The first cooperative society was said to be England consumer cooperative society created by weavers in 1844. It was named the Society of Fair Pioneers of the Rochdale city. Since then, the cooperative society have become widespread all over the world. There are many different types of cooperative societies. To understand the purpose and functions of cooperatives, there is a special classification presented in the article you should read about!
What are the functions of cooperative society?
There are more than 120 cooperative society types which possess various functions and aims. Here we will outline the main 8 categories as well as explain the roles of cooperative society.
Consumer cooperative society
The functions and aims of the consumer cooperative s:r societies, catering cooperatives and wholesale trade associations.
The functions and aims of the consumer cooperative society
- to meet the needs of the consumers in good quality goods and services at an affordable price;
- to conduct trading and public catering services;
- to serve the population within the trade enterprises (shops, stalls, tents) and within the catering facilities (restaurants, canteens, cafés);
- to produce goods, to provide household and production services, including credit and insurance services.
READ ALSO: What is cooperative society in business
Loan cooperative society
The loan cooperative society functions differ in the loan purpose:
- the production loan, which is issued to the small and medium-sized enterprises for productive purposes: to purchase the equipment, raw materials, seeds, lands, to construct the buildings and facilities, etc.;
- the consumer loan, which is issued to meet the citizens personal needs (mostly the cooperative members): to buy clothes, household items, to pay for education and treatment, to buy an apartment, etc.;
- the credit unions, which 2 main functions are: to provide the profitable money savings and the cash loans issuance to these unions members.
Agricultural cooperative society
The primary purpose of the agricultural cooperative society is to help its members in the rational organizing of agricultural production, the processing, and marketing of the cropping output as well as animal production also. Thus, such joint activities contribute to strengthening the economic position of agricultural output in a market economy.
READ ALSO: History of cooperative society in Nigeria and West Africa
Production cooperative society
These cooperatives are the commercial enterprises and are owned by the people working on them.
The purpose of such cooperatives is to get an income through the effective joint production. The high wages and dividends allow the cooperative's members to meet the economic, social, and cultural needs better.
The main types of production cooperative society:
- food and non-food items production
- the artisans and craftsmen.
Housing cooperative society
The housing cooperative society purpose is to provide their members with a shelter, cottages, garages and its maintenance. This cooperative society includes:
- the house-building
- the secondary homes-building
- the housing and rental
- the housing stock maintenance
READ ALSO: Types of cooperative society in Nigeria
Fishermen cooperative society
Those citizens whose primary activity is related to fishing usually organize the fishermen cooperative societies. These cooperatives are engaged in fishing, processing and marketing the fish and fish products.
Service cooperative society
The cooperative service society operates in the economic, scientific, legal, and social spheres.
Multi-purpose cooperative society
The multi-purpose cooperative society is engaged in different types of economic activities to be competitive on the market. They are also called mixed, multifunctional, universal, or integral cooperatives.
They are divided according to the activity area:
- the multi-purpose cooperative society combines several functions within the sphere of commodity and money: the commerce, market, public catering, car service, etc.;
- within agriculture, the multi-purpose cooperative society is engaged in product marketing, it's processing, supply, transportation, storage, commerce, equipment repair, etc.
These are all the main functions and aims of the cooperative society you should know about. We hope it was interesting and helpful for you!
READ ALSO: How to register a cooperative society in Nigeria?