PR cooperatives account for 33% of national revenues in the sector
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Brazil has continued to climb towards the consolidation of cooperativism. The movement has the year 1995, with the consolidation of the Real Plan, as a decisive impulse for results that were being built and that now result in revenues of BRL 600 billion a year. In five years, the prediction is that Brazilian cooperatives reach the first trillionover a period of 12 months.
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The x-ray of the sector, evidenced in the World Cooperative Monitor (WCM) (in literal translation, World Co-op Monitor), shows Brazil as the second country in the Americas with the nine largest cooperatives of the planet in revenue. United States has 22.
In per capita GDP revenue, Brazil has 22 cooperatives listed, behind the United States, with 38. In the global context, Brazil appears as the fourth country in the ranking, tied with Japan. The first is France, with 42 cooperative societies among the top 300.
The national cooperative system has been occupying relevant spaces in the services provisionat the health careat the cultivationat the processingat industrialization and in the branch credit. The giant Unimed Systemwhich was born in 1967 in the municipality of Santos (SP), appears in the world leader in the category health education and social work.
O role of agro is directly linked to the results of Paraná, where the segment, quite consolidated, accounts for almost one-third of the revenues of all Brazilian cooperatives.
Paraná has 11 cooperatives among the largest in the world
Linked to agribusiness, there are 11 companies from Paraná that have become a world reference, for a series of reasons: either by revenue, by the number of cooperative members or by the movement compared to per capita income.
the giant I cook appears in seventh place among the best placed in the agriculture sector in per capita revenue. already the C.Value is listed 183rd on the World’s Largest Cooperative and Mutual Organizations indicator in terms of turnover (total revenue) expressed in dollars. The cooperative also ranks 41st in the world when it comes to per capita revenue.
A Home Cooperative ranks 199th among the world’s largest cooperative and mutual organizations by revenue. A Cocamar ranks 73rd in per capita revenue, Copacol appears in 83rd place in the same ranking and the agrarian at position number 108, followed by Integrated at 114, Castrolanda at 115, fritable at 119, frisia at 139 and Coopable at 147.
Consolidating giants
From the relationship, it is possible to analyze that the cooperativism of Paraná “is going very well, thank you”, according to the Technical Development manager of the Ocepar System (Organization of Cooperatives of Paraná), Flavio Turra. Last year, cooperativism in Paraná earned R$ 186 billion, with 85% of this volume coming from agriculture, followed by 10% by credit, 4% in health and 1% in various cooperatives in other areas.
Ocepar’s strategic planning aimed to reach BRL 200 billion in revenues, which should be achieved this year, considering an average annual growth of around 20%. “We already have our new strategic planning being discussed and, by the end of the year, it will be finalized. We still don’t know whether our new target will be R$300 billion or R$400 billion, but the objective is double revenue every four to five years”, prospects Turra.
Despite the prospects for economic activity this year being a little lower than expected, as a result of the fall in the prices of commodities and the appreciation of the real against the dollar – which interferes with exportsthe results should be celebrated.
With inspiration from european models in the agro and credit segments, the advancement and conquest of space, both in the internal and external market, require investments that, this year, reach BRL 6.5 billion for expansions or construction of new plants, restructuring and modernization of existing ones, or even infrastructure projects. However, most have their foot on the brake, due to the high interest in contracting credit. This is one of the main reasons why the period is cautious and the recommendation has been to wait for a decision on new and large projects.
“Whoever is doing it is because it was scheduled and there was no way to postpone it, but contracting credit at these interest rates is not feasible and so, today, one of our main obstacles to further stimulating growth is in this field”, considered Turra.
One out of every four people from Paraná is linked to cooperatives
Proportionally, Paraná is one of the states with the most expressive numbers of cooperative members in the country. One out of four residents of the 399 cities in Paraná is linked to an associative system. Data from the Ocepar System point to 3.1 million people inserted in cooperatives (the total population of the state is 11.4 million, according to the 2022 IBGE census).
Most of these cooperatives, 2.8 millionis linked to credit unions. “I started in cooperativism in the dairy sector, in the 2000s, because there was no way to sell milk or produce cheese with our production. Then I cooperated for the delivery of corn and soybeans; later came the credit union. It’s a path of no return and prosperity”, evaluates producer Janete Martins, who has a farm in the municipality of Pallottine, in western Paraná.
