Cooperative marketing

 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.”

1. PRESENTATION ON “COOPERATIVE MARKETING” AJIT MAJUMDER N.E.H.U. ABMFT TURA CAMPUS AGRI AND FOOD MARKETING

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.

6. MEMBERSHIP Ordinary member Nominal members

7. SOURCE OF FINANCE Share capital Loans Subsidy

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 ; National Agricultural Co-operative Marketing Federation ( NAFED) at the National level. State Marketing Federation at State level. District or Regional Marketing Societies at the intermediate level and 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 To sell the members product directly in the best market and in a state that attracts the best price. To grade the produce in such a way that the best price is obtained for all qualities to the advantages of the grower. Give fair weight. 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 Abolition of Middlemen. Collective bargaining. Storage facilities – for members. Standardization and grading. Higher prices of members. Supplying inputs and consumer goods. Facility of correct weighting. Relief from illegal deductions. Linking credit, processing and & farming.  

15. Advantages of Co-operative Marketing Reduce cost and improved services. Improve marketability – reduce all undefined and undesirable market changes. Safeguards against rising costs & input prices. Provides credit. Storage facilities. Processing of agro product. Market intelligence.

16. State/National Agricultural Co-operative Marketing Federation (NAFED) It was established in 1958, with the following objectives: Co-ordinate & promote the marketing and trading activities of its members in agricultural Goods. Undertake or Promote inter – state, intra – state & international trade. To undertake the supply of agricultural Inputs like seed, fertilizer, manure, agricultural implements, etc.

17. Reasons for Poor Performance Lack of initiative by members, only Govt. initiative. Competition from credit societies, middlemen, traders, etc. Lack of loyalty among the member. Lack of co-ordination. Lack of audit and supervision. Untrained persons. 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.

21. THANK YOU