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Cooperatives are considered useful mechanisms to manage risks for members in agriculture. Through cooperatives, farmers could pool their limited resources together to improve agricultural output and this will enhance socio-economic activities in the rural areas (Ebonyi and Jimoh, 2002).
Producer cooperatives are owned by people who produce similar types of goods or services. The members use the cooperative to more effectively negotiate prices and to access larger markets. The cooperative can further process member products to add value and increase producer returns.
A marketing cooperative is a business organization owned by farmers to collec- tively sell their products. It allows produc- ers to accomplish collectively functions they couldn't achieve on their own.
Cooperative ExamplesRetail outlets, credit unions, utility companies, insurance companies, and day cares are all examples of businesses that may benefit from the association of a co-op.
Overview. Through Farm Service Agency's (FSA) Cooperative Marketing Association Program (CMA), marketing cooperatives can obtain FSA marketing assistance loans and loan deficiency payments (LDPs) on behalf of their members.
A phone store that bundles their products with complementary ones is an example of cooperative marketing. This offer takes advantage of products you'd already need to invest in when buying a phone, and uses that to entice you into purchasing.
A marketing cooperative, sometimes known as a producer cooperative, allows its members, who produce the same or similar products, to cooperatively market and sell the products.
Producer / Marketing Cooperatives Producers Co-ops are also known as marketing co-op where the members provide the co-op with the same production that the co-op markets in a processed or value-added form. The Co-ops' mandate is to commercialize the members input by seeking the best price possible on the market.