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Cooperative Structures Explained

This document defines and describes different types of cooperatives. It explains that primary cooperatives have natural persons as members, while secondary cooperatives have primary cooperatives as members and act as advocates on their behalf. Tertiary cooperatives have secondary cooperatives as members and advocate for their sectors. The document then lists and describes six types of cooperatives: producer, worker, consumer, credit unions, retail/purchasing, and social cooperatives.

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J Swish
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111 views2 pages

Cooperative Structures Explained

This document defines and describes different types of cooperatives. It explains that primary cooperatives have natural persons as members, while secondary cooperatives have primary cooperatives as members and act as advocates on their behalf. Tertiary cooperatives have secondary cooperatives as members and advocate for their sectors. The document then lists and describes six types of cooperatives: producer, worker, consumer, credit unions, retail/purchasing, and social cooperatives.

Uploaded by

J Swish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Tan, Joaquin C.

Primary Cooperative - is a cooperative the members of which are natural persons except
electric cooperative, water service cooperative and other cooperatives which the implementing
rules and regulations of RA9520

Secondary cooperatives, which are co-operatives whose members are primary co-
operatives in a particular business sector, have long established associations, federations,
and apex organisations to enable co-operatives to speak with one voice. Secondary co-
operatives act as advocates on behalf of and in defence of co-operatives in their dealings
with governments and regulators, as a place to share knowledge and resources, and to
support co-operatives independently and collectively. Through such organisations
producers are able to increase their negotiating power in policy-making processes at local,
regional and national levels.

A tertiary co-operative means a sectoral or multi-sectoral co-operative whose


members are secondary co-operatives and whose objectives are to advocate and
engage organs of state, the private sector and stakeholders on behalf of its members,
in line with its sectoral or geographical mandate

Types of Cooperative

1. Producer Cooperatives

Members are engaged in production in separate enterprises, such as farms, artist


studios, or fishing boats. These cooperatives may provide supplies, marketing,
processing, or insurance, among other services.

2. Worker Cooperatives

These businesses are owned by some or all of the workers. They are popular with small
groups of attorneys, engineers, restaurants, day cares, and more.

3. Consumer Cooperatives

These are owned by the people who buy from the cooperative. These cooperatives can
provide nearly anything people want – from groceries to electricity to healthcare.
Consumer cooperatives can be very small – a food buying club in a rural village – or
very large – a multi-million dollar supermarket in the city.

4. Credit Unions
Tan, Joaquin C.

Every person who deposits money into a credit union account is a member-owner. In
the wake of the recent financial crisis, many people are turning to credit unions as an
alternative to large, for-profit banks.

5. Retail or Purchasing Cooperatives

These businesses may also be called shared service cooperatives. This type includes
businesses you may recognize, such as Best Western motels, Ace Hardware, and
Carpet One.These independent businesses formed cooperatives to increase efficiency
in purchasing supplies and/or providing services.

6. Social Cooperatives

This emerging type of cooperative has a social mission, such as improving working
conditions for women or providing health care to a community.

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