1 Tuba MPC
May 17, 1991
Multipurpose
El Dorado MPC
May 10, 1991
Multipurpose
Lasong Farmers MPC
Sept. 27, 1991
Multipurpose
Nangalisan Farmers MPC
Sept 20, 1991
Multipurpose
Parasipis, MPC
April 16, 1991
Multipurpose
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Table 5. Continued …
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Philex Mines Community Consumers Coop
March 19, 1991
Consumer
Philex Community Credit Coop
March 19,1991
Credit
Tuba National High School MPC
March 29, 1993
Multipurpose
Thanksgiving MPC
July 16, 1993
Multipurpose
Sinco MPC
Nov. 21, 1995
Multipurpose
Taloy Norte Farmers MPC
May 18, 1999
Multipurpose
Saguitlang Community Development Coop
Oct. 7, 2003
Multipurpose
Caballeros MPC
May 10, 2005
Multipurpose
Tinakday MPC
Nov. 18, 2005
Multipurpose
Dissolved cooperatives. Table 6 presents the list of cooperatives that were
dissolved. There were twenty cooperatives that were dissolved. Of these twenty, one was
credit cooperative and all the rest were multipurpose cooperatives. Eight of these
cooperatives were registered in 1991, one each in 1993, 1994, 1995 and 1996. Three were
registered in 1997 and four in 1998.
Causes for the dissolution. According to some of the members and officers of
these cooperatives interviewed these cooperatives were dissolved due to any of the
following causes: (1) Failure to operate within 2 years. According to the rules for
dissolution from the CDA, if a cooperative has not commenced business and operation
within two years after the date shown on its certificate of registration or has not been
Documentations on the Beginnings of Cooperative Movement
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Table 6. List of dissolved cooperatives with their dates of registration and type
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Balangbang Tabaan Norte MPC
March 22, 1991
Multipurpose
Pacac MPC
Sept. 18, 1991
Multipurpose
Poblacion Tuba MPC
Jan. 29, 1991
Multipurpose
PSDA MPC
April 8, 1991
Multipurpose
San Pascual MPC
May 17, 1991
Multipurpose
Taloy Norte MPC
May 17, 1991
Consumer
Twin Peaks MPC
Nov. 14,1991
Credit
Ub-ubbo MPC
Aug. 7, 1991
Multipurpose
Pibasa MPC
Sept.30, 1993
Multipurpose
Bayayeng Taloy Norte MPC
May 30, 1994
Multipurpose
Elpaso Credit Cooperative
Sept. 12, 1995
Credit
Pedped Farmers MPC
Nov. 27, 1996
Multipurpose
Poyopoy MPC
Aug, 11,1997
Multipurpose
Twin Peaks Teachers MPC
Sept. 17, 1997
Multipurpose
Badiwan Multipurpose Coop
Sept 17, 1997
Multipurpose
Camp 3 Brgy Health workers MPC
Sept 13, 1998
Multipurpose
Kasaranay Dagiti Umili ti Ansagan MPC
Feb. 11, 1998
Multipurpose
Klondykes Farmers MPC
Jan 13,1998
Multipurpose
Sayongan MPC
Feb. 17, 1998
Multipurpose
operating for two consecutive years, the Authority, after a formal inquiry and the
cooperative could not provide justifiable cause, may cancel the registration of the
cooperative and it shall be deemed dissolved; (2) Failure to meet the required number of
members; (3) Members do not have the interest to help the cooperative; (4) Lack of
education of the members and the organizers of the cooperative; (5) Some members and
Documentations on the Beginnings of Cooperative Movement
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officers decided to liquidate their capital from the cooperative; and (6) absence of good
cooperative leaders.
Cancelled cooperatives. Table 7 presents the cancelled cooperatives.
In the 1990s when the registration of cooperatives was now transferred to the
Cooperative Development Authority, several new cooperative have been added to the list.
As of December, 2007 there was a total of 46 cooperatives in the municipality of Tuba
registered with the CDA.
Failure of the Cooperative Movement in Tuba
There were 18 key informants interviewed regarding the failure of the cooperative
movement in Tuba. It can be gleaned from Table 8 that majority of the key informants
pointed out lack of education of members about cooperative lead to negative attitude of
Table 7. List of cancelled cooperatives
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Ansagan Proper MPC
April 27, 1992
Multipurpose
Cabuyao MPC
Sept. 9, 1992
Multipurpose
Camp 4 Credit Cooperative
March 3, 1992
Credit
Camp 3 MPC
March 4, 1993
Multipurpose
Camp 4 MPC
May 16, 1991
Multipurpose
Catbak MPC
Sept. 30, 1991
Multipurpose
Sto. Tomas MPC
May 13, 1991
Multipurpose
Sto Tomas Small Farmers MPC
May 23, 1994
Multipurpose
Tuba District Teachers Credit Cooperative
Jan. 13, 1998
Creit
Yagyagan Anthurium MPC
Dec. 12, 1991
Multipurpose
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members. Many of the people in the locality perceived the cooperative as an instrument
for getting funds from the government thus after obtaining loan from the cooperative, the
members do not pay the loan because it is the money of the government. This lead to the
failure of many cooperatives in the study area.
Another cause of failure is poor management skills of management staff. For
instance, they do not have records of the transactions of the cooperative because the staff
assigned do not possess the skill. This resulted to losses of the money of the cooperative,
which eventually lead to the closure and dissolution of the cooperative.
According to the key informants, some officers of the cooperatives were arrogant
that members do not feel at ease. Members became suspicious about the behavior of
some officers thus they do not support the cooperative. Some members became
discouraged and did not patronize the cooperative. If they have debt from the cooperative
they loss interest to pay. This lead to bankruptcy of the cooperative.
Lastly, many of the cooperatives in the place were organized for the purpose of
getting funds from the government. After they obtained the money, the leaders used the
fund for their personal interest. They borrowed they money and did not return the fund to
the cooperative. In addition, there were no records to trace where the funds went and who
borrowed it. Members who were not able to share with the fund get discouraged and
would not join the cooperative at all.
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Factors That Lead to the Success of Some Cooperative
Although majority of the cooperatives organized in Tuba were dissolved and
cancelled, there were some that were very progressive or successful. Some became
millionaire cooperatives.
It was found that the successful cooperatives were those organized by the people
themselves based on their needs and problems. At first, the members were ignorant about
cooperative but because of the dedication and persistence of the organizers and the
cooperative leaders the members were educated through continuous trainings and
seminars. Continuous education of members is one of the important principles of
cooperative. It was the policy of these successful cooperatives that before a person
becomes a member of the cooperative, this person must first undergo the Pre-membership
Education Seminar (PMES). In this seminar, the prospective member must be informed
on their rights and privileges as well as their duties and responsibilities in the
cooperative. During the seminar, the members are informed about the services of the
cooperative and how the members would avail of these services. Policies and programs of
the cooperative were also discussed to the members. They also informed them of the
problems and plans of the cooperative and solicit their support so that they feel they are
important.
