NATIONAL TEACHERS COLLEGE

MANILA

A WRITTEN REPORT

IN PARTIAL FUFILLMENT

OF THE REQUIREMENTS

IN COOPERATIVE MANAGEMENT

BY

CORTEZ, JANNA ANGELA

UMALI, IMERSON

SUBMITTED TO

ENGR. BERNARD EVAN V. JAMON, MBA

FEBRUARY 27, 202

UNIT IX – SUCCESSFUL COOPERATIVES

1. DIFFERENT SUCCESSFUL COOPERATIVES IN THE COUNTRY

A. MEDICAL MISSION COOPERATIVE

The concept of a health cooperative, hitherto unheard of in the Philippines, started in 1981 at the Davao

Medical Center, the biggest government hospital in Mindanao, when a young surgeon, earlier trained in

general surgery in UPPGH and fresh from a stint in neurosurgical training in Allgemeines Krankenhaus

(AKH) der Stadt Wien, in Vienna, Austria, arrived to take over as chairman of the Department of

Surgery.

The MEDICAL MISSION GROUP HOSPITALS AND HEALTH SERVICES COOPERATIVE OF THE

PHILIPPINES Federation is a secondary Health Cooperative composed of 19 members. Each of the 27

members of the Federation is a primary Health Service Cooperative that is owned and operated by all

the workers in the Hospital and/or Health Facility, from the medical doctors, nurses, allied medical

workers, administration and maintenance personnel as common shareholders. Common shareholders

are investors in the organization that can vote and be voted upon as members of the Board of

Directors, the policy making body of the organization. The method of voting in a Cooperative differs

from that of a Corporation because the common shareholders of the cooperative vote on a one-person,

one-vote basis, in contrast to the corporation wherein the common shareholders vote on the basis of

the number of shares they hold in the corporation. Also, not one single shareholder in the cooperative

may own more than ten percent (10%) of all the authorized capitalization of the cooperative. This

makes the cooperative a very democratic institution. Labor Unions are not allowed in the cooperative

because Labor (the employees) may sit in the Board and make policies that are followed by the

Management; so there is no Labor-Management conflict.

ACDI Multipurpose Cooperative is duly registered with the Cooperative Development Authority (CDA),

the regulatory agency of the Government of the Republic of the Philippines over matters concerning the

development of cooperatives in the country. This is an Institutional Cooperative serving members from

the entire Armed Forces of the Philippines (AFP) and other uniformed personnel. The members include

those who are in active service, retirees, those in the reserved force, regular civilian employees of the

AFP and Philippine Coast Guard (PCG) and dependents. This is the Largest Cooperative in the country

with an asset base of more than 33 Billion Pesos. In 2018, It was recognized as the Most Outstanding -

Large Category in NCR by the CDA, a testament of sustainable growth, and significant contributions to

people empowerment, social development, and nation-building. They operate a total of 122 offices

strategically located across the entire Philippines, a move to make services closer to and at the

convenience of the members. The Head Office is situated at BGen Felix T Pestana (Ret) Bldg. with an

Annex at Col Godofredo M Juliano Bldg., both in Western Bicutan, Taguig City, NCR, Philippines.

Classification of Members

A. Regular- A regular member is one who has completed the required attendance in the education and

training program for membership. He is entitled to all rights and privileges of membership. He has the

right to vote and voted upon during the election for positions in the Cooperative. Regular employees of

the ACDI MPC may qualify as regular members.

B. Associate- An associate member of the Cooperative is one who has not completed the required

education and training program for the membership. He is entitled to all the rights and privileges of

membership, except the right to vote or be voted upon during an election for officers of the Cooperative.

Permanent employees of domestic aviation companies; others, as determined, on a case to case basis,

by the Board of directors and are residing or working within the area of operation as provided in Article

III of the Articles of Cooperation shall fall within this Category.

C. SORO-SORO IBABA MULTIPURPOSE COOPERATIVE

Sorosoro Ibaba Development Cooperative (SIDC) is first established as Sorosoro Ibaba Farmers'

Association last March 19, 1969, thru Mr. Victoriano E. Barte who acted as the President and as the
General Manager. It was registered with the Securities and Exchange Commission and was issued with

a license. The association was funded initially by 59 members who voluntarily contributed two hundred

pesos each for a total capital of P11,800.00. It was used for the construction of a goods store that

offered basic commodities needed by the residents. Since some have started poultry and hog raising,

feeds and other veterinary products were made available. The association has also become a dealer of

different products, which were offered at low prices.

