Strategic diagnosis of Spanish farming cooperative credit sections: A SWOT analysis.

Annals of Public and Cooperative Economics 82:2 2011

pp. 167–186

STRATEGIC DIAGNOSIS OF SPANISH FARMING
COOPERATIVE CREDIT SECTIONS: A SWOT ANALYSIS by Joan Ram´ n SANCHIS-PALACIO∗ o Universidad de Valencia, Spain

and
´
Amparo MELIAN-NAVARRO
Universidad Miguel Hernandez Elche, Spain
´

ABSTRACT∗∗ : Farming cooperative credit sections are financial instruments set up within a cooperative and at its service. They are key funding tools in rural areas and have been developed all over Spain although more intensely in some areas than others. The aim of this paper is to carry out a strategic diagnosis of the Spanish credit section using a SWOT Analysis to discover its set of strengths, weaknesses, opportunities and threats, as well as a proposal for strategic actions to be followed.
In order to do so an empirical study using personalized surveys and interviews has been undertaken among the managers or persons in charge of the credit sections over the first half of 2008. The study demonstrates that they are efficient entities for their clients (cooperative members). Their main strengths are focussed on their clients, although they show significant weaknesses in organizational, business and technological capacities, which require an effort to provide them with more professional management. Legal constraints are the main threat at present, although uncertainty in the agricultural sector affects their survival.

1

Introduction

The credit needs of farming cooperatives and, in general, the agricultural sector in Spain, are not always covered to the extent and under the conditions that these entities require (Galdeano 2006). Credit sections arose as a response to these needs, internalizing the financial and intermediary functions in cooperatives (Guzman and
Arcas 2008). Thus, they not only afford the farming sector, and, in particular, farming cooperatives, specialized, personalized and made-to-measure financing which other entities do

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