Ten farmers in a village, decided to form a business organization with a view to assist them by providing better seeds, fertilizers and agricultural tools,etc. Identify the form of business organization referred above. State its any three merits.
Answers
Answer:
Farmer Producer Organisations
Explanation:
The main aim of Farmer Producer Organisations is to ensure better income for the producers through an organization of
their own. Small producers do not have the volume individually (both inputs and produce)
to get the benefit of economies of scale. Besides, in agricultural marketing, there is a long
chain of intermediaries who very often work non-transparently leading to the situation
where the producer receives only a small part of the value that the ultimate consumer pays.
Through aggregation, the primary producers can avail the benefit of economies of scale. They
will also have better bargaining power vis-à-vis the bulk buyers of produce and bulk suppliers
of inputs.
An agricultural cooperative also known as a farmers is a cooperative where farmers pool their resources in certain areas of activity and the broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives which provide various services to their individually farming members and agricultural production cooperatives where production resources land and machinery are pooled and members farm jointly. The examples of agricultural production cooperatives include collective farms in former socialist countries the kibbutzim in israel collectively governed community shared agriculture longo mai cooperatives and nicaraguan production cooperatives.