The Role and the Dimension of Agricultural Co-operatives Around the World VII AIEA2 Congress May 28th 2008 - Bologna Ivano Barberini President International.

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

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.

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.

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.

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.

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

KOREA- Co-operative Event with KOREA- Co-operative Event with 100,000 Farmers100,000 Farmers

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.

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.

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%

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

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

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.

Brazil - Agro-Industrial Co-opsBrazil - Agro-Industrial Co-ops

IMCA - Colombia – community co-operative for the fight against poverty and for independence

SOVRANITY – AUTONOMY on SEEDS

NO TO “PATENTING” LIFE

NO TO DEPENDANCE

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

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

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.

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.

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.

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.

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.

In conclusion

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

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.

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

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.