Assessment of the Role of Agricultural Cooperatives in Input Output Market in Boke, Anchar and Darolebu Districts of West Hararghe Zone, Oromia Region, Ethiopia

Birhanu Angasu

doi:10.7176/jnsr/10-11-03

Abstract

The study was conducted in three districts where agricultural cooperatives have been well promoted in West Hararghe zone to identify role of primary agricultural Cooperatives and factors affecting its role in the study area. Structured interview schedule were used to collect data from 180 cooperative members and non-members selected randomly from six agricultural cooperatives and its surrounding. Focus group discussions were also conducted to collect qualitative data from respondents. In this study, the statistical tools like descriptive statistics such as mean, frequency distribution and percentage, SWOT analysis and an index score was used to rank major constraints. Out of interviewed respondents, 66.7% were member of cooperative while 33.3% were non-members of the cooperatives. Most primary cooperative mainly focuses on the activities like provision of fertilizer (DAP, UREA and NPS), consumable food items (sugar and cooking oil) and rarely involved in improved seed distributions. Lack market interest, climate change, lack of market information, insufficient capital and low price of the marketable commodity were major constraints found in agricultural commodities in study area. Strengthening training, improve their capital, services and transparency, increasing members participation, sharing dividend to the members and annual auditing their status were major recommendation delivered for responsible bodies by the study. Keywords: agricultural cooperative, role, inputs, outputs DOI: 10.7176/JNSR/10-11-03 Publication date: June 30th 2020

Highlights

The cooperative movement began in Europe in the nineteenth century, primarily in England and France
Today the co-operative principles are successfully applied throughout the world to a vast array of co-operative enterprises, farming co-operatives, fishing co-operatives, credit unions, retail co-operatives, manufacturing cooperatives, even co-operatives providing internet access services (SOEMCO, 2016).In developing countries like Ethiopia, cooperatives have been devoted an important role as tool of economic and social transformation. (Kanagaraj and Mosisa, 2015)
Conclusions This study was conducted with the objectives of analyzing the functions of cooperatives in agricultural input output marketing through evaluating their performances, analyzing members’ participation and identifying the constraints of cooperatives in west Hararghe zone, Oromia, Ethiopia

Summary

Introduction

The cooperative movement began in Europe in the nineteenth century, primarily in England and France. Today the co-operative principles are successfully applied throughout the world to a vast array of co-operative enterprises, farming co-operatives, fishing co-operatives, credit unions, retail co-operatives, manufacturing cooperatives, even co-operatives providing internet access services (SOEMCO, 2016).In developing countries like Ethiopia, cooperatives have been devoted an important role as tool of economic and social transformation. The formation of modern cooperative societies was started soon after the Italian invasion in 1960s that a cooperative legally enacted. During the reign of Haile Selassie, the cooperative legislation No241/1966 has proclaimed and about 154 different types of cooperatives were organized. The newly organized cooperatives under the regime have purposefully made instruments of political power. Their organizational procedures not based on internationally accepted cooperative principles. New era in cooperative development was started in 1998 when new co-operative legislation No 147/1998 was enacted (FCA, 2009)

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Conclusion