Chapter 1-3

Question 1

What is the purpose of cooperative marketing societies?

Answer 1

To eliminate middlemen from marketing activities and provide better prices for agricultural producers.

Example: Cooperative marketing societies distribute profits among members based on the quantity of produce marketed.

Question 2

What are some common issues faced by the marketing system of agricultural commodities in the Philippines?

Answer 2

Low prices received by farmers, multiple layers of market intermediaries, and limited access to profitable markets.

These issues are becoming more challenging as the Philippines approaches the ASEAN economic integration.

Question 3

Who were two key figures in the history of cooperatives in the Philippines?

Answer 3

Dr. Jose P. Rizal and Teodoro Sandiko.

Rizal established La Sociedad de los Abacaleros, while Sandiko was impressed by the Raiffeisen movement in Germany.

Question 4

What was the principal aim of the Rural Credit Law introduced by Teodoro Sandiko?

Answer 4

To protect and develop the agricultural interest of the country.

The bill patterned after the Raiffeisen type of credit union aimed to support Filipino agricultural interests.

Question 5

What was the principal aim of the bill sponsored by Barreto in the Lower House of Congress?

Answer 5

To protect and develop the agricultural interest of the country.

Example sentence: The bill aimed to provide financial assistance to farmers for productive purposes.

Question 6

When was the bill sponsored by Barreto approved?

Answer 6

January 20, 1908.

No additional information.

Question 7

When did the bill become Act 2508?

Answer 7

February 11, 1914.

No additional information.

Question 8

What was the title earned by Gov. Sandiko when Act 2508 was made into law?

Answer 8

Father of Cooperation in this country.

No additional information.

Question 9

When was the first rural credit association organized under the Rural Credit Law?

Answer 9

October 18, 1916.

No additional information.

Question 10

When was the Cooperative Marketing Law (Act 2425) enacted and approved?

Answer 10

December 9, 1927.

No additional information.

Question 11

When was Republic Act 821 enacted by the Philippine Congress?

Answer 11

No additional information.

Question 12

What is the administrative agency created by Republic Act 821?

Answer 12

Agricultural Credit and Cooperative Financing Administration (ACCFA).

No additional information.

Question 13

What are the four general and interrelated objectives of Republic Act 821?

Answer 13

To assist small farmers in securing liberal credit.
To promote the effective groupings of farmers into cooperative associations.
To establish an orderly and systematic marketing machinery for, and controlled by, the small farmers.
To place agriculture on a basis of economic equality with other industries.

No additional information.

Question 14

What are the types and categories of cooperatives in the Philippines according to the Republic Act 9250?

Answer 14

Credit Cooperative, Consumers Cooperative, Producers Cooperative, Marketing Cooperative, Service Cooperative, Multipurpose Cooperative, Advocacy Cooperative, Agrarian Reform Cooperative, Cooperative Bank, Dairy Cooperative, Education Cooperative.

No additional information.

Question 15

What is a Cooperative Bank?

Answer 15

One organized for the primary purpose of providing a wide range of financial services to cooperatives and their members.

Example: ABC Cooperative Bank provides loans and financial services to local cooperatives.

Question 16

What is a Dairy Cooperative?

Answer 16

One whose members are engaged in the production of fresh milk, which may be processed and/or marketed as dairy products.

Example: XYZ Dairy Cooperative processes milk into cheese and yogurt for sale.

Question 17

What is an Education Cooperative?

Answer 17

One organized for the primary purpose of owning and operating licensed educational institutions.

Example: DEF Education Cooperative manages a chain of schools in the region.

Question 18

What is an Electric Cooperative?

Answer 18

One organized for the primary purpose of undertaking power generation and distribution.

Example: LMN Electric Cooperative produces electricity using renewable energy sources.

Question 19

What is a Financial Service Cooperative?

Answer 19

One organized for the primary purpose of engaging in savings and credit services.

Example: GHI Financial Service Cooperative offers savings accounts and loans to members.