A second factor considered by the informants as contributor to the success of the
cooperatives was the trained officers, committee members and management staff. The
successful cooperatives allotted fund for their education. The leaders believed that if the
people handling the operation of the cooperative are knowledgeable of their job then the
operation would be orderly and documented. Fraud would be avoided.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
25
The third factor mentioned was the availability of complete records. The
successful cooperatives have complete set of records. Every general assembly they
informed their members about the performance of their cooperative through the financial
reports as well as non-financial reports. This practice encouraged their members to invest
more of their resources in the cooperative. Besides, the members became more interested
to patronize their cooperative because of the patronage refund and interest on share
capital that they get.
Contributions of the Cooperatives to the Community
The cooperatives did not only helped the members but also the non-members.
While the cooperative sills consumer goods at reasonable price to the members, non-
members were not prohibited to buy goods from the cooperative. Another service of the
cooperative that was availed by both members and non-members was the savings deposit
and time deposit. Non-members saved their money in the cooperative and earned a higher
interest than what banks were giving. Furthermore, the interest earned was not charged
any withholding tax. Philex Community Credit Cooperative (PCCCO), the biggest
cooperative in the municipality, reported that they have a savings program for the youth,
the school children. As of the end of 2003, the reported savings deposit accumulated from
the youth was about 3.3 million pesos.
The Philex Community Credit Cooperative alone had contributed much to the
social and economic growth that alleviated poverty in the mining community. Thru its
loaning services and scholarship program, PCCCO had been instrumental in producing
professionals like engineers, doctors, nurses, accountants, teachers, architects, geologists,
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
26
etc. It also supported Philex Ecological Waste Management and Pest Control Programs,
Adopt a Park Program, and Adopt a Forest Program and the Swine dispersal program.
Through the loans it gave to the members, the members invested their loan in some
livelihood projects like loom weaving, sewing, wax- making, hog/chicken raising, soap-
making, etc.
The cooperatives also conducted trainings to non-members of the cooperatives for
them to become entrepreneurs. The trainings sponsored were the following: poultry
farming, hog raising, food processing, bee keeping, marketing of baskets produced by
women weavers.
The Sinco MPC also sponsored medical mission for children and their families,
the Thanksgiving MPC bought seedlings of trees from the Department of Environment
and natural Resources and distributed these seedlings to the elementary pupils which they
have planted them in their school campuses. This act taught the children to love their
environment.
Another contribution by the cooperative movement was the irrigation system in
Taloy Sur which was acquired through the Taloy Sur MPC.
Financial Assets of Currently Operating Cooperatives
Table 8 presents the total assets of the successful cooperative in Tuba, Benguet as
of December, 2007. Based on the reported assets of the cooperatives, there were four
cooperatives that have million pesos worth of assets. These were Philex Mines
Community Consumers Cooperative with P189,793,027.66 total asset, Philex
Community Credit Cooperative with P34,639,323.63, Thanksgiving MPC with
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in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
27
P12,345,922.65 and Sinco MPC with P1,042,222.00. The Philex Mines Community
Consumers Cooperative was the number one followed by the Philex Community Credit
Cooperative.
Table 8. Financial assets of currently operating cooperatives AS OF December 2007
NAME OF COOPERATIVE
NUMBER OF TOTAL ASSETS
YEARS
OPERATING
Camp 1 Tuba MPC
16
398,249.07
El Dorado MPC
16
412,909.52
Lasong Farmers MPC
16
475.120.84
Nangalisan Farmers MPC
16
399,354.96
Parasipis, MPC
16
642,773.12
Philex Mines Community Consumers Coop
18
189,793,027.66
Philex Community Credit Coop
18
34,639,323.63
Thanksgiving MPC
13
12,345,922.65
Saguitlang Community Development Coop
3
52,977.25
Sinco MPC
12
1,042,222.00
Taloy Norte Farmers MPC
8
245,871.00
Caballeros MPC
2
121,494.20
Tinakday MPC
2
-
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
28
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted in the municipality of Tuba, from October to December
2007. Its purpose is to document the cooperative movement of Tuba. Specifically, it
aimed to find out the following: the beginning of the cooperative movement in the place,
the status of cooperatives, the causes of failures and some factors attributed to the success
of a few of the cooperatives, and the contribution of cooperative movements in the
community.
According to the key informants, the cooperative movements started when the
Philex Mines Credit Cooperative and the Consumer Cooperative were organized in 1965.
These were the first cooperatives established in the place. When people saw that these
cooperatives were successful, more cooperatives were organized. Some of the
cooperatives were just organized as a channel for government funds. Almost all of these
cooperatives were now dissolved and cancelled.
As of December 2007, there were 46 cooperatives organized in the municipality
of Tuba. Only about 30% of these cooperatives are still active while the rest were already
dissolved and cancelled.
The reasons for the dissolution and cancellation of these cooperatives were lack of
education of members about cooperative, poor management skills of management staff,
strained relationship between and among officers and members and the cooperatives were
organized duly for the purpose of getting funds from the government.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
29
On the other hand, the factors that contributed to the success of some cooperatives
were as follows; continuous education of members about cooperative, provision of
trainings to the Board of Directors, Committee members, and management staff, and
availability of complete records in the cooperatives.
The cooperative movement was of help to the community apart from the
members. Some services of the cooperatives like the consumer and savings deposit
services were offered to non-members. Medical missions, tree planting were conducted in
the community. Trainings were also conducted to the people of the community to help in
their entrepreneurship activities.
Conclusions
Based on the findings, the following conclusions were made:
1. Many of the cooperatives organized in Tuba were used as a channel for
government funds, thus they failed.
2. The cooperatives that were progressive or successful were those organized based
on the needs and problems of the members. Members were given education and a
complete of records was maintained by these cooperatives.
3. The cooperative movement was helpful in the development of the community
through its services.
4. All cooperatives operate within barangay level only.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
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Recommendations
Based on the finding and conclusions of the study, the following
recommendations are forwarded:
1. The newly organized cooperatives that are still operating should be given
technical assistance and close supervision and monitoring by the Cooperative
Development Authority so that they will not follow the fate of the other cooperatives that
were dissolved and cancelled.
2. The different cooperatives should invest part of their reserves on the
education of their members. Members should be educated because the success of the
cooperative depends on the participation of the members. The very successful
cooperatives like the PCCCo, PMCCC and Thanksgiving MPC have educated members
and well-trained management staff and officers.
3. The successful cooperatives should give technical assistance to the smaller
once so that they would not die.
4. The collaborative work between the community and the cooperative should be
maintained.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
31
LITERATURE CITED
ABASOLO, P. A., M. RUIZ and F.B. BERTOL. 1996. Cooperatives in the Philippines.
Manila GIC Enterprises and Co., Inc. Pp. 34-40.
CASTILLO, C.T. 1983. Cooperative Problems and Constraints. University of the
Philippines, Los Banos, laguna. NSDB-UP Integrated Research Program. Pp. 26-
30.
CDA. 1992. Cooperative Code of the Philippines and Related Laws. Quezon City. Apo
Production Unit, Inc. Pp. 27- 42.
DAWAWA, J.T. 2004. Profile of primary cooperatives in Atok, Benguet. BS Thesis,
Benguet State University, La Trinidad, Benguet. Pp. 4-5.
GAYUMMA, P.K. 2005. Profile of primary cooperatives in Atok, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.4.
