Cop 111 - Introduction To Cooperatives

Page 104
Government sources of loans to Co -operative. Government giving
loans to the co-operatives are common in Nigeria. This is because of
the generally low- income levels as well as the fact that governments
are the major initiator of Co-operatives. Government giving money
to the Co-operatives is in two forms:
a) Grants which are not repayable neither do they attract interest
payments. Sometimes, grants may be attached to specific
projects.
b) Loans: they attract low interests even though not as much as
from the Commercial Banks. They are to be repaid after some
periods.

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Co-operatives Multipurpose Societies
These are societies that serve the function of multi or many purposes
designed for the benefit of the numbers. Multi purpose societies can give
loans to members. Procure and distribut e agricultural inputs to members and
market members produce by securing good prices for their produce

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Increase Adaptability
In the free market economy any organization that fails to adapt
will perish. But the ability to adapt depends on a number of
facts such as:
 The level of information available
 The processing of such information

Page 56
Economic Reasons
Economics reasons constitute the major motive why people join or form Cooperative. It is an attempt to improve one’s income by carrying out more
economic activities or improving on the performance of the present enterprise
of the individual. By so doing, the member’s economic position is increased.
A tailor who joins a tailors’ Co-operatives Society has among other reasons
the economic motive.

Page 59
To obey custom/ tradition
The desire to join Co-operatives may also be to obey customs or traditions. This is especially the case in the rural or semi urban areas. If the father had been a Co-operator and had played eminent role in Co-operative activities, there is the tendency for some of the children to belong to Co-operatives as well

Page 45
Based on the relationship between the management and the members of the Co-operatives that emerge from the are:
a) The traditional Co-operatives
This is the where members make all the decisions and
management is to execute only. Again, do not confuse this
with the indigenous self – help organizations. We made the classification in our earlier unit (3). You may revisit that unit again. The members of the traditional Co-operative usually make explicit demand for particular services, and management must comply

Page 63
Co- operative Nexus
This is the relationship between a Co-operatives organization as a business entity and members’ private business enterprise or household economy. The Co-operative is thus established to promote the interest of the members.

Cooperatives are mostly formed by a number of primarily cooperatives, which means that they are formed by existing cooperatives. The term "secondary" is often used to describe cooperatives that are formed by other cooperatives, indicating that this is the correct answer choice. The other options, "tertiary" and "group," do not specifically convey the idea of cooperatives being formed by other cooperatives, making them incorrect. "None of the above" is not the correct answer because the statement provided in the question supports the selection of "secondary."

Page 53
A Tailor Co-operative Society does exist. It is a society where a group
of professional tailors come together to form it. The benefits derived
from such association include:
 Sharing experiences in respect of their profession
 Getting soft loans from the society with which to expand the
business and meet other needs
 Getting clothing materials, which have been bought in bulk by
the society. By buying in bulk, the society would have
received some discounts and would be in a position to sell at
reasonable price to the members.

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Agricultural Co-operatives Societies
These are societies usually formed by farmers. On their own, each member
has his own farmland. By coming together to form a co-operative, the reason
is for them to benefit from the special services, which include: receiving
loans, farms inputs such as fertilizer, professional advice among others

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Increase acceptability in economic circles The small producer or marketer will not be accepted as
partners for business transactions by the big final user or buyer. The big buyer or user will prefer dealing with equally
big supplier. The Co- operative through the pooling of resources becomes big enough to negotiate and transact business with the big buyer or user

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UNION is
A union can be refereed to as any coming together of
primary co-operatives to form another common body.
It is identical with a Federation in that sense.

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External pressure
The reason for joining a Co-operative may be as result of external pressure especially from governments. Until recently, in Socialist countries such as the United Socialist Soviets Republic (USSR), Czechoslovakia, and Poland
among others the Co-operative was seen as a socialistic organization, which
could serve socialist cause. Legislation was enacted which made it
membership to be mandatory.
Similarly, access to essential commodities, credit, inputs etc. is made conditional upon membership. In this second case, however, there is a personal choice to make, while in the first case there is no choice.

Disadvantages of loans from Government
a) Money from government is easily regarded as National cake, and needs not to be repaid.
b) Laxity on the part of government agents who do not even
bother to follow the activities leading to high rate of loan defaults.
c) There is also the danger of interference in the affairs of the Co-operatives as a result of the financial support

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Co-operatives Investment and Credit Societies
A Co-operative Investment and Credit Society is a variation of Co-operatives
thrift and Credit Society. As the name implies, the essence of forming such
co-operative is for members to invest funds on profitable investment that can
yield good dividends

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Building and Housing Co-operatives Societies
Individuals who are so interested can form a building Co -operative Society.
This type of society should be encouraged in Nigeria. This is because our
culture gives respect to an adult who can afford to build his house.

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There again are two extreme life styles that need to be considered.
1) A nomadic life style This is characterized by constant movement of family, homestead and
economy of the producer. This life style makes it difficult to establish
Co-operatives. The group which is very basic of the formation of Cooperatives does not exist. Also the area of operation of the Cooperative and the fixed address of the Co-operatives as required by law cannot be established.
2) A sedentary life style This is the opposite to the nomadic life style. It is characterized by
fixed abode in specific settlements. That is where group bases and inter personal relationship are much more likely to occur. It is upon these bases that Co-operatives can be established.

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An apex co-operative:
This is the same thing as functionally specialized national Cooperatives e.g. National Co-operatives federation of Nigeria Ltd.

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A co-operative, which has only one field of activity, is classified as:
(a) A single purpose Co-operative e.g. a marketing Cooperative and
(b) A multi – purpose Co-operative is the one that has
more than one field of activity e.g. credit to and
marketing for members.

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Kinds of Co-operatives Effects:

1) Price Effects Two kinds of price effects arise, depending on the type of Cooperative.

a) Increased price can be obtained for members especially in the case of marketing Co -operatives. This arises because the Co-operatives is now in a stronger position to supply as against the much weaker position of the individual member who can only supply small quantities with higher cost of operation.

Ex:
NOUXXXXXXX
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