In 1972, the association became the Samahang Nayon ng Sorosoro Ibaba. Samahang Nayon ng

Sorosoro Ibaba, Inc. became Sorosoro Ibaba Consumers' Cooperative in November, 1978. Five years

later, it was registered with the Ministry of Agriculture as a development cooperative. Only then the

cooperative was renamed Sorosoro Ibaba Development Cooperative, Inc. (SIDCI). It became Sorosoro

Ibaba Development Cooperative (SIDC) in 1997.

D. ANTONGALON - AGUSAN MULTIPURPOSE COOPERATIVE

Antongalon Agusan Multi Purpose Cooperative was founded in the year 1990, they experienced great

turmoil among the BOD on July 4, 1994 and was re-established on November 8, 2008 under the new

management. Located at Antongalon, Butuan City was duly organized and registered under

Presidential Decree (PD) No. 174 with the Bureau of Cooperative Development under Certificate of

Registration No. RX-FF-169 on January 24, 1990. VISION AAMPC is an independent economic

institution that endeavor to provide a strong, cohesive and self-sufficient members thus promoting the

economic well-being of every farmers under a democratic policy and partnership.

Mission: To have a sustainable economic activity, continuous education of general members, with

common goal of price lowering of farm inputs, realistic and justifiable price increase of

farmers/members products.

E. SAN JOSE DEL MONTE AGRO – INDUSTRIAL DEVELOPMENT COOPERATIVE

The formation of SAN JOSE KOOP or San Jose del Monte Savings and Credit Cooperative is an

offshoot of the positive developments brought about by the EDSA People Power Revolution of 1986.

The newly installed President Corazon C. Aquino replaced all incumbent officers of the government,

one of which is the Mayor of the Municipality of San Jose del Monte. The son of the previous Mayor of
 the town and a businessman in the person of Mr. Reynaldo Villano was appointed Officer-In-Charge of

the Municipality. The first pre-membership seminar was held on September 26, 1986 at the San Jose

del Monte Central School. After the completion of the seminar, a general assembly was held to elect

the Interim Board of Directors and collect the share capital of the prospective members. Out of about

sixty (60) original prospective members, forty three (43) paid the initial capital which amounted to

Php37,500.

San Jose Koop was registered with the Bureau of Cooperatives on May 14, 1987. Re-registered with

the Cooperative Development Authority (CDA) on January 3, 1992 under Confirmation no. 072 as

Credit Cooperative. After its conversion from credit to multi-purpose, San Jose Koop was re-registered

with the CDA on February 9, 1993 under its new corporate name, SAN JOSE DEL MONTE KILUSANG

BAYAN SA KAUNLARAN, INC. (SJDMKBKI) as amended during the August 1992 General Assembly.

And now, it is registered under the name SAN JOSE DEL MONTE SAVINGS AND CREDIT

COOPERATIVE under RA 9520 or the Philippine Cooperative Code of 2008.

2. MOST OUTSTANDING COOPERATIVE IN 1994 AND YEAR 2000

A. LAMAC MULTIPURPOSE COOPERATIVE

CEBU, March 7 (PIA) -- Who would have thought that a small farmers group living in a remote mountain

barangay in southwestern Cebu could roll a few thousand pesos as start-up capital to P1.7 billion in assets

over 40 years later today.

This is the inspiring story of Lamac Multi-Purpose Cooperative, which began its humble beginnings in the

town of Pinamungahan, 34 kilometers away from Cebu City or slightly over two hours' drive by land.

tale of faith, determination, unity and the spirit of volunteerism that began in 1973 by farmers who want

nothing more than to provide their families with a full stomach.

Back in 1973, farming was the major source of livelihood in Lamac. But life was hard for poor farmers in

the remote, jagged interior mountain barangay with no water, no electricity, and no road. Eating three

meals a day with viand was even a luxury.

proper just to sell their harvests. The little earnings they gained were just sufficient to feed them. It was a

life of hand-to-mouth existence.

These hardships impelled 70 tenant-tillers and small farm owners to join forces that same year and

collaborate with each other on how to improve their living conditions. Their wish was simply to be able to

feed their family three times a day and provide for other basic necessities in life such as putting their

children to school.

After attending a government orientation on the essence of forming a farmers’ cooperative, they were

convinced that the road to a better life rests on helping each other. Each of the 70 farmers then

contributed P50 as seed capital for their new organization which they called Lamac Samahang Nayon

Consumers Cooperative.

With a start-up capital of P3,500, the organization ventured into a consumer store to market their

agricultural produce. Community members patronized their own store and nearby residents started to

access it. Consumer and marketing services were their focus and the store generated profits while

membership grew more than a hundred over the years.

