MAY 2018
The May 2018 edition of Co-op News: connecting, challenging and championing the global co-operative movement. This issue shines a spotlight on governance – and how co-operatives do it differently. We also look at co-ops on the agenda in Westminster, sustainability supporting and preview some of the motions being put to the vote at the Co-op Group AGM.
The May 2018 edition of Co-op News: connecting, challenging and championing the global co-operative movement. This issue shines a spotlight on governance – and how co-operatives do it differently. We also look at co-ops on the agenda in Westminster, sustainability supporting and preview some of the motions being put to the vote at the Co-op Group AGM.
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GLOBAL<br />
What is the state of agri<br />
co-op sectors across<br />
the world?<br />
The executive committee of the<br />
International Co-operative Agricultural<br />
Organisation met in Turkey in April to<br />
discuss new developments in the sector.<br />
This included continued growth in<br />
India’s dairy sector, which is set to reach<br />
to Rs 9.4tn (US$145.7bn) by 2020. The<br />
country accounts for 19% of the world’s<br />
milk production. Other sectors are<br />
also growing, and the government has<br />
invested of Rs 50,000 crore (US$7.7bn) to<br />
develop permanent irrigation solutions<br />
for drought, and a mentorship programme<br />
for agri start-ups.<br />
From Malaysia, Dato’ HJ. Kamarudin<br />
Bin HJ. Ismail, vice president of ANGKASA,<br />
introduced the federation’s long-term<br />
plan. Oil palms account for 74% of the<br />
country’s agricultural crop, followed<br />
by rubber (14.63%), coconut (1.2%) and<br />
cocoa (0.22%). Agriculture is the thirdlargest<br />
export income for Malaysia, with<br />
palm oil and rubber making up 8% of the<br />
total export income.<br />
The government is considering<br />
expanding its biofuel B5 programme<br />
increasing the mix of 5% of palm<br />
methylester into petroleum diesel to 10%.<br />
In Turkey, 172 new co-ops<br />
related to agriculture were formed<br />
last year. The country is home to<br />
13,315 agricultural co-ops with<br />
4 million members. Agricultural sales coops<br />
are an important part of the sector,<br />
with 447 active co-ops operating in 2017.<br />
These purchase 38.8% of the oil sunflower<br />
produced in the country, 16.8% of the<br />
dry grape production, 10.5% of the mass<br />
cotton production, 9.2% of the olive<br />
production, 7.5% of the fig production and<br />
9.2% of olive oil production is purchased.<br />
A new action plan is being drawn up to<br />
increase the sector’s visibility.<br />
From Japan, Hironori Hijioka, executive<br />
director of agri-co-op umbrella body<br />
JA-Zenchu, told how the organisation,<br />
is working to engage more with its<br />
member co-ops. Around 36.8% of the<br />
Japanese primary agricultural co-ops<br />
have placed a stronger emphasis on<br />
farm guidance, sales and purchases. The<br />
organisation will continue to focus on<br />
training employees to facilitate member<br />
enrolment, prepare materials to let<br />
members know about the role of primary<br />
agricultural co-ops, and increase door-todoor<br />
visits.<br />
Mieczysław Grodzki and Adam<br />
Piechowski of the National Cooperative<br />
Council of Poland said the number<br />
of agricultural co-ops in their country<br />
had fallen from 2,873 in 2016 to 2,814<br />
in <strong>2018</strong>. During past year the council<br />
has worked with parliament on a bill<br />
which would grant farmers exemption<br />
from property tax and corporate income<br />
tax. The council is also working to help<br />
reduce some of the regulatory burdens<br />
related to setting up co-operative<br />
producers’ groups as well as accessing<br />
grants from EU funds.<br />
In Brazil, agri co-ops started a campaign<br />
called “We are co-op”, to highlight the<br />
co-operative enterprise model. The<br />
national co-operative federation, OCB,<br />
also launched a Catalogue of Export<br />
Co-operatives, listing Brazilian co-ops<br />
engaged in international trade.<br />
Ivan Asiimwe, CEO of Uganda<br />
Cooperatives Alliance, presented<br />
a regional report from Ethiopia,<br />
Madagascar, Morocco, Malawi, Zambia,<br />
Uganda and Kenya.<br />
In Ethiopia the movement hosted the<br />
fifth National Co-operative Exhibition<br />
on 8-9 February, bringing together<br />
representatives from Uganda’s co-op<br />
movement in an exchange of experience.<br />
In Madagascar, the USA’s National<br />
Co-operative Business Association (NCBA<br />
CLUSA) has facilitated training for 841<br />
vanilla farmers.<br />
Morocco and Malawi are also<br />
strengthening agricultural co-operation<br />
via a formal agreement, with the later<br />
looking to learn from the former’s<br />
irrigation systems and technology.<br />
Co-ops in Africa are expected to<br />
benefit from a partnership between<br />
African Guarantee Fund for Small and<br />
Medium-sized Enterprises (AGF) and<br />
social investor Oikocredit, which will<br />
allocate US $10m to finance agriculture<br />
and renewable energy SMEs and co-ops<br />
serving low-income populations in sub-<br />
Saharan Africa.<br />
In Zambia, women launched Zambia<br />
Women in Agriculture Cooperative<br />
Society, which deal in fresh fruit and<br />
vegetables.<br />
In Kenya, dairy co-operatives are<br />
playing a key role in reducing the cost of<br />
milk marketing and enabling farmers to<br />
achieve higher returns.<br />
The Food and Agriculture Organization<br />
(FAO) of the UN is scaling up its work with<br />
AgriCord, a global alliance, with a new<br />
five-year agreement to help farmers gain<br />
access to markets and adapt to extreme<br />
weather conditions.<br />
20 | <strong>MAY</strong> <strong>2018</strong>