Benefits of cooperative organizations

Basically cooperatives are vehicles for social economic development contributes to economic growth and development in many ways. The major benefits that come out of cooperative organizations as be summarized as follows:

1.         collection, transportation, processing and marketing agricultural produce.
2.         mobilization of savings and channeling the income of individual members for specific developments projects.
3.         support to agricultural production through distribution of farm inputs.
4.         dissemination of applied technology to members
5.         provision of credit to member for defraying urgent expenses at fordable rates and costs.
6.         assisting in income distribution by participation through enabling large sections of the population to engage in various income generating economic activities.
7.         creating employment directly through engagements for various cadre of staff and more importantly self-employment as farmers and artisans.
8.         a cooperative is an institutional framework through which the following are achieved:
(a)                otherwise small and uneconomic surplus can be harnessed by taping economies of scale
(b)               poverty can be alleviated by planning, organizing, implementing and managing income-generating activities.
(c)                Agricultural producers can reap maximum benefits out of their produce by eliminating middle men.
(d)               Social control mechanisms become an acceptable substitute for physical assets as collateral for loans
(e)                Development funds are channeled to individual members
(f)                Members can be educated on economic and social issues affecting them including development of entrepreneurial skills
(g)               Wealth and capital can be created and owned jointly by large groups of low-income earners.
(h)               The national economy can be indigenized since cooperative members tend to be largely indigenous people.


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