QS Study

Features of Producer’s Cooperative Society

In Producer’s Cooperative Society, producer-owned and democratically-controlled organizations that serve their members (who may or may not be themselves cooperatives) through cooperative marketing, support and/or purchasing. The members of this organization collect capital, render great attempt to operate the organization with a view to earning a profit and distributing as well as.

Every organization has some characteristics based on these features producers’ cooperative society has formed and operated. According to these features producers’ cooperative society is differentiated from others. These features are as follows:

  • Capital is collected by the members of the organization,
  • Profit distribution must he followed rules and regulations,
  • Omitting the middleman,
  • Products supply at the most favorable price in this organization and consumers.
  • The risk of production is limited by the paid up capital of a shareholder.
  • Generally, small mechanics producers and small industrialists are the members of this type of cooperative society.

From the above discussion, we say that producers’ cooperative society is the most popular among the all producers of an industry. Easy formation, low capital, and production emphasis are the features producers’ cooperatives society which gives extra popularity.

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