PROBLEMS OF CO-OPERATIVE SOCIETIES IN THE MARKETING OF AGRICULTURAL PRODUCTS

CHAPTER ONE
INTRODUCTION

The co-operative society was principally aimed at organizing non-profit making institutions that would protect its members from exploitation by capitalist shop owners who sold goods at exorbitant prices.

The origin of co-operative societies dates back to 1844 in Rochadale, a town in Britain. Twenty eight artisans, called the “Rochdale Pioneers contributed a few pence per week, with this amount, they started a retail shop. Members bought cheaply from their shop and profits were distributed to members in pro-portion to the amount of business done through the co-operative.

A much greater measure of success has been attended on the development of consumer’s co-operative societies though not without some  difficulties, which eventually stopped many from existing.

BACKGROUND OF THE STUDY

Almost every community is Nigeria with reference to the local governments in Enugu zone chosen practices one form of co-operative society and this enhances the rapid development, the society nationwide. With this regard, we were made to know that agricultural products that were produced in different parts of the country should be distributed equitably or almost. In the course of the distribution, people do come together and pull their meager resources together for an efficient distribution of these goods.Efficient distribution determine the quantities and prices of this products that come into the market.

Contrarily, if poorly distributed, the producers will find it difficult to market their products individually. In attempt to maintain stable prices of farm products and minimize the excesses of middlemen, many producers have decided to form food crops co-operative society in their zones and extended it to almost all the communities in the local government entirely. The objectives of forming the co-operative society includes: To market the food crops of member to their best advantage Raising of funds for which loans can be granted to members for products purposes. Obtaining supply of raw materials such as fertilizer
 provision of other essential services to the members such as procuring the necessary of most needed goods at wholesale prices. Obtaining of good essential services for their members like, loans at a reasonable interest from lending houses. However, in doing these duties, which are marketing of food

crop for the members interest, raising of internal funds to give to the members as loan, obtaining loan from lending and discount houses or financial institutions, obtaining raw materials and doing other services to their member, the co-operators ran into some difficulties and other or problems. It is this problem that the researcher is out to find as well as recommending for their total elimination.