MACARANAS, M.J. 1994. Manual for Training Cooperative Management Staff. Quezon
City, Philippines, ABBI Print House. Pp. 34 – 74.
MUNOZ, E. and L. BATTULAYAN. 1989. The Philippine Cooperative Movement. UP
Solair, Quezon City. Unpublished paper. Pp. 79-83.
ONAGAN, L.D., et. al. 1973. Cooperative Principles and Practices. Lino Onagan and
Son Publishers. Quezon City, Philippines. Pp. 34-40.
PAGDANGANAN,R. 1999. A call for Cooperative Revolution. Quezon City Philippines.
FLAGG. Pp. 183-349.
PASIGON, L.D. and GONZAGA. 1996. Comparative study of different credit
cooperative in Metro Baguio and La Trinidad, Benguet. BS Thesis, Benguet
State University, La Trinidad, Benguet. Pp. 6-7.
PATRICIO, M. 2006. Lesson in failure: a case study of loo Consumers Cooperative, Inc.
BS thesis. Benguet State University,. La Trinidad, Benguet. Pp.1.
PIMENTEL, A.Q. and C.R. MORDINO. 1994. Cooperative Code of the Philippines.
White Orchids Printing and Publishing Co. Pp. 34 – 40.
RACHO, K.R. 2007. Profile and performance of function of members of the education
and training committee of selected cooperatives in Tuba, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.7.
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in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
32
RODRIGUEZ, R.A. and ECHANIS, E.S. 1988. Fundamental of Management, 2nd
Edition. Diwata Publishing. Pp.16-18.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
33
APPENDIX A
LETTER TO CDA
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURE ECONOMICS AND
AGRIBUSINESS MANAGEMENT
December 05, 2007
Atty. ROGELIO P. MADRIAGA
Regional Director
Cooperative Development Authority
Sir:
I am a fourth year student taking-up Bachelor of Science of Agribusiness major in
Cooperative Management at Benguet State University. To fulfill my field of study, I
am required to conduct this researched titled, “Documentation on Beginnings of
Cooperative Movement in the Municipality of Tuba, Benguet.”
In this connection, may I request your good office to allow me to gather
information about the cooperative in the Municipality of Tuba, Benguet.
Thank you for your kindness and consideration.
Respectfully yours,
IRISH QUEEN B. SARMOYAN
Student Researcher
Noted by:
EVANGELINE B. CUNGIHAN
Thesis Adviser
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
SARMOYAN, IRISH QUEEN B. APRIL 2008. Documentations on the
Beginnings of Cooperative Movement in Tuba, Benguet. Benguet State University, La
Trinidad, Benguet.
Adviser: Evangeline B. Cungihan, MSc
ABSTRACT
This study was conducted to establish the history of the cooperative movement
in Tuba. Specifically it aimed to identify the different types of cooperatives organized as
to the year of registration, location and type, to identify the cooperatives that are currently
operating, dissolved or cancelled and non-operating, to find the factors that may have
caused the failure of some cooperatives and to find out the factors that may have
contributed to the success of some cooperatives.
The respondents of the study were the different members of cooperatives and
the cooperative pioneers.
The principle of cooperation among the people of Tuba had started even before
the organization of formal cooperative. The idea of organizing cooperative in Tuba even
started during the Spanish Colonial period when they learned of the cooperative
organized by Dr. Jose Rizal. However, this did not materialize until the first cooperatives
were organized in 1964. These cooperatives were Philex Community Consumers
Cooperative and Philex Mines Credit Cooperative both situated at Padcal, Camp 3, Tuba,
Benguet. The succeeding cooperative was organized in 1991 and from that time
cooperatives started to mushroom in the different barangays of Tuba. As of December
2007, a total of 46 cooperatives had been organized in the municipality. However, only
14 cooperatives were still operating while the other were dissolved, cancelled, and non-
operating.
The failure of the cooperative movement were due to lack of education of
members about cooperative, poor management skills of management staff, and some
cooperatives were just organized for the purpose of getting funds from the government.
The factors that leads to the success of some cooperatives were continuous
education seminar, well trained officers, committee members and management staff and
the availability of complete set of record.
The contributions of the cooperatives to the community were sponsoring
scholarships, acquiring an irrigation facility through cooperative, medical mission and
distribution of seedlings for community beautification aside from the patronage refund
and dividends that members receive every year.
ii
TABLE OF CONTENT
Page
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
Table of Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
INTRODUCTION
Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Importance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Scope and Limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
REVIEW OF LITERATURE
Cooperativism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Cooperative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
Organizing a Primary Cooperative. . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
Purpose of Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Objectives of Primary Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Success Factors of Cooperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
Cooperative Failure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Economic Contribution of Cooperatives . . . . . . . . . . . . . . . . . . . . . . .
10
Role of Cooperatives in Community
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Definition of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
iii
METHODOLOGY
Locale and Time of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Respondents of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
RESULTS AND DISCUSSION
The Beginning of Cooperative Movement in
Tuba, Benguet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
List of Cooperatives Organized in Tuba and
Registered with CDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
Types of Cooperatives Organized in Tuba . . . . . . . . . . . . . . . . . . . . .
17
Current Status of the Cooperatives. . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Failure of the Cooperative Movement in Tuba . . . . . . . . . . . . . . . . . .
22
Factors that lead to the Success of Some Cooperative. . . . . . . . . . . . .
24
Contributions of the Cooperatives to the Community . . . . . . . . . . . .
25
Financial Asset of Currently Operating Cooperatives . . . . . . . . . . . .
26
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
LITERATURE CITED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
APPENDIX
A: Letter to the Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
iv
INTRODUCTION
Rationale
The prehistoric people of various races practiced some forms of cooperation
nearly similar to the present-day cooperation. This is supported by deductive and
inductive reasoning anchored on the universal needs of humankind for food, clothing and
shelter (Macaranas, 1994)
Macaranas further stated that cooperation in the Philippines is an old culture. It
spans centuries of human existence from its pristine form of mutual assistance to what we
call in the native tongue the “bayanihan”, as we know it today is a system which seeks to
harness the limited resources of people os small means and opportunities for economic
and social ends. It was first introduced in the late 1980’s by Dr. Jose P.Rizal. He was
inspired by the cooperative idea during his travels in Europe and organized in 1896 a
marketing cooperative among farmers in Dapitan during his exile there.
Subsequent attempts to introduce cooperatives in the country were mainly through
government initiatives and efforts. Cooperatives were established only after the
Philippine government had enacted laws which called for the organization of
cooperatives (Muñoz and Batulayan, 1989).
The first stage, from 1885 to 1941, is characterized by the aborted germination of
coops of some revolutionary illustrators (or the pre-formation period), the introduction
and organization of the Raiffeisen-type agri-based cooperatives by American
missionaries and teachers, and western educated Filipinos who featured the principles of
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self-reliance (or the formation period), and the introduction of the self-initiated farmers
cooperatives by the American colonial administrator.
The second stage is from 1941 to 1986. This stage can be divided into four
phases. The first phase is the period of Japanese occupation which featured a rapid
increase in cooperatives as a result of food shortages. The second phase is the
rehabilitation period after the Second World War. The third phase is the resurgence of the
state-initiated cooperatives while the fourth phase is the introduction and rise of the non-
agricultural cooperatives. The fifth and final phase is the martial law period and the
politization of the cooperative movement.
