'n Bedryfsekonomiese analise van takke en depots van landboukoöperasies

Abstract

The expansion of agricultural co-operatives in South Africa by means of the establishment of co-operative branches and depots has raised many problems of organisation, finance and control. This study endeavours to analyse these problems. After discussing in chapter II the concepts of "co-operative," "branch" and "depot", a review of the history of co-operative branches and depots in South Africa is given. The founding of many new branches and depots eventually led to problems of overlapping between co-operatives. Act No. 29 of 1939 stipulates that co-operatives may not establish any branches , except at places mentioned in its regulations. Co-operatives were, however, at liberty to establish receiving depots, with the result that there were many cases in which the activities of border depots of neighbouring co-operatives overlap, as well as cases where two and three similar co-operatives have depots at the same place. The problem was, therefore, to eliminate existing overlapping and to avoid it in future. In order to accomplish this, Act No. 44 of 1960 was introduced, in which provision was made that depots had to be registered before being established. In chapter IV we have tried to analyse the organisation of branches and depots. We showed how the decentralized units (branches and depots) are organised and how this organisation fits into that of the head office. Concerning the functions and decision-making area of branch managers, we came to the important conclusion that decentralization of authority with centralization of control is the ideal system in organising branches and depots of the co-operative. Chapter V discusses the capital requirements and the sources of capital of co-operatives, especially the capital requirements of branches and depots. Factors like the economic functions which the co-operative renders, the nature of the products handled and seasonal fluctuations have a considerable influence on the amount of capital

needed. Although the agricultural co-operatives in South Africa have several sources of funds, it appears that more funds are needed and on more favourable terms to put co-operatives in a financially sound position. Centralization of control and decentralization of authority requires a sound control system to check on the decentralized activities of branches and depots. Chapter VI analyses what measures can be introduced to make good administrative, financial, stock, credit and personnel control possible. Chapter VII gives a further analysis of control, and more specifically stock and financial control. Naturally different control systems are needed for the large and small co-operatives to suit their requirements. We designed a control system by which the large co-operative can make a departmental analysis of all the articles its branches sell. In this way the amount of stock on hand, sales, turnover rate and the gross profit margin for each article can be calculated. A departmental trading account which shows the variance of the gross profit for the current year with that of previous years was designed for use by the small co-operative. The study is finally concluded in chapter VIII with a general summary and a few recommendations.