MADRIDEJOS FISHERMEN'S COOPERATIVE MARKETING ASSOCIATION, INC.

Rolando Castillo Obispo Chief, Fishing Technology Sectin Bureau of Fisheries and Aquatic Resources Regional Office No. 7, City

Abstract

This paper traces the attempts of one municipality, Madridejos, to create a fishermen's cooperative. There is a description of the various agencies which helped the association, as well as of the training facili- ties available to members. The author has laid down the duties of the members, and also the functions which can be undertaken by the cooperative.

Since this cooperative may be considered still in an organizational phase, some problems have been encountered; the author proffers suggestions to remedy these problems.

CONTENTS

Page

1. Rationale ...... 633 2. History of the Cooperative and How It Was Formed ...... 633

3. Membership ...... 634 4. Type of Fishing Done ...... 635 5. Cooperative Functions ...... 635 6. Structure/Development Programmes ...... 636 7. Financing ...... 636 8. Conclusions and Recommendations ...... 637 1. RAT IONALE Madridejos is one of three progressive municipalities of located on the northwestern part of Cebu Province (mainland). It can be reached by bus via Hagnaya, San Remigio, which is approximately 110 kilometers from Cebu City by asphalted-cemented and second class road. From Hagnaya, San Remigio, to Santa Fe is by boat and the distance is 9 nautical miles (approximate travel time is 1 112 hours). From Santa Fe to Madridejos is 27 kilometers of second class road passing the municipality of Bantayan, also a fishing town and gateway to Cadiz, .

At least 80 percent of the population are engaged in the fishing industry with small farms planted mostly with coconuts, corn, tapioca, etc., while others are engaged in or employed in the poultry business. Most of the barrios are located along the coast where hundreds of motorized and non- motorized bancas are beached; these areas are also utilized for repairs of nets and fish drying close to their houses. Fish and other fishery products are commonly shi,pped to Negros and Cebu for marketing and distribution to other parts of the Philippines. The Bantayan Island fishing ground is the , one of the richer waters of the Philippines known for commercial species of Spanish mackerel, Sardines, Herrings, Snappers, Chub mackerels, Cavallas, Anchovies, Squids, Crabs and other aquatic products. Aside from fishing the region is also known as the egg basket of the and , since trashfish are used as the main ingredient of locally produced poultry feeds. HISTORY OF THE COOPERATIVE AND HOW IT WAS FORMED The present Fishermen's Cooperative Marketing Association, Inc. was started unofficially in Madridejos by some local fishermen and fish processors sometime in 1974. The members continued encouraging others to become members until it spread to the nearby barrios and became popular in the entire pro- vince. In January 1975, Government and Private agencies offered help to the organized group of fishermen by forming core groups, namely, Mothers Club (for wives of fiehermen), Fishermen Association (Pre-Cooperative) and Credit Union (Savings and Loan). Philippine Business for Social Progress fielded a Community Organizer to assist the fishermen, and conducted Community Education and Leadership Training to a total membership of 105 under the Madridejos Community Development Organization. In the same year, another private organization, the Visayas Coopera- tive Training Center, conducted another training session to strengthen the existing core groups. However all but the Fishermen' s Association were dissolved because members felt it had been the only group to show progress. Members of the other core groups voluntarily joined the Fishermen's Associa- tion. In the latter part of 1976, the existing organization had 272 mem- bers coming from 18 chapters (the members from one barrio are one Chapter) and rmmed it Madridejos Fishermen's Cooperative Marketing Association, Inc.; a cooperative store which deals with economic and social projects was also establfshad with the assistance of the Department of Local Government and Community Development, and the Bureau of Fisheries and Aquatic Resources, both Regional Office No. 7, Cebu City at Clarin, ; the author is one of the bnabnors. He conducted Pre-Membership Education Training among the prospective members, created different committees, articles of incorporation and byllsws, necessary documents, etc., and finally assisted in the official registration. I, The cooperative was officially registered on September 8, 1977 by the Department of Local Government and Community Development, Bureau of Cooperative Devabnptnent under registration No. P-001-R. It is the first Fishermen's Cooparahive registered in Region 7, which is composed of 4 provinces. The Bureau of Fisheries and Aquatic Resources, Regional Office No. 7, Cebu Gtty, thru the Fishing Technology Section (with the author designated Chief and Project Leader) conducted a Municipal Fisheries Training Program during November and December 1977; the subjects were improved fishing tech- niques and methods, gear designing, construction, operation and maintenance, small engine repair and maintenance, fishery conservation, fish processing and handling, etc. The programme consisted of 20 percent lectures and 80 peroent practical training. Office supplies and training materials, registra- tion, etc, were free. The finished nets and other projects were turned over to the trainees to serve as models/starters and the proceeds went to the cooperative; it was up to the cooperative to decide how to use them for other projects. BFAR conducts continuous extension services and assists in carrying out fishery projects, acquiring loans from financing institutions, etc. Appendix IV shows the various development plans, and the attendance of the members sponsored by the educational funds of the cooperative itself. 3. MEMBERSHIP To be a member, he/she is required to undergo a pre-membership education training course for three (3) weeks covering 14 subjects as prescribed by the Bureau of Cooperatives Development to be conducted by the Cooperative Education and Training Committee of the Cooperative with the assistance of the MDO. The successful candidate is required to file an application for member- ship, is screened and considered for approval by the Board of Directors; if approved, helshe is required to pay P10.00 membership fee, and a paid-up capital contribution of P100.00 payable by cash or installment. After payment he then becomes a regular member, qualified to be an elected officer, entitled to receive patronage refunds and dividends; but in the case of a member who has paid only his membership fee and has not fully paid his capital installment, he is also entitled to receive some dividend depending on the amount he has deposited.