The third movement of the revolution of the Philippine cooperative movement as
a potent political force is its allies with the NGO and the trade union movements in
pursuing the goals of people empowerment and strengthening the country’s civil society
sector. During the 1998 party list elections, the cooperative movement posted three
representatives which led other sectors, groups and non-dominant political parties in
representing the marginalized and order presented masses in the Filipino people.
Cooperatives have been organized in the Philippines in the late 1960’s and
1970’s. However, more than 50% of them failed. The major reasons for this is lack of
capital, lack of technical know how, skills education, and training on the part of the
members and officers to participate actively in the affairs of the cooperative (Patricio,
2006).
The Philippines exposure to the cooperative movement maybe said to have come
into the mainstream of Filipino life one hundred years after Robert Owen introduced the
concept in Britain. In 1820, the Philippines was performing its role as a patient and
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obedient colony of Spain. Only the restlessness and excitement in Europe as a result of
the industrial revolution changed all that in the manner of affecting handful of Filipino
students and illustrators who were influenced by the affecting democracy, freedom,
brotherhood and equality. Their arrival in the country ushered in a new period of the
propaganda movement which labored to introduce reforms in the Philippines
(Pagdanganan, 1999).
Statement of the Problem
The study aimed to answer to following questions:
1. What is the history of the cooperative movement in Tuba, Benguet?
2. How many cooperatives were organized and how many are currently operating?
3. What is the present status of cooperatives in Tuba, Benguet?
Objectives of the Study
This study was conducted to document the developments of the cooperative
movement in the municipality of Tuba, Benguet. Specifically, it aimed to:
1. establish the history of the cooperative movement in Tuba, Benguet
2. identify the different cooperatives organized as to year of registration,
location, and type of cooperative.
3. identify the cooperatives that are currently operating, dissolved or
cancelled, and non-operating.
4. find the factors that may have caused the failure of some cooperatives,
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5. find out the factors that may have contributed to the success of some
cooperatives,
Importance of the Study
This study was conducted to provide information about the cooperative movement
in Tuba, Benguet. The information generated in this study would provide insights to the
Cooperative Development planners and policy makers such as CDA, Cooperative
Federations, Cooperative Unions, and other concerned entities to support and strengthen
the cooperative movement.
In addition, this study could serve as the source of information for further
research on other related studies.
Scope and Limitation of the Study
The research focused on the beginnings of cooperative movement in the
municipality of Tuba, Benguet until the present situation and this study was only limited
to this municipality.
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REVIEW OF LITERATURE
Cooperativism
Gayumma (2005) stated that cooperativism is a tool to reach out the deprived
sector of the Filipino society. The very reason why cooperatives should be established is
to be of service to its members in terms of relatively easier access to much needed
commodities.
The principle of cooperativism is observed in the Filipino culture , the
“bayanihan” or in other terms is called “palusong”. Palusong connotes that a farmer does
not have to invites other farmers to help him plow his field, he has only to let his
neighbors know that he has “palusong” and word would circulate around the village that
the farmer needs help.
Cooperative
Onagan et al. (1973) stated that the cooperative is a dynamic from of business
enterprise that embodies the philosophy of cooperation. It signifies the voluntary access
of people to form themselves to group for the promotion of their common needs by
mutual action, democratic control and sharing economic benefits on patronage by the
members. It is a business enterprise with the aim of promoting economic welfare, its
structure and functions are similar to other form of business organization. By organizing
themselves into business, the members create their own middlemen. He also mentioned
that because it is democratically controlled and operated by the members, the cooperative
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is engaged only in providing merchandise and services specifically needed by the
members of the right quality, and price.
Racho (2007) quoted that a cooperative is an immerse organization of an ideal
society in microcosm where self interest and common welfare; where investment is with
but capital and where collective endeavor achieves that availment of cheaper goods and
services . It is purely in the rendering of the maximum, satisfactory and unselfish services
for the benefits and welfare of its members. It is also a way where the poor may actively
enter the economy at large. Further, it may be the best school for learning, practicing and
internalizing the democratic ideals. This holds the key in solving our basic economics,
political and social problems.
Organizing a Primary Cooperative
Article 10 of the Cooperative Code of the Philippines stated that a primary
cooperative must be composed of at least fifteen (15) natural person, who are citizen of
the Philippines, having a common bond of interest and are residing or working in the
intended area of operation may organize a cooperative under this code. A cooperative
registered under this code shall have the following power and capacities such as: to sue
and be sued in its cooperative name of succession; to amend its articles of cooperation in
accordance with the provision of this code; to adopt by laws not contrary to law, morals
or public policy and to amend and repeal the same in accordance with this code; to
purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and
otherwise deal with real and personal property as the transaction of the lawful affairs of
the cooperative may reasonably and necessarily require, subject to the limitations
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prescribed by law and the constitution; to enter into division, merger, or consolidation as
provided in this code; to adopt and accept and receive grants donations and assistance
from foreign and domestic sources; asnd to exercise such other powers granted by the
code or necessary to carry out its purpose as stated in its articles of cooperation.
Purpose of Cooperatives
Economic growth and development have been elusive goals of the Philippines.
The overall development goal is for the improved quality of life for every Filipino
through international competitiveness and people empowerment through cooperatives. A
cooperative is a businessand social organization that espouses the spirit and value of self-
help and working together in the pursuit of social and economic ends (Pasigon and
Gonzaga, 1996).
Gayumma (2005) stated that the purpose for which cooperative may be formed is
to engage in the business of cooperative banks, wholesale and retail complexes,
insurance, marketing enterprise and even public markets.
Rodriguez et al. (1988) also stated that though cooperatives are not visually
regarded as “business” in the ordinary sense, many cooperatives today trade goods and
services not only with their members but also with the general public and consciously
attempts to generate surplus that they may be regarded as business organization in many
aspects.
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Objectives of Primary Cooperatives
Abasolo et al. (1996) stated that the primary objectives of every cooperative is to
provide goods and services to its members and thus enable them to attain increase income
and savings, investment, productivity and purchasing power and promote among them
equitable distribution of net surplus through maximum utilization of economies of scale,
cost sharing and risk sharing, without however conducting the affairs of the cooperative
for eleemosynary or charitable purposes.
A cooperative shall provide maximum economic benefit to its member. Teach
them the efficient ways of doing things. And propagate cooperative practices and new
ideas in business and management and allow the lower income groups to increase their
ownership in the wealth of this nation.
Onagan et al. (1973) stated that cooperatives are business enterprise formed by
the spontaneous and voluntary action of consumers within a community, plant or office
who have identical needs. Their association is motivated by the spirit of mutual services
and mutual benefit through their mutual action. They achieved this be dedicating their
enterprise to unselfish struggle for an ultimate goal of economic sufficiency for all. A
cooperative societies constitute the biggest of all cooperative enterprise, at the same time
the most fundamental and it involves all people, since all people are consumers.
Success Factors of Cooperatives
Pagdanganan (1999) enumerated the following factor to the success of a
cooperative. These are: (1) merging and consolidation of Primary Cooperatives; (2)
professionalization of management; (3) training and education program; (4) effective
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auditing system for cooperatives and cooperative banks; and (7) government support to
cooperatives based on the principle of subsidiary.
