COOPERATIVES ORGANIZED BY PRODUCERS IN SPAIN: THE CASES OF SCLAS AND COVAP

This document describes two case studies of cooperative experiences in Spain. The two cases are significantly different in terms of production, volume and scale, however they have evolved in a similar way. Specifically, each of the cooperatives began when a small group of producers organized to collectively obtain inputs. Since then, through a series of stages, they have reached the point of collective transformation and commercialization of a great diversity of products. The first case is the Sobrarbe Agricultural Limited Cooperative (Sociedad Cooperativa Limitada Agropecuaria del Sobrarbe-SCLAS), created in 1983, with its headquarters in Ainsa, the Sobrarbe county seat, in the province of Huesca in the Autonomous Community of Aragon. Sobrarbe County, with a population density below three inhabitants per square kilometer, is one of the areas in Spain that has most intensely suffered a depopulation process since the middle of the 20(th), century. SCLAS has a strong connection with the territory where it operates and is focused on maintaining and promoting agricultural life in Sobrarbe County and the Pyrenean mountains in general. Since its origins as a bakery established to supply bread to the most remote mountainous areas, the cooperative has been expanding to include a range of different facets and activities, such as: (i) supplying fertilizers and seeds; (ii) purchasing and storing harvested crops (cereals, oleaginous seeds, hay); (iii) a cooperative store for food, veterinarian pharmacy, plant health, livestock material, hardware and miscellaneous (work clothing, shoes, etc.); (iv) compound and mineral feed manufacturing; (v) veterinarian service, feed advice, and fiscal and financial advice; (vi) completing paperwork for the CAP and agro-environmental assistance; (vii) plans for new facilities; (viii) technical reports; and (ix) commercial technical management. The endless list of the cooperative's activities provides livestock producers and farmers with a framework for meeting their needs. This would otherwise be difficult, given the disadvantages in a challenging rural setting (poor roads and highways, depopulation, lack of services, etc.). The range of activities carried out by the cooperative was recognized with an Award for Diversification granted at the 1995 Conference of the Spanish Federation of Agricultural Cooperatives (Federacion Espanola de Cooperativas Agrarias). One example of the cooperative's diversification can be seen in its veterinarian services, which provide clinical attention to various animal species, as well as animal feed services, plans for livestock facilities, R&D activities with research institutions, quality controls, a veterinarian pharmacy, management of genealogical books, and the promotion of new production efforts. SCLAS also fulfills an important role by assisting producer groups that have been organized in the county to address natural resource management and the sustainability of agro-livestock activities. Some examples are the Sierra y Canones de Guara Livestock Farmers Association (Asociacion de Ganaderos de la Sierra y Canones de Guara), the Association of Pyrenees Inhabitants (Asociacion de Habitantes del Pirineo), and the Huesca Extensive Meat Producers Community (Comunidad de Productores de Carne Extensiva de Huesca). The second case study is on the Pedroches Valley Agro-Livestock Cooperative (Cooperativa Agroganadera del Valle de los Pedroches-COVAP), located in the southwestern part of the Iberian peninsula. It operates in a territory consisting of 15,000 square kilometers, with a population of 250,000 inhabitants who work primarily in the areas of agricultural and livestock farming. Significant economic activity has been developed during recent years around the agro-food industry and related services. The average altitude in the area is 650 meters above sea level, with low rainfall at 350mm/m(2), and an extreme continental climate. The land is not particularly apt for cereal cultivation or pastureland. The entire territory is dominated by the oak-meadow ecosystem, which is characteristic of the southwest part of the peninsula, with the holm oak (Quercus ilex) as the dominant arboreal species. In this territory COVAP has developed a unique agro-food model that integrates the entire production chain, including animal feed, genetics, breeding centers, a slaughterhouse, a milk industry and the commercialization of all products. The number of dairy cattle has increased to 30,000, distributed in 450 operations; the number of beef cattle integrated into the enterprise is 20,000 and the number of sheep, 180,000. Ninety percent of milk production is distributed in the domestic market, and ten percent in the European Union and other countries. Seventy percent of meat production is distributed in the domestic market and thirty percent in the European Union. Previously, dairy farming was practically non-existent in the area, however at the end of the 1970s, dairy cattle breeding was initiated, and numerous operations were established, with 2-3 cattle per farmer. With COVAP's support to farmers and efforts in commercialization, this area has become one of the most important centers of dairy production in Spain, with an annual production of 220,000 metric tons.