CAGAYAN DE ORO CITY (PIA) — The Cooperative Development Authority (CDA)-10 underscored the crucial role of cooperatives in fostering rural development and empowering marginalized communities.
“Cooperativism may not be the best way, but it is the only way towards countryside development,” CDA-10 Regional Director Aminoden A. Elias said, referring to a slogan used by a banking firm to stress the importance of cooperatives in rural development.
During the December 3 episode of Kapihan sa Bagong Pilipinas, Elias explained the numerous benefits cooperatives offer their members and how it helps address the challenges faced by individual farmers and rural workers.
“Kung ikaw lang magtatanim tapos mag-aani at ibebenta mo, baka yung kita mo dyan ay kulang pa sa transportation, harvesting expenses, and all other costs. But if you form yourselves into a cooperative, nandiyan yung sinasabing ‘economy of scale’—yung bayanihan na tinatawag noon,” he said.
(If you are the only one planting, harvesting, and selling, your earnings might not even cover transportation, harvesting expenses, and all other costs. But if you form yourselves into a cooperative, that’s where the so-called ‘economy of scale’ comes in—the ‘bayanihan’ (community spirit) that was practiced before.)
Through the collective strength of cooperatives, rural workers can access resources and benefits that would otherwise be out of reach. According to Elias, members can share labor, enabling a group of 30 people to harvest or plant a hectare of rice in just half a day—an impossible feat for an individual farmer who might struggle for a month to complete the same task manually.
Elias also highlighted the financial advantages of being part of a cooperative. He explained that while it may be difficult for individual farmers to manage their costs alone, forming a cooperative allows members to share costs and access bulk discounts on agricultural inputs.
Moreover, cooperatives can enter into agreements with institutional buyers and negotiate for better prices. Elias emphasized that this “power of numbers” allows rural producers to access markets they might not otherwise be able to reach and secure fairer prices for their products.
Sharing the Benefits
Cooperatives also implement the concept of patronage refunds or dividends, where profits are distributed to members based on their participation. This ensures that the cooperative’s success directly benefits those who contribute.
“Kung miyembro ka ng cooperative, doon ka uutang sa cooperative and at the end of the year, yung kinita ng cooperative doon sa mga inutang ng kanyang mga member ay babalik sa mga member in the form of patronage refund or dividend,” Elias further stated.
(If you are a cooperative member, you can borrow funds and receive a year-end patronage refund or dividend from the profits earned on these loans.)
Human-centered Approach
Elias emphasized that the cooperative movement embodies a community concern that no other business model can match. This human-centered approach, he said, makes cooperatives a powerful tool for inclusive growth, particularly in rural areas.
“Maraming benefits ang cooperative, meron mga providential services. Halimbawa, pwede kang mag-access ng emergency loan or educational loan for your children to pay for the enrolment or tuition fees na free of interest,” he added.
(Cooperatives offer many benefits, including providential services. For example, you can access educational or emergency loans to pay for your children’s enrollment or tuition fees, with no interest.)
Elias pointed out that the concept “human side of the enterprise” is central to cooperatives, stressing that in times of emergency, the cooperative is a community support system, always ready to assist its members. (APB/PIA-10)