Cooperative Failure
A failed cooperative is one that has been unsuccessful, unable to perform this
programs or activities and unable to carry on with their goals or objectives for a number
of years and service formed. Despite the importance and progress brought about by
cooperatives, there are problems and constraints within the cooperative itself, which may
contribute to its success or failure. One of this is lack of funds for production loans.
Cooperatives are meant only to serve as channels for government financial and technical
assistance to small farmers. Another problem is the policy of the government to allow
NGO’s to organize cooperatives in any part of the country without outlining appropriate
policies and regulations, which results to an overlapping with the cooperatives function
of the government. There is a weak institutional structure for providing sustained
cooperative education and training leading to lack of qualified managers in the system.
There is also a lack of government incentives in terms of financial assistance, and most of
all cooperatives suffer from the fact that there is a negative impact of government policies
particularly in delivering agricultural credit and pricing (Castillo, 1983).
Every cooperative shall conduct its affairs in accordance with Filipino culture and
experience and universally accepted principles which include the following: open and
voluntary membership, democratic control, limited interest on capital, division of net
surplus, continuous cooperative education, cooperation among cooperatives and
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subsidiary, and self-help. Without these principles, a cooperative may not be successful
and will only lead to its failure (Pasigon and Gonzaga, 1996).
Economic Contribution of Cooperatives
Dawawa (2004) found out that there was an increase in agricultural production
output because former members were able to engage in more business opportunities; as a
result of availability of more capital inputs with lesser interest. Socially, cooperatives
give equal treatment to both rich and poor. Culturally, they enhance the relationship
among members even those who belong to other cultures. Politically, the members were
provided opportunities to exercise their right of suffrage during their assemblies.
Role of Cooperative in Community Development
Community development is a way for people to work in order to build better
community and thereby improve the welfare of all. They organize themselves under their
free will and work as a team to solve problems of their community development. They
are concerned with the development of human resources and consider man as the most
important factor of development. Cooperative develops values of their members. They
teach and practice wise use of money to be self-reliant, which is one key concept of the
cooperative program. Cooperatives demonstrate the value of group cooperation and
social awareness. Farmers’ negative attitudes and values can be changed through
continuous training and education.
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Definition of Terms
The following terms were defined as they were used in this study:
Cancelled Cooperatives – refers to those cooperative whose certificate of
registration was revoked by the Cooperative Development Authority due to non-
submission of annual report for two consecutive years.
Dissolved Cooperatives- refers to those cooperatives whose voluntarily stopped
operation due to bankruptcy.
Non-Operating Cooperatives – refers to those cooperatives whose registrations
were not yet cancelled but stopped operation due to lack of funds.
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METHODOLOGY
Locale and Time of the Study
The research was conducted in the locality of Tuba, Benguet, Philippines from
October until December 2007.
Respondents of the Study
The information needed for the study were gathered from key informants. These
were cooperative leaders, members, and officers of the cooperatives that were formed
including the Municipal Agriculture Officer.
Data Collection
The primary data for this study was collected through interview of the key
informants. Secondary data were also collected from the Cooperative Development
Authority office, from the Municipal Agriculture Office and from the primary
cooperatives.
Data Analysis
The data gathered was summarized and tabulated based of the objectives of the
study.
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RESULTS AND DISCUSSION
The Beginning of Cooperative Movement
in Tuba, Benguet
Cooperation in Tuba is an old culture. It spans centuries of human existence from
pristine form of mutual assistance to what is now called in the native tongue “bayanihan,”
Cooperation as it is known today is a system which seeks to harness the limited resources
of people of small means and opportunities for economic and social ends.
Mr. Birang, a native of Tuba, related that during the Spanish Colonial period the
people in Tuba planned to put up a cooperative because they have heard about the
cooperatives initiated by our national heroes, Dr. Jose Rizal and Emilio Jacinto but failed
to take root due to the intense revolutionary struggles of our countrymen with the
Spaniards.
During the Japanese Occupation, the people did not attempt to organize
cooperatives because they were busy looking for their foods due to severe food shortage.
Besides, they were not allowed and were afraid to gather together with their neighbors
because of the Japanese rule, according to Flores, also a native of Tuba, Benguet.
After World War II, organizing cooperatives was now out of their mind because
of the crisis they were suffering. They were busy fixing the damages that the war brought
. They were searching for place to settle down and start again.
However, in 1989, the first cooperatives of Tuba was organized. These was the
Philex Mines Consumers Cooperative and the Philex Community Credit Cooperative
This was followed by Taloy Norte Multipurpose Cooperative in 1991 and other seventeen
cooperatives organized during that year. Table 1 shows that every year from 1991 to
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2000 there were new cooperatives organized in the municipality. In 1991 alone there
were 18 cooperatives organized in the place, three in 1992, four in 1994, two each in
1994, 995, and 2005, only one each in 1996, 1999, 2000 and 2003, three in 1997, and six
in 1998. On the average, there were two cooperatives organized in the place yearly.
Table 1. Number of cooperatives organized per year from 1989 to present
YEAR
NUMBER OF
INCREMENT
COOPERATIVES
1989
2
1990
2
0
1991
20
18
1992
23
3
1993
27
4
1994
29
2
1995
31
2
1996
32
1
1997
35
3
1998
41
6
1999
42
1
2000
43
1
2001
43
0
2002
43
0
2003
44
1
2004
44
0
2005
46
2
2006
46
0
2007
46
0
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List of Cooperatives Organized in Tuba and
Registered with CDA
Table 2 shows the list of cooperative organized in various locations of Tuba and
the year they were registered with CDA. The finding shows that in Philex Mines alone
there were six cooperatives organized. The same is true for Ansagan. The highest number
(10) of cooperative organized was in Badiwan, Poblacvion. In Tadiangan there were 4
cooperatives organized, three each in Bayayeng, Taloy Norte, Camp 1, and Nangalisan.
There were cooperatives each in Tabaan Norte, Camp 4, Kennon Road, and Poyopoy
Proper, Taloy Sur.
Table 2. List of cooperative by location and date of registration
NAME OF COOPERATIVE
DATE
LOCATION
REGISTERED
Camp 1 Tuba MPC
May 17, 1991
Camp 1
El Dorado MPC
May 10, 1991
Camp 1
Lasong Farmers MPC
Sept. 27, 1991
Tadiangan
Nangalisan Farmers MPC
Sept 20, 1991
Nanaglisan
Parasipis, MPC
April 16, 1991
Tabaan Norte
Philex Mines Community Consumers Coop
March 19, 1991
Camp 3
Philex Community Credit Coop
March 19,1991
Camp 3
Balangbang Tabaan Norte MPC
March 22, 1991
Tabaan Norte
Pacac MPC
Sept. 18, 1991
Tadiangan
Poblacion Tuba MPC
Jan. 29, 1991
Poblacion
PSDA MPC
April 8, 1991
Poblacion
San Pascual MPC
May 17, 1991
San Pascual
Taloy Norte MPC
May 17, 1991
Taloy Norte
Twin Peaks MPC
Nov. 14,1991
Twin Peaks
Ub-ubbo MPC
Aug. 7, 1991
Camp 6
Taloy Sur MPC
May 15, 1991
Taloy Sur
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Table 2. Continued ...
