QS Study

Advantages of Producer’s Cooperative Society

A few of small industrialist, labor, or producers establish a cooperative society to gather their limited capability in order to get huge production facilities and this kind of organization is called producers’ cooperative society. As they can’t produce huge products as well as they can’t exist in the competition of selling, so they accumulate their limited ability to establish such kind of organization.

The owners of the small and cottage industry and producers establish this cooperative society to use their limited ability to consume large production facility. More production and increase the ability of distribution is the main goal of this organization. From the viewpoint of different nature, the advantages of producer’s cooperative society are given below:

Increase income: Large production facility can be gained as each labor or producers produce combined. It increases the volume of income as well.

Elimination of middlemen: To refurbish the interest of small producers to eliminate the exploitation of middlemen. That’s why products purchase and direct marketing collectively. Consequently, it is not needed to depend on others.

Removing unemployment problem: This inventive society not only saves guard of the producers and labors but also it takes new projects and enlarges its activities in accordance with increase the financial ability. It creates employment and removes unemployment problem.

Marketing facility: The blind competition is declined among small produces due to establishing such kind of cooperative society. Production can be increased to measure the demand of the market. As a result, marketing becomes easier.

Safeguarding existence: Producer cooperative society is essential in order to safeguard existence various kinds of disadvantages as well as to exist in the market in comparison with prosperous industrialists.

Establishment of good industrial relations: The owners operate the activities labor in this kind of organization. As a result, the disparity between owner and labor is naturally abolished. It creates a good relationship between them.

Using of advanced technology and product: It is a goal of producers’ cooperative society that produces various kinds of developed goods; takes various kinds of new projects, as well as to invest introducing new products. So, members can’ learn the technique of new entrepreneurship.

Reduction of cost: The owners perform just like the labor in this organization. Generally, the production cost is reduced, because of huge purchase and production. Besides combine market reduces the cost as well.

At last, we can say that a lot of advantages of producers’ operative society. These advantages make the producers’ cooperative society more demandable. Each producer wants to gather willingly to be members of this organization to establish their rights. Because they want to survive in the society depending on their own status and contribute to the national economy.