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The Role and the Dimension The Role and the Dimension of Agricultural Co-operatives of Agricultural Co-operatives
Around the WorldAround the World
VII AIEA2 Congress May 28th 2008 - BolognaIvano BarberiniPresident International Cooperative Alliance
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Hunger and Food Sector
• “Today more than 850 million people go to bed at nigth not sure if they will have enough to eat tomorrow” (WB)
• Main Issues:
- the lack of purchasing power.
- the recent food crisis
- the lack of an effective agro-industrial food sector and of an effective retailing in many countries.
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Developing Countries: Developing Countries: Rural and Human DevelopmentRural and Human Development
• The most serious effect of poverty is loss of farmers’ dignity and self-worth.
• The human development results from social, political, economic and moral empowerment of farmers
• Co-operative principles of self-help restore farmers’dignity, initiative for change, and hope for the future.
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Agricultural Co-operation Agricultural Co-operation Around the WorldAround the World
• 400 millions associated farmers
• 50% of the world agricultural production goes through the activity of co-operatives.
• Four out of five worldwide largest co-operatives are agricultural co-operatives.
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The five worldwide The five worldwide largest co-operativelargest co-operative
• 1° Zen-Noh –National Federation of Agricultural Co-operatives- (1948) – Japan – Turnover: $55.5 billion.
• 2° Zenkyoren – National Mutual Insurance Federation of Agricultural Co-operatives – (1951) Japan – Turnover: $48 billion.
• 3° Crédit Agricole Group – (1897) France – Turnover: $ 32,9 billion.
• 4° Nationwide Mutual Insurance Company- (1925), USA – Turnover: $22.6 billion.
• 5° NACF- National Agricultural Cooperative Federation – (1961) Korea – Turnover: $22.7 billion.
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Examples of Agricultural Co-opsExamples of Agricultural Co-ops
• Japan: huge development of agricultural and fishering co-operation
• Norway: co-operatives manage 99% of the country’s milk production;
• Netherlands: 75% of agricultural market• Finland: 74% of meat production• Korea: 45% of total agricultural market
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KOREA- Co-operative Event with KOREA- Co-operative Event with 100,000 Farmers100,000 Farmers
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Example of Agricultural Co-opsExample of Agricultural Co-ops
• S. Caterina (Brazil)S. Caterina (Brazil):: 58 co-operatives with 62 thousand members and 14 thousand employees
• Colombia: examples of community co- of community co-operativesoperatives
• IsraelIsrael: : 250 250 Kibbutz, as communities Kibbutz, as communities based on agricultural business. based on agricultural business.
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Agricultural Co-ops in IndiaAgricultural Co-ops in India Agricultural and Credit co-ops: 160,826, with
176 million members:
In the present context co-ops have greater responsibilities:
a) step up their network of services to ensure sustainable growth in agriculture production.
b) generate potentials for rural employment in view of shifting policy of the government.
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INDIA - Share of Co-ops in INDIA - Share of Co-ops in National Economy (examples)National Economy (examples)
• Rural Network (villages covered) ... 100%• Sugar produced 46%• Wheat procurement 33%• Oil marketed 49%• Fertiliser production 26%• Animal feed production/supply 50%• Agriculture credit disbursed by Co-ops 38%
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Agricultural Coops in ChinaAgricultural Coops in China
• 154,000 community multi-functional service cooperatives, covering 24% villages all over China
• Provide market intelligence, skill training, cultural entertainment, health care and other important services
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Agricultural Coops in ChinaAgricultural Coops in China
• 1110 processing enterprises• 3369 marketing enterprises• Supply 70% of fertilizer in China• 175,000 chained distribution outlets• 1567 chained enterprises for distribution of
daily necessities
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Agricultural Coops in China (2)Agricultural Coops in China (2)
• Supply and marketing cooperatives (SMC) are an important force in the progress of urban and rural economy in China.
• SMCs play an essential role in Rural Sustainable Development
• Primary SMCs provide technology guidance on scientific utilization of ferilizer and pesticide.
• Set up 37,000 crop hospitals, 135,000 fertilize and pesticide distribution outlets.
