Topic: Types of Producers
Objective: Describe & List the
individuals & groups who
participate in production
Producer
A producer is an individual or group which
combines resources in the production process to
obtain output
Production
Production is the output of the production
process which is made
of goods & services
Inputs
Resources
Outputs
The Production
Process
Goods &
Services
Types of Producers
Private
Sector
Firms
Cooperatives
Voluntary
organisations
Public Sector
Central
Government
Local
Government
Private Sectors
Firms
• Firms range from single, part-time, 1 person
operations to large multinational corporations.
• All firms must make a profit to stay in
operation.
• Privately owned business must aim to be
efficient and competitive.
Cooperatives
These are business that are owned by their
members, & are set up to directly benefit their
members. There are 3 main types of
cooperatives in NZ:
 Producer Cooperatives
 Consumer Cooperatives
 Savings Cooperatives
Producer Cooperatives
The firm is owned by its suppliers. For example
Fonterra is owned by the Dairy Farmers who
own it.
The advantages for a cooperatives' members
are:
Market for their output
Sharing the profits from the processing of
their output
Consumer Cooperatives
Consumer cooperatives are rarer but are owned
by the customers of the business, like a shop
owned by its customers. Ex. Southern
Cross Healthcare in NZ.
Advantages are for members are:
Lower Prices
Share of Profits
Savings Cooperatives
Like a bank in that it takes members savings &
lend it out to other members in the form of
loans. Ex. PSIS
Advantages to members include:
Cheaper Loans
Secure deposits (Savings)
Loans are made to people of similar interests
Voluntary Organisations
These provide goods & services that are not
normally provided by firms or the government.
Not for Profit
They include: Clubs & Societies, Churches &
Charities.
Public Sector
Central Government:
Which Party is in Government?
Who is our Prime Minister?
Where is our parliament?
What does the Government do?
How does the government pay for the goods & services it
provides?
Local Government
Who is your Mayor?
What does local government do?
How do they pay for the goods & services they provide?
Types of Producers Review:
Hang your class with one of these!
1)NZ example of a Cooperative
2)A Good or Service provided by Central Govt
3)A NZ Firm
4)International & NZ Charity
5)Private Sector Producer