Agricultural cooperative development in Dak Lak province - 2

- Regarding working capital: The average working capital scale of the agricultural cooperatives in the last 5 years (2009-2013) tended to increase gradually, increasing by 10.6%/year on average. The average size of working capital/cooperative is always 1.3-2.8 times higher than the average charter capital because it is supplemented by the cooperative's self-accumulative sources and other grants and subsidies, but most of it comes from 

loans (accounting for 19.2% to 58% of total operating capital). The structure of fixed capital and working capital in working capital are both increasing gradually, but fixed capital has a faster average growth rate (18.4% compared to 4.2%) which shows that the local cooperatives have increase in production and business scale in the short term, but also focus more on investment to improve production capacity in the long term.

b. Status of members and employees of cooperatives

- Regarding the number of members and employees of the cooperative: In the period 2009–2013, the membership of the cooperative has tended to decrease in both total and average number of members/cooperative; The total number of employees of cooperatives increases, but tends to decrease in terms of the average number of employees/cooperatives. In which, total members of cooperatives decreased by 0.6%/year on average; average member/cooperative decreased by 9.6%/year on average; the total number of employees in the cooperative increased by 5.8%/year on average, but the average labor/cooperative decreased by 3.8%/year.

- The team of management and executive officers of the cooperative has significantly improved in terms of education and expertise. Compared to 2009, by 2013: The rate of high school education increased by 24%, primary school decreased by 12.5%, junior high school decreased by 11.5%; the percentage of staff with college and university qualifications increased by 13.1%; primary and intermediate level increased by 33.6%; the rate of untrained staff decreased by 46.7%.

c. Land situation of agricultural cooperatives : By 2013, agricultural cooperatives in Dak Lak province managed and used over 30.7 million m2, an increase of over 7 million m2 compared to 2009, an average increase of 9%/year. The structure of land origin tends to decrease in terms of land allocated or leased by the state, but increases in land leased and borrowed by agricultural cooperatives. This shows that the agricultural cooperatives in the area have been proactive, not completely waiting for the state's support in land matters. However, the fact that in Dak Lak so far, more than 80% of cooperatives have not had land to build their headquarters, also suggests the issue of implementing land support policies for agricultural cooperatives that need to be improved. 

The government is more concerned.

d. Situation of scientific and technological application of agricultural cooperatives: Many agricultural cooperatives in the area have applied and guided member households to apply advances in varieties, farming techniques, water resource management, diseases, and technology. Microbiology and new technologies in intensive farming, harvesting, product preservation... reduce investment costs, improve productivity, product quality, and bring higher efficiency to production and business of agricultural cooperatives and successful households. pellets.

2.2.3. Service operation status of the cooperative

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a. Regarding the number of services: By 2013, the agricultural cooperatives in the whole province provided a total of 581 types of services, an average of 3.6 types of services/cooperatives (average of 2.9% services/cooperatives in 2011). In addition to services such as supply of agricultural materials, agricultural extension, seeds, etc., some cooperatives have provided internal credit services for members.

b. Regarding service expansion for members: The number of services provided by the cooperative increases year by year, but the extent of service expansion is not large. In 2011, on average, 1 agricultural cooperative provided 2.9 types of services; in 2012, on average, 1 agricultural cooperative provided 3.2 types of services; In 2013, an average of 1 agricultural cooperative provided 3.6 types of services. Revenue from service activities for members in the total revenue from services of the cooperative in 2011 reached about 44.5%; in 2012 reached about 53.2%.

Agricultural cooperative development in Dak Lak province - 2

c. Regarding the quality of services of cooperatives for members: The level of meeting the needs of economic activities and members' lives is one of the six criteria for members to directly evaluate and classify cooperatives every year (accounting for 1/ 5 total rating points). In 2013, the percentage of agricultural cooperatives rated average or below accounted for 75% of the total number of agricultural cooperatives in the province. That partly shows that the quality of services provided by the cooperative has not made members satisfied.

