'n Strategiese benadering tot landbou-ontwikkeling by 'n landboukoöperasie, met spesifieke verwysing na Noordwes Koöperasie

Abstract

TITLE A strategic approach to agricultural development at an agricultural co-operative, with specific reference to North West Co-operative.

BACKGROUND The ongoing delay in the creation of an umbrella co-ordinating model for the service of the commercial agricultural sector of the RSA, as well as the dynamic nature of the external and internal environments within which agricultural co-operatives and their members operate, necessitates a strategic approach with regard to the nature and scope of the continued involvement of co-operatives in the service of agriculture (research, extension and advice).

OBJECTIVE The objective of the study was to formulate an agricultural development strategy for North West Co-operative and in the process to investigate the desirability and nature of direct cost recoupment for agricultural development services as well as the possible duplication in the supply of advisory services within the Co-operative.

RESEARCH METHODOLOGY The strategic approach to agricultural development at North West Co-operative was done on the basis of a theoretic framework, which was compiled from literature. An empirical survey was done with the following respondent groups: the members of the Co-operative, the management and board of directors of the Co-operative, other participants in the service of agriculture in the operating area of the Co-operative, as well as other agricultural co-operatives in the summer rainfall cropping area of the RSA, which have departments of agricultural development at their disposal. The empirical data was used at various stages in the strategic approach .

FINDINGS The strategic management process is a useful and even essential aid at the disposal of agricultural co-operatives in reflecting on their future involvement in agricultural development, among others. An agricultural development department is of strategic importance to an agricultural co-operative as a financial enterprise. The strategic importance of such a department is mainly due to the fact that the farmer as member (owner) and client (borrower of credit and buyer of inputs) has to be enabled to run his farming enterprise profitably over the long term, in the midst of several risks. This Department can play an important role in the betterment of the expertise, ability and financial position of it's members, as well as to safeguard the supply of inputs and credit in this high risk industry. The funding of agricultural services is not synchronised with the usage thereof, and this leads to cross-subsidising . Cross-subsidising can be reduced by imposing tariffs for certain services or by linking the supply of services to member-support. It is expected that the imposition of tariffs will cause a decrease in the demand for these services and subsequent staff reductions. The agricultural development strategies of an agricultural co-operative should be aligned with the basic business strategy of the co-operative, so that agricultural development services can contain a competitive advantage for the enterprise. Agricultural development services at co-operatives should be centralised in one department. This will facilitate multi-disciplinary co-ordination and effect the implementation of the whole-farm approach. Services can be rendered to other departments as needed.