But still, the trek from the farm-to-consumer store market remained tough as the mountain trail was steep

in the absence of clear road paths. It was clearly too interior that paving a path road was not an immediate

priority of the local government, with the tremendous budget it would entail versus the number of residents

that could only benefit from it. Cebu, during those years, was still a struggling economy, and not as

progressive as it is today.

In the spirit of community volunteerism, the farmer-members toiled together to blast an access road for

easy transport by foot to bring their harvests to their market destination. But only after 11 long years was

this made possible.

only in 1998, after more than 10 years and in between, residents had to fend for themselves getting

natural water from the cool spring within the area.

But like any other organization, the coop faced several challenges hounded by issues on loose credit line

system, absence of thorough bookkeeping and accounting services, financial mismanagemen,  and non-

continuing education for members. These affected payments for milling and marketing services.

The organization was on the brink of going downhill. Reflecting back on their purpose, the originators

never gave up and instead worked back to its core values of unity, volunteerism, transparency and being

God-fearing. They salvaged the organization with a change of management.

In 1992, the coop underwent a major change under a new management called BLOMES or the Barangay

Lamac Officers and Management Effective System Incorporated. Along with it was also a change of name,

which today is widely known as the Lamac Multi-Purpose Cooperative. In this same year, the organization

was registered with the Cebu Development Authority (CDA) and became a full-fledged multi-purpose

cooperative on March 13, 1992.

By then, all the members underwent a basic refresher seminar provided by the CDA-7 and instilled in each

a bayanihan spirit that each is an owner. Members were taught that each has a responsibility to make the

organization become better and help it grow more to benefit its increasing members.

Professionally managed and transparent in transactions open to scrutiny, the cooperative performed better

and reaping healthy returns of profit as they slowly embark on other business undertakings.

From an average multi-purpose consumer store, the coop ventured into food products like fresh carabao

milk drinks from its own carabaos, cassava cakes and ice cream using pure carabao milk, sardines using

coco water with tomato sauce and carabao milk. It also went into organic farming producing vegetable

varieties like lettuce, eggplants, spring onions, beans and chayote. Today, its lettuce is being used by a

popular chain of food stores while different hotels buy their other vegetable produce.
With tracts of land also focused on coconut farming, the cooperative also manufactured coco sugar and

managed a coco ice water plant, which their fishermen-members used to ensure the freshness of their

daily fish catch.

Knowing the rising market demand for cocoa, the coop did not let this lucrative venture pass and had 500

hectares of land planted with high breed cacao seedlings. This time, it expanded to other parts of the

Visayas, as only 180 hectares of cacao plantation is housed in Cebu.

Homemade beauty soaps with carabao milk ingredient, laundry bars, and dishwashing liquid are now

manufactured and packaged for distribution. Another neophyte project is the massive T-shirt printing

services manned by youth-members.

All their food and non-food products are sold in 33 outlets all over the Visayas. As profits raked in, the

management decided to scale up their investments as the cooperative put up its own bank and dormitory

and the grandest of all is the Hidden Valley Wave Pool and Mountain Resort right in its own backyard - in

Lamac.

The bank is largely established to provide education loans to its members who might need immediate cash

for their children’s college needs. And as tertiary education is concentrated in Cebu City, the cooperative

built its own dormitory for its members’ children who are in the city to finish their education. It also serves

as transient lodging for members from other provinces that come to Cebu for various purposes.

A popular getaway for those who want to relax and explore the scenic spots within the area, the mountain

resort offers tourists enchanting water springs, mountain trekking, wave pool and infinity pool. Children just

love to try the exciting sky cycle ride or biking in midair. Nearby is its organic farm where vegetable picking

and selling are done.

The resort also offers convention packages and adequate accommodation for families, friends or for

companies.
Since shelter is a basic need, the management gave priority to its housing program where today, almost

600 families near the resort no longer squat but own their own lot while 55 units in a local subdivision

worth P670,000 each have been taken by members on easy installment plan.

Over 500 members have been given direct employment while 3,000 more have benefitted from temporary

work such as in construction.

Anytime this year, the cooperative will launch its own sustainable organic farm tourism with four hectares

of land devoted to the project. Also in Lamac, the concept is for a member-family to own a 500-square

meter lot of which 37 square meters will be the house size and the remaining land will be for vegetable

gardening, milking carabao, and other livestock.

