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Types of Co-ops
Co-ops are differentiated in a number of ways. One such classification
is based on their function and below are the different types
of co-ops under that classification.
Marketing co-ops are cooperatives formed to sell
products. Initially, most were involved in marketing agricultural
goods, but today this has changed to include a wide variety
of products. The work that they do also varies. Some marketing
co-ops limit their activity to simply negotiating prices and
terms of sales with buyers. Others primarily collect similar
products together and assemble them into larger quantities
to processors, wholesalers or retailers. Some examples of
marketing cooperatives are Land O’Lakes, Sunkist, Blue
Diamond.
Purchasing co-ops purchase supplies and goods and sell
them at a reduced price to members. This reduces member costs.
First used by farmers to gain access to affordable and quality
supplies like feed, fertilizer etc, purchasing co-ops are
now found everywhere offering a wide range of low cost goods
and services. Some examples of purchasing cooperatives are
ACE Hardware, Carpet One.
Service co-ops, as their name suggests, provide services.
They are similar to the other co-ops discussed above in the
sense that they also provide a wide variety of services and
were initially formed to serve farmers. Credit Unions, Health
Care providers are just some examples of service co-ops.
For specific examples of co-ops, click here
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