HISTORY OF COOPERATIVE

IN THE PHILIPPINES

1880
THE COOPERATIVE MOVEMENT BEGAN IN EUROPE DURING THE
INDUSTRIAL REVOLUTION. EARLY CO-OPS WERE SET UP AS A WAY TO
PROTECT THE INTERESTS OF THE LESS POWERFUL MEMBERS OF
SOCIETY WORKERS, CONSUMERS, FARMERS, AND PRODUCERS.

1884
ROCHDALEPIONEERS, A GROUP OF 28 MEN (WEAVERS AND
SKILLED WORKERS IN OTHER TRADES), FORMED A
COOPERATIVE SOCIETY THAT WAS RECOGNIZED BY MOST
SCHOLARS AS THE FIRST COOPERATIVE.

1892
RIZAL ADAPTED THE COOPERATIVE PLAN OF ROBERT OWEN. HE
INITIATED AN AGRICULTURAL MARKETING COOPERATIVE WHILE IN
EXILE INDAPITANIN MINDANAO. HE PUT UP A ONE NOTEWORTHY
GROUP ORGANIZED BY RIZAL WAS THE LASOCIEDADDE
LOSABACALEROS
(SOCIETY
OF
ABACA
PRODUCERS).

JANUARY 20, 1908

TEODOROSANDIKO, THEN GOVERNOR OFBULACAN, CAME ACROSS WITH
THERAIFFEISENMOVEMENT IN HIS TRAVELS IN EUROPE. HE THEN
PREPARED A BILL PATTERNED AFTER THIS WHICH AIMS TO WAS TO
PROTECT AND DEVELOP THE AGRICULTURAL INTEREST OF THE COUNTRY
BUT THE PHILIPPINE COMMISSION TURNED IT DOWN.

FEBRUARY 11, 1914

THE SPONSORS OF THE BILL AGAIN PUT IT THROUGH IN THE SECOND
PHILIPPINE LEGISLATURE. THIS TIME IT WAS IT WAS FINALLY PASSED
INTO LAW ON AND BECAME ACT 2508. GOV.SANDIKOEARNED A TITLE
OF FATHER OF COOPERATION IN THIS COUNTRY.

OCTOBER 18, 1916

THE FIRST RURAL CREDIT ASSOCIATION, AGRICULTURAL CREDIT
COOPERATIVE ASSOCIATION OF CABANATUAN, WAS ORGANIZED. IN 1935,
HOWEVER, ABOUT 90% OF THESE COOPERATIVES WERE INACTIVE WITH NO
FUNDS LEFT IN THEIR TREASURY. THE EXPERIMENT ON RURAL FINANCING,
THROUGH COOPERATIVES WAS A FAILURE.

1916
THE FIRST CONSUMERS COOPERATIVE WAS ORGANIZED AT
THE COLLEGE OF AGRICULTURE, LOSBAOS, LAGUNA.

DECEMBER 9, 1927
The Cooperative Marketing Law (Act 2425) was
enacted. Wherever rural credit associations were
organized cooperative marketing societies were
also organized. They however, failed the
enthusiasm of farmers to organize themselves into
cooperative marketing associations. By 1939 only
164 societies were actually organized with a total
membership of around 5,000 farmers. With this
number only 35 reported their sale of products to
the Bureau of Commerce. The number of
associations reporting indicated that only 20% of
the organized associations were active.

1952
Republic Act 821 was enacted. This law created an
administrative agency known as the Agricultural
Credit and Cooperative Financing
Administration (ACCFA). It is designed to meet
the needs of the small farmer. Through ACCFA,
the government organized and financed Farmers
Cooperative Marketing Associations (FACOMAs)
by providing collateral free loans funded by the
US Agency for International Development
(USAID). In 1957, 600 provincial as well as
national federations of FACOMA were organized.

1957
RA No. 2023, otherwise known as the Philippine
Non-Agricultural Cooperative Act, was passed by
Congress which enabled the people in developing
their enterprises on a cooperative basis.

1960
The Agricultural Credit Cooperative Institute
(ACCI) was then established. Three years later,
RA No. 3844 or the Agricultural Land Reform
Code was enacted. ACCFA was organized into
Agricultural Credit Administration (ACA).The
Land Bank of the Philippines was also
established during the same year.

During the martial law regime, President Marcos

issued several decrees that dealt with
cooperatives. Namely, Bureau of Cooperative
Development (BCOD) and the Agrarian Reform
Decree (PD 27) which declares the entire country
as an agrarian reform area. Pre-cooperatives
calledSamahangNayonswere organized and
grouped in tens to formKilusangBayans(KBs)
or full-pledged coops. Benefits would include the
right to borrow funds from government banks
and the assurance of being supplied with farm
inputs.

1986-1990
Cooperative leaders lobbied aggressively for the
adoption of a cooperative-friendly legislation. The
Bill was passed and signed as law(R.A. No.
6938)by President Corazon C. Aquino on. A
companion law was also passed creating
theCooperative Development Authority (RA NO.
6939)which provided the abolition of the Bureau
of Agricultural Cooperatives Development
(BACOD). With the passage of the Code, a
powerful instrument for economic progress and
development has been placed in the hands of the
people.

MARCH 10, 1990

Republic Act No. 6938, the Cooperative Code of
the Philippines and RA 6939 creating the
Cooperative Development Authority (CDA) were
signed into law. RA 6938 rationalizes and unifies
all cooperative laws while the CDA is created to
promote the viability and growth of Cooperatives

1993
National Cooperative Movement (NCM) was
organized and then the organization of the
Philippine Cooperative Center (PCC) the
following year. In 1998, the Cooperative-National
Confederation of Cooperatives (COOP-NATCCO)
Network Party landed a seat in the House of
Representatives. It also won another seat in the
2001, 2004 2007, and 2008 elections which
enabled cooperative movement to have a voice in
the halls of Congress

FEBRUARY 17, 2009

Republic Act No. 9520 or the Philippine
Cooperative Code of 2008 a new law was signed
amending RA 6938 to meet the challenges of the
global economic situation and the advent of the
age of information technology and to strengthen
the thousands of cooperatives in the country and
enable the system to contribute better to the
countrys economic growth

PRESENT TIME
Despite the various laws passed and government
interventions being implemented, early
cooperatives in the Philippines was generally a
failure. But, regardless of the sad experience of
the Philippine cooperative movement, there are a
number of Philippine cooperatives who flourished
and succeeded in their endeavors and their
stories provide inspiration to the starting and
growing cooperatives in the country.