2.2.4. Status of perfecting the production organization of agricultural cooperatives

a. Regarding the organizational structure and management and administration of cooperatives: After the 1996 and 2003 Law on Cooperatives was issued, in addition to a number of cooperatives that have dissolved, up to now, cooperatives that continue to operate have reviewed and registered. list of cooperative members and contributed capital of cooperative members; develop a plan to deal with the cooperative's backlog of assets, capital, funds, receivables and payables...; formulating plans for production, business, and services; develop the cooperative charter in accordance with the Law on Cooperatives and the model charter of the cooperative in accordance with the Government's regulations; elect agencies and titles to manage and administer the cooperative. The organizational structure of the state cooperative includes: Congress of cooperative members; board; Control Board; Chairman of the cooperative. This process has gradually improved the organizational structure of the agricultural cooperative apparatus in a more compact way, better maintaining cooperative management and administration activities, healthier financially and with more reasonable production and business plans,

b. About the model of production, business and service activities: At the end of 2003, there were 88 agricultural cooperatives in Dak Lak province, mainly specialized in the fields of planting, tending and protecting forests, and performing irrigation services. pepper; supplying fertilizer materials, plant varieties, livestock... By 2013, most of agricultural cooperatives had switched to general production, business and service models. Of the 123 active agricultural cooperatives, 96 cooperatives (accounting for more than 78%) are multi-functional cooperatives, only 12 specialized agricultural cooperatives (accounting for nearly 9.8%). The gradual shift of production and business model from single sector to multisector is the appropriate direction, creating conditions and also creating pressure for cooperatives to be more dynamic, to better meet the needs of cooperative members. gradually improve the quality of operations to survive, compete and develop.

c. On expanding linkages, establishing and participating in value chains in production and business: In Dak Lak province, there have appeared joint ventures and linkages between agricultural cooperatives and between cooperatives and enterprises of all sectors. other economic, popular are the 

in the form of an enterprise that advances capital and supplies materials to a cooperative for production and purchases of products, or a cooperative that invests and undertakes a production stage by itself. In recent times, there have started to be broader linkages under the "3 houses" and "4 houses" model, which are quite effective, but mainly in the coffee industry. The expansion of linkages has helped a number of cooperatives to participate in the value chain of various industries, take advantage of production and business capital and learn from experiences from outside enterprises... at the same time, expanding the market and increasing strength. competition for cooperatives.

2.2.5. Outcomes and performance of the cooperatives

a. Operational quality of agricultural cooperatives: Although the quality of agricultural cooperatives has improved year by year, there are still many weak cooperatives. By 2013, the rate of weak agricultural cooperatives was still 20%; The good and good agricultural cooperatives account for only 25%, while the majority are medium cooperatives.

b. Operational results of agricultural cooperatives: In the last 5 years, the performance of agricultural cooperatives in Dak Lak province has improved. The targets of average revenue, profit before tax and income of employees in the cooperative increase year by year. In 2013, the average revenue/cooperative was 1,606 million VND, the average period of 2009-2013 increased by 15.9%/year; the average profit before tax/cooperative reached 134 million VND, an average increase of 14.8%/year; the average income of workers in the agricultural cooperatives reached 18.8 million VND/person, an average increase of 21.9%/year. However, most cooperatives only earn less than 300 million VND/year.

c. Operational efficiency of agricultural cooperatives: In the last 5 years (2009-2013), the performance of agricultural cooperatives in Dak Lak province has improved, but production and business efficiency is still quite limited; pre-tax profit ratios are low, not increasing year by year and unstable. In 2013, the profit/charter capital ratio reached 

17.9%; profit/working capital ratio reached 7.8%; profit/revenue ratio reached 8.4%. The low profit margins show that the operating costs of the cooperatives during this period have increased and the investment of the cooperatives has not yet taken effect.

