Differences and similarities between co-operative societies and marketing boards

  

Date Posted: 12/19/2012 2:36:06 PM

Posted By: sashoo  Membership Level: Silver  Total Points: 382

---

The differences:
1. Formation:-
Co-operative societies are formed by private individual under the co-operative act whereas marketing boards are formed by stature or act of parliament.
2. Directors:-
Directors of co-operative societies are elected by members whereas those of marketing board are appointed by the government.
3. Membership:-
A co-operative society is formed by a minimum of 10 people who contribute share capital whereas for a marketing board there is no contribution of share capital it is a property of the government.
4. Dividend:-
Members of a co-operative society get dividend whereas in a marketing board all profits go to the government.

The similarities:
1. Collecting produce:-
Boards collect produce from farmers in their respective localities.
2. Storage:-
Both store produce from farmers so as to protect it before it is sold
3. They offer various farm input to farmers eg. fertilizer
4. They give farmers loans and advance so as to boost their farming activities.
5. Selling produce:-
They sell produces from the farmers at reasonable prices.
6. They protect farmers from exploitations by private individuals who buy produce at a low price.
7. They are both controlled by the government.

---

Next: Kenya marketing boards fact-file
Previous: Methods of insuring and steps involved while undertaking an insurance policy