Examkin

Question

Difficulty: MediumCooperative Societies: Types, Principles, Features, and Operation

A group of cocoa farmers in Ondo State formed an association to pool their harvested cocoa beans, process them collectively, and sell directly to overseas exporters at competitive market rates. Which type of cooperative society has been established by these farmers?

  1. Producers' Cooperative SocietyAnswer
  2. B
    Consumers' Cooperative Society
  3. C
    Credit and Thrift Cooperative Society
  4. D
    Multi-purpose Cooperative Society

Answer

Producers' Cooperative Society
The correct answer identifies a Producers' Cooperative Society because its primary economic objective is to help individual farmers or producers combine their yields, add value through processing, and market the output collectively to command higher market prices and eliminate intermediate brokers.

Step-by-Step Solution

1
Analyze the primary activity described in the scenario
The farmers are pooling raw agricultural goods (cocoa beans), processing them, and selling the output directly to buyers.
Identifying whether the enterprise operates on the supply/production side or the retail/consumption side determines the cooperative category.
2
Match the function to the correct classification of cooperative societies
An association focused on processing and joint marketing of members' output is classified as a Producers' Cooperative Society.
Producers' cooperatives protect small-scale farmers and artisans from middlemen by securing better market prices for output.

Key Concept

Classification and operational functions of Producers' Cooperative Societies
Estimated Time:1m 0s
Rate this question

Topics

Cooperative Societies: Types, Principles, Features, and Operation

More questions from this topic