Q.A marketing co-operative society in a farming area has been struggling. Several of its members quietly sell part of their produce to a private trader who offers ready cash on the spot, the society has very little capital of its own, and its managing committee members admit they have no real business experience. As a student of Co-operation, identify the limitations this society is facing and briefly suggest how each could be addressed.

The society's troubles map neatly onto three classic limitations — members selling to a private trader (lack of loyalty), too little money (shortage of capital), and an inexperienced committee (weak management).

The case describes three distinct limitations, each of which can be identified and addressed:

1. Lack of loyalty among members — Several members are quietly selling part of their produce to a private trader for ready cash instead of routing it through the society. This weakens the pooling on which collective marketing and bargaining power depend.

How to address it: the society can build loyalty by offering members fair, competitive terms and, crucially, by giving prompt advances against produce so members do not feel forced to go to the trader for immediate cash; member education about the long-term benefits of loyalty also helps.

2. Shortage of capital — The society has very little capital of its own, which limits its ability to give advances, arrange storage and transport, and hold produce until prices are good.

How to address it: raise more capital by enrolling more members and issuing more shares, by obtaining finance from a co-operative bank, and by making use of available government assistance and concessions for co-operatives.

3. Inefficient / inexperienced management — The managing committee members admit they lack business experience, which risks poor marketing and financial decisions.

How to address it: the society can appoint qualified, salaried professional staff (such as a trained manager/secretary) to run operations, and provide co-operative education and training to the committee members so their decision-making improves. …

Students sometimes only identify the limitations and stop there — the question asks for both identification and a suggested remedy for each, so a complete …