The 1 st Thailand – Pacific Island Countries Forum (TPIF) 9 – 10 August 2014 Bangkok, Thailand Mr.Panuwat Na Nakornpanom Director of Planning Division Cooperative Promotion Department

Presentation Content Effective performance of cooperative: Aow Luek Land Settlement Cooperative, Ltd. Possible future development assistance and cooperation with Pacific Island Countries General Information of Cooperative in Thailand Cooperative Promotion Department and Cooperative Development in Thailand

Cooperative movements and farmer groups are important in driving economic force of the country cooperative business volume 10 percent of the country’s GDP Role of cooperative in Thai Economy General Information of Cooperative in Thailand

Structure of Cooperative Development in Thailand - National Federation - Provincial Federation - Primary Cooperative (7 types) Ministry of Agricultural and Cooperative Board of National Cooperative Development CLT (Cooperative League of Thailand) Cooperative Movement CPD (Cooperative Promotion Department) CAD (Cooperative Auditing Department)

Cooperative Promotion Department The Cooperative Promotion Department is a government agency under Ministry of Agriculture and Cooperatives

Promoting and disseminating the cooperative ideology, principles and methods to cooperative personnel, farmer groups and the public Duties and Responsibilities Promoting, supporting and strengthening the cooperative system Improving cooperatives’ learning process to increase the capacity of business management as well as the efficient of their operation Encouraging cooperatives to upgrade the business linkages to international levels for better living quality of cooperatives members both socio-economic aspects Cooperative Promotion Department

75 provincial Cooperative Officers Provincial Administration Cooperative Business Development Office Fund Development Office Cooperative Technology Transfer and Development Office Bangkok Cooperative Promotion Office Area 1 Bangkok Cooperative Promotion Office Area 2 Bangkok Cooperative Promotion Office Area 2 Information Technology Center Office of Secretary Personnel DivisionFinance DivisionPlanning Division Internal Auditing Group Administrative System Development Group Central Administration Organization Chart

Cooperative Promotion Department 1.Expansion on cooperatives principles and ideology particularly to cooperative personnel and leaders 2. Promoting cooperatives to realized on self financing analysis: CAMEL Analysis, CPS System 3.Realization on environment protection and community concern 4.Development the quality of products under the vocational group activities up to standard (OTOP Product Project) CPD Policies

Cooperative Promotion Department 5. Promoting and rehabilitate the managing administration and agricultural infrastructure of cooperatives and farmer groups efficiency 6.Development the database of cooperatives and farmer groups to increase productivity and quality, develop production and marketing technology for farm products 7.Promoting the establishment of network among cooperatives and farmers for mutual help in production, marketing, and funding CPD Policies

Cooperative Development in Thailand Prince Phitthayalongkorn: Father of Thai Cooperative The Cooperative in Thailand have been initiated by Royal Thai government in1915 The objectives is to improving livelihood of small farmers

Cooperative Development in Thailand The 1 st Cooperative in Thailand name: Wat Chan Cooperative Unlimited Liability Established by government on 26 Febuary 1916 In Phitsanulok Province

Structure of Cooperative National Level Provincial Level District Level National Cooperative Federation Provincial Cooperative Federation Primary Cooperative CLT – apex organization (technical aspects)

Type of cooperatives in Thailand Agricultural Fishery Land Settlement Consumer According to Cooperative Act B.E.2542 (1999) and Ministerial Regulation, the Cooperatives in Thailand are divided into 7 categories as follows: Thrift & Credit Services Credit Union

Agricultural Fishery Thrift & Credit Number of Active Cooperative: 3,712 Number of Memberships: 6,601,495 Annual Statistics of Cooperatives, Agricultural Groups and Vocational Groups in Thailand 2014 Number of Active Cooperative: 79 Number of Memberships: 15,317 Number of Active Cooperative: 1,396 Number of Memberships: 2,771,351 Number of Active Cooperative: 7,093 Number of Memberships: 11,275,804 All Type

Annual Statistics of Cooperatives, Agricultural Groups and Vocational Groups in Thailand 2014 Land Settlement Consumer Services Credit Union Number of Active Cooperative: 90 Number of Memberships: 188,427 Number of Active Cooperative: 174 Number of Memberships: 731,042 Number of Active Cooperative: 1,134 Number of Memberships: 461,104 Number of Active Cooperative: 508 Number of Memberships: 710,812

