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The Current Status of Cooperative in Myanmar

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Presentation on theme: "The Current Status of Cooperative in Myanmar"— Presentation transcript:

1 The Current Status of Cooperative in Myanmar

2 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 Over ( 4.23million) As of ( ) 2

3 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.

4 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.

5 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.

6 Three Main Functions of Cooperative Department
Organizing Educating Regulating

7 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 Total 40639 21890

8 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

9 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

10 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.

11 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

12 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

13 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

14 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 Kachin 13 743 71747 Kayah 223 19185 Kayin 442 32880 Chin 9 476 27421 Sagaing 34 5200 416293 Taninthari 10 354 41189 Bago 28 6419 472046 Magway 25 5044 406642 Mandalay 4014 566493 11 Mon 774 92038 12 Rakhine 17 1078 67989 Yangon 43 1457 215021 14 Shan 1790 181515 15 Ayeyarwady 26 6494 624031 Total 307 35050

15 Business Used Machines
Selling the Farming Machines and other machines with Hire Purchase System (As of ) Type of Machines Amount (Unit) Value (Kyat Million) Owned (Unit) Agriculture Machines 23930 3255 Business Used Machines 24283 13076 Fishery Used Machines 14916 8788 Total 63129 25119

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

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

18 Thank You


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