Agricultural cooperatives in south africa pdf

Cooperatives in the agriculture, forestry and fisheries sector 2014. A report on the national agricultural cooperatives indaba. Crewe brown ave, somerset east, 5850, south africa, eastern cape. The strategy this africa cooperative development strategy 2017 2020 presents the way forward for cooperative enterprise development in africa over the next four years. Strategic positioning of south african agriculture in dynamic global markets paper 6. Cooperative values cooperatives are based on the values of selfhelp, self.

Company profile eksteenskuil agricultural cooperative ltd. Agricultural cooperatives are well recognized for their poverty reduction efforts. Agriculture, land reform and rural development south. G f ortmann school of agricultural sciences and agribusiness, university of kwazulunatal, private bag x01. Ten existing secondtier agricultural cooperatives in the zululand district of the province of kwazulu natal took part in the study. Agricultural cooperatives help in the procurement of farm inputs to their members at reasonable costs and are useful in dispensing farm. Jan 16, 2018 the state of coops in south africa has changed drastically since the early 1900s. Frederick wrote this report in 1997 and revised it in 2005. The present study determined factors that affected the proper functioning of smallholder cooperatives in the lepelle nkumpi municipality, limpopo province of south africa.

Cooperatives in south africa and beyond institute for. For instance, while savings and credit cooperatives saccos facilitate their members access to financial capital, agricultural cooperatives help farmers access the inputs required to grow crops and keep livestock, and help them process, transport and market their produce. A new cooperatives act, based on international principles of cooperation, was promulgated in. The recognition of cooperatives as crucial means for poverty alleviation and, therefore, african development has been widely acknowledged. These are cooperatives that are mainly operating in agriculture and are, in the main, controlled by white south africans. A cooperative is a business undertaken by a group of people who work together to achieve their aims.

The south african sa government is promoting the use of cooperatives as. The department of agriculture has published 17 manuals on the running of a cooperative, as. This paper presents the principles of cooperation and briefly describes the history and development of agricultural cooperatives in developed and lessdeveloped countries, with particular emphasis on south africa. Cooperative development occasional discussion paper 97 1 cooperatives and employment in africa by jurgen schwettmann ilo cooperative branch this discussion paper is circulated in a limited number of copies to stimulate discussion and critical. South africa by encouraging those who were disadvantaged. Transforming smallholder agriculture through cooperatives for improving households food security at or tambo district municipality, south africa. A broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives, which provide various services to their individually farming members, and agricultural production cooperatives, where production resources land. Agricultural cooperative optimised the principles of supply chain management groups of farmers form cooperatives to. Top 100 largest agricultural cooperatives rank, name.

Agricultural service cooperatives 32 marketing 33 the costs of marketing 36 keeping marketing costs low 37 determining prices and payments to. Their role in job creation and poverty reduction by kate philip for the south african foundation october 2003. That does not mean that cooperatives are a panacea for workers and the economy as a whole. Cooperatives in south africa their role in job creation and poverty reduction by kate philip for the south african foundation, october 2003. Cooperative, business, finance, structure, tax coops 101. The role of agricultural cooperatives in poverty reduction. The false linkage of agriculture with the cooperative economy has led african states to rely excessively on the cooperative mechanism as the principal tool for rural and agricultural development. Thaba, charles mbohwa proceedings of the world congress on engineering and computer science 2015 vol ii wcecs 2015, october 2123, 2015, san francisco, usa isbn. Guidelines for establishing agricultural cooperatives daff. A new cooperatives act, based on international principles of cooperation, was promulgated in south africa in august 2005. The 1912 land settlement act, 19 and 1936 land acts, cooperatives societies acts of 1922 and 1939 and many more all served to support these coops. Submitted in partial fulfillment of the requirements for the degree. An assessment of the role of cooperatives in smallholder.