NAME OF COOPERATIVE
DATE
LOCATION
REGISTERED
Catbak MPC
Sept. 30, 1991
Camp 3
Sto. Tomas MPC
May 13, 1991
Poblacion
Camp 4 MPC
May 16, 1991
Camp 4
Yagyagan Anthorium MPC
Dec. 17, 1991
Tadiangan
Ansagan Proper MPC
April 27, 1992
Ansagan
Cabuyao MPC
Sept. 9, 1992
Poblacion
Camp 4 Credit Cooperative
March 3, 1992
Camp 4
Thanksgiving MPC
July 16, 1993
Camp 6
Tuba National High School MPC
March 29, 1993
Nangalisan
Saguitlang Community Development Coop
Oct. 7, 2003
Ansagan
Camp 3 MPC
March 4, 1993
Camp 3
Pibasa MPC
Sept.30, 1993
Ansagan
Sto. Tomas Small Farmers MPC
May 23, 1994
Poblacion
Bayayeng Taloy Norte MPC
May 30, 1994
Taloy Norte
Sinco MPC
Nov. 21, 1995
Tadiangan
Elpaso Credit Cooperative
Sept. 12, 1995
Camp 3
Pedped Farmers MPC
Nov. 27, 1996
Ansagan
Poyopoy MPC
Aug, 11,1997
Taloy Sur
Twin Peaks Teachers MPC
Sept. 17, 1997
Twin Peaks
Badiwan Multipurpose Coop
Sept 17, 1997
Poblacion
Klondykes Farmers MPC
Jan 13,1998
Camp 1
Tuba District Teachers Credit Cooperative
Jan. 13, 1998
Poblacion
Camp 3 Brgy Health workers MPC
Sept 13, 1998
Camp 3
Kasaranay Dagiti Umili ti Ansagan MPC
Feb. 11, 1998
Ansagan
Sayangan MPC
Feb. 17, 1998
Taloy Norte
Taloy Norte Farmers MPC
May 18, 1999
Taloy Norte
Caballeros MPC
May 10, 2005
Ansagan
Tinakday MPC
Nov. 18, 2005
Taloy Sur
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Types of Cooperatives Organized in Tuba
As of December 2007, a total of 46 cooperatives was organized in Tuba, Benguet.
Table 3 presents the distribution of these cooperatives based on their type. Majority
(84.78%) of the cooperative organized in Tuba were Multipurpose Cooperative. Five or
10.87% were credit cooperative, one consumer and one federation..
Current Status of the Cooperatives
The current status of the cooperatives pertains to whether they are still operating,
non-operating, registration cancelled, or dissolved. Non-operating cooperatives are those
whose registration is not cancelled but they stop operation. Dissolved and cancelled
cooperatives are those officially pronounced by CDA as dissolved or cancelled. Table 4
shows that 20 cooperatives were already dissolved as of December 2007, 10 had
cancelled registration, and 2 were non-operating. Only 20 cooperatives were still
operating.
Table 3. Distribution of cooperatives organized in Tuba as to type
TYPE
NUMBER
PERCENTAGE
Multipurpose
39
84.78
Consumer
1
2.17
Credit
5
10.87
Federation
1
2.17
Total
46
100.00
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Table 4. Status of cooperatives as of December, 2007
TYPE
NUMBER
PERCENTAGE
Operating Cooperatives
14
30.43
Non-operating Cooperatives
2
4.35
Dissolved
20
43.48
Cancelled
10
21.74
Total
46
100.00
Operating cooperatives. Table 5 presents the list of cooperatives that were still
operating. Majority of these cooperative were officially registered with the Cooperative
Development Authority in 1991. Two cooperatives each were registered in 1993 and
1995. One cooperative was registered in 2003 and two were registered in 2005. Except
for the two cooperatives located at Philex Mines, all the cooperatives that are still
operating were multipurpose type of cooperative.
Table 5. List of operating cooperatives as of December 2008
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Camp 1 Tuba MPC
May 17, 1991
Multipurpose
El Dorado MPC
May 10, 1991
Multipurpose
Lasong Farmers MPC
Sept. 27, 1991
Multipurpose
Nangalisan Farmers MPC
Sept 20, 1991
Multipurpose
Parasipis, MPC
April 16, 1991
Multipurpose
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Table 5. Continued …
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Philex Mines Community Consumers Coop
March 19, 1991
Consumer
Philex Community Credit Coop
March 19,1991
Credit
Tuba National High School MPC
March 29, 1993
Multipurpose
Thanksgiving MPC
July 16, 1993
Multipurpose
Sinco MPC
Nov. 21, 1995
Multipurpose
Taloy Norte Farmers MPC
May 18, 1999
Multipurpose
Saguitlang Community Development Coop
Oct. 7, 2003
Multipurpose
Caballeros MPC
May 10, 2005
Multipurpose
Tinakday MPC
Nov. 18, 2005
Multipurpose
Dissolved cooperatives. Table 6 presents the list of cooperatives that were
dissolved. There were twenty cooperatives that were dissolved. Of these twenty, one was
credit cooperative and all the rest were multipurpose cooperatives. Eight of these
cooperatives were registered in 1991, one each in 1993, 1994, 1995 and 1996. Three were
registered in 1997 and four in 1998.
Causes for the dissolution. According to some of the members and officers of
these cooperatives interviewed these cooperatives were dissolved due to any of the
following causes: (1) Failure to operate within 2 years. According to the rules for
dissolution from the CDA, if a cooperative has not commenced business and operation
within two years after the date shown on its certificate of registration or has not been
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Table 6. List of dissolved cooperatives with their dates of registration and type
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Balangbang Tabaan Norte MPC
March 22, 1991
Multipurpose
Pacac MPC
Sept. 18, 1991
Multipurpose
Poblacion Tuba MPC
Jan. 29, 1991
Multipurpose
PSDA MPC
April 8, 1991
Multipurpose
San Pascual MPC
May 17, 1991
Multipurpose
Taloy Norte MPC
May 17, 1991
Consumer
Twin Peaks MPC
Nov. 14,1991
Credit
Ub-ubbo MPC
Aug. 7, 1991
Multipurpose
Pibasa MPC
Sept.30, 1993
Multipurpose
Bayayeng Taloy Norte MPC
May 30, 1994
Multipurpose
Elpaso Credit Cooperative
Sept. 12, 1995
Credit
Pedped Farmers MPC
Nov. 27, 1996
Multipurpose
Poyopoy MPC
Aug, 11,1997
Multipurpose
Twin Peaks Teachers MPC
Sept. 17, 1997
Multipurpose
Badiwan Multipurpose Coop
Sept 17, 1997
Multipurpose
Camp 3 Brgy Health workers MPC
Sept 13, 1998
Multipurpose
Kasaranay Dagiti Umili ti Ansagan MPC
Feb. 11, 1998
Multipurpose
Klondykes Farmers MPC
Jan 13,1998
Multipurpose
Sayongan MPC
Feb. 17, 1998
Multipurpose
operating for two consecutive years, the Authority, after a formal inquiry and the
cooperative could not provide justifiable cause, may cancel the registration of the
cooperative and it shall be deemed dissolved; (2) Failure to meet the required number of
members; (3) Members do not have the interest to help the cooperative; (4) Lack of
education of the members and the organizers of the cooperative; (5) Some members and
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officers decided to liquidate their capital from the cooperative; and (6) absence of good
cooperative leaders.
