FACTORS CONTRIBUTING TO POOR PERFORMANCE OF AGRICULTURAL CO-OPERATIVES IN LESS DEVELOPED AREAS / Faktore wat bydra tot die swak prestasie van landboukoöperasies in minder ontwikkelde gebiede

Abstract

Abstract Agricultural co-operatives are instruments used to accelerate the process of agricultural development in less developed countries. Co-operatives in less developed areas of South Africa have not, with a few exceptions, been successful in fostering agricultural development and improving the level of living of the rural poor. The paper provides some explanations for the failure of co-operatives to achieve these goals. These include: lack of membership's identity with co-operatives; lack of understanding on the part of members of the co-operative way of doing things; failure of co-operatives to compete with other businesses; inability of members to dismiss inefficient management; failure of co-operatives to provide transportation; inability of co-operatives to keep adequate stocks of requisites; insufficient credit; and the Subsistence nature of agriculture. The study concludes with proposals to improve the performance of agricultural co-operatives in less developed areas of South Africa.