Unit 1 (COOP M.).docx

**Unit 1. History of Cooperatives in the Philippines** Concept of cooperative -- first cooperative in Europe with 28 members Called -- " **THE ROCHDALE SOCIETY** " -- weavers / flour, sugar and wheat **- December 1844** - candle \- Rochdale England \- Rochdale Pioneers **THE COOPERATIVE MARKET...

**Unit 1. History of Cooperatives in the Philippines** Concept of cooperative -- first cooperative in Europe with 28 members Called -- " **THE ROCHDALE SOCIETY** " -- weavers / flour, sugar and wheat **- December 1844** - candle \- Rochdale England \- Rochdale Pioneers **THE COOPERATIVE MARKETING LAW (ACT 2425**) -- enacted on dec, 9 1927. Filipinos who have traveled Europe in the later part of the **19th** century Two names worthy of note were **Dr. Jose P. Rizal** and **Teodoro Sandiko** - Father of cooperative in the Philippines Rizal, after his side trip to **Sandakan, Borneo in 1892**, requested **Governor Despudol** permission to move to that place and found a colony under the cooperative plan of Robert Owen. \- Rizal - arrested for treason and banished to Dapitan, Zamboanga del Norte. \- put up a school for the poor community and a store **La Sociedad de los Abacaleros** (Society of Abaca Producers). \- One noteworthy group organized by Rizal \- functioned for only one year \- Rizal returned the members' share capital without any loss. **Teodoro Sandiko,** then governor of Bulacan, prepared a bill patterned after the Raiffeisen type of credit union and had Rep. **Albert Barreto** of Zambales sponsored the bill in the lower House of Congress. \- aim of this bill was to protect and develop the agricultural interest of the country \- presented it readily obtained unanimous approval on **January 20, 1908.** The Philippine Commission however, turned it down. \- Second Philippine Legislature. \- sponsored in the Lower House by Rep. **Rafael Corpuz** passed into law on **February 11, 1914** and became **Act 2508.** The first rural credit association : **Cooperative Association of Cabanatuan, Nueva Ecija.** \- formed on October 18, 1916 \- At the end of **1926** there were **544** rural credit cooperatives organized in **42** provinces and \- by **1930** there were **571** associations formed all over the country \- In **1935**, however, about 90% of these cooperatives were inactive with no funds left in their treasury (failure) **December 9, 1927.** - Cooperative Marketing Law (Act 2425) was enacted and approved \- By **1939** only **164** societies were actually organized with a total membership of around 5,000 farmers. \- With this number only **35** reported their sale of products to the Bureau of Commerce. 20% of the organized associations were active. **The ACCFA Financing Program** - Philippine Congress enacted **Republic Act 821** in **1952**. This law established a system of liberal credit \- designed to meet the needs of the small farmers. created an administrative agency known as the **Agricultural Credit and Cooperative Financing Administration (ACCFA)**. To implement the great task of rural financing, four general and interrelated objectives of the law were set forth as follows: \- To assist small farmers in securing liberal credit. \- To promote the effective groupings of farmers into cooperative associations. \- To establish an orderly and systematic marketing machinery for, and controlled by, the small farmers. \- To place agriculture on a basis of economic equality with other industries. As stated in Article 23 of the Republic Act 9250, otherwise known as the "**PHILIPPINE COOPERATIVE CODE OF 2008",** 1. **Credit Cooperative** - (loan) savings and lending services among its members./ generates funds to provide financial assistance to its member. 2. **Consumers Cooperative** - procure and distribute commodities to members and non-members; (if member discounted) 3. **4Producers Cooperative** - joint production whether agricultural or industrial. processing of raw materials or goods produced by its members into finished product 4. **Marketing Cooperative** - engages in the supply of production inputs to members and market their products. (PC supply raw material but not want to consume the product - partner to MC to market the finished product to get high profit from it) 5. **Service Cooperative** - (GENERAL COOP.) engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services; \- member are professional / intangible product) 6. **Multipurpose Cooperative** - combines two (2) or more of the business activities of these different types of cooperatives; (ASKI) 7. **Advocacy Cooperative** - (primary cooperative) promotes and advocates cooperation among its members and the public through socially oriented projects to reach out to its intended beneficiaries (charitable works) (bantay bata 163, recue children and look sponsors for them) (gawad kalinga - lot to village for informal settlers) 8. **Agrarian Reform Cooperative** - one organized by marginal farmers majority of which are agrarian reform beneficiaries. (land management in areas covered by agrarian reform;) (the member of the coop. are beneficiaries of agrarian reform) 9. **Cooperative Bank** - providing a wide range of financial services to cooperatives and their members; 10. **Dairy Cooperative** - engaged in the production of fresh milk, which may be processed and/or marketed as dairy products; (DVF - (not coop) for ex. 5 carabao engage in the coop. they use the milk to process into finished product) 11. **1Education Cooperative** - owning and operating licensed educational institutions notwithstanding the provisions of Republic Act No. 9155, otherwise known as the Governance of Basic Education Act of 2001; (univ member of coop and its member can enjoy the benefit of the cooperative, like discounted on tuition pees) 12. **1Electric Cooperative** - purposed of undertaking power generations, utilizing renewable energy sources. (distribution to its household members) (NECCO) 13. **Financial Service Cooperative** - engaging in savings and credit services and other financial services;(same function on cooperative bank but the cooperative in not the member, same function as the normal bank with normal member) 14. **Fishermen Cooperative** - organized by marginalized fishermen in localities whose products are marketed either as fresh or processed products; 15. **1Health Services Cooperative** - providing medical, dental and other health services; 16. **Housing Cooperative**- assist or provide access to housing for the benefit of its regular members who actively participate in the savings program for housing. It is co-owned and controlled by its members; (PAGIBIG) (loan) 17. **Insurance Cooperative** - business of insuring life and poverty of cooperatives and their members; (focus on side of insurance) 18. **Transport Cooperative** - includes land and sea transportation, limited to small vessels, as defined or classified under the Philippine maritime laws, organized under the provisions of this Code; (prioritized or can enjoy the benefit on the first choice of transport) 19. **Water Service Cooperative**- operate and manage waters systems or the provision and distribution of potable water for its members and their households; 20. **Workers Cooperative** - organized by workers, including the self-employed, who are at same time the members and owners of the enterprise. (can be process by deduction) Categories of Cooperative Cooperatives shall be categorized according to membership and territorial considerations as follows: \(a) In terms of membership, cooperative shall be categorized into: \(i) Primary The members of which are natural persons; \(ii) Secondary The members of which are primaries; and \(iii) Tertiary The members of which are secondary cooperatives; and \(b) In terms of territory, cooperatives shall be categorized according to areas of operations, which may or may not coincide with the political subdivisions of the country.