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

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
basis. In Section 4.3 below, greater analysis is provided around the interaction of cooperatives and
small businesses with larger producers in both egg and broiler production.
Within the cooperative structure there are three different forms of cooperatives namely primary,
secondary and tertiary. Individuals are direct members in a primary cooperative, a secondary
cooperative is made up of primary cooperatives and a tertiary cooperative is made up of primary
and secondary cooperatives. Different levels of cooperatives often perform different functions with
primary cooperatives operating mainly in production while secondary cooperatives bring together
other cooperatives and work in value added services.
Only 32% of
cooperatives work
with other
cooperatives in the
area
Based on the business types and the customers served by the
cooperatives surveyed, it is clear that they are mainly primary
cooperatives. There may, however, be opportunity for the
formation of secondary cooperatives in communities where a
number of cooperatives operate. Secondary cooperatives may
provide more market access and enable cooperatives to reach
a greater number of customers/different types of customers.
When asked whether they worked with other cooperatives, 68% of cooperatives responded that
they did not. The benefits of working with other cooperatives include training opportunities,
knowledge sharing, bulk buying, shared resources (such as transport), and the ability to supply larger
quantities. Based on this it is surprising that a greater number of cooperatives do not partner with
other cooperatives. Again, perhaps the presence of a secondary cooperative might assist primary
cooperatives in combining their resources and knowledge.
Approximately 17% of cooperatives reported that their
interactions with other cooperatives are limited to
networking. When asked why they do not work with other
cooperatives, 33% said that they have not considered this as
an option, and 50% stated that there are either no
cooperatives nearby or that the other cooperatives in their
area have failed and are not operational. The location of
many cooperatives is, therefore, a limiting factor in
partnering with other cooperatives.
17% of cooperatives
reported that their
interactions with
other cooperatives is
limited to
networking
Figure 4-12 below illustrates some of the challenges faced in gaining customers and securing
contracts with larger customers. Some 26% of responses indicated a need to improve their
advertising and marketing skills in order to gain more customers. This is partly a reflection of
cooperatives experiencing a lack of customers. Some cooperatives wish to improve their advertising
and marketing skills in order to become more competitive
where there are too many suppliers and not enough
consumers to create demand. This is a similar concern to the
second item in Figure 4-12 below, namely distance from
markets.
Almost all cooperatives
surveyed are Primary
Cooperatives
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