The producer company is usually a company that engages itself in activities related to primary production. Under the provision of the company Act, a producer involves himself in any activity related only to production. Thus a corporate body that has the only objective to produce something is known as a Producer company.
The production activity may include harvesting, procurement, pooling, grading, selling, or exporting primary products, handling, and marketing. Furthermore, the producer company also must deal with the production of its active member. It can also carry out any of the following activities by itself or other entities:
1) The producer company can carry out the processes of its members. It includes preserving, drying, distilling, canning, vinting, brewing, and packaging production.
2) They can manufacture or sale the machinery or equipment that is mainly essential for their members.
3) Producer Company can educate its member about mutual assistance principle.
4) The producer company can also render consultancy, technical, training, research, and development services to all its members; it is done as a purpose to promote the interests of the members.
5) Producer Companies can generate, transmit, or distribute power to its members for increasing the fertility of land for primary production.
6) They can create insurance for the producers as well as their primary production.
7) Producers companies can develop mutual assistance techniques within its active members.
8) They can take any welfare measure that benefits the members, but the board must decide the measures.
9) They may involve themselves in activity, ancillary, or incidental to any activity that promotes mutual assistance.
10) The producer company can also finance activities related to primary produce such as procurement, processing, and marketing. It also includes extending a credit facility for its members.