SS1 Commerce Lesson Note on Types of Cooperative Societies

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TOPIC: COOPERATIVE SOCIETIES cont’d

CONTENT (i) Types of Cooperative Societies

            (ii) Advantages and disadvantages of Cooperative societies

            (iii) Problems of cooperative societies

Sub-Topic 1: TYPES OF COOPERATIVE SOCIETIES

The following are types of cooperative societies formed in Nigeria

1. Consumer’s cooperative societies.
2. Producer’s cooperative societies
3. Wholesaler cooperative societies
4. Retailers’ cooperative societies
5. Thrift and credit societies
6. Multi-purpose cooperative societies

CONSUMER COOPERATIVE SOCIETIES

This is owned and operated by a group of ultimate consumers who pull their resources together to purchase goods and services in large quantities and distribute primarily to its members

Features/characteristics/functions of Consumer’s cooperative societies.

1. They are made up of consumers
2. They protect themselves against exorbitant price of sellers
3. They buy in large quantity and distribute to members in small quantity
4. The surplus is distributed to members in proportion to patronage
5. They settle dispute among members
6. There is open membership
7. Limited interest is paid on capital invested.
8. Proportionate dividend is based on their level or purchase or patronage.

PRODUCER COOPERATIVE SOCIETY

This is formed by manufacturers who produce similar products.  They organise cooperative production and also undertake joint marketing of the products on both wholesale and retail basis

Features/Functions

1. They are formed by producers of similar commodities
2. They undertake joint marketing of products on wholesale or retail basis
3. They organize cooperative production
4. They share any useful knowledge among members.
5. They jointly buy or lease equipment
6. They settle dispute among members.

WHOLESALE COOPERATIVE SOCIETIES

• They are formed by wholesalers
• They buy in bulk from producers
• They sell in small unit to cooperative retailers
• They are able to raise large amount to finance wholesale purchases
• They settle dispute among members.

RETAIL COOPERATIVE SOCIETIES

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