Rural Cooperation: In The Cooperative Movement in Tanzania

9. Types of Cooperatives

9 Types of Cooperatives 126 Rural Cooperation: In The Cooperative Movement in Tanzania There are many criteria which are used in classifying cooperatives. These criteria include work performed by cooperatives, groups of members served by cooperatives, and levels of operation of cooperatives. There is no short way of classifying them because one cooperative may belong to more than one classification. For example, a cooperative may belong to production, marketing, and processing and at the same time operate as a primary Cooperative Society or a cooperative Union. Various cooperatives are found in different countries. The major types of cooperatives include agricultural, industrial, consumers, savings and credit cooperatives. Ngeze, P.B. (1975: 30-39) identified three major types of cooperatives in Tanzania: the marketing cooperatives, producers’ cooperatives, and savings and credit cooperatives. Under these three types, there are other small types such as livestock and milk cooperatives in agriculture, and marketing cooperatives. The forces which motivate people to organize a cooperative can also determine its type. 9.1 Classification of Cooperatives According to Work Performed Cooperatives are grouped according to the work they perform for their members. Workers may organize cooperatives to pursue any of a large number of occupational interests in industrial business ventures, or to produce and market products, or to provide any of the many services used in everyday living. Workers’ cooperatives are unique both as cooperatives and businesses. Workers participate directly in decisions that affect them in their workplace as well as those that determine the growth and success of the business. They provide members with employment along with the ownership and control of the enterprises and in return receive a fair share of the profits and control over the way their work is organized, performed, and managed. Workers’Cooperativesapplydistinctiveworkercooperativeprinciples which specify that worker members: a) Take the full risks and benefits of working, owning, and operating their cooperative business; b) Equitably contribute to and benefit from the capital of their cooperative; c) Decide how the net income, or the net loss, is allocated; and d) Govern and control the enterprise on a one-member, one-vote basis. Chapter Nine 127 In Tanzania, workers’ cooperative societies include the following: 9.1.1 Cooperatives for Harvesting Natural Products Timber and logs marketing cooperatives started in recent years in Tanzania. Members of these cooperatives have the responsibility of harvesting timber and logs and selling them as a cooperative enterprise. Bee Keeping Cooperatives deal with keeping bees and collecting honey and wax. Every member keeps bees and harvests honey and wax which are then stored by the cooperative, put in packages, and then sold on behalf of the members. 9.1.2 Cooperatives for Arts and Craft A wood carving and art works cooperative was established in July 1961 in Mtwara. Wood carving and art works cooperatives have also been established in other regions. The cooperatives sell their products to domestic and foreign buyers. Cooperatives for art works produce and sell products like baskets, pots, handbags, ropes, and other traditional goods. 9.1.3 Fisheries Cooperatives Fishing cooperatives are found in areas near lakes, big rivers, and the ocean and they deal with fishing activities. Members buy fishing equipment like dhows, canoes and nets. They catch fish together and divide the catch or sell it together. Fishermen form cooperatives to access technical and education services for pursuing their business. (Ngeze, P. B.1975: 34). 9.1.4 Mining Cooperatives Mining cooperatives have been established in Tanzania. Members of these cooperatives are diggers of minerals including gold, tanzanite, and other minerals. Members of cooperatives work or dig together and sell through the cooperative whatever quantity of minerals they find and divide the profits. 9.2 Classification of Cooperatives According to Groups Served Cooperatives serve many groups of people. Cooperatives serve farmers, consumers, workers and other groups in varied occupations. The main types of cooperatives that serve groups of people are analyzed in this section. 9.2.1 Farmers’ Cooperatives Farmers Cooperatives are the oldest and most important type of cooperative in Tanzania. They are member-owned and controlled cooperatives. Farmers’ cooperatives help producers to assure markets 128 Rural Cooperation: In The Cooperative Movement in Tanzania and achieve economies of scale and gain market power through joint marketing, bargaining, processing, and purchasing of supplies and services. Farmers’ Cooperatives have subtypes. a) Cooperative Farming Societies Under this type of farming the members of society cultivate farms collectively and sell farm products through...