Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

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Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries segments: survivalists, micro and small to medium cooperatives. The vision of the strategy is to be consistent with that of the Cooperative Development Policy (2004) which states: “To move towards a growing, self-sustainable and integrated cooperative sector, supported by all stakeholders, contributing to economic growth, poverty reduction and employment creation, as well as assisting in bringing about economic transformation and an equitable society in South Africa.” (Department of Trade and Industry [the dti], 2010:10) The following objectives have been identified in the strategy, which are aligned with the Cooperative Development Policy (2004): grow all forms and types of cooperatives promote cooperatives as a vehicle to assist in creating decent employment and reducing poverty through income-generating activities support cooperatives in developing their human resource capacities and understanding of cooperative principles and values strengthen cooperative sustainability increase savings and investment foster co-operation among cooperatives raise the profile of cooperatives as a dynamic and effective business organisation that can be utilised by individuals and communities raise the profile of cooperatives as an institution that allows the agglomeration of smallscale economic activities into massive activities aggressively promote closed cooperatives promote cooperatives as an effective vehicle that contributes to the development of rural and peri-urban areas of the economy In addition, the strategy also identified four strategic pillars that address the support instruments for cooperatives. Each strategic pillar consists of support programmes designed to respond to the various market segments and to address the challenges that cooperatives are faced with. The four strategic pillars are as follows: to increase the supply of non-financial support services to cooperatives to create demand for cooperative products and services to improve the sustainability of cooperatives to increase financial support services to cooperatives Implications for SEDA and Poultry Cooperatives: although this strategy is primarily focused on the development and promotion of cooperatives, attention is given to other aspects such as financing, creating demand, and the improvement of sustainability. New and existing cooperatives of all sizes are included as part of this strategy and special attention will be given to the sustainability of cooperatives. 31 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries 3.3.3. Regulations for Cooperatives, 2008 The Department of Trade and Industry (the dti) compiled a user guide for the Regulations for Cooperatives under the Cooperatives Act, 2005. This user guide contains the definitions related to cooperatives; values of a cooperatives; registration process of the cooperatives; rules/regulations for cooperatives; etc. The most important aspect of the user guide is the regulations/ rules that are defined for the cooperatives. The regulations summarised in the Cooperatives User Guide 2008, identify a number of rules surrounding aspects such as registration, constitution, formation of cooperatives, documentation, management/directorship, membership, meetings, financial aspects, shares, loans and de-registration. Implications for SEDA and Poultry Cooperatives: the 37 rules listed within the Regulations for Cooperatives User Guide 2008, assist cooperatives in starting the business, registering and operating the cooperative. The rules and regulations are very important for any cooperative, especially when it comes to the application process of the grants and identification of entities eligible for these grants. It is very important that cooperatives in the poultry industry integrate these rules (as listed below) into the application process of the cooperative. The rules pertaining to the annual auditing and record keeping of these financial statements are very important to SEDA in terms of monitoring and evaluation of the cooperatives. The records on financial statements, which include the annual income, expenditures, profits etc. of the cooperatives, are of great importance for SEDA to determine whether these cooperatives have been successful or not in the past financial year. Flowing from the national policies and legislation, the provincial policies are discussed in the next sub-section. 3.4. Provincial Policy The provincial cooperative development strategies were formed from the national cooperative strategies listed above. These provincial policies form the basis for the establishment of a legislative framework, while simultaneously facilitating the provision of support programmes that target cooperatives specifically and within each province. In addition, the provincial policies also highlight the important role of cooperatives in formalising the informal economy and increasing the participation of previously disadvantaged groups. A number of cooperative development strategies could be found and analysed for Gauteng, Eastern Cape, Western Cape, Limpopo and KwaZulu Natal, and are listed in Table 3-1 below. The relevant implications for these policies on the establishment of cooperatives are also provided. Table 3-1: Cooperative Development Strategies per Province PROVINCE DEPARTMENT DOCUMENT IMPLICATIONS Gauteng Gauteng Department of Economic Development Gauteng Cooperatives and Implementation Strategy The provincial strategies and documentation 32 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s
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