Question 20

What is a Fishermen Cooperative?

Answer 20

One organized by marginalized fishermen in localities for marketing fish products.

Example: PQR Fishermen Cooperative sells freshly caught fish to local markets.

Question 21

What is a Health Services Cooperative?

Answer 21

One organized for the primary purpose of providing medical, dental, and other health services.

Example: JKL Health Services Cooperative operates clinics and healthcare facilities in the community.

Question 22

What is a Housing Cooperative?

Answer 22

One organized to assist or provide access to housing for its members.

Example: UVW Housing Cooperative helps members save for and purchase homes.

Question 23

What is an Insurance Cooperative?

Answer 23

One engaged in insuring life and property of cooperatives and their members.

Example: RST Insurance Cooperative provides insurance coverage to local cooperatives.

Question 24

What is a Transport Cooperative?

Answer 24

One that includes land and sea transportation services.

Example: MNO Transport Cooperative operates buses and boats for public transportation.

Question 25

What is a Water Service Cooperative?

Answer 25

One organized to own, operate, and manage water systems for its members.

Example: WXY Water Service Cooperative supplies clean drinking water to households in the area.

Question 26

What is a Workers Cooperative?

Answer 26

One organized by workers who are also members and owners of the enterprise.

Example: OPQ Workers Cooperative empowers employees to own and manage the business.

Question 27

Open and Voluntary Membership

Answer 27

Membership in a cooperative is open to all persons who can reasonably use its services and stand willing to accept the responsibilities of membership, regardless of race, religion, gender, or economic circumstances.

Example: Any person who can use the services of a cooperative can become a member.

Question 28

Democratic Member Control

Answer 28

Cooperatives are democratic organizations controlled by their members, who actively participate in setting policies and making decisions. Elected representatives (directors/trustees) are elected from among the membership and are accountable to the membership. In primary cooperatives, members have equal voting rights (one member, one vote); cooperatives at other levels are organized in a democratic manner.

Example: Members have the power to vote for directors and set policies.

Question 29

Members’ Economic Participation

Answer 29

Members contribute equitably to, and democratically control, the capital of their cooperative. At least part of that capital remains the common property of the cooperative. Members allocate surpluses for any or all of the following purposes: developing the cooperative; setting up reserves; benefiting members in proportion to their transactions with the cooperative; and supporting other activities approved by the membership.

Example: Members have a say in how the cooperative’s capital is utilized.

Question 30

Autonomy and Independence

Answer 30

Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control as well as their unique identity.

Example: Cooperatives maintain their independence while collaborating with other entities.

Question 31

Education, Training, and Information

Answer 31

Education and training for members, elected representatives (directors/trustees), CEOs, and employees help them effectively contribute to the development of their cooperatives. Communications about the nature and benefits of cooperatives, particularly with the general public and opinion leaders, helps boost cooperative understanding.

Example: Training programs are essential for members to understand cooperative principles.

Question 32

Cooperation Among Cooperatives

Answer 32

By working together through local, national, regional, and international structures, cooperatives improve services, bolster local economies, and deal more effectively with social and community needs.

Example: Cooperatives collaborate to enhance their impact on communities.

Question 33

Concern for Community

Answer 33

Cooperatives work for the sustainable development of their communities through policies supported by the membership.

Example: Cooperatives prioritize community well-being in their operations.

Question 34

Cooperative Development Authority (CDA)

Answer 34

The CDA was created under Republic Act 6939 otherwise known as “an act creating the cooperative development authority to promote the viability and growth of cooperatives as instruments of equity, social justice and economic development, defining its powers, functions and responsibilities, rationalizing government policies and agencies with cooperative functions, supporting cooperative development, transferring the registration and regulation functions of existing government agencies on cooperatives as such and consolidating the same with the authority, appropriating funds therefor, and for other purposes.”

Example: The CDA is responsible for supporting cooperative development in the country.

