Line financing for cooperatives

Today we published our last post and with this post we say goodbye, thank you for your engagement.

We are going to talk about financing cooperatives.One of the most important problems is a cooperative financing, it is because the workers (co-operators) are the only ones who provide capital to the company and there is not the possibility of the external capitalists.

Why would anyone want to take the risk and just do not have the right to choice? That’s why, it is difficult to obtain other financing because it will be very difficult to convince.

However, the Government will include a specific line to encourage the cooperative integration, it has the aim of promoting a professionalized cooperative business model, delivering value and relevant to produce and market global dimension.

Thus announced Wednesday the Minister of Agriculture, Food and Environment, Miguel Arias Cañete during the presentation in Madrid of the new Spanish cooperative DCOOP, the olive industry.

“It consiteprovide adequate dimension to companies to enable them to meet the challengesof the global market in the best conditions in terms of bargaining power,possibilities of access to new markets and innovative potential "

Great cooperative network

In this regard, the Minister pointed out that Spain has a significant base cooperative movement, in which 4,000 cooperatives have 1,100,000 members, providing direct employment to over 97,000 people, and an average annual growth of around 5 %. Also, their sales exceed 19,000 million, which means 46% of final agricultural production and 22% of the net sales value of the Spanish food industry.

However, Arias Cañete pointed out that this system lacks dimension: "Today, the market size requires proper replication in companies", said the minister, who stated that "the challenge must assume cooperatives to strengthen the competitiveness and development opportunities on a global level. "

We say farewell

GlobalOrg