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Building a sustainable business enterprise: a strategic plan for Wangan Dairy Cooperative, 2017-2021 / Lilia L. Lunod; Larry N. Digal, Adela G. Ellson, advisers

By: Contributor(s): Material type: TextTextPublication details: Davao City: School of Management, University of the Philippines Mindanao, c2016Description: 77 leavesSubject(s): Summary: Cooperativism is long been present in the agricultural sector, continually striving to achieve its very mission in promoting self-reliance while empowering and binding people towards the attainment of economic development and social justice. Dairy cooperatives in the region, specially the Wangan Dairy Cooperative (WADAC), has existed more than two decades already and yet it?s growth is slow with unstable milk production over the years. Wangan Dairy Cooperative located in Brgy. Wangan, Calinan, Davao City is a multi-purpose agricultural cooperative which was organized on October 1990 through the initiative of the Philippine Dairy Corporation (PDC)., now National Dairy Authority(NDA). WADAC is one of the pioneer member of the Federation of the Davao Dairy Farmers Cooperative (FEDDAFC), a secondary cooperative that functions as a milk processing plant and is responsible for the value adding and marketing activities of fresh cow?s milk in Davao City, branded as Davao Dairy Best. Among the eight (8) dairy member cooperatives, WADAC is the third highest contributor of raw milk to FEDDAFC at about 13% of the total volume. The coop?s average daily produce of 110-125 liters is low compared to its maximum potential. According to the Coop Chairman, member-farmers collect an average of 6-8 liters of milk per dam per day. This is relatively lower compared to NDA?s estimated minimum production standard of 10 liters per cow per day. Also, member-farmers maintain an average of 1-2 milking cows only instead of three (3) cows at a minimum, as recommended by NDA. The low volume of milk production is attributed to varying farm practices and less number of cows in the milking line. Meanwhile, the cooperative expenses are quite high with respect to its generated revenue leaving a smaller net income or even a net loss. The said issues and problems contribute to the cooperatives slow growth towards a more sustainable economic and social enterprise. The implementation of this strategic plan is guided with the adapted conceptual framework which presents the external and internal environment analysis. External and internal factors are summarize into strengths, weaknesses, opportunities and treats which are the significant contributory factor towards the effectiveness of the Coop Enterprise. The successful operation of the coop will lead to an increase in profitability; more assets for the cooperative; equal distribution of consequential costs and benefits (risk sharing) among all members of the coop enterprise; and sustainable business operation. The sustainable operation is always accompanied with proper evaluation and monitoring. Through the coop?s SWOT analysis, strategies to address the prevailing problems are identified. The said strategies are evaluated through Quantitative Strategic Planning Mtrix. In consideration with the coop?s prevailing issues and concern, three (3) strategies are deemed important. The volume of milk production will continually increase its membership and encourage members to maintain at least three cows while maintaining good farming practices. Meanwhile, to improve the coop?s management processes, the cooperative shall enhance the technical, financial, managerial and leadership skills of its members through continuous training, application and monitoring. The projected financial statement of the Cooperative shows a positive growth of the in the next five (5) years with milk production reaching 362,880 liters in 2021. In the same year, the net surplus of the cooperative will reach up to Php 1,720,972.99 from Php 587,558.19 in year 2017.
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Thesis Thesis University Library Archives and Records Preservation Copy LG993.2 2016 M21 L856 (Browse shelf(Opens below)) Not For Loan 3UPML00036208

Thesis (Master in Management) -- University of the Philippines Mindanao, June 2016.

Cooperativism is long been present in the agricultural sector, continually striving to achieve its very mission in promoting self-reliance while empowering and binding people towards the attainment of economic development and social justice. Dairy cooperatives in the region, specially the Wangan Dairy Cooperative (WADAC), has existed more than two decades already and yet it?s growth is slow with unstable milk production over the years. Wangan Dairy Cooperative located in Brgy. Wangan, Calinan, Davao City is a multi-purpose agricultural cooperative which was organized on October 1990 through the initiative of the Philippine Dairy Corporation (PDC)., now National Dairy Authority(NDA). WADAC is one of the pioneer member of the Federation of the Davao Dairy Farmers Cooperative (FEDDAFC), a secondary cooperative that functions as a milk processing plant and is responsible for the value adding and marketing activities of fresh cow?s milk in Davao City, branded as Davao Dairy Best. Among the eight (8) dairy member cooperatives, WADAC is the third highest contributor of raw milk to FEDDAFC at about 13% of the total volume. The coop?s average daily produce of 110-125 liters is low compared to its maximum potential. According to the Coop Chairman, member-farmers collect an average of 6-8 liters of milk per dam per day. This is relatively lower compared to NDA?s estimated minimum production standard of 10 liters per cow per day. Also, member-farmers maintain an average of 1-2 milking cows only instead of three (3) cows at a minimum, as recommended by NDA. The low volume of milk production is attributed to varying farm practices and less number of cows in the milking line. Meanwhile, the cooperative expenses are quite high with respect to its generated revenue leaving a smaller net income or even a net loss. The said issues and problems contribute to the cooperatives slow growth towards a more sustainable economic and social enterprise. The implementation of this strategic plan is guided with the adapted conceptual framework which presents the external and internal environment analysis. External and internal factors are summarize into strengths, weaknesses, opportunities and treats which are the significant contributory factor towards the effectiveness of the Coop Enterprise. The successful operation of the coop will lead to an increase in profitability; more assets for the cooperative; equal distribution of consequential costs and benefits (risk sharing) among all members of the coop enterprise; and sustainable business operation. The sustainable operation is always accompanied with proper evaluation and monitoring. Through the coop?s SWOT analysis, strategies to address the prevailing problems are identified. The said strategies are evaluated through Quantitative Strategic Planning Mtrix. In consideration with the coop?s prevailing issues and concern, three (3) strategies are deemed important. The volume of milk production will continually increase its membership and encourage members to maintain at least three cows while maintaining good farming practices. Meanwhile, to improve the coop?s management processes, the cooperative shall enhance the technical, financial, managerial and leadership skills of its members through continuous training, application and monitoring. The projected financial statement of the Cooperative shows a positive growth of the in the next five (5) years with milk production reaching 362,880 liters in 2021. In the same year, the net surplus of the cooperative will reach up to Php 1,720,972.99 from Php 587,558.19 in year 2017.

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