GROUP NO 9• EHTISHAM TAJ 15-ARID-4927• MARYAM BATOOL 15-ARID-5007• HASSAN TARIQ 15-ARID-4964• SABIR HUSSAIN 15-ARID-5164• ADIL RIAZ 15-ARID-4873• SAQLAIN AFZAL 15-ARID-5184• AHMER TOUQEER 15-ARID-5027• RIZWAN BILAL 15-ARID-5098• MUHAMMAD SAQIB 15-ARID-5104• LUQMAN ANWAR 15-ARID-4996

CO-OPERATIVE & CORPORATE FARMING

Co-operative farming

Co-operative farming

• What is co-operative farming?• Objective of co-operative farming.• Advantages and disadvantage of

co-operative farming.• Status of co-operative farming in

Pakistan• Status of co-operative farming in

world

Contents:

Co-operative farming

• Co-operative farming is a system, in which farmer pool their resources to buy commodities such as seed, fertilizers and services such as marketing for cooperation in certain areas.

• Co-operative farming is a system of organized agriculture established under an association owned and operated by the farmers of the locality to have mutual benefits.

Objective of co-operative farming

• The object of this organization is to help each other in agriculture for their common interests. In other word it is a co-operative among the farmers of limited means.

• A family may be too small to justify the purchase of tractor on any required farm machinery/equipment for its own use, machinery pool purchases the necessary equipment for joint use of all member as needed.

Objective of co-operative farming

• It provide the mean of transportation for delivery of farm produce to market. Small farm may not have means, co-operative act as integrator, collecting out put of small farmers deliver it in large quantities through market channels.

• Finance facilities by co-operative banks/commercial banks to individual farmer, bank may refuse or charge high interest rate.

Objective of co-operative farming• Motivation for the co-operative farming is

sometimes described as “overcoming the curse of smallness”.

ADVANTAGES OF CO-OPERATIVE FARMING

Following are the main advantages of cooperative farming.

• Consolidation of Small Units of Land:• Use of Machinery:• Supply of Inputs:• Fair Price of the Product:• Guidance and Training:

Consolidation of Small Units of Land :

• Majority of the farmers keep the small units of land. So they cannot employ the improved methods of cultivation. Cooperative farming enables them to consolidate their small units of land for better utilization.

Use of Machinery

• A poor farmer cannot purchase the machinery but a cooperative society can easily purchase the various machines. The use of machines will not only reduce the cost of production but will increase the per acre yield.

Supply of Inputs• A cooperative farming is in a better position to

get the adequate and timely supply of essential agriculture inputs like fertilizer and seeds.

Fair Price of the Product

• A co-operative farming society will bargain in the market and will sell the product at maximum price. The income of the individual farmer will increase.

Guidance and Training

• A co-operative society guides the farmer to increase their efficiency and production.

Disadvantages of Cooperative Farming

• Lack of initiative and responsibility• No increase in production• Lack of trained personnel

Lack of initiative and responsibility

• Member of cooperative society work jointly on a cooperative farm and we know, in joint adventures, every body’s responsibility is no body’s responsibility. This is especially so in case of farming when the area of operation for a worker is very large and supervision cannot be very effective. One may not work devotedly and then blame others for poor result.

No increase in production

• It has been argued that in big farm productivity per man increase but not per acre so in cooperative farming production is not increased.

Lack of trained personnel

• Scheme of cooperative farming is succeed only If the same are being implemented by trained and efficient personal and hence there is little chance of cooperative farming of being successful.

Status of co-operative farming in Pakistan

• The co-operative farming is not successful in Pakistan because:

• There is lack of sense and feelings of cooperation and brotherhood amongst the Pakistani farmers due to their division in various casts, creed and groups.

• Pakistani farmer are generally illiterate tied with the apron of traditions and customs therefore, they do not welcome any radical and constructive changes.

World status of co-operative farming

• Co-operative farming has not succeeded in most part of the world. If they have achieved good results in countries like Israel, it was because of special religious sentiments.

Corporate farming

•what is corporate farming?•Objectives of corporate farming.•Corporate farming ordinance (CFO)-2001.•Advantages and disadvantages of corporate farming.•Status of corporate farming in Pakistan.•Conclusion of co-operative & corporate farming.

