THE CUMABAO, NAMNAMA, CAMASI, DY-ABRA EAST-WEST SEED

GROWERS MULTIPURPOSE COOPERATIVE

CREDIT PROGRAM: A CASE STUDY
ABSTRACT
The Cumabao, Namnama, Camasi, Dy-Abra East-West Seed Growers
Multipurpose Cooperative (CNCD-MPC) is a cooperative engaged in marketing and
credit operations. The CNCD-MPC is a brainchild of the East-West Seed Company
(EWSC) to act as a conduit among its hybrid seed growers in Tumauini, Isabela. CNCDMPC was also established to facilitate the distribution of assistance needed by the farmer
members coming from East-West. Although it seems that the cooperative is doing well in
its businesses due to the fact that they have a captured market and that they have the full
support of EWSC, there are signs that the cooperative is struggling financially such as
their inability to pay their debts on time and the piling up of past dues and inactive loans.
Thus, there is a need to analyze the loan program implementation and the financial
position of the cooperative. The type of research is a case study using qualitative and
quantitative analysis. Qualitative analysis was used on the evaluation of the program
guidelines and its effect on repayment while quantitative/financial analysis was used in
evaluating the financial position of the cooperative. The quantitative data used in this
research was the audited financial statements of the cooperative. The result of the study
revealed that the cooperative has poor ability to collect accounts receivable caused by
insufficient number of staff. This resulted to an increase rate of delinquent clients/past
due accounts and consequently, insufficient budget to finance the needs of their farmer
growers. Based on the weighted decision criteria, strict monitoring and implementing
policy guidelines is highly recommended. A revised loan program was also proposed to
address some weakness of the current loan programs. CNCD-MPC has all the needed

assets to function profitability, merging these assets to work effectively and efficiently
will make the cooperative a success.