The research project will focus on employees credit cooperative and agricultural cooperative.

It aims to evaluate their performance in terms of membership, capitalization, credit scheme, production, profit sharing, factors affecting losses in capital and socio-economic impact on the members and in the community. Two (2) employees credit cooperative and two (2) agricultural cooperative will be evaluated using both quantitative and qualitative method of research. Data gathering will be based on verifying their book of accounts /financial statement and a prepared questionnaire for the member respondents. Data Envelopment Analysis (DEA) and Stochastic Frontier Regression (SFR) will be use to measure performance via the financial statement while Factorial Analysis and Regression Correlation will be used to analyze socio-economic impact. The research project will focus on employees credit cooperative and agricultural cooperative. It aims to evaluate their performance in terms of membership, capitalization, credit scheme, production, profit sharing, factors affecting losses in capital and socio-economic impact on the members and in the community. Two (2) employees credit cooperative and two (2) agricultural cooperative will be evaluated using both quantitative and qualitative method of research. Data gathering will be based on verifying their book of accounts /financial statement and a prepared questionnaire for the member respondents. Data Envelopment Analysis (DEA) and Stochastic Frontier Regression (SFR) will be use to measure performance via the financial statement while Factorial Analysis and Regression Correlation will be used to analyze socio-economic impact.

A cooperative is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic and cultural needs and aspiration by making equitable contributions to capital required, patronizing their products and services and accepting a fair share of risks and benefits of thr undertaking in accordance with the universally accepted cooperative principles (CDA pamphlet).

In agricultural cooperatives, differences can be observed in the changing demographics, consumers preference, effectiveness of the Board and organizational management FFTC, 2006). Cooperatives in Asia faces problems relating to organizational structure, management, indifference of members, inter-cooperative relationship, business operations and finances. If agricultural cooperative want to serve total needs of farmers and extending benefits of advanced technology, competent management is required. History (relate to the Philippine setting) Cooperative in the Philippines is regulated by the Cooperative Development Authority (CDA). Established by virtue of R.A. 6939 (1990) in compliance with the provisions of Section 15, Article XII of the Philippine constitution of 1987 which mandates congress to create an agency to promote the

viability and the growth of the cooperatives as instrument of equity, social justice and economic development. Cooperatives in the Philippines are categorized according to 20 types based on their functions: 1. Credit cooperative undertakes savings and lending services among its members. It generates a common pool of funds in order to provide financial assistance and other related financial services to its members for productive and provident purposes. 2. Producers cooperative undertakes joint production whether agricultural or industrial. It is formed and operated by its members to undertake the production and processing of raw materials or goods produced by its members into finished or processed products for sale by the cooperative to its members or non-members. Any end product or its derivative arising from the raw materials produced by its members, sold in the name of and for the account of the cooperative shall be deemed a product of the cooperative and its members. Before cooperatives was established, loan was given by individual loaners where they tend to use their economic power to the disadvantage of farmers. (5-6 practised by Bombay), one sack of fertilizer to 2 sacks of palay, For labor, early Filipinod had demonstrated cooperativism in the community. The practice of bayanihan system in which services were renedered and the fruits are equally divided. Land Bank of the Philippines instrumental to the developmenent of agricultural cooperative. It is committed to continue strengthening its support and partnership with the coop. The bank aims to enhance the publics consciousness on the potential of cooperative sector to further foster progress and development.

= more cooperative will rise to the challenge of bringing about the most positive impact in the lives of our people and in the communities. = credit cooperatives and/or federations shall be entitled to loans, credit lines, rediscounting of their loan notes, and other eligible papers with the Development Bank of the Philippines,PNB, LBP and other financial institutions except the Central Bank of the Philippines. The feedmilling cooperatives are all found in the Calabarzon Region, but they are the best and the largest in the cooperative feedmilling industry in the Philippines. Member may own more tha 20% of the subscribed share capital and each share must not be less than P1.00. Past studies have shown that there are various methods in assessing organizational performance in cooperatives, including size and types of cooperatives. Stevenson (2008) studied on various perspective in cooperative performance such as socio-economic, social-psychological and cooperative organizational

perspectives and operating cost. Investment and return on equity are crucial in determining cooperatives efficient performance, Operating capital and profit is often used as a proxy to measure performance. What to evaluate cooperative investment involving definable set of parameters such as input or resources (capital investment) outputs ( facility, goods, services), activities or process which can transform inputs into desire output. Socio economic desirablility economic profitability Generation of employment opportunities Strengthening and diversification of rural sector Generation of net foreign exchange.

Satement of Financial Condition Membership profile - last 5 years 2007 -2012

Performance Highlight Areas of Concern Membership Share Capital Cash flow Savings /Time Deposit Assets Loans Releases Past Due rate (%) Consumers Gross sales Goods & services Patronage refund Gross Income Total Expenses Net Surplus Return on Equity 2011 2012

Social Services _________________________________________________________________________ Type of Services No of Members No of Beneficiaries Amount Granted ________________________________________________________________________ Training Medical Bereavement Assistance Others ___________________________________________________________________________

Uri ng Paglilingkod

Bilang ng Kasapi

Bilang ng Nakinabang

Halagang Naipagkaloob

A survey using Self-Administered Questionnaire has been developed and it will be distributed to the respondents among 5% of the total members. The data collected from the questionnaire will be analyzed using Statistical Package for Social Sciences (SPSS) version software 16.0. The hypothesis is developed to know whether there is a relationship between the strategic planning and human capital with the performance of the cooperatives.

Performance evaluation of cooperatives has always been a topic of considerable interest in agricultural economics, primarily because of the significance of the cooperative form of organization in agriculture in both developed and developing countries. Traditionally, agricultural cooperatives have been encouraged as a vehicle for economic development, because the cooperative form of organization, in addition to being equitable, enables small producers to capture economies of size and increases their marketing power. Governments in both developed and developing countries actively promote and assist agricultural cooperatives. Justification of the continued government support of the cooperative requires evaluation and monitoring of cooperative performance. (Zvi Lerman and Claudia Parliament 1991, Agricultural Economics Journal 15-21. Elsevier Science Pub. B.V. Amsterdam) .

METHODOLOGY Following Lermans measurements of business performance, four measures of financial performance of the two types of cooperatives will be examined: leverage, efficiency, liquidity, and

profitability. Performance will be analyzed by financial ratios based on audited financial statement for the last 2 years. 3.1. Descriptive Methodology 3.1.1 Research Design :

3.1.2 Study Site:

3.1.3 Selection of samples: Data Outcome measurements, data collection procedure,

Ethical consideration:

Data/mode of analysis 3.2 Appendices: 3.2.1 Letter of Consent to the Cooperative Board 3.2.2 Prepared Sample Questionnaire 3.2.3 Financial Statement