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 who have these documents available (refer Table 4-2). This may illustrate one of two things; either that many cooperatives do not update and refer back to documents other than the business plan, or that business plans are sometimes created without support, while other documents are generally created when support is provided. The figure below shows the organisations that provided support, as a percentage of total responses. Due to the sources used to compile the database, it is not surprising that SEDA is prominent on this list, with 51% of documentation assistance being provided by SEDA. Figure 4-8: Organisations Providing Support with Business Documentation 60% 50% 51% 40% 30% 27% 20% 15% 10% 7% 0% SEDA NDA DTI CIS Other Source: Urban-Econ Survey, 2013 The National Department of Agriculture (NDA) also provided a large proportion of support to cooperatives with the creation of business documentation. The NDA assisted primarily with training programmes and business plans, while SEDA and the DTI CIS provided help across all four of the categories. 4.1.2.2. Membership and Management The information in the preceding sub-section indicates the level of business preparation and factors important in the initial phases of the cooperative. The current sub-section contains information on the membership numbers of the cooperatives, how the cooperatives rate the business skills within their business and where they perceive more skills to be required. Cooperative participation indicates the number of people that the particular business is serving. Indicative in this is the level of full-time participation in the cooperative. Results of the survey indicated that the majority of members also work in the cooperative. Only 7% of 61% of the cooperatives had full-time participation from all of their members 45 | 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 cooperatives surveyed had 25% or less of their members working in the cooperative, while 61% had full-time participation from all of their members. The average cooperative comprises of six members. However, larger cooperatives push this average up; almost half of cooperatives have five members. Very few cooperative have additional nonmembers employed at the cooperative. Almost 60% of cooperatives do not hire any additional people to assist within the business. Where cooperatives do employ additional staff, they generally hire two additional people. This indicates that very few of the cooperatives surveyed are expanding enough to justify additional people and also that very few cooperatives are successful enough to require additional labour. One of the benefits of a cooperative is the ability to bring together the skills of a number of people. In order to understand where skills are lacking within the cooperative, questions were asked around the skills set of the collective group. The table below (Table 4-3) illustrates the percentage of responses within each skill category. For example, 43% of cooperatives stated that the cooperative’s management skills were ‘good’. The blocks highlighted in the table below represent the highest voting within each category. The majority of cooperatives placed a fairly high rating on their skills overall, with ‘good’ being the most voted category, with nine of the highest ratings being in this group. Cooperatives rated their skills lowest in computer literacy and applying for tenders Cooperatives rated themselves the lowest in applying for tenders and computer literacy, with the majority of respondents rating their skills in this category as ‘very poor’. Book keeping/budgeting had fairly even responses across the skills spectrum. Although 29% rated their bookkeeping skills as ‘good’, this was closely followed by the categories of ‘average’ and ‘poor’ with 21% and 25% respectively. Taken together this demonstrates that 64% of responses rated bookkeeping skills as average or below average. This is further supported by the fact that 32% of cooperatives reported financial management as their biggest concern in the management of their cooperative. The ability of managing the products and services of a cooperative received a relatively even number of responses across the skill rating, with a slightly higher number of people responding that their skills in this category are good. Negotiating discounts for bulk buying is a skill that had a lot of divergence across the categories. Some 48% of cooperatives rated their skills in bulk buying as good, while 22% rated their skills in this area as very poor. This may indicate that there is a large amount of variance in the ways in which cooperatives buy feed, with some of them simply buying from the nearest supplier while others make an effort to find cheaper suppliers and bargain for discounts. 32% of cooperatives reported financial management as their biggest concern in the management of their cooperative 46 | 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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