The indispensable function of agricultural cooperatives in South Sudan

Abstract

AbstractMost of South Sudan's rural population ekes out a living from farming in a fragile context characterized by compounding and interrelated shocks. The productivity of maize, a key staple, has remained comparatively low. South Sudan is currently transforming its agricultural sector to be at the centre of its economic activity. Programming has zoomed in on seed‐related interventions. Cooperatives, which are longstanding and widespread in the country, are leveraged to distribute seed and, by mitigating production risk, could contribute to resilient development. To shed light on the key functions of cooperatives and how their role can be enhanced, we analysed recent data from 1247 maize‐producing households and 126 agricultural cooperatives from South Sudan. We find that through their services cooperatives contribute to both increasing maize yields and reducing their variability. Yield increases associated with seed production and/or distribution services are substantial but exclusive to members. Managerial capital in the form of a hired manager instead also generates spillover effects to the broader community. Our findings point to the relevance of cooperatives as indispensable stakeholders for the resilient development of the country and the need for investments to strengthen their managerial capital and enhance the provision of services related to seed production and/or distribution.