For the economist specialist in market analysis Rui São Pedro, it is inconceivable to think about the economic and social development of Paraná without cooperatives. “If we take this to the regions of the state, how would we think about the west without the giant agro cooperatives? They make cities richer and the economy in these places revolves around them”, he points out.
For the economist, this rule applies both to smaller municipalities, such as Palotina (municipality with 32,000 inhabitants, where C.Vale is headquartered) and coffeeland (18,500 inhabitants and home to Copacol), and for Rattlesnakewhich is the fifth largest municipality in Paraná, with 348 thousand inhabitants and where Coopavel is located.
Challenges to sustain growth
The western region of Paraná, close to the border with Paraguay, concentrates five of the ten largest agricultural cooperatives in Brazil, according to the Organization of Cooperatives of Brazil (OCB). Among them is Frimesa, headquartered in the municipality of mediator. The biggest player of the pork market in Paraná and the fifth largest in Brazil, which last year earned R$ 5.5 billion, has invested heavily in expanding its capacities.
The CEO of Frimesa, Elias Zydek recalls that the new plant built in Assis Chateaubriand, already in operation, will slaughter 1,500 pigs per day, when operating at full capacity. The projection for this is for two or three years, consolidating the structure as the largest refrigerator in the segment in Latin America.
“We are experiencing an obstacle to our full expansion, which is the lack of professionals. We have no one to hire. By the end of the year I need a thousand new employees just for this industry. We have 500 open jobs that we couldn’t fill. This is one of the main worrying factors that hold back progress, along with high interest rates that discourage investment,” he warns.
Like Zydek, the other agro cooperatives face the same setback in Paraná. On the other hand, for Flávio Turra, from the Ocepar System, there is a positive side to be observed. “If we consider the regional context, this means that these regions live in a condition of almost full employment due to so many opportunities. On the other hand, there are industries that suffer from a lack of these professionals and the challenges of where to find them”, he highlights.
Grain storage capacity is close to the limit
Paraná is the second largest national producer grain, with estimated production, in the 2022/2023 cycle, of just over 47 million tons. The calculation is made by the Department of Rural Economy (Deral) of the Secretary of State for Agriculture and Supply. Brazil should have a harvest of 317.6 million tons.
In the state, there is static storage capacity for 32 million tons of grain. Flávio Turra recalls that 17 million are from silos and warehouses installed in or by cooperatives. More than 7 million of them only from the giant Coamo, headquartered in Campo Mourao. “Even so, at times, the storage capacity is barely able to handle so many grains. We need improvised silos, as we saw this year, when around 500,000 tons were stored in warehouses or even in improvised swimming pools”, points out the commercial director of the cooperative, Rogério Trannin.
For Turra, these are points of attention in the cooperatives’ expansion plans: the lack of resources for building warehouses and expanding storage capacity. This is because the state cooperatives are responsible for receiving 65% of the grains produced in Paraná. When the subject is adding valuethey are also a reference, because they account for around 45% of animal protein production in Paraná and export to more than 150 countries.
“They are large and important regional companies, inserted in communities, generating jobs, income, and feeding the world. A few decades ago, we could not imagine the strength of cooperativism that exists today in Paraná and that has become a reference for the world. After all, look how many of our cooperatives are among the largest on the planet. This is a source of pride and the result of hard work, effort and dedication”, considers Flavio Turra.
For the manager of the Ocepar System, the cooperatives gained their current proportion because they represent small and medium producers, like Janete Martins who, alone, would not be able to negotiate their products with the market, carry out industrialization or reach consumers around the world. “Co-ops brought people together and became what they are thanks to those people. Paraná’s economy is only what it is thanks to cooperatives. Recognition is observed when great performances are seen in a global context”, he adds.
WCM analyzes the economic performance of cooperatives around the world
O World Cooperative Monitor analyzes and disseminates information on the economic performance of cooperatives around the world. The report is produced annually by the International Cooperative Alliance (ICA) in partnership with other organizations.
The survey highlights the main cooperatives and mutual organizations based on total revenue, revealing the size and importance of these entities in the global economic scenario. According to the organizers of the survey, billing is a relevant indicator for assessing the economic performance of cooperatives, as it reflects the magnitude of commercial operations conducted, offering insights on their size and scope in the international context, with an overview of the economic impact they have in their respective areas of activity.
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