Practices and Challenges of Medium-Sized Agricultural Cooperatives in the Province of Albay

Abstract

This study assessed the characteristics, organizational and managerial status, financial conditions, credit operations, best practices, and challenges of three medium-sized agricultural cooperatives in the Province of Albay, Philippines, and developed a corresponding action plan. A descriptive, multi-method approach combined cooperative document analysis, a researcher-developed survey questionnaire, interviews with key cooperative officers, client-based validation, descriptive means, and thematic analysis. The three cooperatives varied in longevity, membership, lending services, and products. Their organizational and management evaluations were very good for Cooperative A (mean rating = 1.0) and good for Cooperatives B (1.9) and C (2.1). Audited statements reported average total assets of PHP 26,497,834.24 and average members’ equity of PHP 16,933,565.26, while the average loan portfolio reached PHP 8,884,287.76. Qualitative findings highlighted work commitment, compensation and benefits, policy development, monitoring, financial reporting, and lending procedures as practices, alongside employee competency, delayed records, loan delinquency, and dishonesty as challenges. An action plan was proposed covering cooperative training, digital tools, credit monitoring, financial management, member participation, and institutional linkages. The study indicates that, although the selected cooperatives maintained generally sound organizational performance, continued improvement in governance, financial recording, and credit administration was necessary. The action plan was proposed, not evaluated for effectiveness.