COOPERATIVE MARKETING

Group Members
Akhilendra Jai Pratap Singh Navneet Singh Shashwat Saxena Shivam Dubey

Vikram Singh
Vishal Kumar Tiwari

Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Introduction of cooperative Types of cooperative Cooperative marketing Need Advantage Disadvantage Models Cooperative marketing in India Structure of cooperatives in India Successful cooperatives in India

What is Cooperative ?

A cooperative is an autonomous association of persons who

voluntarily cooperate for their mutual social, economic, and cultural benefits. It include non-profit community organizations and businesses that are owned and managed by the people who

use its services (a consumer cooperative) or by the people

who work there (a worker cooperative).

Types of cooperatives

Housing cooperative
Utility cooperative Agricultural cooperative Federal or secondary cooperatives

Cooperative Marketing
A marketing cooperative is set up in order to market and sell the surplus produce of its members, being such a surplus, as they cannot consume themselves

A marketing cooperative as a system in which a group of farmers join together in order to carry out part or all of the

processes involved in bringing the produce from the producer

to the consumer- Margaret Digby

 The Bank of India defines a marketing cooperative as a society of farmers, organized for the purpose of helping the members to market their produce, so as to obtain higher profits than is possible by way of private marketing.

Reason for establishment of Cooperatives

When there is a surplus in production over the consumption.

In order to save expenses for middlemen who benefit from

the producer in various fields

To face the financing Problems

Advantages of Cooperative Marketing

Solve Financing Problems Increases bargaining strength of the farmers

Direct dealing with final buyers

Provision of credit Easier and cheaper transport Processing of agricultural produce

 Grading and standardization Market intelligence

Influencing marketing prices

Provision of inputs and consumer goods Storage facilities

Disadvantages of cooperative marketing

Too much political interference

Limited Resources Inefficient Management Attachment to local sentiments Absence of Motivation

Model of Marketing Cooperatives

producer
intermediaries

consumer

Middle men local market Middle men regional market Middle men urban market Middle men zonal market

Middle men local trader

PRODUCER

Marketing cooperative belonging to producer Zonal market

Local trader CONSUMER

PRODUCER Marketing cooperative belonging to producers Consumers cooperative belonging to consumers CONSUMER

PRODUCER Marketing cooperative belonging to producer Shopping centre belonging to marketing cooperatives CONSUMER

PRODUCER Supply centre belonging to consumers cooperative Consumer cooperative belonging to consumer CONSUMER

PRODUCER Farmers-government jointly owned export organizations CONSUMER

PRODUCER Direct sale from producer to consumer

CONSUMER

Cooperative Marketing in India

Cooperative Marketing in India is concerned basically with four main activities marketing of agricultural produce of all kinds marketing of semi-industrial products (handicrafts) marketing of fisheries produce marketing of dairy products

Marketing of Agricultural products

Characteristics of agricultural products Agricultural products are bulky and weight is more.

Demand on storage and transport facility is more heavy.

There are various verities so difficult to grade them. Demand and supply of agriculture products are inelastic.

Functions of Cooperative marketing in agriculture

To arrange for the sale of members produce to the best possible advantage. To undertake activities in connection with grading, pooling and procurement of produce of the members. To protect members from all types of malpractices eliminates the middleman in the chain of marketing.

 Co-operative marketing society ensures grading, etc. and supply of good quality material to consumers. It teaches business methods to farmers and serves them as agency for supply market information. The society is able to stabilize prices over a long period by adjusting the supply with the demand. Marketing societies are also encouraged to undertake export trade so that they can give better prices to their members.

Function of cooperatives in marketing of fishes

To manage nurseries and transplantation of the fingerlings from nurseries to reservoirs. Fabrication of nets and repairs to gears. Arrangement of the collection and transportation of the fish. Providing the boats and nets at initial level. Supply of fishing seeds.

Function of cooperative in handicraft Marketing

To project Indian handicrafts and create its awareness among the masses by organizing a number of marketing events in big and small cities. Enable the craft persons to have permanent sales outlets for their products. To establish direct contact of the craft persons.

 To provide financial assistance to Institutions, Societies, Organizations

To set up various types of Haats at prime locations in the country To set up Marketing Hub in Metros, Sourcing Hub in Craft Clusters and Warehousing facilities

Function of cooperative marketing in Dairy

To bring about rapid increase in milk production and its profitable utilization.
Involve the grass root level of milk producer in this activity. Through cooperatives these milkmen should be linked to urban areas. Elimination of unproductive intermediaries.

Structure of cooperative marketing in India

NAFED

State Marketing Federation

Regional marketing federation

District marketing federation

Primary Marketing Society

Primary Village cooperative Cultivators

Some successful cooperatives in India

IFFCO (fertilizer based) AMUL (dairy based) Urban cooperative banks

 Maha-grape - co-operative federation marketing grapes in Maharashtra. Co-operatives marketing pomegranate.

Co-operatives marketing banana in Jalgaon district.

Vegetables co-operatives in Thane District. Milk co-operatives in Maharashtra and Gujarat. Co-operative cotton marketing societies.

Reason for their success

Focus on quality production Transportation was swift and smooth.

No interim storage of the products.

Grading of the products. Successfully influenced the price. Lower marketing cost than private traders.

Reason for failure of some others

Most of the cooperatives were established without feasibility study. Considerable monetary dependence on external organization. Since the cooperatives were set up to suit external decrees i.e. politicians.

Lack of skilled manpower.

Need of productive units at rural areas.