Among the regional government agencies that provided technical assistance include the Cooperative

Development Authority, Department of Trade and Industry, Technical Education and Skills Development

Authority, and the Department of Tourism.

From a meager capital of P3,500, the cooperative was able to turn this to P1.7 billion in over 40 years.

“We credit our success to our spirit of volunteerism, unity and faith in God,” said Ellen Limocon, general

manager of the Lamac Cooperative, adding “we always look back and never forget where we came from.”

Of the over 100,000 members as of 2018, Limocon said 66 percent are still farmers with an adequate

number of fishermen, too.

This year, Limocon said they intend to open more outlets in Cebu and other provinces in the Visayas.

According to Limocon, they aim to grow more and improve the lives of members who are mostly from the

marginalized sectors. In fact, some board of directors are professionals who opted to also serve in the

cooperative to pay back the opportunity given for their education.

Despite their early struggles, the originators of the cooperative never gave up and pursued their goals,

while their story hopes to inspire other cooperatives that want to build a better future for its members.
Because of their inspiring story and the continuing initiatives to grow and excel, the Lamac Multi-Purpose

Cooperative was given recognition by the CDA as “Gawad Parangal” Billionaire Awardee three times back

in 2015, 2017 and 2018.

B. UNITED SUGARCANE PLANTERS OF DAVAO MULTIPURPOSE COOPERATIVE, INC.

USPD stands for UNITED SUGARCANE PLANTERS OF DAVAO, INC.

What is now known as the multi-awarded United Sugarcane Planters of Davao (USPD) Savings and

Credit Cooperative started as the savings and credit department of the USPD Multi-purpose

Cooperative (MPC), an agricultural multi-purpose cooperative established in 1991. In 1996, the El Niño

phenomenon that hit the Davao Mill District, the rat and locust infestations that destroyed sugarcane

fields, and the unpredictability of sugar prices exposed the vulnerabilities of the members and prompted

the USPD MPC to launch the savings and credit department to teach members the value of saving.

In 2003, the USPD MPC Savings and Credit Department became a duly registered credit cooperative

and became USPD Credit Cooperative. In November 2011, the Articles of Cooperation and By-Laws of

USPD Credit Cooperative were amended and it became USPD Savings and Credit Cooperative. At the

same time, it became a member of CODIS (Cooperative Deposit Insurance System) after passing the

qualifying criteria of COOP-PESOS.

The cooperative and its partners continue to implement programs for the benefit of the members. It also

carries out scholarship program to qualified children of members; and has already produced college

and vocational graduates from universities and colleges in Mindanao. The commitment of the officers,

staff and members to USPD Savings and Credit Cooperative has enabled it to maintain the quality of

service it has nurtured through the years.

C. TAGUM COOPERATIVE

Today, Tagum Cooperative is among the prime movers of the Country’s Cooperative Movement,

being one of the leading and most active affiliates of the National Confederation of Cooperatives

(NATCCO), Mindanao Alliance of Self-help Societies- Southern Philippines Educational

Cooperative Center (MASS-SPECC) and Model Credit Network (MCN). It has likewise formed
affilations with Finance Organization achieving Certified Credit Union Standards (FOCCUS), Asian

Women in Co-operative Development Forum (AWCF), Asian Confederation of Credit Unions

(ACCU), Philippine Cooperative Center (PCC), Credit Union Trainers for Empowerment (CUTE),

CLIMBS and Metro South Coop Bank.

Moreover, Tagum Cooperative is a leading advocate in the province in empowering or providing

opportunities and protection to women and the marginalized sectors through its Gender and

Development and Family Enrichment Program, and the Pabilisang Savings sa mga Drivers

Advocacy (PASADA).

Tagum Cooperative’s (TC) belief in the value of work in service has brought the great twist from its

humble beginning as “Holy Name Society (HNS) of Tagum Parish” in May, 1967 with only a handful

members and an available share capital of only P80.00.

All of these achievements are made possible because Tagum Cooperative stands firm in its

commitment to extend the best service to its members so that each member will be proud of being

a part of Tagum Cooperative.  Thru good governance by its able Officials, empowered Management

Staff and well informed membership, Tagum Cooperative is posed to continue its active

participation as a Cooperative and as a partner of the government in progress and economic

development of the Province of Davao del Norte, the neighboring provinces and the Philippine

Cooperative sector in general.

