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Economics FROM 4 ART

CHAPTER 3 :BUSINESS UNIT(ORGANISATION)

CO-OPERATIVE SOCIETIES
  • Producers :  It is also known as farmer co-operators. These type of co-operatives we trade up of small scale farmers who come together to reduce their cost of production. They sell their product in bulk. They deal with cropshop such as coffee,cocoa,maize, vegetables, cassava etc.They collect products from members corade them store and markets members produce also buy from input such as fertilizer insecticide, farmers equipment etc. The profits made is shared according to members output e.g SW co-operative society etc.
  • Consumers co-operation:  These are association of customers who joint their resources together in order to obtain goods and made rate rpices regulary insufficient prices members raise capital to buy bulk or in large quantities.           These goods are thensold to members and the public at moderate prices the profit made are distributed according to members purchase.
  • Thift and loan co-operative: These are societies where members put their financial resources together and borrow or lent to members who need financial resources at lower interest rate.It encourages saving among members e.g custom credit union, SONARA credit union. Azine credit Union Bamenda.
  • Marketing co-operative : It deals with marketing of goods produced by other producer. It is made up to buy good and sell for the interest of the members.This profit realized are share according to members contribution such as co-operatives deals with cocoa,coffee,cassava etc.

ADVANTAGES OF CO-OPERATIVE SOCIETIES

  • They help to promote business liability. The members have a sense of loyalty and buy regularly.
  • They act as agents for the distribution of agricultural inputs. Co-operative societies are used as agents for the distribution of agricultural input to farmers such as insecticides, fertilizers and cutlasses.
  • Provide capital for economic development.Some co-operatives contribute to the development from their profits, they give grante to local government who can use as construction of bulding of markets
  • To encourage saving among members. Saving is encouraged among members at sale for the rainy days.
  • They enable members to obtain loans with case. The grant loans to members at interest rates which are lowerthan those charged by commercial banks.
  • Democratic Management. Each members has one vote no matter the number of sharehold. My member of the co-operative can be elected to run the affairs of the co-operative.
  • Elimination of middlemen profit.The middlemen profit are eliminate because producer sell, directly to the consumer while the consumers also buy at lower prices for their product.
  • Educating of their members.Co-operative societies brain their members in the areas of production, distribution and selling of tier products.

DISADVANTAGES

  • They have limited capital: This distels co-operative from expanding.
  • Assistance directly to co-operatives harldy rock. The often embezzle the government money by the official.
  • They often have poor management.This is because those elected to manage co-operative often lack the knowledge, trading and experience required to run a business.
  • Prouds are very common on cooperatives because members are naïve and take very little interest on business activities or affairs.
  • Their funds are sometimes use for something else e.g political campaigns by administrators

FORMATION OF CO-OPERATIVES

                       It is formed by at least 7 members called the foundation members. In Cameroon cooperatives members fill an application of registration with the register of cooperatives in the ministry of agriculture and once approuve is issued a certificate of registration the member shop is open to those that have subscribe in the cooperative movement.

OBJECTIVES

  • Cooperative work together for mutual benefits of members and not profit maximization.
  • Distribute consumers to members at moderate prices.
  • Eliminate middlemen and reap their profit.
  • Maximising profit from the sales of member

THE ROLE OF CAMEROON GOVERNMENT

  • The government setup board to promote the development of cooperatives such boards include; the national center for the development of co-operative enterprise.
  • The government assist cooperative enterprises in terms of financial difficulties.
  • The government organizes annual inspections of all cooperatives societies to check fraud and inefficiency.
  • The government negociate in foreign countries and international bodies to assist cooperative technically.
par Claude Foumtum