Characterization of farmer‐based cooperative societies in the upper west region of Ghana

Abstract

AbstractThe study describes the ownership and governance characteristics and the challenges of farmer‐based cooperative societies from three districts in the Upper West Region of Ghana. Primary data were obtained from 59 active and 14 inactive cooperatives in the selected districts. The study concludes that Ghanaian cooperatives in the sample bear much resemblance to the traditional form which emerged in Europe and North America in the late 19th and early 20th centuries. Generally, such cooperatives have relatively small memberships from local communities who use a democratic governance system and do not delegate control to outsiders. While the cost of owning and transacting is limited with such characteristics, many traditional cooperatives lack the specific knowledge, economic efficiency, and resource endowment necessary to become or remain competitive. Indeed, the active cooperatives listed finance, access to inputs, tractor services and poor leadership as key challenges, while inactive cooperatives blamed poor member commitment as the primary culprit for their inactivity. Efforts aimed at promoting and supporting farmer cooperatives should focus on addressing these key challenges. Also, financial and technical support should probably be conditional on group performance and not group formation itself.