Abstract:
Rural Cooperatives by their nature have been multipurpose.They strive to cater for the varied needs
of the farmer. However, they tend to build strength after strength but around a central function e.g.
produce marketing. Through the process of forward and backward linkages starting from the central,
(primary) function, co-operatives over time, have developed from single purpose to multipurpose.
This has been the experience of many places in the world.
Multipurpose and multifunctional cooperatives have been often used to mean the same thing. In this
paper a distinction has been attempted. To start with the latter, multifunctional cooperatives cou1d be
argued to be, those whose activities (functions) are based purely on economic criteria; hence imitating
as well resembling private companies. The management or even the government can take to the
affairs of the cooperatives with the objectives of creating move profits for the members. They in a
way could develop into conglomerates. Member involvement becomes nominal (token).
Multipurpose cooperatives on the other hand, are “humble” taking up activities (functions) because
members have expressed need for such functions- they need not all be economically sound
