Challenges of multipurpose cooperatives in the marketing of agricultural products in the southwest part of Ethiopia

Abstract

Agricultural cooperatives, particularly multipurpose cooperatives, are considered a valuable means of improving the livelihoods of small-scale farmers in developing countries. By collaborating with farmers, they can increase their collective bargaining power, negotiate better prices for their crops, and boost their incomes. However, despite their significant contributions, multipurpose cooperatives face challenges that can hinder their ability to play a significant role in agricultural product marketing. This study aimed to analyse the challenges of multipurpose cooperatives in the marketing of agricultural products in the southwest part of Ethiopia. A two-stage sampling technique was used to select a sample size of 196 members from four multipurpose cooperatives. A mixed research design, which combines both qualitative and quantitative data collection methods, was used. Quantitative data was collected through a structured questionnaire from primary sources, while qualitative data was collected through focus groups and key informant interviews. Descriptive statistics such as mean, chi-square, standard deviation, frequency, and percentage were used to analyse the data. The study revealed that the multipurpose cooperatives in the study area faced several internal and external constraints. The key internal challenges were a lack of capital, an unskilled workforce, and low commitment from committee members. On the other hand, the major external bottlenecks included inadequate and inconsistent technical assistance, deficiency in knowledge and skills, and inadequate documentation and information in the marketing of the multipurpose cooperatives. The study suggests that the government and other non-governmental organisations should provide financial and technical support to encourage cooperatives.