In this regard, rural farmers were offered more efficient agricultural and cooperative extension services, more easily and at low costs. The challenges of lack of sustainability of cooperatives. By employing discriminant analysis, data collected from 140 cooperative. A brief introduction to agricultural cooperatives l. The role of cooperatives in sustaining the livelihoods of. For a complete list and further information, contact. Agri sa, a federation of agricultural organisations, was established in 1904 as the south african agricultural union and consists of 9 provincial. May 14, 20 in asia, particularly in india, cooperatives are helping to organize workers in the informal economy. Role of cooperatives in agriculture in africa the githunguri coffee and daily agricultural cooperatives are making lives of many kenyans flourish. In south africa, cooperatives are seen as a means of economic development and likely to increase agricultural production. In tanzania, improved cooperative marketing of agricultural products like milk and coffee has meant that cooperative members can afford fees for education of their children. Land and agricultural development bank of south africa. This is the constitution of a business undertaking formed as a primary agricultural cooperative with limited liability in terms of the provisions of the cooperatives act, 2005 act 14 of 2005. An agricultural cooperative, also known as a farmers coop, is a cooperative where farmers pool their resources in certain areas of activity.

A case study of selected cooperatives in the four local municipalities of vhembe district municipality, limpopo province, south africa. We are a nonprofit organisation that is helping to develop a stable, profitable agricultural environment within this country. Globally, cooperatives provide over 100 million jobs around the world, 20% more than multinational enterprises. In the past, established cooperatives have been heavily supported by the state. Loans must be paid back in full at the end of each season at the latest a year after it was taken up.

The book outlines how cooperatives can be used as a tool for development and reconciliation in postconflict contexts. The cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Role of cooperatives in agriculture in africa development of exportoriented crops through contract farming, promotion of universal membership, and strengthening of legal framework of cooperatives. A manual for trainers food and agriculture organization of the united nations rome, 1998. However, in south africa smallholder farmer cooperatives are yet to significantly contribute towards poverty reduction and food security. The first existed in organized white agriculture where cooperatives were used to develop and build the farming community. Most of its content is standard, however your food coop may wish to change or make additions to the aims and objectives, and other areas. Agri sa is committed to the development of agriculture in south africa.

Some cooperatives have not performed well as the result of poor governance structures, multiple and competing goals, but also problems that arise from insufficient trust between members. Burt t his publication is designed to help you learn more about agricultural cooperatives or to help you think through the process of organizing and operating such a business. Making south africa s agricultural information available on the internet. Cooperatives are a well established economic vehicle in south africa dating back to the early 1900s. The first cooperative in south africa was a cons umers cooperative that was established in 1892 under the comp anies act, as no cooperatives act existed at the time van niekerk, 1988. In africa, trade unions and cooperatives are working together to promote freedom of association and the right to collective bargaining. Pdf analysis of factors affecting proper functioning of. In kenya, cooperatives are responsible for 45% of the gdp and 31% of national savings and deposits. Loan limit depends on the risk profile, assessed by taking into account any. The south african sa government is promoting the use of cooperatives as organizations that could help enhance the development of smallscale farmers and. Address to the national agricultural cooperatives indaba paper 5. Introduction one of the great challenges facing the south african economy is to increase the number and variety of viable and sustainable economic enterprises. It is important that this assessment begins with a brief history of cooperative development on the continent in order to put the discussion in its proper context. Agis went live in 1999 and was officially launched at the world summit on sustainable development in 2002.

Agriculture in south africa contributes around 10% of formal employment, relatively low compared to other parts of africa, as well as providing work for casual laborers and contributing around 2. Broadly one can define five experiences of cooperatives in south africa s history. Find agricultural cooperatives in africa and get directions and maps for local businesses in africa. The role of cooperatives especially in agriculture sector will provide a momentum for the rural development. Possible shocks and stresses to household food security in south africa are likely to. Theoretical and empirical studies on cooperatives lessons for. Background eac is a dynamic primary agricultural cooperative owned by its producer members, created with the primary aim of optimum wealth creation for its members. A very simple definition of a cooperative would be to say it is a business where a group of people get together voluntary to address their common needs. Fostering communitydriven development what role for the state. Of the 836 cooperatives on codas, 306 are found in the province of kwazulunatal, which makes 36% of the total cooperatives. A cooperative is defined as an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise definition by the international cooperative alliance.