2.3. GENERAL ASSESSMENT

2.3.1. Successes in the development of agricultural cooperatives in Dak Lak

- Agricultural cooperatives in the area have quite developed in number and all operating cooperatives have been transformed in organization and operation.

- The cooperatives have been more proactive in mobilizing resources for operation. The factors of capital, land, management staff, cooperative management, application of science and technology, expansion of links... are increased. Cooperatives have focused on investing in fixed assets and long-term investments to improve production capacity.

- The results and operational efficiency of agricultural cooperatives have improved; attract, create jobs and generate income for a significant number of workers and expand services to members and the community.

2.3.2. Limitations in the development of agricultural cooperatives in Dak Lak

- The number of agricultural cooperatives has not increased much, is not evenly distributed in the areas and there are still many cooperatives that only exist in form.

- The resources of agricultural cooperatives are still very poor; small capital scale; the average number of members and employees participating in the cooperative decreased; The level of staff in managing and operating the cooperative is still low.

- The quality of operation of agricultural cooperatives is mostly average or below, with low performance and efficiency; service expansion and service quality are not high enough to meet the requirements of members.

- Forms of joint venture and association between agricultural cooperatives and enterprises of other economic sectors are not many, mainly 

in the coffee industry.

2.3.3. Reasons limiting the development of agricultural cooperatives in Dak Lak province

a. Objective reasons: Over the past time, under the impact of climate change, many droughts and storms have adversely affected agricultural production in Dak Lak province, thereby adversely affecting the production and business activities of the provinces. cooperatives and cooperative members. The education level in rural areas of the province is generally low, the mindset of individual businesses and smallholders is still quite heavy, along with bad impressions of old-style cooperatives, lack of confidence in the new model of cooperatives. is a barrier to the formation and development of agricultural cooperatives. Simple cooperative organizations have been formed, but the number is still small; The competitive impact from the market economy on the rural areas of the province has not been much, has not strongly promoted the need for cooperation among farmers.

b. Subjective causes: The ability of agricultural cooperatives to plan long-term development strategies, as well as short-term production and business plans and plans, is still limited. The cooperative's assets, financial capacity, self-accumulation ability for reinvestment are poor, production and business efficiency is low, it is difficult to access loan sources, while the members' ability to contribute capital and accumulate, The reinvestment of cooperatives is not much. The income of members and employees is unstable, so farmers have not been persuaded to join cooperatives. The implementation of policies for agricultural cooperatives in Dak Lak province is inadequate, especially policies to support and give incentives to agricultural cooperatives in terms of land, credit and transfer of application of science and technology, expansion. market... The apparatus and personnel for state management of the collective economy are inadequate; The role of the Cooperative Alliance in the development of agricultural cooperatives is still quite lackluster.

CHAPTER 3

SOLUTIONS FOR DEVELOPMENT OF SOCIAL COOPERATIVES IN DAK LAK PROVINCE

3.1. BASIS FOR PROPOSED SOLUTION

3.1.1. The approach to the development of agricultural cooperatives: Cooperative development is a trend that is consistent with objective laws and is a long-term process. The need for cooperation and voluntary cooperation must be the starting point and foundation of the process of forming and mobilizing the development of cooperatives, so it is necessary to promote and create that demand. The development of agricultural cooperatives cannot be separated from the process of comprehensive development of agriculture, rural areas and farmers and must be suitable with the characteristics and socio-economic conditions of the locality. Agricultural cooperatives not only have economic significance, but also have profound social - cultural meanings, so there must be specific supporting mechanisms and policies of the state.

3.1.2. Orientation and goals of cooperative development in the province

a. Cooperative development direction: To promote the consolidation and development of various types of cooperatives in economic sectors and fields. Concentrate on consolidating and improving the capacity and operational efficiency of existing cooperatives; focus on developing new cooperative models, cooperatives in agriculture, cooperatives in rural areas, ethnic minority areas with appropriate scale.

b. Objectives of cooperative development: By 2015, increase the number of cooperatives in the province to 400 cooperatives; 60% of cooperatives meet good and good standards; weak cooperatives below 10%; 85-90% of production and business cooperatives are stable and profitable; members' income increases by an average of 15%/year; attracting about 100 thousand members; creating jobs for over 75,000 workers. By 2020, more than 75% of farmer households will participate; the average income of cooperative members is twice as much as in 2015; attracted about 180,000 members; create jobs for about 90,000 workers.