It was branded a Finance Organization achieving Certified Credit Union Standards (FOCCUS) in

the year 2000 by the World Council of Credit Unions (WOCCU), based in the United States of

America (USA), through its outreaching- cooperative program office in the Philippines, popularly

known as the Credit Union Empowerment and Strengthening (CUES)- Philippines. As a FOCCUS

Cooperative, TC adopts the tenets espoused by WOCCU in its operations, programs, and policies,

making it a World Class savings and credit cooperative providing the necessary environment for the

safety and security of the member’s money, and giving very attractive interest rates on their

deposits and savings through the adoption of a sound, effective and rigid financial management.
 D. SAN JOSE DEL MONTE SAVINGS AND CREDIT COOPERATIVES

The formation of SAN JOSE KOOP or San Jose del Monte Savings and Credit Cooperative is an

offshoot of the positive developments brought about by the EDSA People Power Revolution of 1986. The

newly installed President Corazon C. Aquino replaced all incumbent officers of the government, one of

which is the Mayor of the Municipality of San Jose del Monte. The son of the previous Mayor of the town

and a businessman in the person of Mr. Reynaldo Villano was appointed Officer-In-Charge of the

Municipality. Being a neophyte in holding public office, he requested the heads of civic, business and

religious organizations to help him in the administration of the affairs of the Municipality thus, a

foundation was organized by various leaders which was named KISAP Foundation or Kilusan ng mga

Samahang Pampamayanan. Various committees were later formed and one which was a livelihood

committee headed by Mr. Romeo A. de Jesus, a religious leader, being a Past Grand Knight and District

Deputy of the Knights of Columbus of San Jose del Monte. In the various meetings of the committee they

finally decided to form a credit cooperative and invited the trainers of St. Martin of Tours Credit

Cooperative of the nearby municipality of Bocaue, Bulacan.

The first pre-membership seminar was held on September 26, 1986 at the San Jose del Monte Central

School. After the completion of the seminar, a general assembly was held to elect the Interim Board of

Directors and collect the share capital of the prospective members. Out of about sixty (60) original

prospective members, forty three (43) paid the initial capital which amounted to Php37,500. The

formation of the cooperative was reported to the OIC Mayor who in turn reported it to the OIC

Governor. The OIC Governor Hon. Roberto Pagdanganan, who is also new in public office being an

executive of a multinational company, fully supported this venture and promised to allocate funds

It was at this moment that the Interim Board of Directors requested the Vitarich Corporation, a company

owned by the Sarmiento Brothers who hails from this town to help us raised the balance of Php12,500

so we can raise to Php50,000 as seed capital. Vitarich Corporation donated Php7,000 so that

the capital went up to Php44,500. Thus, the OIC Governor complied with his promise of Php50,000 loan to

the proposed Cooperative.

the Cooperative Development Authority (CDA) on January 3, 1992 under Confirmation no. 072 ative. After its

conversion from credit to multi-purpose, San Jose Koop was re-registered with the CDA on February 9, 1993

under its new corporate name, SAN JOSE DEL MONTE KILUSANG BAYAN SA KAUNLARAN, INC.

(SJDMKBKI) as amended during the August 1992 General Assembly. And now, it is registered under

the name SAN JOSE DEL MONTE SAVINGS AND CREDIT COOPERATIVE under RA 9520 or the Philippine

Cooperative Code of 2008.

The road to success of San Jose Koop was not easy. It entailed lots of sacrifices. The first borrowers

were the officers. None of the members would like to borrow. So, to start the ball rolling, Mr. Romeo A.

de Jesus, Interim Chairman of the Board of Directors, prevailed upon his fellow officers to borrow money

from the cooperative whether they needed money or not.

 Give at least 3 successfully cooperatives in the Philippines.

 When does the concept of Health Cooperative started?

Answer. 1891

 What are the 2 classifications of members for ACDI Multipurpose Cooperative?

Answer: Regular, Associate

 USPD Stands for?

Answer: United Sugarcane Planters of Davao

 Give the two most outstanding cooperative in the year 2000

Answer: Tagum, San Jose del monte savings and credit

 Where does lamac cooperative originated?

Answer: Cebu City

 In 1973 what was the major source of their livelihood in Lamac

Answer: Farming

REFERENCE:

https://www.cda.gov.ph/component/search/?searchword=most%20outstanding

%20cooperative&searchphrase=all&Itemid=140

https://www.cda.gov.ph/resources/updates/news/122-cda-awards-outstanding-cooperatives-leaders-and-cdos

https://www.tagumcooperative.coop/tagum-cooperative-history/

https://www.cda.gov.ph/resources/updates/news/1032-cda-awards-model-cooperatives-leaders-and-lgu-cdo

http://www.sanjosekoop.com/history/
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Cooperative

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https://mmgphil.org/about/

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