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

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Research Report: Address<strong>in</strong>g <strong>the</strong> Needs, Opportunities and Challenges <strong>of</strong> <strong>Cooperatives</strong><br />

and Collectively Owned Enterprises <strong>in</strong> <strong>the</strong> <strong>Poultry</strong> and Related Industries<br />

Figure 4-19: Reasons why cooperatives view <strong>the</strong>ir bus<strong>in</strong>ess as unsuccessful<br />

8%<br />

31%<br />

62%<br />

Infrastructural deficiencies<br />

Operational deficiencies<br />

Pr<strong>of</strong>its decl<strong>in</strong><strong>in</strong>g<br />

Source: Urban-Econ Survey, 2013<br />

The operational deficiencies category <strong>in</strong>cludes; lack <strong>of</strong> skills and lack <strong>of</strong> access to a large enough<br />

market. The majority <strong>of</strong> cooperatives who view <strong>the</strong>ir bus<strong>in</strong>ess as unsuccessful, however, attribute<br />

this to a need for equipment and <strong>in</strong>frastructure, as has been highlighted <strong>in</strong> Figure 4-19 above.<br />

When asked whe<strong>the</strong>r or not cooperatives expect <strong>the</strong>ir bus<strong>in</strong>ess<br />

to grow <strong>in</strong> <strong>the</strong> next year, a variety <strong>of</strong> responses were received.<br />

Overall, cooperatives are positive about <strong>the</strong>ir growth prospects.<br />

Approximately 92% <strong>of</strong> cooperatives believe that <strong>the</strong>ir bus<strong>in</strong>ess<br />

will grow <strong>in</strong> <strong>the</strong> next year.<br />

92% <strong>of</strong> cooperatives<br />

believe that <strong>the</strong>ir bus<strong>in</strong>ess<br />

will grow <strong>in</strong> <strong>the</strong> next year<br />

However, <strong>the</strong> reasons for this response are based largely <strong>in</strong> attitude towards <strong>the</strong>ir bus<strong>in</strong>ess and not<br />

based on bus<strong>in</strong>ess statistics. For example; 42% <strong>in</strong>dicate that <strong>the</strong>ir bus<strong>in</strong>ess would grow because <strong>the</strong>y<br />

work hard. Ano<strong>the</strong>r 25% said that <strong>the</strong> bus<strong>in</strong>ess would grow if f<strong>in</strong>ancial assistance was provided. The<br />

rema<strong>in</strong><strong>in</strong>g third <strong>of</strong> cooperatives provided some bus<strong>in</strong>ess reason<strong>in</strong>g with some respond<strong>in</strong>g that <strong>the</strong>y<br />

have improved <strong>the</strong>ir stock management, that sales have <strong>in</strong>creased or that <strong>the</strong> cooperative is<br />

diversify<strong>in</strong>g.<br />

This sub-section has provided <strong>in</strong>formation both on what forms <strong>of</strong> support have been received, as<br />

well as what forms <strong>of</strong> support cooperatives would like to receive. <strong>Cooperatives</strong> provided similar<br />

responses regard<strong>in</strong>g <strong>the</strong> support that <strong>the</strong>y would prefer <strong>in</strong> <strong>the</strong>ir present stage to <strong>the</strong> support <strong>the</strong>y<br />

would have preferred to receive at <strong>the</strong> <strong>in</strong>ception stage. This illustrates that many <strong>of</strong> <strong>the</strong>se<br />

cooperatives have not been able to resolve <strong>the</strong> need for equipment or f<strong>in</strong>ancial management on<br />

<strong>the</strong>ir own. This is <strong>in</strong> spite <strong>of</strong> a number <strong>of</strong> <strong>the</strong>se cooperatives receiv<strong>in</strong>g support <strong>in</strong> both <strong>of</strong> <strong>the</strong>se areas.<br />

Despite support received, many cooperatives state that although it has been helpful, more support<br />

is still needed. While this represents a challenge for cooperatives, it also <strong>in</strong>dicates a lack <strong>of</strong> <strong>in</strong>itiative<br />

<strong>in</strong> atta<strong>in</strong><strong>in</strong>g resources for <strong>the</strong>mselves.<br />

64 | 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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