Why Federate a Cooperatives?
Federation of Cooperatives – shall refer to a cooperative, the members of which are three (3) or more primary cooperatives engaged in the same line of business, organized at the municipal, provincial, city, special metropolitan political subdivision, or economic zones created by law and registered with the Cooperative Development Authority (CDA), to undertake BUSINESS ACTIVITIES IN SUPPORT of its members. It is categorized as a secondary cooperative.
The federation of cooperatives are a means through which cooperatives can fulfill the sixth Cooperative Principle, cooperation among cooperatives. The International Cooperative Alliance notes that “Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional and international structures.”