A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspiration through a jointly owned and democratically controlled business.
Cooperative societies are voluntary associations started with the aim of service to members.
Cooperative marketing consist of two words ‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and ‘by the farmers’ that aim at eliminating the chain of functionaries operating between the farmers and the ultimate consumers and thus securing maximum price for the farmer’s produce.
According to RBI “Co-operative marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”
According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”
2. INTRODUCTION
A cooperative is an autonomous association
of people united voluntarily to meet their
common economic, social and cultural needs
and aspiration through a jointly owned and
democratically controlled business.
Cooperative societies are voluntary
associations started with the aim of service
to members.
3. COOPERATIVE MARKETING-MEANING
Cooperative marketing consist of two words
‘cooperative or cooperation’ and ‘marketing’.
It is also the marketing ‘for the farmers’ and
‘by the farmers’ that aim at eliminating the
chain of functionaries operating between the
farmers and the ultimate consumers and thus
securing maximum price for the farmer’s
produce.
4. CO-OPERATIVE MARKETING
According to RBI “Co-operative marketing is a
co-operative association of cultivators formed
primarily for the purpose of helping the
members to market their produce more
profitably than is possible through private
trade.”
According to FAO ‘Co-operative Marketing is
a system through which a group of farmers
join together to carry on some or all the
process involved in bringing goods to the
consumer.”
5. CONTD…
Marketing is a comprehensive term covering
a large number of functions. It includes not
only purchases and sales of products, but
also the various business activities and
process involved in bringing the products
from the producer to the consumer. So an
efficient and organized marketing is essential
for the healthy growth of any community.
8. TYPES
Single commodity cooperative marketing
society
Multi-commodity cooperative marketing
society
Multi-purpose multi-commodity marketing
society
9. STRUCTURE AND ORGANISATION
The structure of co-operative marketing societies in India
consists of;
1. National Agricultural Co-operative Marketing Federation
(NAFED) at the National level.
2. State Marketing Federation at State level.
3. District or Regional Marketing Societies at the
intermediate level and
4. Primary Marketing Societies at grass root level.
10. MARKETING DIFFICULTIES
Even though the conditions have improved over the
years with regard to agricultural marketing still there are
problems like long chain of middlemen, multiplicity of
market charges, adulteration and lack of grading, traditional
method of sale, weighing procedure, delayed payment, low
marketable surplus, inadequate storage facilities, defective
transport, lack of market information,
insufficient number of regulated markets, financial problem,
inefficient management, lack of integration between
production and marketing etc.,
11. OBJECTIVES OF CO-OPERATIVE
MARKETING
1. To sell the members product directly in the
best market and in a state that attracts the
best price.
2. To grade the produce in such a way that the
best price is obtained for all qualities to the
advantages of the grower.
3. Give fair weight.
4. Handle the crop without damage or waste.
12. 5. Strengthen the bargaining power.
6. Help members to produce the best
product, which has most demand, this
may include processing also.
7. Educate the members in marketing.
8. Stand for fair trading practices and stop
manipulation of prices.
9. Provide finances to producers and help
them in getting finances.
13. FUNCTIONS AND PROGRESS OF CO-OPERATIVE
MARKETING
Marketing of produce goods.
Distribution of fertilizers
Distribution of seeds and agricultural
machinery
Grading of produce goods.
Processing activities
Provision of storage facilities
14. NEED & IMPORTANCE OF CO-OPERATIVE MARKETING
1. Abolition of Middlemen.
2. Collective bargaining.
3. Storage facilities – for members.
4. Standardization and grading.
5. Higher prices of members.
6. Supplying inputs and consumer goods.
7. Facility of correct weighting.
8. Relief from illegal deductions.
9. Linking credit, processing and & farming.
15. ADVANTAGES OF CO-OPERATIVE MARKETING
1. Reduce cost and improved services.
2. Improve marketability – reduce all
undefined and undesirable market changes.
3. Safeguards against rising costs & input
prices.
4. Provides credit.
5. Storage facilities.
6. Processing of agro product.
7. Market intelligence.
16. STATE/NATIONAL AGRICULTURAL CO-OPERATIVE
MARKETING
FEDERATION (NAFED)
It was established in 1958, with the following
objectives:
1. Co-ordinate & promote the marketing and
trading activities of its members in
agricultural Goods.
2. Undertake or Promote inter – state, intra –
state & international trade.
3. To undertake the supply of agricultural
Inputs like seed, fertilizer, manure,
agricultural implements, etc.
17. REASONS FOR POOR PERFORMANCE
1. Lack of initiative by members, only Govt.
initiative.
2. Competition from credit societies, middlemen,
traders, etc.
3. Lack of loyalty among the member.
4. Lack of co-ordination.
5. Lack of audit and supervision.
6. Untrained persons.
7. Lack of funds.
18. AMUL
The largest food brand in India and world's Largest Pouched
Milk Brand ‘Amul’ is a brand name managed by Gujarat Co-
operative Milk Marketing Federation Ltd. (GCMMF).
The Gujarat Cooperative Milk Marketing Federation Ltd, Anand
(GCMMF) is the largest food products marketing organisation
of India and is the apex organization of the Dairy Cooperatives
of Gujarat.
With a turnover of INR 67.11 billion GCMMF has created an
economic network that links :
19. millions of consumers in India and abroad,
2.8 million village milk producers,
a cooperative system that includes 13,141 Village Dairy
Cooperative Societies (VDCS) at the village level,
further affiliated to 13 District Cooperative Milk Producers’
Unions at the District level and GCMMF at the State level.
20. CONCLUSION
Marketing societies play an important role
in order to get a better price for the produce,
better facilities and services to the farmers.
This in turn will lead to higher income and
better lifestyle to the farmers.