Question 35

Cooperative Marketing Meaning and Definitions

Answer 35

A cooperative sales association is a voluntary business organisation established by its member patrons to market farm products collectively for their direct benefit. It is governed by democratic principles and savings are apportioned to the members on the basis of their patronage.

Example: Cooperative marketing organizations benefit member producers directly.

Question 36

What is the main characteristic of cooperative marketing societies?

Answer 36

The control of the organization is in the hands of the producers and each member has one vote irrespective of the number of shares purchased by him.

Question 37

What is the purpose of cooperative marketing societies?

Answer 37

They are established for the purpose of collectively marketing the products of the member producers.

Question 38

What distinguishes cooperative marketing societies from other associations?

Answer 38

Their economic motives and character distinguish them from other associations.

Question 39

When was the Cooperative Marketing Law enacted in the Philippines?

Answer 39

The Cooperative Marketing Law (Act 2425) was enacted and approved on December 9, 1927.

Question 40

What is the declared policy of the State regarding cooperatives in the Philippines?

Answer 40

It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards economic development and social justice.

Question 41

What is the first reason for the importance of cooperative marketing?

Answer 41

To eliminate malpractices in the system of rural marketing.

Question 42

What is the second reason for the importance of cooperative marketing?

Answer 42

To establish appropriate reward for the efforts of middlemen involved in marketing.

Question 43

What is the third reason for the importance of cooperative marketing?

Answer 43

As a concomitant of an integrated program with cooperative credit.

Question 44

What is the fourth reason for the importance of cooperative marketing?

Answer 44

To stabilize agricultural prices and prevent undesirable fluctuations.

Question 45

What are the main functions of Co-operative Marketing Societies?

Answer 45

1. Purchase and Sale of Produce
2. Distribution of Agricultural Inputs
3. Providing Storage Facility
4. Supply of Agricultural Implements
5. Provide Financial Assistance
6. Processing of Produce
7. Providing Transportation Facility
8. Providing Market Information

Question 46

What is the process of providing advances to members based on the market value of their produce?

Answer 46

Members get advances up to 75 percent of the market value of the produce deposited.

Example sentence: Farmers receive advances from the cooperative society before selling their crops.

Question 47

What does processing of agricultural produce by cooperative societies ensure?

Answer 47

Processing of agricultural produce ensures high prices to the producers after processing.

Additional information: Processing adds value to the produce, making it more marketable.

Question 48

How do cooperative societies reduce transportation costs for its members?

Answer 48

The cooperative societies make arrangements for the transport of the produce of the members from the villages to the market on a collective basis.

Example sentence: Cooperative societies organize shared transportation for farmers’ produce.

Question 49

What kind of information do cooperative societies provide to their members?

Answer 49

They provide the latest information about new production techniques and market prices from time to time.

Example sentence: Farmers benefit from market information provided by cooperative societies.

Question 50

How do cooperative societies help farmers deal with seasonal price fluctuations?

Answer 50

The societies adjust the supply of commodities according to market demand, stabilizing prices in the long run.

Year: 1905

Question 51

What is the main objective of cooperative marketing?

Answer 51

The main objective of cooperative marketing is to maximize the income of its members.

Additional information: Cooperative marketing aims to benefit producers economically.

Question 52

What are the two sets of factors provided by cooperative marketing to fulfill its objective?

Answer 52

To get higher prices for the produce of its members and to cover the cost of marketing.

Additional information: Cooperative marketing focuses on maximizing member income.

Question 53

What are the important methods of operation of cooperative marketing?

Answer 53

The important methods of operation include outright purchase and sale.

Example sentence: Cooperative marketing involves buying and selling agricultural products.

Question 54

What are the three defects of the co-operative method?

Answer 54

The co-operatives have to take for granted the risks along with the purchase; that is to say, the market risk of price fluctuation is to be shouldered by the society itself, which sometimes proves to be costlier. At times, they have to assume the risk of piling up of stocks, as the demand pattern is not encouraging. Moreover, working capital is warranted to make the purchases as immediate cash is to be paid. This brings pressure on the working capital position, and more, in the off seasons. Co-operatives have to appointed skilled managerial personnel for carrying on such a business acumen will be available only at higher salaries. This increases the overall cost of management.