Cancelled cooperatives. Table 7 presents the cancelled cooperatives.
In the 1990s when the registration of cooperatives was now transferred to the
Cooperative Development Authority, several new cooperative have been added to the list.
As of December, 2007 there was a total of 46 cooperatives in the municipality of Tuba
registered with the CDA.
Failure of the Cooperative Movement in Tuba
There were 18 key informants interviewed regarding the failure of the cooperative
movement in Tuba. It can be gleaned from Table 8 that majority of the key informants
pointed out lack of education of members about cooperative lead to negative attitude of
Table 7. List of cancelled cooperatives
NAME OF COOPERATIVE
DATE
TYPE OF
REGISTERED
COOPERATIVE
Ansagan Proper MPC
April 27, 1992
Multipurpose
Cabuyao MPC
Sept. 9, 1992
Multipurpose
Camp 4 Credit Cooperative
March 3, 1992
Credit
Camp 3 MPC
March 4, 1993
Multipurpose
Camp 4 MPC
May 16, 1991
Multipurpose
Catbak MPC
Sept. 30, 1991
Multipurpose
Sto. Tomas MPC
May 13, 1991
Multipurpose
Sto Tomas Small Farmers MPC
May 23, 1994
Multipurpose
Tuba District Teachers Credit Cooperative
Jan. 13, 1998
Creit
Yagyagan Anthurium MPC
Dec. 12, 1991
Multipurpose
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members. Many of the people in the locality perceived the cooperative as an instrument
for getting funds from the government thus after obtaining loan from the cooperative, the
members do not pay the loan because it is the money of the government. This lead to the
failure of many cooperatives in the study area.
Another cause of failure is poor management skills of management staff. For
instance, they do not have records of the transactions of the cooperative because the staff
assigned do not possess the skill. This resulted to losses of the money of the cooperative,
which eventually lead to the closure and dissolution of the cooperative.
According to the key informants, some officers of the cooperatives were arrogant
that members do not feel at ease. Members became suspicious about the behavior of
some officers thus they do not support the cooperative. Some members became
discouraged and did not patronize the cooperative. If they have debt from the cooperative
they loss interest to pay. This lead to bankruptcy of the cooperative.
Lastly, many of the cooperatives in the place were organized for the purpose of
getting funds from the government. After they obtained the money, the leaders used the
fund for their personal interest. They borrowed they money and did not return the fund to
the cooperative. In addition, there were no records to trace where the funds went and who
borrowed it. Members who were not able to share with the fund get discouraged and
would not join the cooperative at all.
Documentations on the Beginnings of Cooperative Movement
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Factors That Lead to the Success of Some Cooperative
Although majority of the cooperatives organized in Tuba were dissolved and
cancelled, there were some that were very progressive or successful. Some became
millionaire cooperatives.
It was found that the successful cooperatives were those organized by the people
themselves based on their needs and problems. At first, the members were ignorant about
cooperative but because of the dedication and persistence of the organizers and the
cooperative leaders the members were educated through continuous trainings and
seminars. Continuous education of members is one of the important principles of
cooperative. It was the policy of these successful cooperatives that before a person
becomes a member of the cooperative, this person must first undergo the Pre-membership
Education Seminar (PMES). In this seminar, the prospective member must be informed
on their rights and privileges as well as their duties and responsibilities in the
cooperative. During the seminar, the members are informed about the services of the
cooperative and how the members would avail of these services. Policies and programs of
the cooperative were also discussed to the members. They also informed them of the
problems and plans of the cooperative and solicit their support so that they feel they are
important.
A second factor considered by the informants as contributor to the success of the
cooperatives was the trained officers, committee members and management staff. The
successful cooperatives allotted fund for their education. The leaders believed that if the
people handling the operation of the cooperative are knowledgeable of their job then the
operation would be orderly and documented. Fraud would be avoided.
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The third factor mentioned was the availability of complete records. The
successful cooperatives have complete set of records. Every general assembly they
informed their members about the performance of their cooperative through the financial
reports as well as non-financial reports. This practice encouraged their members to invest
more of their resources in the cooperative. Besides, the members became more interested
to patronize their cooperative because of the patronage refund and interest on share
capital that they get.
Contributions of the Cooperatives to the Community
The cooperatives did not only helped the members but also the non-members.
While the cooperative sills consumer goods at reasonable price to the members, non-
members were not prohibited to buy goods from the cooperative. Another service of the
cooperative that was availed by both members and non-members was the savings deposit
and time deposit. Non-members saved their money in the cooperative and earned a higher
interest than what banks were giving. Furthermore, the interest earned was not charged
any withholding tax. Philex Community Credit Cooperative (PCCCO), the biggest
cooperative in the municipality, reported that they have a savings program for the youth,
the school children. As of the end of 2003, the reported savings deposit accumulated from
the youth was about 3.3 million pesos.
The Philex Community Credit Cooperative alone had contributed much to the
social and economic growth that alleviated poverty in the mining community. Thru its
loaning services and scholarship program, PCCCO had been instrumental in producing
professionals like engineers, doctors, nurses, accountants, teachers, architects, geologists,
Documentations on the Beginnings of Cooperative Movement
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etc. It also supported Philex Ecological Waste Management and Pest Control Programs,
Adopt a Park Program, and Adopt a Forest Program and the Swine dispersal program.
Through the loans it gave to the members, the members invested their loan in some
livelihood projects like loom weaving, sewing, wax- making, hog/chicken raising, soap-
making, etc.
The cooperatives also conducted trainings to non-members of the cooperatives for
them to become entrepreneurs. The trainings sponsored were the following: poultry
farming, hog raising, food processing, bee keeping, marketing of baskets produced by
women weavers.
The Sinco MPC also sponsored medical mission for children and their families,
the Thanksgiving MPC bought seedlings of trees from the Department of Environment
and natural Resources and distributed these seedlings to the elementary pupils which they
have planted them in their school campuses. This act taught the children to love their
environment.
Another contribution by the cooperative movement was the irrigation system in
Taloy Sur which was acquired through the Taloy Sur MPC.
Financial Assets of Currently Operating Cooperatives
Table 8 presents the total assets of the successful cooperative in Tuba, Benguet as
of December, 2007. Based on the reported assets of the cooperatives, there were four
cooperatives that have million pesos worth of assets. These were Philex Mines
Community Consumers Cooperative with P189,793,027.66 total asset, Philex
Community Credit Cooperative with P34,639,323.63, Thanksgiving MPC with
Documentations on the Beginnings of Cooperative Movement
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P12,345,922.65 and Sinco MPC with P1,042,222.00. The Philex Mines Community
Consumers Cooperative was the number one followed by the Philex Community Credit
Cooperative.
