Brazilian cooperativism: key role for national agribusiness
close
Brazilian cooperativism: key role for national agribusiness

Brazilian cooperativism: key role for national agribusiness

Agricultural co-ops are essential for national economic development since they effectively support generation of income and jobs

2 minutes read

Numbers may prove the positive impact of co-ops on the development of Brazilian agribusinesses. Agricultural co-ops are present in various production chains, and they are essential to national economic development with income generation and job creation. Therefore, co-ops are essential to Agribusiness.

In Brazil, in 2020, the segment accounted 1,173 co-ops, with over a million members, generating 223 thousand direct jobs. In Minas Gerais, there are 157,5 thousand members, organized in 193 co-ops, which employ about 17 thousand workers directly.

Together those co-ops made up almost BRL 27 bi in financial transactions, a growth of 16% compared to 2019. 

Potential

Such results are due to Brazilian potential for agribusiness, along with the revolution in the field, good strategies, and professionalization of managers and workforce, besides a natural propensity for agriculture and its related production chains. 

In Minas Gerais State, annual data from OCEMG (Organization of Cooperatives of the State of Minas Gerais) point out that its 773 co-ops, distributed in the seven branches of the segment, moved BRL 73.4 bi. Cooperativism has been responsible for 11% of the State’s GDP, as well as BRL 2.1 bi in tributes to public treasure. 

I use to say that agricultural activity and agribusiness are the fortresses of cooperativism, for they have been ensuring high-quality inputs and food. Therefore, they lead the strive against the pandemic crisis, continuously rising production and exports. By the same means, they do supply the domestic market, with outstanding performance amidst other segments.  

Cooperativism plays social role

In 2020, agricultural co-ops held responsibility for 17.8% of agribusiness GDP in Minas Gerais, which stands as Brazil’s major producing State for coffee and milk (54.4% and 27.2% of national production, respectively). Co-ops produced 56.8% of coffee and 19.1% of mlik in the State in 2020. Besides their role in domestic Market, co-ops also play a key role in exports – more than 369.4 thousand tons of coffee sold to other countries. 

Therefore, agricultural cooperatives are the pillars of economy, essential for food supply and for the development of the whole country.

Pandemic

In response to the pandemic, cooperativism has been showing its effectiveness and inter-cooperative capability throughout its service networks. The segment Health, day by day, confirms its accurate and tirelessness actuation by looking after the population, thanks to the dedication of physicians and other frontline professionals, both in combat and prevention of the disease.

Agricultural and Transport segments do not let production to stop or to be out of circulation, ensuring the supply to the population.

Credit segment has gotten closer, even by means of digital resources, offering solutions and services to ease the setbacks of co-op members before the current scenario.

Thus, the seven branches of cooperativism, each one at its own manner, have been working for the same ideal: to overcome adversities and to offer more opportunities and perspective for everyone.

By these means, during the pandemic and now that activities gradually resume with the advance of vaccination, the co-ops are playing their roles of serving the society with excellence in services and products, standing firm and constantly maintaining growth, in continuous search for excellence. Cooperativism has still been prosperous and ever-increasing. SomosCoop (We’reCoop).