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 Cooperatives also perceive their skills in managing employees/staff issues as relatively high. A total of 79% of respondents rated these skills as very good or good. This may indicate that amongst these cooperatives there is not a high level of conflict among members. It could also be the result of the low numbers of staff. With most cooperatives having only one or two staff members, if any, there is not a lot of potential for staff issues. Also, with so few staff members it is easy for staff to communicate with cooperative members. Table 4-3: Cooperatives’ Skills Ratings Managing the cooperative Managing employees/ staff issues Very poor Poor Average Good Very good Total 11% 11% 21% 43% 14% 100% 0% 4% 18% 61% 18% 100% Book keeping/budgeting 18% 25% 21% 29% 7% 100% Managing credit 11% 32% 21% 26% 11% 100% Marketing the cooperatives products/services Applying for tenders 7% 25% 21% 43% 4% 100% 84% 5% 0% 11% 0% 100% Computer literacy 43% 25% 11% 21% 0% 100% Managing the suppliers Technical skills related to the cooperative’s product/service Managing customers Negotiating discounts for bulk buying 0% 7% 11% 63% 19% 100% 0% 21% 18% 36% 25% 100% 4% 0% 18% 61% 18% 100% 22% 4% 15% 48% 11% 100% Product pricing 11% 7% 11% 64% 7% 100% Source: Urban-Econ Survey, 2013 The table above (4-3) provides insight into how cooperatives rate their own skills. Varying levels of knowledge understanding can be attained as skills develop. A cognitive barrier which makes a person believe that they understand something to a greater degree than is the case in reality is called an illusion of explanatory depth. In the above Table there may be a problem that many cooperatives are under the influence of the illusion of explanatory depth. This would result in them rating themselves more highly in skills than they are in reality. For example, 63% of cooperatives reported that they were ‘good’ at managing suppliers. However, the majority of cooperatives reported being constrained by high feed costs and 47 | 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 yet did not request assistance in bargaining for discounts on inputs. This illustrates that the table above should be understood within the context of the perspectives of cooperatives as a whole in relation to the rest of their responses. Financial management was highlighted above as one of the key concerns for cooperatives. It therefore follows that cooperatives would prefer more training in this area. Figure 4-9 below illustrates which skills cooperatives would like to obtain for their members. Financial management is indicated as the area that most cooperatives mentioned wanting further training. Cooperative managers who have not received proper business training are unlikely to understand the need for project management skills and marketing skills despite challenges in managing members and in obtaining new customers In Table 4-3, above, technical skills were rated relatively highly. Based on this it is surprising that 24% of responses indicated a desire to improve their technical skills. A total of 14 cooperatives provided this as a response, equating to 50% of cooperatives believing that their cooperative could benefit from more training in technical skills. Therefore, although cooperatives are competent in their technical skills at present, they are aware of the benefits of learning more in this area. More cooperatives rated their skills as ‘very good’ in technical skills than any other skill category Similarly, cooperatives see the benefit of financial management and would like to gain more competence in this skill. However, cooperatives do not necessarily consider management, marketing and other skills as a necessity and therefore do not value these skills accordingly. Some 16% of responses on a question regarding the challenges faced by cooperatives indicate that the cooperatives struggle in managing members and 12% that they struggle with marketing skills. Cooperatives who have not received sufficient business training are unlikely to understand the need for project management skills and marketing skills, despite challenges in managing members and in obtaining new customers. 48 | 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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