Types of Cooperatives

The main kinds of cooperatives - producer, consumer, credit, housing and worker co-ops - and what economic problem each solves.

Cooperatives come in many forms, each solving a different economic problem.

Producer cooperatives

Farmers or artisans join together to process and market their products. Examples: Amul (milk), IFFCO (fertilisers), sugar co-ops.

Problem solved: small producers lack bargaining power and scale.

Consumer cooperatives

Consumers join together to buy goods at fair prices. Examples: cooperative stores, such as the UK’s Co-op, and India’s consumer cooperative stores like Kendriya Bhandar.

Problem solved: fair prices and quality.

Credit cooperatives

Members pool savings and lend to each other. Examples: urban cooperative banks, primary agricultural credit societies and credit unions.

Problem solved: access to credit for people banks ignore.

Housing cooperatives

Members jointly own or manage housing, common in Indian cities as cooperative housing societies.

Problem solved: affordable housing and shared management.

Worker cooperatives

Workers own and run the business.

Problem solved: giving workers control and a share of profits.

Multi-stakeholder cooperatives

Include different groups, such as workers and consumers, together.

Common features

All share member ownership and democratic control, but each adapts to its sector’s needs.

The fertiliser co-op

IFFCO, owned by tens of thousands of cooperative societies, produces fertilisers and sells them to farmers through member societies, giving farmers a stake in a major supplier.

Thinking all cooperatives are farming co-ops

Co-ops span farming, consumer goods, banking, housing and worker-owned businesses.

Key takeaways

Producer co-ops give small producers bargaining power.
Consumer co-ops provide fair prices.
Credit co-ops lend to underserved members.
Housing and worker co-ops share ownership of homes and businesses.