Why Member Equity is Critical to Successful Cocoa Co-operatives?
Synopsis
This paper makes the case that cocoa cooperatives must adopt member equity plans based on usage in order to grow and become independent successful co-operatives. The introduction quotes notable co-operative experts on the centrality of member equity. Sections describe: (1) challenges facing cocoa co-ops; (2) reasons that the chocolate, Fair trade and development organizations should understand and support member equity plans; (3) the differences between co-ops and other business forms; (4) member equity plans; (5) equity redemption plans; (6) why agricultural co-ops in developing countries have not adopted such plans; (7) cocoa co-ops as group-based businesses; (8) the donor’s role in co-operative development; (9) the financial difference between farmer associations and co-ops; and (10) capitalizing farmer associations and co-ops. The conclusion outlines the historical and current roles of co-ops in social and economic development. There are two attachments: a case study of the adoption of member equity plans by Acopagro and Oro Verde in Peru; and a selected bibliography on member equity for those interested in more insights and information.
October 29, 2013
Synopsis
This paper makes the case that cocoa cooperatives must adopt member equity plans based on usage in order to grow and become independent successful co-operatives. The introduction quotes notable co-operative experts on the centrality of member equity. Sections describe: (1) challenges facing cocoa co-ops; (2) reasons that the chocolate, Fair trade and development organizations should understand and support member equity plans; (3) the differences between co-ops and other business forms; (4) member equity plans; (5) equity redemption plans; (6) why agricultural co-ops in developing countries have not adopted such plans; (7) cocoa co-ops as group-based businesses; (8) the donor’s role in co-operative development; (9) the financial difference between farmer associations and co-ops; and (10) capitalizing farmer associations and co-ops. The conclusion outlines the historical and current roles of co-ops in social and economic development. There are two attachments: a case study of the adoption of member equity plans by Acopagro and Oro Verde in Peru; and a selected bibliography on member equity for those interested in more insights and information.