The Current Status of Cooperative in Myanmar

Ministry of Agriculture, Livestock and Irrigation Cooperative Department Central Cooperative Society (1) Region/State Union of Cooperative Syndicates (22) Region and State Cooperative Department (15) Township Cooperative Syndicate (464) Township Cooperative Department (306) Primary Cooperative Society ( 40152) Organizing Educating Regulating Total - 40639 Over ( 4.23million) As of (31.3.2017) 2

Vision The Vision of Ministry of Agriculture, Livestock and Irrigation are as follows; An inclusive, competitive, secured food and nutrition and sustainable agricultural system contributing to the socio-economic well-being and rural people and further development of the national economy.

Objectives To upgrade the agricultural sector by organizing farmers’ associations and cooperatives inclusive of small holders and subsistence farmers with promotion of gender role. To seek technical assistance and mobilize the financial resources from local and international agencies in support of crops, livestock, fisheries and rural development in the agriculture sector. To improve the livelihood and income generation of the rural people through the development of cooperative enterprises and system.

Cooperative Society and Cooperative System Development Policy To support for further development of cooperative enterprise in addition to the existing microfinance schemes, acquisition of farm machineries and equipment, and inputs with installment payment. To support the formation of cooperative societies, monitoring and evaluation of these societies in accordance with Cooperatives Laws and Procedures, and to conduct Cooperative Education Trainings. To uplift the economic, education , health, and living standard of family members of cooperative societies, in collaboration with relevant organizations. To link with international cooperative organizations for productive collaboration. To build capacity of cooperative societies focusing on production, service and trade aspects.

Three Main Functions of Cooperative Department Organizing Educating Regulating

Current Situation of Organized Cooperative Societies As of (31-3-2017) Type of Society Society Member Society Members 1. Central Cooperative Society 1 448 2. Union Cooperative Syndicates 22 515 3. Township Cooperative Syndicates 464 20927 4. Primary Cooperative Society 40152 4239687 Total 40639 21890

Human Resources Programme for Cooperative Education Sector Ministry of Agriculture, Livestock and Irrigation Cooperative Department Two Cooperative Universities Two Cooperative Colleges Four Cooperative Training Schools Three Cooperative Commercial Training Schools

Cooperative Educating and Awareness Trainings for BODs and Society Staff Advanced Cooperative Refresher Course for BODs and Societies staff Cooperative Refresher Course for BODs and Societies staff (On Job Training) Trainings for Cooperative Department Staff Advanced Cooperative Training for Officers Advanced Cooperative Training for Staff Basic Cooperative Training for Staff Capacity Building Trainings for Trainers Basic/ Intermediate/ Advanced Level Accounting and Office Skilled Training Cooperative Refresher Course for Staff from Regions and States Computer Trainings Other Trainings Book Keeping, Accounting Training and Computer Accounting Accounting Training Computer Training

Regulating to the Cooperatives The Cooperative Department has been regulating to all of the cooperative societies as follows;- Cooperative Member Auditor always audits monthly၊ Bi-Annual and Annual Auditing In auditing, only Cooperative Department (Or) Audit Firm that approved by the government according to the member’s desire can audit.

Action Plan Organizing the Cooperative Societies Microfinance Selling the farming machines with long term hire purchase system Land Consolidation for the small holders farmers as transforming from conventional farming to mechanized farming system Establishing the Agri-Support Service Cooperative Society Inputs Distribution Business for Agriculture Sector Seeking the financial capital

Functions of Cooperative Production Services Trade - Agriculture - Livestock - Industry Microfinance Hired Purchase System - Health - Transport - Hotel, Motel, Guest house - Export - Handicraft Shop - Selling and buying 12 12

Why We Need Microfinance Low interest rate < 2.5% per month (MF Law, 2011) Without collateral Can earn on saving money Can set up small business and make income generation Consequently, MF can actually help the development of the socioeconomic lives of grass roots level people in mostly rural areas

Current Situation of Microfinance Implementation (As of 31-3-2017) (Kyat Million) No Region/ States Township Society Member Share Saving Total Disbursement 1 2 3 4 5 6 7 8 Naypyitaw 542 66960 395.231 4641.852 9448.336 Kachin 13 743 71747 596.371 7030.464 20383.292 Kayah 223 19185 123.054 2415.461 4768.329 Kayin 442 32880 170.066 3051.443 5047.266 Chin 9 476 27421 207.057 2890.950 8688.340 Sagaing 34 5200 416293 2527.681 35765.793 79398.729 Taninthari 10 354 41189 253.352 4548.611 10550.567 Bago 28 6419 472046 2549.149 31957.902 91454.664 Magway 25 5044 406642 2476.767 23584.573 72521.079 Mandalay 4014 566493 3260.397 36079.568 94948.363 11 Mon 774 92038 635.223 7966.287 21102.537 12 Rakhine 17 1078 67989 486.133 3613.827 10753.522 Yangon 43 1457 215021 1077.888 15108.238 38840.542 14 Shan 1790 181515 1714.372 24541.999 53015.731 15 Ayeyarwady 26 6494 624031 3380.533 36356.678 96900.284 Total 307 35050 3301450 19853.274 239553.646 617821.581

Business Used Machines Selling the Farming Machines and other machines with Hire Purchase System (As of 31-3-2017) Type of Machines Amount (Unit) Value (Kyat Million) Owned (Unit) Agriculture Machines 23930 132943.949 3255 Business Used Machines 24283 21072.503 13076 Fishery Used Machines 14916 2283.817 8788 Total 63129 156300.269 25119

Challenges Government Support People Trust on Cooperatives Tech Assistances Cooperative Awareness No modern IT Cooperative Practice Trade and Production Cooperatives Microfinance itself

Recommendations Cooperative Awareness in Rural Areas Capacity Building and Development Trainings Knowledge Sharing Programs Institutionalization

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