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Brazil - Agro-Industrial Co-opsBrazil - Agro-Industrial Co-ops
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IMCA - Colombia – community co-operative for the fight against poverty and for independence
SOVRANITY – AUTONOMY on SEEDS
NO TO “PATENTING” LIFE
NO TO DEPENDANCE
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Co-operatives in New ZealandCo-operatives in New Zealand
• Dairy - 95% - Buy, process, package, market export• Meat - 70% - Buy, slaughter, package, market -
mostly export• Fruitpackers - 50% - Receive, sort, package, market
mostly export• Rural trading societies – 50% Farm supplies• Fertiliser - 70% import , process, distribute, market • Rural insurance - 30% - specialist for rural• Grain growers - grow grain (mostly maize), harvest,
process, market
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Co-operatives in IRANCo-operatives in IRAN
• There are about There are about 2,4432,443 RURAL RURAL co-operativesco-operatives all all over the country in over the country in 57,000 villages57,000 villages
• Beside rural cooperatives, Beside rural cooperatives, 1,8601,860 Agricultural Agricultural Cooperatives have been established with Cooperatives have been established with 986,968 member986,968 member
• Rural women cooperatives: in confirmation of the main role of women in agricultural development there are about 155 rural women cooperatives with 31,814 members all over the country
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Iran: Support to Co-operatives by Central Iran: Support to Co-operatives by Central Organization for Rural Co-ops (CORC)Organization for Rural Co-ops (CORC)
• Empowering the members and organizations of co-ops and their unions.
• Legislation and policy reforms for facilitating cooperatives businesses.
• Storing agricultural products in order to prevent farmers losses
• Strengthen and reform the transportation system for agricultural products.
• Auditing agricultural and rural cooperative societies.
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Co-ops in PalestineCo-ops in Palestine• Members of livestock co-ops raise sheeps, goats,
cows and chickens.
• In Gaza, there is one fishery co-operative that has around 400 members.
• Today, there are around 150 olive oil presses all over Palestine. Around forty of these presses are co-operatively owned and managed.
• Consultancy and extension of services to participating farmers by the Agricultural Cooperative Union’s.
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Agricultural Co-ops in the US (1)Agricultural Co-ops in the US (1)
• There are more than 3,000 agricultural co-operatives whose members include a majority of America’s two million farmers and ranchers.
• These co-ops play a vital role in the nation’s food system. Supply of high-quality food, often under nationally recognized brand names.
• Agricultural co-ops represent a multibillion-dollar industry that employs more than 220,000 people.
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Agricultural Co-ops in the USAgricultural Co-ops in the US(2)(2)
• Co-ops increase the marketing capability and production efficiency of agricultural producers, including many small businesses that otherwise would not be able to compete in the global economy.
• Today, the Dairy Farmers of America serves 22,000 dairy producers in 43 states, coast to coast and border to border.
• On January 1, 1998, four major dairy cooperatives from across America's heartland combined to create DFA.
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Agricultural Co-ops in the US(3)
Agricultural co-operatives are involved in several different types of services.
• Marketing co-operatives: - handle, process and market virtually every commodity grown and produced in the United States.
• Bargaining co-operatives help growers to obtain reasonable prices for the commodities they produce.
• Supply co-operatives manufacture, sell, or distribute farm supplies.
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In conclusion
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World Bank Development Report 2008
• Agriculture has special power in reducing poverty
• More and better investiments in Agriculture
• Continuing reforms are still needed
• Agriculture and environment are inseparable
• Capturing the benefits of GMOs for the Poor
• Meeting growing demand for agriculture through innovations in science and technology
• New approaches to input subsidies
• Strengthen governance to support agriculture
• Co-operatives: fighting poverty together
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The Need to Increase ProductivityThe Need to Increase Productivity
• More and better agricultural research.
• Improved rural networks.
• Investments in human resources, markets and institutions.
• Clearly defined property rights to improve natural resource management.
• Better tools for risk management.
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Fair TradeFair Trade
• The emergence of the fair trade concept is the opportunity for co-operative development.
• The co-operative movement and its development partners should use the full potential of fair trade in order to improve the living conditions of small producers and to create income generating activities
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Potentials of Co-operativesPotentials of Co-operatives
• Economic growth can effectively reduce poverty only when accompanied by a comprehensive program for the participatory social development.
• Co-operative System: can be the most effective instrument for an economic development linked to the improvement of standards of life and the change of social structure.