Example sentence: The co-operative faced financial difficulties due to the risks associated with price fluctuations and stockpiling.

Question 55

What is the Agency Method in marketing cooperatives?

Answer 55

The relationship of members and society is that agency, wherein the society buys and s the produce of its members as an agent. That is, it does not take title to the goods nor pays cash immediately. For performing the services of an agent, these Agencies charge certain commission; thus, it collects the produce of the member-farmers and remits the amount to the members, just after the sale by subtracting some commission and other incidental charges. This method has its own advantages and disadvantages.

Example sentence: The agency method allowed the marketing cooperative to act as an intermediary between the members and buyers.

Question 56

What is the Pooling method in marketing cooperatives?

Answer 56

Pooling is defined as the commingling of products of many producers and after deducting average expenses, paying the average price received for the same, usually on the basis of established grades. The payment to the members, under the method is made in three distinct ways. If the product pooled by the members are sold without grading, the societies realize the sale proceeds and distribute the same amongst the members as per the quantity delivered by each member, after deducting the expenses there to. If products are graded and pooled in a single pool, payment is made on the basis of quality of the products or on the basis of quantity; if they are put in a separate pool after grading. If the products are sold separately without mixing, the co-operative collect the sale proceeds and deduct the proportionate share in the common expenses and pay the remaining to the individual members.

Example sentence: The pooling method helped in minimizing risks and facilitating orderly marketing of products.

Question 57

What are the sales policies of marketing cooperatives?

Answer 57

In order that the marketing co-operatives become real success, they have to follow, design and develop sound sales policies. The aim of obtaining higher prices for members produce can be achieved by pursuing sound sales policies. The cooperatives sell the produce to the wholesalers in central markets or through the brokers or commission agents or auction companies that are working in central markets. Majority of societies, sell directly to the manufacturers or the buyers who are desirous of.

Example sentence: The sales policies of marketing cooperatives played a crucial role in obtaining higher prices for members’ produce.

Question 58

Sales Policies of Marketing Cooperatives

Answer 58

In order for marketing co-operatives to succeed, they must follow sound sales policies to achieve higher prices for members’ produce.

Example: Cooperatives sell produce to wholesalers, manufacturers, and large-scale retail organizations.

Question 59

Members’ Contract with Cooperatives

Answer 59

Marketing co-operatives rely on regular business transactions with members. Members commit to delivering produce exclusively to the co-operative through a contract.

Example: The contract ensures steady business for the co-operative.

Question 60

Advancement of Credit and Procurement of Foodgrains

Answer 60

Cooperative marketing societies provide financial advances to producers against their foodgrain stock to prevent distress sales. They act as government agents in foodgrain procurement.

Example: Societies advance credit up to 75% of the value of produce.

Question 61

Cooperative Marketing - Top 8 Merits

Answer 61

Cooperative marketing offers various benefits, including orderly marketing, higher prices, lower production costs, elimination of trade abuses, better selling methods, quality control, credit integration, and education.

Example: Merits include development of balanced supply and demand for stable prices.

Question 62

How is the collection or recovery of loans granted done by marketing co-operatives?

Answer 62

Collection or recovery of loans granted is done easily by marketing co-operatives.

Question 63

Why should marketing co-operatives be given the role to play in the collection of loans?

Answer 63

If other agencies are employed, the recovery remains a dream. Hence, marketing co-operatives should be given the role to play in the collection of loans and they should become part and parcel of the overall co-operative structure.

Question 64

What is the merit #8 of marketing co-operatives?

Answer 64

Farmers can better appreciate their problems and difficulties as they are made to govern themselves. They learn as to what problems are practically faced, and how to solve them. Thus, this society becomes a training ground. They are bound to get enlightened on the importance of co-operation that is based on “one for all” and “all for one” “self-help through mutual help”.

Merit # 8. Instrument of Education