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WHAT IS A
CO-OPERATIVE

A very simple definition would be to say it is a business where a group of people get together voluntary to obtain a product or service. From this one can see that the members must do business with the co-operative.

For example the co-operative could buy in bulk the inputs the members need to produce a certain product (e.g. flour to bake bread and cakes). The members then produce the product and the co-operative market sells it on their behalf (e.g. the bread and cakes are sold to the public by the co-operative).

A co-operative is a distinct form of enterprise that provides services and/or products to its members. Profits, known as surpluses in a co-operative, are divided among members in relation to the amount of the business each member did with the co-operative.

 

Characteristics of a co-operative

- Association of persons

- Voluntary basis

- Mutual or common economic, social and cultural needs

- Jointly owned and democratically controlled enterprise

- Co-operative principles

 

The principles of a co-operative

- Democratic member control

- Voluntary and open membership

- Autonomy and independence

- Educational training and information

- Co-operation among co-operatives

- Concern for community

- Member economic participation

 

The benefits of a co-operative

- Achieve what one cannot achieve on his/her own

- Provide easy access to needed services

- Pay less for inputs, marketing, distribution and selling of produce

- Process products if necessary

EVENTS

4th Annual Amathole District Municipality Co-operatives Indaba, 5-7 December 2011, East London. Amathole District Municipality will be hosting the 4th Annual Amatho…

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MEDIA COVERAGE

Women's project a huge success story. A womens agricultural cooperative in Alexandria in the Ndlambe municipality has been praised as the model cooperative to …

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FAQs

Questions?

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