Secondary cooperatives in Nueva Ecija: status, problems and prospects for development

This study assessed the status, problems, and prospects for development of secondary cooperatives in Nueva Ecija taking into account the internal and external environments. Six sample cooperatives were studied : Katipunan ng mga Samahang Magsisibuyas ng Nueva Ecija (KASAMNE), Nueva Ecija Federation of Dairy Carabao Cooperatives (NEFEDCCO), Federation of Patriotic Farmers of Nueva Ecija (PATRIOTIC), Agricultural Secondary Cooperative of Cabanatuan City (ASCCC), Gapan City Secondary Cooperative (GASECO), and San Jose City Federation of Primary Agricultural Cooperatives (SJC-FPAC). The first three federations are operational while the last three are no longer operating. Purposive and stratified sampling methods were used. Both quantitative and qualitative data were gathered and analyzed using descriptive statistics. The federations do not organize their member-coops. The scope of membership of the operating federations is province-wide while the non-operating ones are limited within the city/municipality that assists them. As of 2005, the percentage of non-operating member-primaries of operating and non-operating federations are 97.9 and 27.4 percent, respectively. They lack comprehensive programs designed to strengthen their member-primaries. The common causes of dissolution of both federations and primary coops are ineffectiveness of leaders, mismanagement, and corruption. Each of the operating federations concentrates on one commodity. Low level of knowledge about their federations and low level of satisfaction among the members caused the downfall of the non-operating federations. In contrast, both are high among the member-primaries of the operating federations. Marketing of products is the major problem of the federations. Laws, policies, and programs are sufficient and all government agencies and institutions are legally mandated to provide support and assistance to coops. The available support to coops includes financial, technical, consultancy, infrastructure, training, and marketing among others. However, effective strategy to carrying them out is lacking. The six federations were assisted by the government in the formation and registration stage. Primary coops are generally not yet fully prepared to operate and manage federations given the 'very poor' performance of the three operating federations as per COOP-PESOS criteria and the dissolutions of the three non-operating ones. The non-operating member primaries and the federations have not yet carried out all the purposes as enumerated in the cooperative code. Actual development needs of the secondary coops in the province are not appropriately addressed by various agencies and institutions in providing support and assistance. They have yet to develop effective strategies in their intervention to secondary coops. The recommendations are capability building for LGU coop personnel, federations, and coop development councils; setting up of support system, and more focused coop-development program for the province of Nueva Ecija.