The cooperatives also create and maintain employment. Accelerated and shared growth initiative of south africa. Cooperatives in the agriculture, forestry and fisheries sector daff. Members can raise funds for the benefit of their colleagues. List of best agricultural cooperatives in africa of 2020. Department of agricultural economics, extension and rural development. The report indicates that there are 836 agricultural cooperatives on the cooperative data analysis system. This, as will be noticed in the report, may be attributed to a number of factors. While the focus is on creating a new cooperative, many of the ideas may be of interest to those thinking. An assessment of the role of cooperatives in smallholder dairy production and marketing in swaziland by nonjabuliso simelane submitted in partial fulfilment of the requirements for the degree of msc agric in the department of agricultural economics, extension and rural development faculty of natural and agricultural sciences. The nature, role and status of cooperatives in south. Section 2 further shows that with the withdrawal of government subsidies, most of the agricultural cooperatives have either converted into companies or dissolved altogether. Similarly, consumer cooperatives make it possible for their.

As a development finance institution, its mandate is to address agricultural and rural development in south africa. The gtp foresees a central role for agricultural co. Agricultural production loan shortterm loan that enables the farmer to pay for agricultural inputs. Initially white agricultural coops received support from the state, both legislative and financial. Can they facilitate access of smallscale farmers in south africa to input and product markets. Top 100 largest agricultural cooperatives rank, name, type, total business volume and total assets, 2014 and 20. Evaluation of cooperatives as a developmental vehicle to support job creation and sme development in the waste sector this research report was prepared under the research funding programme, research and policy development to advance a green economy in south africa by. The nature, role and status of cooperatives in south african. Burt t his publication is designed to help you learn more about agricultural cooperatives or to help you think through the process of organizing and operating. Through vitalizing input and output markets, agricultural co. Whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a. Greenhouse tunnel erection and repair, supplier of fertilizers and seeds.

Annual report on the status of agricultural cooperatives 201011. Business and institutional development, pbag x250, pretoria 0001. The nature, role and status of cooperatives in south african context sebonkile c. Wanyama, school of development and strategic studies, maseno university, kenya. South african sa agriculture is of a dual nature, with a welldeveloped. Agricultural cooperatives in africa report on the mapping data of cdos and their projects project team. Notwithstanding the fact that cooperatives play a significant role in the countrys economic growth, job creation and poverty reduction. The land and agricultural development bank of south africa operates in the primary agriculture and agribusiness sectors. The department of agriculture has published 17 manuals on the running of a cooperative, as part of their programme to promote agribusinesses. This book also examines the successes and challenges for emerging and existing cooperatives in africa, while delivering both practical lessons and insights into the theory. All cooperatives need to be registered with the registrar of cooperatives. The technical support services circa 1910 consisted of a number of specialist services that each focused on the services of its branch with no central coordination. Dubell further asserts that with the establishment of rural cooperatives, most governments in africa were able to introduce new farming and marketing techniques to the rural farmers.

The act provides for the registration of the following forms of cooperatives. For instance, in agricultural marketing, cooperatives were made the sole agents of state marketing boards responsible for processing and marketing export crops like coffee. Compiled by directorate agricultural information services, department of agriculture in cooperation with the cooperatives unit of cipro printed and published by department of agriculture otainable from resource centre, directorate agricultural information services private bag x144, pretoria 0001, south africa. Magister institutionis agrariae agricultural economics in the. They have 70% of the coffee market, 76% dairy, 90% pyrethrum, and 95% of cotton.

During this epoch, huge state subsidies were provided to white agricultural cooperatives, which controlled and dominated the agricultural sector in south africa, while blackcontrolled co. And what is the potential role of coops in job creation and poverty reduction. Since eac was founded from the old eksteenskuil farmers association in 2006, we have created a strong and well managed organisation that serves as a focal point for our farmers. What will south africas new cooperatives act do for small. The national vision on the development of coop small holder farmers in south africa paper 4. Department of trade and industry a cooperative development policy for south africa 4 1. Twalo 2012 argued that the cooperatives potential success in south africa has been compromised because of how they are organised due to their. Agriculture, forestry and fisheries republic of south africa a report on the national agricultural cooperatives indaba towards the creation of a model to enable smallholder farmers to play a critical role in the establishment of sustainable cooperative enterprises march 2012. Cecilia navarra, barbara franchini, federica tolotti euricse, paul hazen, emile g.

The ability of agricultural cooperatives to improve the welfare of smallholder farmers in africa is mixed and contextual. Annual report on the status of agricultural cooperatives. Agriculture, forestry and fisheries republic of south africa. Cooperative regions of organic producer pools cropp. International cooperative research group, a division of the us overseas cooperative development council ocdc.