What is a co-operative?
A Co-operative is an AUTONOMOUS, VOLUNTARY
association of persons having a COMMON BOND, who come together towards meeting
and promoting their unique needs and aspirations be it economic, social and,
cultural through a jointly owned entrepreneurial economic activity meaning it is
a form of business.
What does this mean?
Co-operative are PEOPLE-CENTERED ENTERPRISES owned, controlled democratically and managed by and for the members to realize their needs and aspirations and are guided by values and internationally agreed upon principles of co-operatives, not just for profit making, but to achieve mutually beneficial results for the members.
Joining of the co-operative by the members is also VOLUNTARY meaning there is freedom and it is brought about of a person’s own will to do so.
AUTONOMOUS
in this case means that the co-operative has the ability to work with morality
rather than under the influence of vested desires or interests.
A COMMON BOND
is something that potential members of a co-operative share in common. It is
therefore important to understand that membership is limited to only those who
share the common bond. Availability of a common bond is the main cause for the
formation of a co-operative worldwide. For example, Coffee farmers in Kenya
aspire to find a market for their produce and this led to the formation of
Coffee farmers’ co-operatives e.g Baragwi Farmers’ Co-operative Society
Limited.
A co-operative Explained...
a story of mwangi....
Mwangi grows vegetables in his small plot. A trader in his village buys his harvest at a very low price because he only has small quantities to sell. The trader also knows that Mwangi cannot bring his produce to another village because the transportation cost are so high and will eat up his profits.
Likewise, he has to pay a high price for the
fertilizer since he only buys in small quantities.
One day, his neighbor Wairimu, who is also a small
farmer, invited him to attend her group’s meeting. During the meeting, Mwangi
learned that Wairimu is a member of a collective enterprise well known as
United Farmers` Co-operative Society Ltd, made up of small women and men
farmers like him. The co-operative is looking for other farmers to join them so
that they can increase the volume of produce they sell directly to vendors in
the town.
With their combined number they are able to meet the
minimum requirement of the vendors, get a better price for their produce, and
lower the transportation cost per unit of produce. They also buy inputs
together. Because of this, they are able to get good quality inputs at cheaper
price. The co-operative has also accessed the government’s extension programs,
which has supported the members in efficient use of fertilizer.