Loss-making Analysis of Rural Cooperatives and Prioritization of their Systemization Solutions: A Case Study of Yazd Province

The main idea behind this article is to study the causes and origins of loss-making in Rural Cooperatives as well as to recommend and prioritize applied solutions to systemize and improve their situations. Rural cooperatives due to their networking and popular nature enjoy some potentials in a way that would help to improve development goals in villages and agricultural sector provided that they are supported and efficiently well managed. This study first tries to explain the purposes of these institutes and those of the Rural Cooperation Organization; later, the most prominent reasons for losses of rural cooperatives are cited on the basis of previous studies, existing documents and the viewpoints of the members of local authorities and bodies expressed in special questionnaires. Meanwhile some advisable solutions were recommended in order to improve the situation and systemize loss-making bodies. Then the solutions were prioritized, using the hierarchical analysis method that provides a context for cooperation and collective participation in decision-making. According to the results of the research, the first priority in the rural cooperatives systemization is to select the board of directors and managing director from among the knowledgeable and active experts. As human resources systemization is considered the main requirement and top priority of the loss-making cooperatives, it would be advisable to add selection of inspectors as well as systemizing employees and salesmen to the list. According to the experts, other priorities are the development of economic activities such as establishing interest-free funds to grant facilities to the members, development of complementary & process industries as well as buying-selling the agricultural products that need hefty financial resources and relatively great liquid assets.