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Social Entrepreneurship Workshop Cyprus Cooperatives in Cyprus, Thursday, 02 June 2016

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We will try to examine…..  Cooperatives in Cyprus – back to basics  SEDIGEP - Agricultural Products Co-operative Marketing Society Paralimniou (Famagusta) Ltd  Cooperative Society of Agros Rose Producers Ltd  The Vine Products Co-operative Marketing Union Ltd (SODAP)  Only time says Who we really are…

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Cooperatives in Cyprus What is our objective‌ Nothing complicated. Simple and straight forward:

To support each and every one of our members and benefit the society in general!

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S.E.DI.GE.P

PARALIMNIOU

LTD

[Producers Organisation of Agricultural Products Co-Operative Marketing Society]  FOUNDED IN 1961 AT PARALIMNI  MAIN PURPOSE OF FOUNDATION WAS THE CONCENTRATION AND SUPPLY THE MARKET WITH AGRICULTURAL PRODUCTS PRODUCED BY FARMERS IN THE REGION, PURSUING AT THE SAME TIME BETTER PRICES  ORIGINAL COMPANY MEMBERS WERE MORE THAN 300 FARMERS  MAIN OBJECTIVES OF THE ORGANIZATION ARE:    

THE QUALITY AND THE MARKETING OF THE PRODUCTS ASSIST THE PRODUCTION PLANNING OF ITS MEMBERS’ THE INCOME OF MEMBER/PRODUCERS IMPLEMENTATION OF TECHNICAL CULTURE, FRIENDLY ENVIRONMENT  REDUCTION OF USE OF AGROCHEMICALS

TO

THE

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SEDIGEP (cont) Main Challenges  NON TIMELY PAYMENT FROM VARIOUS MERCHANT BROKERS

 COMPETITION BETWEEN DIFFERENT ORGANIZATIONS IN RELATION TO THE PRODUCT PRICES THUS MERCHANT BROKERS TAKING ADVANTAGE OF THIS WEAKNESS

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SEDIGEP (cont …)

Strengths and Weaknesses EARLINESS OF THE REGION GOOD QUALITY OF THE PRODUCTS POSSIBILITY TO EXPORT WATERMELON AND OTHER VEGETABLES LACK OF COOPERATION BETWEEN ORGANIZATIONS THE UNION OF THE VARIOUS ORGANIZATIONS TO ENSURE BETTER PRICES

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SEDIGEP (cont…)

Members / Prospects  EFFORT TO OBTAIN BEST PRICES AIMING AT IMPROVING THE PRODUCERS INCOME  ORGANISATION MEMBERS ARE FARMERS FROM ALL AGES CULTIVATING VARIOUS VEGETABLES  BESIDES THE FINANCIAL BENEFIT, THAT IS PAYMENTS OF 50 % IN ADVANCE FOR MATERIALS USED IN CROPS, THERE IS THE BENEFIT OF ENSURING THAT THE ENTIRE PRODUCTION/PRODUCTS ARE ALWAYS DISTRIBUTED IN THE MARKET  GOOD PROSPECTS FOR EXPORTS BUT NEED ALSO ASSISTANCE FROM GOVERNMENTAL AND EUROPEAN PROGRAMS AND SCHEMES, MAINLY FOR THE TRANSPORTATION EXPENSES OF THE GOODS  TURNOVER OF THE COMPANY IS ESTIMATED AT 4.5 MILLION EURO

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COOPERATIVE COMPANY OF ROSE-PRODUCERS AGROS LTD  FOUNDED IN 1961 AT AGROS  MAIN PURPOSE OF FOUNDATION WAS THE MANAGEMENT AND COLLECTION OF THE ROSES, THE DISTILLATION AND THE MARKETING OF THE ROSE WATER, AS WELL AS VARIOUS OTHER PRODUCTS WHICH USE THE AGROS ROSE WATER AS THEIR MAIN SUBSTANCE  COMPANY MEMBERS ARE 90 PRODUCERS FROM THE AGROS COMMUNITY  Turnover 2012 around €108K

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ROSES (cont…)

SOCIAL ENTREPRENEURSHIP / Members / Prospects  THE COMPANY DOES NOT FACE ANY PROBLEMS AS A SOCIAL ENTREPRENEURSHIP  THE MEMBERSHIP BENEFIT IS FINANCIAL. THE PRICE PAID TO THE PRODUCERS FOR THE ROSES DELIVERED IS CONSIDERED MORE THAN SATISFACTORY. MEMBER PRODUCERS ARE AMATEURS AND THIS IS AN ADDITIONAL INCOME FOR THEIR FAMILIES  THERE IS THE PERSPECTIVE TO DEVELOP IN OTHER SECTORS AND MARKETS. ALREADY ACTION ARE TAKEN TO EXPORT OVERSEAS AND PRESENTATION OF NEW PRODUCTS (COSMETICS AND OTHERS)  LONG TERM PLANNING IS UPGRADING AND MODERNIZING THE FACTORY AND ALSO THE ESTABLISHMENT OF A MUSEUM AS WELL AS A RETAIL SHOP.

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SODAP COOPERATIVE ORGANISATION OF DISTRIBUTION OF VINE PRODUCTS  Founded in 1946  Has around 10.000 members from about 144 areas around Cyprus  Main objective was to stand by small vine yard owners in terms of development and distribution  Absorbs around 30%-35% of the national production (expected in 2016 around 3mln kgs)  Main factory (newly built) in Paphos right in the middle of the Vine yards  Has a number of wine lines like Stroubmeli, Kamanterena, St. Barnabas, Afames 62, Arsinoe 62 and many more.  Proud to be awarded several prizes year after year.  Turnover 2014 around €4,5mln

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SODAP (cont…)

Issues faced  Since incorporation, supported its Member producers by collecting all their production.  Current financial affairs in difficult situation.  Difficult economic environment.  Nowadays producers need support more than ever before.  Too many competitive products (wines) from all over Europe and beyond at lower prices since they have more cost effective vineyards.  Exports have equally declined since intermediaries prefer cheap compared to quality.

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SODAP (cont…)

Future  Correct Financial Restructuring.  Streamline operations, hence minimise as much as possible direct costs.  New products based on current market expectations.  Promote new vines, hence new production lines.  Enter new markets.

All in all the object is the purpose of our incorporation Stand by our members!

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Only time says Who Coop Cyprus really are…

Thank you

for your time!!!