A cooperative society (also known as co-operative or cooperative ) is an autonomous association of persons united voluntarily to meet their common economic , social and cultural needs.
They achieve this through a jointly-owned and democratically controlled enterprise.
There are different types of cooperatives.
We would be discussing some of them :
1.Producer co-operative society:
This is a type of co-operative society which is formed by producers of similar products who organise co-operative production of goods and services.They also undertake joint marketing of the products on wholesale or retail basis.This means that,as a co-operative society,they can jointly sell their products either to a wholeasaler or to a retailer.The producer cooperatives share useful information among members and can purchase resources in their businesses,then sell to members at reduced prices.
2.Wholesale co-operative :
This is formed by small scale wholesalers who buy goods in bulk from the manufacturers or producer co operative society at a reasonable price.
Then,they sell in small quantities to retail co-operatives.
3.Retail co-operative society :
This is formed by small independent retailers.
The retailers are known to buy from the wholesaler in bulk quantity and sell in bits to the final consumer.As a co-operative society,they pool their resources together to enable them buy in bulk and then sell the goods at lower prices to their members or to the final consumers.They receive some form of patronage returns based on the amount of goods they purchased.
4.Consumer co-operative society:
This is owned and operated by a group of consumers who pool their resources together to purchase goods and services in large quantity.After which,they distribute primarily to its members.