The member is also required to attend the regular monthly/special meeting and also to channel his products to the cooperatives for marketing (products sold at current market prices); he is charged 1% of his gross sale for every fishing trip as a service fee, and a certain percentage is deducted to increase his share of capital investment. To date, the total number of 316 regular members come from 11 chapters/barrios, mostly fishermen and processors within the municipality.

4. TYPE OF FISHING DONE Most of the fishing activities of the members are small-scale since the money available to them through the co-operative is limited; loans are small, and borrowers do not always repay loans on time. Thus fishermen can- not improve their fishing techniques by purchasing new equipment. Common types of fishing gears used are:

Handlines (Groupers, Cavallas, Snappers, etc.) Bottom Longlines (Grouper, Cavallas, Snappers, etc.) Trolling Lines (Spanish Mackerel, Skipjack, Tuna, Squids, etc.) Fish Shelters Spear Fishing Diving (shells, cucumbers, pearls, etc.) Gill Netting (Drift, Set and encircling) Bag Nets Baby trawls The processing of fish and other fishery products are traditional such as drying, salting, making fish sauce, etc.; processors are not engaged in fishing, although they may be members of fishermen's families.

5. COOPERATIVE FUNCTIONS Among the activities the cooperative may undertake are the following: a. Procurement of production and fishing supplies and other needed commodities from producers, wholesale outlets or dealers for sale to members. b. Wholesale purchasing of catch and fishery products supplied by members for sale to large marketing outlets. c. Storing, processing and transporting of products and catch. d. Financing of inventories and provision of credit for trade. e. Bookkeeping and auditing services.

f. Other essential cooperative activities such as continuing cooperative education and information on a massive scale for members, local officials and other cooperative leaders.

g. Accumulation of savings and extension of loans with or without collateral. 6. STRUCTURE/DEVELOPMENT PROGRAMS (Please see Appendix) Appendix I - Year 111 (1977) Appendix I1 - Year 111 and IV (1977-78) Appendix 111 - Year V (1979) 7. FINANCING Financial support to the cooperative depends entirely on the contri- butions of the membership fees, paid-up capital, and loans from the Philippine Businesses for Social Progress such as:

Capitalization of Consumers Store - 3,480.85 Financial Grants Received: -Year Amount Philippine Business for Social Progress 1975 P 12,876.95 Philippine Business for Social Progress (Thru Madride jos Community Development Organization) 1976 NOTE: The above grants were used for operational expenses incurred by the Cooperative such as allowances, Programs/Trainings/ Education e. Population Center Foundation (Family Planning Development Programs) Equipment donated: 1 Isuzu cargo truck from RP-USAID through Catholic Relief Services 8. CONCLUSIONS AND RECOMMENDATIONS Common to all developing cooperatives, the Madridejos Fishermen's Cooperative has experienced familiar problems. Financially, there is in- sufficient funding from government institutions or other agencies; this is especially important at the beginning of a cooperative movement, when members are slow to repay loans, and may still be in debt to local money-lenders and middlemen. Without this funding, fishermen cannot receive loans large enough to make any visible increase in their catch; nor can the cooperative purchase new equipment. This leads to a loss of interest on the part of the members who were expecting instant results which the cooperative simply could not produce. Irregardless of membership in a cooperative, small-scale fishermen everywhere are caught up in disputes with commercial fishermen, and are suffering from the rising prices of primary commoditiee; this is so in Madridejo~.

Below are some comments and recommendations for improving the effective- ness of the cooperative. Comments Recommendations 1) Members sometime sell their 1) Specified and secured boat landing catch to other buyers and sites would help and would improve not through the cooperative. marketing procedures. 2) Most staff are voluntary, and 2) If possible, co-op staff should be their duties are not clearly on regular salary and they should defined. have clearly-defined job descriptions. Once this is achieved, then promotion could be given as a result of proven competence and efficiency. Comment e Recommendations 3) Records have not been kept, 3) Books of account must be kept, and or have not been systematic. all transactions recorded. Also a filing system should be introduced and maintained. 4) The Manager is a member of 4) A better system would be to separate the Board of Directors. the two functions. Also, there should be a manual which spells out in detail the functions of the Board. Once the Board is consolidated and strengthened, there is much less likelihood of interference from local politicians. APPENDIX I

YEAR I11 (1977) MADRIDEJOS FISHERMEN'S COOPERATIVE ASSOCIATION MADRIDEJOS, CEBU

INTEGRATED DEVELOPMENT PROGRAM

APPENDIX IV COOPERATIVE PERSONNEL DEVELOPMENT PLAN PROVIDED THROUGH COOPERATIVE'S EDUCATIONAL FUNDS

a. 3 participants attended the management seminar conducted by the Central Philippine University, City. b. 2 participants attended the Cooperative Development Seminar conducted by Xavier University, Cagayan de Oro. c. 3 participants attended the Fishermen's Training Center (Commercial Fisheries) conducted by Bureau of Fisheries and Aquatic Resources and UNDP at Cavire City. d. 2 participants attended the Administration and Management of Cooperatives conducted by Bureau of Cooperatives Development, at Cebu City. e. 1 participant attended Family Planning Symposium conducted by Population Center Foundation at Makati, Metro . f. All officers attended the Management Information and Accounting System conducted by Small Business Advisory Center under the Department of Industry at Madridejos, Cebu. g. 70 cooperative members attended Municipal Fisheries Training Program conducted by Bureau of Fisheries and Aquatic Resources, Regional Office No. 7, Cebu City at Madridejos, Cebu.