Cooperative in Thailand -> Roles on Cooperative 

Through the passing years, the CPD has continuously invested a big amount of resources for cooperative development through various programs and projects. Most of such programs and projects, however, are concentrated on cooperatives in agricultural sector, the sector of majority groups of Thai people. Among them, the examples of important cooperative development schemes are:

  1. Credit Linkage Project for Production and Rice Marketing Services of Cooperatives In this project, the CPD will allocate involving fund for cooperatives in collecting members' paddy for processing and distributing at higher price levels. Since its first implementing in crop year 1980/81, the participated farmer members generally gained their paddy prices 200-300 baht per ton higher than the market price level.

  2. An Establishment of Tumbon Agricultural Product Central Market of Cooperatives The CPD started to provide financial supports in grant term for cooperatives in establishment of Agricultural Product Central Market since 1993. The assistant package is generally comprised with: (1) drying spaces, 2 rai, (2) paddy warehouse, 500 tons capacity, (3) moisture reduction machine, 30 tons a day capacity, and (4) weighing scale, 40 tons capacity, with its plant.

  3. . Integrated Farming Promotion Project in Small Farm Pond Project Areas Following His Majesty the King's initiation, the CPD has paid strong emphasis to promote integrated farming in Small Farm Pond Project areas where small farm pond, 1,250 m3. capacity, are already developed, also by CPD's efforts some years earlier.

  4. Hygienic Vegetable Production Promotion Project With increasing interests of health care, clean environment and sustainable development, green production is recently introduced to the cooperative members. Through this project, the CPD will provide loan with free interests to participate cooperatives for further landing to their members in construction of green houses and related production activities.

  5. . Cooperative Women Development Recognizing an important role of women in household and societies, the CPD has launched Cooperative Women Development Project since 1985 to encourage cooperative women organized themselves as group(s) or cooperative(s) for improving their supportive occupations, attitude and general knowledge for proper ways of life style.

  6. Saving Promotion Program among Cooperative Members In order to ensure a self - reliant operation of cooperatives, the CPD has continuously encouraged each cooperative to accumulate its own capital through various means such as share capital building and deposit campaign for businessexpansion.

Agricultural Cooperative
Agricultural cooperatives are established to enable farmer members to engaging in business together, thus helping one another in times of crisis as well as gaining for themselves a better livelihood and quality of life.

A small credit cooperative named Wat Chan Agricultural Cooperative Unlimited Liability established at Muang district, Phitsanulok province on 26 February 1916 was the first agricultural cooperative in the country. From then on, the number of small credit cooperatives had steadily increased until the promulgation of the Cooperative Act, B.E. 2511. Several of these small cooperatives then grouped together, forming agricultural cooperatives at the district level. Larger and stronger cooperatives are, then, expected to provide a wider scope of services to members.

Agricultural cooperatives are generally formed to meet the members' needs as follows:

  1. To provide loans to members for productive and providential purposes at affordable interest rates;
  2. To encourage members' thrift through savings and deposits;
  3. To provide agricultural products and daily necessities for sale to members at reasonable prices;
  4. To promote appropriate farm practices and disseminate technical know-how aimed to help members reduce production costs and obtain higher yields. With government assistance, members are introduced to proper cropping techniques as well as use of fertilizers and insecticides. Another service is in the form of farm equipment (e.g., tractors, water pumps, etc.) made available to members at reasonable charge; and

  5. To enable members to market products together, thereby obtaining higher prices for their produce and maintaining fairness in terms of weights and measures.

Cooperative Business
At present, agricultural cooperatives engage in various types of business in responding to their members' needs. Generally, the five main areas are loans, savings and deposits, sale of consumer and farm supplies, goods, joint marketing, and agricultural extension and services.

Loans to Members
Through the assistance of Government, the Bank for Agriculture and Agricultural Cooperatives, various foundations, and other lending agencies, agricultural cooperative members are now in a better position in accessing loans at low interest rates with grace periods appropriate to their business. Thus loans are generally classified to three categories -- short-term, medium-term and long-term loans. With sufficient loans, members can gain the utmost benefit, enabling them to purchase seedlings, fertilizers, insecticides, farm machineries, by and/or improve land, etc.

Savings and Deposits
Agricultural cooperatives promote thrift because accumulation of savings can help in improving member living standard. Savings can also be used to carry out cooperative businesses that yield profit for both cooperatives and their members. Currently members can have savings and deposits at their cooperatives.

Sale of Consumer Goods and Farm Supplies
Along with credit business, agricultural cooperatives also procure quality products for sale to their members and the general people. The buyers are assured of fair prices and measure when they order together through the cooperatives in a large quantity.

Joint Marketing
Through joint sale of products, members can obtain not only good prices but also fairness in weights and measures. With government assistance some cooperatives have been developed market centers for members' product distribution not only locally but also abroad. A successful example is that of insecticide-free golden bananas now being exported to the Toto Consumer Cooperatives in Japan.

Agricultural Extension and Services
Cooperatives provide agricultural extension and services to members at reasonable fees. Examples are in the areas of plowing, land improvement, irrigation, demonstration farms, etc. Costs are made affordable using the expense-sharing principle.

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The Federation of Savings and Credit Cooperatives of Thailand Limited (FSCT)
199 Moo 2, Nakhon in Road, Bang Si Thong Subdistrict, Bang Kruai District, Nonthaburi Province, 11130
Tel: (+66) 2496 1199 Fax: (+66) 2496 1177 , (+66) 2496 1188  E-mail: