The role of cooperatives and government in distribution trade

A cooperative is defined as a voluntary business organization in which a group of individuals with common interests bring their resources together to promote the economics and welfare of their members in the production, distribution and consumption of goods and services. Producers and consumers ' cooperatives distribute products directly from manufacturers or wholesalers and sell them to their members [consumer 0] at low prices.

On the other hand, the government – ​​whether at the federal, state or local level – plays an important role in the distribution of goods or goods. The government can participate in the distribution of goods by establishing a distribution agency. The role of the government is that the distribution of goods is the basic responsibility that the government should perform, such as providing transportation systems, providing storage facilities, controlling prices, stabilizing prices, preventing human scarcity, importing necessities and establishing communication systems.

The role of the cooperative is as follows:
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  1. Inventory Varieties: Consumer cooperatives buy a variety of goods from manufacturers or wholesalers because they are exposed to a wide variety of goods.
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  2. Small sale to member countries: Cooperatives purchase from a wholesaler in a reasonable amount and sell to members.
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  3. Providing credit facilities to members: Cooperatives can provide facilities to members to enable them to enjoy free goods immediately.
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  4. Advice: Cooperatives also provide advice to heirs [consumers] and manufacturers/wholesalers.
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  5. Make the product closer to the members: they also ensure that the product is brought to the door of the consumer [member].
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  6. Combat hoarding: They oppose the hoarding of wholesalers and retainers by ensuring that they store large quantities of products for use by members [consumers].
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  7. Stabilizing prices: They also help stabilize commodity prices by selling goods to members at reasonable prices.
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  8. Eliminate middlemen: They can eliminate middlemen's activities by buying goods directly from the manufacturer and selling them directly to consumers [members].
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  9. Marketing of members and products: They also help their members market their products [ie producers and cooperatives] by ensuring fair prices for their products.

African countries and other developing countries face the challenge of benefiting from the role of government. Especially in countries where the government is corrupt. They implement policies and form agencies, but they are not functioning properly to achieve their goals. Take Nigeria as an example. Nigeria National Supply Co., Ltd. [NNSC] was established in 1972 to complement private efforts in product distribution. It is now dying and has not been created. A number of various product marketing committees have been established to strengthen the marketing of products in the country and to establish a river basin authority to encourage mass production and sale of agricultural products. Are these institutions now operational? If so, Nigeria will be much better than it is today.

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