Contents:

Corporate farming

• Corporate farming is a term used to describe the business of agriculture or the practices of mega corporations involved in food/crop production on very large scale.

• It is a modern food industry concept include not only farm itself but also entire chain of agriculture related business, including seed supply, agrochemicals, food processing, machinery, storage, transportation, distribution.

Why we adopt corporate farming?

• As the small farmer of Pakistan are unable to adapt new technologies and cannot afford the costly input required to get optimum yield from new crop varieties.

• The idea of corporate farming was to cultivate all waste lands in Pakistan by bringing foreign corporations, which would cultivate this land by local, at attractive wages, train local people, pay local taxes, develop roads and communication networks, and bring prosperity at nominal profits to themselves.

Objective of corporate farming

• To seek efficiency of production and increased income/revenues by bringing together agricultural production, processing and marketing activities at one place under management of a corporate entity.

• To improve agricultural productivity and profitability through the use of latest production technology.

Objective of corporate farming

• To produce high quality agricultural products due to favorable resource base.

Advantages of corporate farming

• Reduced Agricultural Wastage• Better Quality Yield• New Technology use• Boosting the Agricultural Sector

Reduced Agricultural Wastage

• Timely harvesting of crops helps avoid wastage of food. This increases the yield produced from the same input.

Better Quality Yield

• Corporates are in a better position to protect crops through extensive use of pesticides. This helps ensure minimal damage to crops and a better quality yield. This farming also encourages the employment of food cultivation techniques that increase the storage life of crops for exports.

New Technology

• Corporation gives the new technologies(tractor, thresher, combine harvester etc.) to the farmer which increase the yield of the crops.

• Increase in agricultural production through the use of advanced technology has obviously boosted the agro-scenario in developed and developing economics.

Boosting the Agricultural Sector• Industrialization of agriculture has helped in rapid production

of crops to meet the needs of the economy and revived the importance of agriculture in the GDP. It will also contribute to the development of exports.

Disadvantages of corporate farming

• Lower Profits for Farming Households• Reduced Nutrition• Higher Environmental Costs

Lower Profits for Farming Households

• As agribusinesses are widening their horizons in agriculture, this has severely affected the livelihood of many farmers. In economies thriving on this type of farming, farmers face problems of reduced profits or increased costs. This has largely affected the sustainability of their occupation.

Reduced Nutrition

• It also compromises on the nutritional value of food by using high amounts of insecticides and pesticides to prevent damage to crops. They blindly use food additives, coloring agents, chemicals and hormone injection to speed up the process of crop maturity. Such genetically modified crops lack nutritional content in comparison to organically grown nutritious crops.

Higher Environmental Costs

• Mechanization of agriculture through the use of technology has although increased the pace of all production processes, it has made it difficult for the environment to cope up with this speed. It interferes with the natural and biological processes of the environment. Moreover, corporate farming may soon be a threat to the water bodies that will quickly dry up from excess irrigation, polluting of fisheries by disposal of chemical wastes, depletion of oxygen in the atmosphere and increasing threat to all those engaged in agriculture. It also pollutes the soil and is negligent towards animal health welfare.

Status of corporate farming in Pakistan

• China, Saudi Arabia & united Arab Emirates are the countries which are interested in corporate farming in Pakistan.

• The UAE, which imports 85 percent's of its food, purchased 324,000 hectares of farmland in the Punjab, Sindh and Baluchistan province in June 2008.

Status of corporate farming in Pakistan

• Sindh, Baluchistan and Punjab have submitted their lease terms to the BOI(BOARD OF INVESTMENT).KPK is in the process of finalizing the terms and conditions for offering their land on long term basis to investors.

Corporate farming ordinance (CFO)-2001

• Corporate farming ordinance (CFO) was passed in 2001 under which listed corporation could lease land in the country for 99 years, broken into two periods of 50 years and 49 years. Besides the government had identified 6.764 million acre of state land for leased to different corporations.

Conclusion of co-operative farming

• Although, co-operative agriculture system has certain challenges in socio-economic, if Govt. empowers & strengthens the co-operative institution it will offer enormous opportunities of development in Agriculture sector.

Conclusion of corporate farming

• Corporate farming is good and it will help to increase the productivity of the farms as observed in various region because it is backed & financed by big corporations.

• It will enhance the use of highly advanced technology and will also develop our farm market infrastructure and will also increase agricultural products export.