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Agricultural Cooperativesand

Main Problems of Cooperatives in Turkey

Res. Asst. Asaf zalp

Prof. Dr. brahim Ylmaz

Antalya-2014

T.C.

AKDENZ UNIVERSITY

AGRICULTURAL FACULTY

AGRICULTURAL ECONOMICS DEPARTMENT


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Contents

What is a cooperative?

Cooperatives in Turkey

Cooperation Problems

2


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Objectives of the study

Objectives of the study;

Give general information on cooperatives Reveal the current status of agricultural

cooperatives in Turkey

Examine issues about cooperation

3


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Material

It is aimed to undertake a review.

Research findings have been obtained from

the relevant secondary data (reports,websites, records of cooperatives, companycatalogues)

4


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Cooperatives

Nowadaysnitiativessucceed in economic

and commercial lives

At first

Inter Individuals Help

5


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Agriculture

Trade

House

Banking and Insurance

Cooperative Areas

6


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Market Organizer Role

Assemblers Role of Small Enterprises

Enhancing the Role of Market Power

Contributions to Economic Decision

Service to partners needs

Stakeholder Benefit

Management Skills

Economic Integration

It is advantageous for Local Markets

Contributes to stability

democratic governance

Regional Development

7Source: Commission of the European Communities, 2001

Economic and social functions of cooperatives


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Cooperatives in TURKEY

It is agreed that the first implementation ofthe modern cooperatives in Turkey startedwith the Country Funds (similar to

agricultural credit cooperatives) which wasestablished by the State in 1863.

However, the first significant development

was realized after Turkish Republic wasestablished.


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Number Of Cooperatve And Partners

Today, there are 88.232cooperatives with 26different types .

Total number of members of thesecooperatives is 8.109.225.


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Cooperatives ofAgriculture

Relevant Ministry Type of Cooperative

Cooperative Union Central Union

NumberNumber of

MembersNumber

Number of

Member

Cooperati

ves*

Number

Number

of

Member

Unions*

MinistryofFood,

Agricultureand

Livestock

Agricultural Development Cooperatives 8.173 842.563 82 4.939 4 77

Irrigation Cooperatives 2.497 295.984 13 733 1 10

Fisheries Cooperatives 522 29.972 14 202 1 12

Beet Planters Cooperatives 31 1.638.981 1 31 - -

Agricultural Credit Cooperatives 1.767 1.082.978 16 1.767 1 16

SUB TOTAL 12.990 3.890.478 126 7.672 7 115

Ministryof

Customsand

Trade

Agricultural Sales Cooperatives 322 602.248 17 322 - -

Free Agr. Sales Coop. 22 2.245 - - - -

Tobacco Agricultural Sales Cooperatives 66 23.414 - - - -Raw Vegetables and Fruit Cooperatives 37 2.886 - - - -

SUB TOTAL 447 630.793 17 322

Source: Turkish Cooperative Association , 2013


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Established and dissolved cooperatives

Economic

Activity

Sector

ESTABLISHED DSSOLVED

20062007200820092010 (2006

-2010)

20062007200820092010 (2006

-2010)

Agriculture,

Hunting, Fisheries

and Forestry

352 258 154 233 445 1.442 19 22 191 21 107 360

Source: Turkish Cooperative Association , 2013


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Organisation or in-organisation?

In the Cooperatives Act No. 1163, superior organization hierarchy ofthe cooperatives is defined as cooperative, union, central unionand national union.

As of today, this structure of the superior organization has beencompleted. However, the participation of the cooperatives in the

organizations which were established is quite low. In general, the participation rate of the cooperatives to the

superior organizations is about 25 per cent.

When the superior organization in terms of the cooperative typesis examined, the participation of the Agricultural Credits, BeetPlanters and Agricultural Sales and Turkish Tradesmen andCraftsmen Credit and Guarantee Cooperativesin the superiororganizations is high, whereas for the other cooperatives apart fromthese, this rate is not in the desired level.


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Chart 1. The Participation Levels of Cooperatives inSuperior Organizations According to Type of Cooperative

Source: Turkish Cooperative Development Strategy and Action Plan, 2013


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What is the problems?

Main problems according to Turkish

Cooperative Development Strategy and ActionPlan


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1. Troubles faced in terms of providing service to

publicand establishing an atmosphere convenient for

cooperatives

Since the start of institutionalization of the cooperativesmovement in Turkey, an interventionist approach hasalways been experienced.

Controlled cooperatives that are financially supported bythe state and are under the supervision of it, havebecome widespread and developed.


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2. Inadequacies in the training, awareness raising and

research activities

For the success of the cooperatives movement, trainingof members, managers, and the local peopleis of greatimportance.

One of the most important problems of the cooperativessector in Turkey is that the cooperatives training is not atthe required level and has not been institutionalized yet.


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3. Problem of Organization and Cooperation among

the Cooperatives

In Turkey, the number of cooperatives is highbut membership to these cooperatives is low.

Cooperation culture differs from country tocountry and is related with many cultural,economic, psychological, historical, social andcultural issues.


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4. Lack of capital and problem in access to finance

As every economic undertaking, cooperatives needfinancial resources to achieve their targets.

Because of their specific qualities, financial problems of a

cooperative are more serious and diversified than anormal enterprise. The most important result of this isthe lack of capital.


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5. Problem of Audit and Image

The activities under the framework ofcooperatives serve public welfare.Unfortunately, there is not an effective audit

in the cooperatives sector in Turkey.


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6. Lack of institutional and professional management

In Turkey, cooperatives are managed by peopleacting far from being profeesional and sparing littletime for managerial issues.

There is no other condition (certificate, experience,training, expertise, etc.) necessitating anymanagement skills, for the person to be elected asthe member of the executive board.


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7. Problems stemming from the legislation and the

implementation

The Cooperatives Law No. 1163 serves as the basis ofthe legislation on cooperatives in Turkey.


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Results & Recommendations

Organized society means developed and socialcountry

Family-owned businesses against multinational giant

companies have lost their power in input supply andmarketing

National policies with all the parties in the sectorshould be set up


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Thanks for your attention

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