Table 8. Financial assets of currently operating cooperatives AS OF December 2007
NAME OF COOPERATIVE
NUMBER OF TOTAL ASSETS
YEARS
OPERATING
Camp 1 Tuba MPC
16
398,249.07
El Dorado MPC
16
412,909.52
Lasong Farmers MPC
16
475.120.84
Nangalisan Farmers MPC
16
399,354.96
Parasipis, MPC
16
642,773.12
Philex Mines Community Consumers Coop
18
189,793,027.66
Philex Community Credit Coop
18
34,639,323.63
Thanksgiving MPC
13
12,345,922.65
Saguitlang Community Development Coop
3
52,977.25
Sinco MPC
12
1,042,222.00
Taloy Norte Farmers MPC
8
245,871.00
Caballeros MPC
2
121,494.20
Tinakday MPC
2
-
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted in the municipality of Tuba, from October to December
2007. Its purpose is to document the cooperative movement of Tuba. Specifically, it
aimed to find out the following: the beginning of the cooperative movement in the place,
the status of cooperatives, the causes of failures and some factors attributed to the success
of a few of the cooperatives, and the contribution of cooperative movements in the
community.
According to the key informants, the cooperative movements started when the
Philex Mines Credit Cooperative and the Consumer Cooperative were organized in 1965.
These were the first cooperatives established in the place. When people saw that these
cooperatives were successful, more cooperatives were organized. Some of the
cooperatives were just organized as a channel for government funds. Almost all of these
cooperatives were now dissolved and cancelled.
As of December 2007, there were 46 cooperatives organized in the municipality
of Tuba. Only about 30% of these cooperatives are still active while the rest were already
dissolved and cancelled.
The reasons for the dissolution and cancellation of these cooperatives were lack of
education of members about cooperative, poor management skills of management staff,
strained relationship between and among officers and members and the cooperatives were
organized duly for the purpose of getting funds from the government.
Documentations on the Beginnings of Cooperative Movement
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On the other hand, the factors that contributed to the success of some cooperatives
were as follows; continuous education of members about cooperative, provision of
trainings to the Board of Directors, Committee members, and management staff, and
availability of complete records in the cooperatives.
The cooperative movement was of help to the community apart from the
members. Some services of the cooperatives like the consumer and savings deposit
services were offered to non-members. Medical missions, tree planting were conducted in
the community. Trainings were also conducted to the people of the community to help in
their entrepreneurship activities.
Conclusions
Based on the findings, the following conclusions were made:
1. Many of the cooperatives organized in Tuba were used as a channel for
government funds, thus they failed.
2. The cooperatives that were progressive or successful were those organized based
on the needs and problems of the members. Members were given education and a
complete of records was maintained by these cooperatives.
3. The cooperative movement was helpful in the development of the community
through its services.
4. All cooperatives operate within barangay level only.
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Recommendations
Based on the finding and conclusions of the study, the following
recommendations are forwarded:
1. The newly organized cooperatives that are still operating should be given
technical assistance and close supervision and monitoring by the Cooperative
Development Authority so that they will not follow the fate of the other cooperatives that
were dissolved and cancelled.
2. The different cooperatives should invest part of their reserves on the
education of their members. Members should be educated because the success of the
cooperative depends on the participation of the members. The very successful
cooperatives like the PCCCo, PMCCC and Thanksgiving MPC have educated members
and well-trained management staff and officers.
3. The successful cooperatives should give technical assistance to the smaller
once so that they would not die.
4. The collaborative work between the community and the cooperative should be
maintained.
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LITERATURE CITED
ABASOLO, P. A., M. RUIZ and F.B. BERTOL. 1996. Cooperatives in the Philippines.
Manila GIC Enterprises and Co., Inc. Pp. 34-40.
CASTILLO, C.T. 1983. Cooperative Problems and Constraints. University of the
Philippines, Los Banos, laguna. NSDB-UP Integrated Research Program. Pp. 26-
30.
CDA. 1992. Cooperative Code of the Philippines and Related Laws. Quezon City. Apo
Production Unit, Inc. Pp. 27- 42.
DAWAWA, J.T. 2004. Profile of primary cooperatives in Atok, Benguet. BS Thesis,
Benguet State University, La Trinidad, Benguet. Pp. 4-5.
GAYUMMA, P.K. 2005. Profile of primary cooperatives in Atok, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.4.
MACARANAS, M.J. 1994. Manual for Training Cooperative Management Staff. Quezon
City, Philippines, ABBI Print House. Pp. 34 – 74.
MUNOZ, E. and L. BATTULAYAN. 1989. The Philippine Cooperative Movement. UP
Solair, Quezon City. Unpublished paper. Pp. 79-83.
ONAGAN, L.D., et. al. 1973. Cooperative Principles and Practices. Lino Onagan and
Son Publishers. Quezon City, Philippines. Pp. 34-40.
PAGDANGANAN,R. 1999. A call for Cooperative Revolution. Quezon City Philippines.
FLAGG. Pp. 183-349.
PASIGON, L.D. and GONZAGA. 1996. Comparative study of different credit
cooperative in Metro Baguio and La Trinidad, Benguet. BS Thesis, Benguet
State University, La Trinidad, Benguet. Pp. 6-7.
PATRICIO, M. 2006. Lesson in failure: a case study of loo Consumers Cooperative, Inc.
BS thesis. Benguet State University,. La Trinidad, Benguet. Pp.1.
PIMENTEL, A.Q. and C.R. MORDINO. 1994. Cooperative Code of the Philippines.
White Orchids Printing and Publishing Co. Pp. 34 – 40.
RACHO, K.R. 2007. Profile and performance of function of members of the education
and training committee of selected cooperatives in Tuba, Benguet. BS Thesis.
Benguet State University, La Trinidad, Benguet. Pp.7.
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
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RODRIGUEZ, R.A. and ECHANIS, E.S. 1988. Fundamental of Management, 2nd
Edition. Diwata Publishing. Pp.16-18.
Documentations on the Beginnings of Cooperative Movement
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APPENDIX A
LETTER TO CDA
Benguet State University
College of Agriculture
DEPARTMENT OF AGRICULTURE ECONOMICS AND
AGRIBUSINESS MANAGEMENT
December 05, 2007
Atty. ROGELIO P. MADRIAGA
Regional Director
Cooperative Development Authority
Sir:
I am a fourth year student taking-up Bachelor of Science of Agribusiness major in
Cooperative Management at Benguet State University. To fulfill my field of study, I
am required to conduct this researched titled, “Documentation on Beginnings of
Cooperative Movement in the Municipality of Tuba, Benguet.”
In this connection, may I request your good office to allow me to gather
information about the cooperative in the Municipality of Tuba, Benguet.
Thank you for your kindness and consideration.
Respectfully yours,
IRISH QUEEN B. SARMOYAN
Student Researcher
Noted by:
EVANGELINE B. CUNGIHAN
Thesis Adviser
Documentations on the Beginnings of Cooperative Movement
in Tuba, Benguet / Irish Queen B. Sarmoyan. 2008
Document Outline
- Documentations on theBeginnings of Cooperative Movement in Tuba, Benguet
- BIBLIOGRAPHY
- ABSTRACT
- TABLE OF CONTENT
- INTRODUCTION
- REVIEW OF LITERATURE
- METHODOLOGY
- RESULTS AND DISCUSSION
- SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
- LITERATURE CITED
- APPENDIX