Cooperative League of Thailand Agricultural Cooperative Federation of Thailand Ltd. Consumer Cooperative Federation of Thailand Ltd. Federation of Savings and Credit Cooperative of Thailand Ltd. Credit Union League of Thailand Ltd. Bus Service Cooperative Federation of Thailand Ltd. Agricultural Cooperative Land Settlement Cooperative Fisheries Cooperative Consumer Cooperative Thrift & Credit Cooperative Service Cooperative Credit Union Cooperative District Province Provincial Agricultural Cooperative Federation Regional National Structure of Cooperative Movement in Thailand

General Meeting Board of Directors Manager Finance & Accounting Section Credit Section Marketing Section Purchasing Section Service & Welfare Section Election Appointment 15 persons (max) STRUCTURE OF PRIMARY COOPERATIVES members member groups

1. CREDIT BUSINESS 2. PURCHASING BUSINESS 3. MARKETING BUSINESS 4. AGRICULTURAL EXTENSION SERVICE COOPERATIVE BUSINESS LENDING DEPOSITING Buying necessities from others and selling them to members at reasonable prices Collecting produces from members and selling them to others Giving technical advice to members on planting, seeding, harvesting, etc.

Source of Fund of Cooperative Cooperative Own Fund Bank of Agriculture and Agricultural Cooperative (BAAC) Cooperative Development Fund (CDF)

1. To Allocate land to farmers who have no land or small holdings to make their living on. 2. The allocation of land to farmers through the cooperative method was first practiced in Land Settlement Cooperative was set up with the following objectives

Aow Luek Land Settlement Cooperative, Ltd. is located in Krabi Province in the southern part of Thailand Krabi Province The most famous visit place is PP islands. Aow Luek Land Settlement Cooperative, Ltd.

The Cooperative was registered in 1975 under the Co-op Act B.E.2511 (1968) With 310 members Objectives: 1. For support members to help each other based on ethics and cooperative methods 2. To benefit economic and social in member groups Aow Luek Land Settlement Cooperative, Ltd.

His Majesty the King realized on his people hardship in Krabi, therefore, in 1986, the project on establishing “Small Size of Palm Oil Mill” under Initiative Royal Project, was introduced to Aow Luek Land Settlement Cooperative, Ltd.

Aow Luek Land Settlement Cooperative, Ltd. has been selected as a group model for establishing experimental plant for processing palm oil.

At the beginning of setting the cooperative under the supportive of CPD members supported to grow palm 25 rai (40,000 square meter)/family To grow palm, members get loan fund project from Bank for Agriculture and Agricultural Cooperative (BAAC) 120,000 Baht/family which is the cooperation between CPD and BAAC The members who didn’t join the project will receive only short term and medium term loan Aow Luek Land Settlement Cooperative, Ltd.

The fresh palm must be delivered to the mill within 24 hours can extract the fresh palm 2 tons/day (max capacity) To support the palm farmers cover 48,000 rai (76,800,000 square meter) Aow Luek Land Settlement Cooperative, Ltd.

Processing Food (Curry Paste) Group To promote income generating activities of cooperative members for processing food products Aow Luek Land Settlement Cooperative, Ltd.

Artificial Flowers Making Group Aow Luek Land Settlement Cooperative, Ltd.

Possible future development assistance and cooperation with Pacific Island Countries A: Training courses on cooperative development for cooperative staff and officers (course module depends on requested) Participants: about participants/courses Course Duration: within 2 weeks Budget: financial supported by 3rd party or respective countries Venue: The Cooperative Technology Transfer Development Office in Bankok and the 5 th Cooperative Technology Transfer Center in Nakornratchasima Province.

B: Training course on Income generating activities for women and youth groups (processing foods, making handicraft products, weaving clothes, for sale in market and abroad. C: Study visit program for cooperative personnel and leaders for observation cooperative activities in Thailand

Participants: about participants/course Course Duration: within 2 weeks Budget: financial supported by 3rd party or funding by respective countries Venue: The Cooperative Technology Transfer Development Office in Bankok and the 5th Cooperative Technology Transfer Center in Nakornratchasima

Some activities of the 5 th Cooperative Technology Transfer Center, Nakorn Ratchasima