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Page 1: Cooperative farming
Page 2: Cooperative farming

Team Members

• Malka Yasmeen• Ishrat Yousaf • Gulshan Ambreen• Nukhba Nasir• Mehwish Sadiq

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Cooperative Farming

Page 4: Cooperative farming

Cooperative Farming

• Cooperative farming is a system, in which formers pool their resources to buy commodities such as seeds, fertilizers and services such as marketing for cooperation in certain areas.

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Origin of Cooperative Forming

• The first farmers' cooperatives were created in Europe in the second half of the nineteenth century. They spread later to North America and the other continents. They have become one of the tools of agricultural development.

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Collective Farm

• Farm in which a group of farmers pool their land, domestic animals, and agricultural implements.

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Collective Forming

• The profits of the farm are divided among its members. In cooperative farming, farmers retain private ownership of the land.

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Origin of Collective Forming

• Collective farming was first developed in the in 1917, where it became general after 1930.

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Popularity of Collective Forming

• Collective farming is practiced in other countries; it was adopted from 1953 in China, and Israel has a large number of collective farms.

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Mission of Formers Cooperatives

• Cooperative's mission is to improve the economic well-being of farmers and by providing quality supplies and services to its members at the lowest possible cost

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Formers Cooperatives

• Close ties must exist between the member and his cooperative. The affairs of the cooperative are under the control of its Board of Directors, who is elected by the members for three year terms.

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Main fields of cooperation

• Agricultural supply cooperatives - purchase of supplies (seeds, fertilizers, etc.) and services,

• Agricultural marketing cooperative - transformation, packaging, distribution and marketing of product.

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Agri Supply Cooperative

• Cooperatives that supply farmers with required inputs for agricultural production. Examples include:

• United Farmers of Alberta • Cenex,

• Southern States Cooperative. United Farmers of Alberta

Cenex, Southern States Cooperative.

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Agri Marketing Cooperative

• A marketing cooperative is a business organization owned by farmers to collectively sell their

products

• An agriculture marketing cooperative is also known as a farmer's co-op, is a cooperative business owned by farmers, to produce or (usually) store and market agricultural products.

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Fertilizers And Chemicals

• Farmers Cooperative is the area leader in fertilizer and chemical spreading and spraying. All of our stores have fertilizer plants where we can custom blend to meet your specific needs.

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Innovative Business Approach

• Cooperative farming is a type of arrangement where the individual farm organizations are maintained, but where two or more producers agree to work together to attain greater efficiency and profitability.

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Cooperative BenefitsBenefits of cooperatives are difficult to measure. Some are tangible or direct as:

(Net margins or savings) Others are intangible or indirect such as:

(cooperatives’ effect on market price levels, quality, and service)

Most benefits are evaluated in economic terms but some also may be social.

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Types of Benefits

Benefits to Farmers Benefits to Rural communities Benefits to Consumers

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Benefits to farmers

• Ownership and Democratic Control• Increased Farm Income• Improved Service• Quality of Supplies and Products• Enhanced Competition

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Benefits to rural communities

• Added Community Income• Stronger Rural Communities• Goods and Services to No farmers

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Benefits to Consumers

• Quality Products• Varied Services• New Products and Processes• Lower Production and Marketing Costs

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Limitation of cooperatives

• Production Control• Farming Based on Labor Input• Price Fixing

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Cooperatives in Pakistan

• Objective (1904)• Financial and administrative support(1912)• Scope

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Post partition development

• Migration• Inefficiency(1953-54)• Review the position(1952)• One unit• Cooperative development board (1962)• Cooperative development societies• Status of cooperative board(1966)

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Control of these cooperatives

• Establishment of FBC (1976)• Shareholder of FBC• Purpose

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CO-OPERATIVE SOCIETIES BY TYPE

(2002-03)

Classification Number of Societies

Provincial Cooperative Banks & Other Provincial Co-Operative Societies

15

Central Cooperative Banks 5

Other Central Societies 325

Agricultural Cooperative Societies 47679

Non-Agriculture Cooperative Societies 8034

Total Cooperative Societies In 56058

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THE CO-OPERATIVE SOCIETIES (REPAYMENT OF LOANS)

ORDINANCE, 1960 (Ordinance XXXIV of 1960)

Promotion of common interest

Legislation :

Extension of jurisdiction ,

Promulgation

Recovery of loans

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ORDINANCE, 1960 (Ordinance XXXIV of 1960

• Extension of the jurisdiction of the Singh Cooperative Societies Act of 1925 to whole of present Pakistan with effect from 30th April, 1965 under the title of Cooperative Societies Act, 1925.

• Promulgation of the West Pakistan Cooperative Societies and Cooperative Banks (Repayment of Loans) Ordinance, 1966.

• Reforms Order of 1972. Except the Reforms Order, 1972 all other provided for more powers to the Cooperative Department for recovery of loans. On December 14, 1976 the Federal Bank for Cooperatives

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SURVEY IN PAKISTAN IN 1984

According to a study1, conducted by the centre for Administrative Research and

DevelopmentStudies (1984), about 50 percent societies

were active. Thus from total of 34543 societies in Punjab in 1982-83, the number of working agricultural credit societies was

17271.

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Main Occupations of Operators

According to the laid down procedure, a person having occupation other than farming cannot become a member of an agricultural credit society.

• . majority (33 percent) of the sample operators had their main occupation as business.

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• 32 percent were large farmers • Among the rest, about one half (17 percent)

were small farmers• . Both businessmen and large farmers, who

were operators of the sample societies constituted 65 percent of the total operators.

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• The field teams observed that many of the operators were either commission agents or village shopkeepers. They were getting fertilizer from cooperatives and selling them on their shops

• This shows that the cooperative credit was not generally going to the target group.

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Literacy Status of Sample Members

• . The results of the survey data are presented in Table 4.3. The data in the table depicts that a higher proportion of sample members was literate compared with the non-members, but the difference was not statistically significant. It means the members did not have literacy level higher than the level shown by the non-members.

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COOPERATIVE BANKS• According to Charter, the Bank was to function as

the principal financial institution for meeting the credit needs of Provincial Banks and Multi-unit Cooperative Societies

• It also performed supervisory and regulatory functions in respect of Provincial Cooperative Banks.

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• short-term/seasonal production credit for agricultural inputs

• accept money on deposit, borrow funds from the Federal Government and financial institutions and

• raise funds for the purpose of bank’s operations through issue and sale of bonds and debentures.

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ECONOMIC IMPACT OF COOPERATIVE AGRICULTURAL CREDIT

• . Among crop inputs, only the doses of fertilizers are discussed because the cooperative credit was taken mainly for fertilizers.

• Thus the direct impact of cooperative credit is expected to be on fertilizer doses, which in turn is expected to affect yields of crops.

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Impact of Cooperative Credit on Crop Yields

• Main objective of cooperative credit for farmers is to increase the level of inputs, mainly fertilizers,

• can increase incomes of farmers. • The farmers not only get credit from cooperation,

they approach other sources also, like other institutional and no institutional sources. Thus the members and non-members got loans from all the above sources [section 5.3 (d)].

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• The members got more than three time higher amount of loan from all the sources of credit for fertilizer [section 5.3. (d)] compared with non-members

• expected that the members would have higher yields of crops compared with the non-member

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