3.2. PROPOSED SOLUTIONS FOR DEVELOPMENT OF COOPERATIVES IN DAK LAK PROVINCE

3.2.1. Group of solutions to increase resources for agricultural cooperatives

a. For the local government, departments and sectors

- Support cooperatives in increasing capital for production and business: Increase the annual supplementary budget balance for the Cooperative Development Support Fund to raise the loan level, prolong the loan period and apply the form of unsecured credit. for projects of agricultural cooperatives; simplify lending procedures, at the same time regularly check, monitor and evaluate project activities, use and manage capital after lending.

- Support agricultural cooperatives in improving labor quality: Having policies to support and encourage graduates who have not yet got a job to work at cooperatives; continue to organize training classes, foster professional skills, improve the level of management and administration staff of the cooperative; renovate and update the contents, programs and methods of training and fostering according to the needs of the cooperatives; guide and support the cooperatives in formulating planning and organizing staff training and development.

- Support agricultural cooperatives in land issues: Continue to review the land fund to focus on considering and resolving land allocation for the cooperative to build a stable working office; support agricultural cooperatives to quickly carry out procedures for renting land; timely settlement of incentives and financial support when renting and using land; implementing the program "large sample fields", mobilizing farmers to accumulate fields and change plots to facilitate the production of goods on a large scale.

- Support agricultural cooperatives in the application of scientific and technical advances: Encourage cooperatives to raise requirements for the province to place orders for research agencies and scientists; expand training and build a system of extension workers who are members of agricultural cooperatives; regularly provide scientific and technical news, market information for officials and members of cooperatives.

- Support cooperatives in marketing and market expansion: Support and encourage cooperatives to bring their products to trade fairs. 

inside and outside the province; put the agricultural cooperative's products into the province's annual trade promotion and investment promotion plans and programs; to encourage shops and supermarkets in the area to contract to sell agricultural cooperatives' products; supporting cooperatives to develop product quality standards and build product brands.

b. For cooperatives in the province: Increase capital mobilization from members through annual profit sharing methods; taking advantage of trade and investment promotion activities organized by state agencies and marketing and product introduction activities of enterprises to seek cooperation opportunities, increase market access, contract cooperation and association for cooperatives and members.

3.2.2. Group of solutions to expand the number and improve the service quality of the cooperatives

a. For local authorities, departments and branches: Support to build a contingent of staff of agricultural cooperatives to take charge of the supply of seeds and agricultural materials, irrigation, crop protection, and pest prediction. .. and guide household members in each production season and season; strengthen connections, introduce reputable partners to link and support agricultural cooperatives in service activities, especially input and output services of the production process.

b. For cooperatives in the area: Enlist the support of local authorities and actively seek and select reputable distributors to link and act as agents to take advantage of partners' resources and experience. work; boldly research to expand agricultural services, expand production and business in accordance with the capacity of the cooperative and the needs of its members and the community.

3.2.3. A group of solutions to help agricultural cooperatives expand their links and continue to improve their production organization

a. For local authorities, departments and branches: Continue to implement the "4-house" cooperation program under the model of competitive agricultural alliance; encourage wider linkages between enterprises and cooperatives; promote non-governmental funding advocacy 

technical support to help agricultural cooperatives improve their management capacity.

b. For agricultural cooperatives in the area: Actively expand forms of marketing, build the cooperative's brand to introduce, seek cooperation, joint venture, association; attach importance to training, improve production skills, and manage product quality to each household member and employee.

