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

More documents

Recommendations

Info

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 55 | 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 stated that the distance from markets is a constraint to gaining customers. This ties in heavily with the strong concerns over lack of transport and transport costs highlighted above. Both of the first two categories relate to gaining sales in the informal market and with a similar customer base to those they are currently serving. Only 13% of responses indicated a desire by cooperatives to attain contracts with larger producers. Insufficient quantities were also mentioned as a constraint; this may also indicate an inability by cooperatives to meet the needs of larger producers. Figure 4-12: Main Challenges in Securing Customers Lacking advertising & marketing 26% Distance from markets 19% Insufficient quantities of production 16% Inability to meet standards for large… 13% Main customer closed None Credit issues Other 6% 6% 6% 6% 0% 5% 10% 15% 20% 25% 30% Source: Urban-Econ Survey, 2013 Several cooperatives mentioned concerns with credit. Examples provided include customers not paying on time or delaying payment, which causes financial constraints for the cooperative. This represents both a lack of customer management and is also indicative of the customer base served by these cooperatives. Figure 4-13 below illustrates the perceptions of cooperatives on supplier challenges. Cost of supplies is highlighted as the biggest problem. This relates to the high cost of feed, which is also mentioned above. Again, the need for cooperatives to re-think their buying practices is highlighted. Yet as is evident above, most cooperatives do not consider the possibility of working with other cooperatives to buy inputs in bulk. 56 | 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
Page 1 and 2:
Research Report: Addressing the Nee
Page 3 and 4:
2013 Research Report: Addressing th
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12: 2013 Research Report: Addressing th
Page 19 and 20: Broilers in Millions 2013 Research
Page 23 and 24: Research Report: Addressing the Nee
Page 61: Research Report: Addressing the Nee
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?