Cooperatives - Success of Maltese coops

Yearly turnover of Maltese coops about €58.5 million

For the past 60 years Malta has been enjoying the services and produce provided by the local cooperatives. So it is no surprise that their performance sometimes passes unnoticed because most of the people have taken them for granted. It is cooperatives that provide us with the daily fresh bread, milk, vegetables, fruits, meat and fish. Their yearly turnover is about €58.5 million.

Today we have just over 60 cooperatives with around 5,000 members. Sixty years ago the cooperatives were only those from the agricultural sector since they were the solution to combat the shortages of foodstuffs after World War II. But, in recent years there was a strong diversification and a good number of workers decided to adopt the cooperative model. Among them we find the newly and by now well established cooperatives in the fields of transport and towing, port workers, financial services, media and advertising, pharmacists, university and Mcast students etc.

The growth of cooperatives has shown that it is an important sector for full economic, social and cultural development. There are still many fields in which cooperatives can operate in the near future. For this purpose, apart from the knowledge delivered through the Scoops Project in secondary schools, the Cooperatives Board has been focusing its attention towards tertiary students.

Among the well-established cooperatives which have been operating for a good number of years, there are some success stories which are proof enough that the cooperative model sets a good example of how a team of workers can work together. According to the Cooperatives Act of 2001 five persons are enough to form a cooperative. In spite of this most of the cooperatives are made up of 10, and others even have up to 300 or more members.

This year the Koperattiva Produtturi tal-Ħalib (KPĦ) is celebrating the 50th anniversary since the local herdsmen teamed up in 1958. In those days they used to sell the milk collectively to the Milk Marketing Undertaking, but in the 1960s they decided to invest in a feedmill. In so doing, the cooperative was able to manufacture and produce its own fodder for the local herds and did not have to rely on other importers. So the herdsmen improved their income since the cooperative's prices for the fodder were much cheaper.

During the past 20 years the KPĦ concentrated on the sales of milk and milk products by investing in Malta Dairy Products Ltd, which makes the Benna products.

There are similar success stories such as those obtained by the Koperattiva ta' Min Irabbi l-Majjal, Outlook Management and Communications Cooperative, Mediacoop and others.

On a different scale, Koperattiva Kummerċ Ġust (KKĠ), registered in 1996, has a success story with its achievements during the past twelve years. Formed by a number of volunteers, this cooperative is basically a non-profit enterprise aimed at helping Third World countries sell their products at a reasonable price and free from the manipulation of established entrepreneurs. In order to justify the means, the KKĠ opened an outlet shop named Arka in St Paul's Street, Valletta.

But what is the secret formula behind the creation of this world movement which has penetrated the business industry everywhere? It is the system by which the cooperative model is put into practice in the most democratic way, where every member has equal rights in all decisions. So, all the members who in fact are the grassroots of the enterprise and can easily identify all possibilities are free to plan the most effective strategies to achieve their goals.

Every year, on the first Saturday of July, representatives of the local cooperatives get together to celebrate International Cooperatives Day. The purpose of this meeting is to encourage members to get to know one another and at the same time have the opportunity to exchange ideas. During the seminar held on this occasion, the members try to raise and discuss the current problems and check on systems for more cooperation. At the same time they create a forum in which all the members can reflect on their respective performance, and try to find the best way forward. This is very useful as it helps them not to repeat past mistakes by discussing together the best way for a better future.

• Mr Galea is public relations officer of the Cooperatives Board.

http://www.coopsboard.org

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