3.2.4. Group of solutions to help agricultural cooperatives increase production and business efficiency

a. For the local authorities, departments and branches: Support the cooperatives to continue to strengthen the organization, improve the management level; definitively handle the existing state cooperatives, guide the cooperatives to handle the backlogs; support agricultural cooperatives to build long-term development strategies and effective short-term production and business plans and plans.

b. For cooperatives in the area: Continue to clearly define the functions of management and administration of the cooperative and select, arrange and elect qualified and dedicated people to take on key positions of the cooperative; boldly implement the hiring of capable people in charge of the management and administration of the cooperative.

3.2.5. Group of solutions to increase the number of agricultural cooperatives

- Promote the need for cooperation and develop simple forms of cooperation into cooperative organizations

- Stronger and more comprehensive support for local ethnic minority cooperatives.

- Strengthen communication about cooperatives.

3.2.6. Group of solutions related to policy implementation and state management of cooperatives

- Ensure full implementation of existing central and local policies for cooperatives.

- Consolidate the whole machine, improve the effectiveness and efficiency of the state management of the local government for the cooperative.

- Improve the role and effectiveness of the Union of Cooperatives and the participation in promoting and supporting cooperatives of mass organizations.

CONCLUDE

The cooperative economic model is not only consistent with the objective law that there must be cooperation in production and life of human society, but also with the requirements of competition in the market economy. Practice has proven compatibility with the development of the market economy as an institution that both complements and competes with businesses in the market, and the cooperative economy contributes more and more. into the process of socio-economic development of countries around the world.

For Vietnam in general and Dak Lak province in particular, agricultural cooperatives are one of the suitable economic models to develop agriculture , improve farmers' lives and solve social problems in the countryside. With the requirements of the industrialization and modernization of the country in the current period, especially in the context of deeper international integration, cooperatives have many opportunities and at the same time have to face with many challenges. many challenges in development.

In the past 2009-2013 period, with quite favorable conditions in terms of natural, socio-economic conditions and support from the state, as well as the efforts of the cooperatives themselves, the development process Agricultural cooperatives in Dak Lak province have had certain successes. The cooperatives have transformed in organization and operate under a new, dynamic model, which is more adaptive to the market mechanism. The number of agricultural cooperatives increases year by year; production and business capacity and results, operational efficiency have been gradually improved, better and better supported for members, actively contributing to job creation, stability and socio-economic development in rural areas of the province.

Despite the successes, the development process of agricultural cooperatives in the area is still quite limited. The number of agricultural cooperatives is weak and exists in many forms. The production and business capacity and competitiveness of agricultural cooperatives in the economy are still limited, especially in terms of capital, facilities, application level of science and technology and qualification of management staff. The expansion of services for members tends to increase gradually, but the level of service needs for cooperative members is high. The number of cooperatives operating effectively and profitably increased, but the increase was not large. Income of members and workers in cooperatives has not been improved much, still low compared to workers in other economic sectors and low compared to cooperatives in other fields. The management and support apparatus for the development of agricultural cooperatives in the province has been gradually strengthened, but there are still many shortcomings. Many state policies for agricultural cooperatives have been implemented, but the results are still low. The idea of ​​individual production and business, the small owner and the bad impression of the cooperative model in the past is still quite heavy in society and in a part of state officials, cooperative officers and members, is an invisible but very important barrier. difficulties for the development of agricultural cooperatives...

In order to continue to consolidate and improve operational efficiency and strongly develop agricultural cooperatives in the province according to the directions and goals set by the locality, groups of solutions need to be supported by both sides - Local authorities localities and cooperatives, implement a synchronous way to increase resources; expand the quantity and improve the quality of services; expanding linkages, continuing to perfect the production organization; increase production and business results and efficiency; promote the increase in the number of agricultural cooperatives, at the same time ensure the implementation of policies and improve the effectiveness and efficiency of the state management of cooperatives in the area.

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Date published: 02/04/2022
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