THE ROLES OF CO- OPERATIVES IN DISTRIBUTIVE TRADE

THE ROLES OF CO- OPERATIVES IN DISTRIBUTIVE TRADE
A co-operative society is defined as a voluntary and business organization in which a group of individuals

with common interest pool their resources together to promote the economic and welfare of their members in production, distribution and consumption of goods and services.

The producers and the consumers’ co-operative societies do engage in the distribution of products either directly from the manufacturer or wholesalers and sell to their members (consumers) at reduced prices.

The roles of co-operative societies include:

Stock variety of goods: The consumers cooperative societies buy variety of goods from the manufacturer or wholesaler hence they are exposed to a wide range of goods.

Sell in small quantity to members:The co-operative societies buy in reasonable quantity from wholesaler and sell in bits to the members.


Grand credit facilities to members:The co-operative society can grant credit facilities to members so as to enable them enjoy goods without payment immediately.

Give advice: The co-operative society also gives advice to their members (consumers) as well as the manufacturers/wholesalers.


Bring products closer to members: They also ensure that products are brought to the door step of the consumers (members).

Fight hoarding: They fight against hoarding by wholesalers and retailers by ensuring that they stock lots of the products for use by members (consumers).


Stabilize prices: They also help in stabilizing the prices of goods by selling
them at affordable prices to members.

Elimination of middlemen: They can eliminate the activities of middlemen by buying their goods directly from manufacturers and selling them directly to the consumers (members).

Marketing of members’ products: They also assist their members in marketing their products (i.e. producers’ cooperative society) by ensuring fair prices for their products.

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