History of The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT)

The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT) is an organization formed through the unification of provincial-level agricultural cooperatives across the country. Its members consist of agricultural cooperatives and farmers, in accordance with the Cooperative Act of 1999. It was officially registered on 30th May 1952, as a legal entity under the name “Thailand Wholesale Cooperative Limited for Commodity Exchange.” Later, on 1st October 1975, it changed its name to the “The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT)” commonly abbreviated as “ACFT.” The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT) has a membership base comprising agricultural cooperative federations or provincial cooperative federations, which includes around 3,900 agricultural cooperatives, collectively representing more than 6 million households.

It is established on 30th May 1952, “The Thailand Wholesale Cooperative Limited” had its office located in Lumpini Subdistrict, Pathumwan District, Bangkok, according to the Cooperative Act of 1931 (registered with the Ministry of Cooperatives, which was later dissolved in 1963 and its functions transferred to the Ministry of National Development).

       “The Thailand Wholesale Cooperative Limited” was considered a high-level cooperative or the central hub for cooperative stores across the country. It handled the buying and selling of goods and consumables, supplying cooperatives in various districts and provinces. At that time, in 1954, there were 10,338 registered cooperatives of 22 different types across 65 provinces. By purchasing products from factories, major wholesalers in Bangkok, and nearby areas, the cooperative aimed to reduce costs. It also established contacts with the Japan Agricultural Co-operatives Federation (Zen-Noh) for collecting products like corn and beans for export and importing goods for sale. Although this approach was successful, profits could not be distributed back to the cooperatives due to regulatory issues. Consequently, the cooperative’s regulations were revised, and it requested a name change from the Ministry of National Development. On 22nd August 1969, it was renamed “The Thailand Cooperative Purchasing and Sales Federation Limited.”

The Thailand Cooperative Purchasing and Sales Federation Limited was established as a national cooperative federation by transferring its existing members to the new federation and subsequently expanding to include local cooperatives nationwide. This included agricultural cooperatives (which were combined with fundraising cooperatives), industrial park cooperatives, land lease cooperatives, and provincial cooperative federations. During this period, the business expanded significantly, maintaining regular contact with the Japan Agricultural Co-operatives Federation, importing fertilizers for sale. Negotiations for a joint venture between Thai cooperatives and the Japanese Agricultural Co-operatives Federation led to the establishment of a joint venture company on 4th February 1970, named “T.J.C. Chemicals Limited.” The company was set up to operate a pesticide manufacturing plant for sale to member cooperatives and general farmers. The initial registered capital was 5 million baht, later increased to 60 million baht, with Thai holding 51% of the shares and Japanese holding 49%. The company’s operations have progressed successfully to the present day.

In 1975, ACFT planned to purchase silos for storing and drying corn for export. To fund this, it needed a loan from the Bank for Agriculture and Agricultural Cooperatives. However, the bank’s regulations prohibited lending to the Agricultural Co-operative Federation of Thailand, Ltd because it had cooperative stores as members; the bank would only lend to institutions with farmer members. Therefore, a general meeting was held, and a resolution was passed to return the shares held by the cooperative stores to them, leaving only the shares of agricultural cooperatives. The federation then registered a change in its regulations and changed its name to “The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT)” on 1st October 1975.

Currently, The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT) has moved its office from Lumpini Subdistrict, Pathumwan District, Bangkok (formerly Lumpini Subdistrict, Pathumwan District, Bangkok) to a new location at 79 Ngamwongwan Road, Lat Yao Subdistrict, Chatuchak District, Bangkok 10900 (opposite Kasetsart University).

The Agricultural Co-operative Federation of Thailand, Ltd. (ACFT) aims to promote cooperative operations among its member cooperatives and to support each other according to cooperative methods that do not focus on profit. The goal is to benefit cooperatives and society at large, both economically and socially, by adhering to basic societal virtues and good ethics, such as frugality, and including the following principles:

• • Conducting business in production, trade, services, and industry for the benefit of the Agricultural Co-operative Federation of Thailand, Ltd
  • Providing welfare or assistance to members and their families as appropriate.
  • Offering academic support to members.
  • Requesting or receiving academic assistance from government agencies, foreign organizations, or other individuals.
  • Providing loans, leasing, hire-purchase, transferring, mortgaging, or accepting pledges on property of or for members.
  • Acquiring, purchasing, owning, possessing, borrowing, renting, hire-purchasing, transferring lease rights, or mortgaging or pledging property by any other means.
  • Engaging in other activities related to or necessary for achieving the objectives of the Agricultural Co-operative Federation of Thailand, Ltd.
  • Promoting social development, including education, health, and mental well-being, to foster a peaceful society.
  • Performing actions as determined by the Agricultural Co-operative Federation of Thailand, Ltd. ‘s regulations or directives. The Agricultural Co-operative Federation of Thailand, Ltd may engage in business or joint ventures with member cooperatives, other cooperatives, or other legal entities or individuals, as specified in the Agricultural Co-operative Federation of Thailand, Ltd ‘s regulations approved by the general meeting.