Oromia accounts for 63% of the national volume of export, it contributes over. Agricultural cooperatives, opportunities and challenges. Agricultural cooperatives were established, but they found themselves caught up in the above web. Cooperative, business, finance, structure, tax coops 101. Role of cooperatives in improving livelihood of farmers on. Cooperative is a special group of people with mutual interest to solve their individual problems through common efforts and ultimately attaining economic and social empowerment to the group members and the community.
This study evaluated the impact of agricultural cooperative membership on the wellbeing of smallholder farmers using crosssectional data collected from the eastern part of ethiopia. This paper uses a rich dataset from a survey undertaken by the ethiopian economic association and the international food policy research institute ifpri in eight woredas in seven regions of ethiopia with a sample of 1,117 households and 73 agricultural cooperatives. They provide input services and create market opportunities to their members products. Abstract when the issue of economic growth and development of the country is raised, one has to. In recognition of such roles of cooperatives, ethiopia showed a renewed interest in recent years in promoting cooperative sector development. Using consumption per adult equivalent as a wellbeing indicator, we measured the impact of agricultural cooperative. Informal collective action in rural ethiopia is as old as the society itself formal agricultural cooperatives emerged in 1960s as a result of comprehensive agricultural development programs while many of the current cooperatives have passed through several historical turmoil, some are newly emerged cooperatives with renewed missions and. Regarding with socioeconomic challenges of agricultural cooperatives, lack of information is the main factor that affects participation of the respondents in agricultural cooperatives that accounts 85. Cooperatives provide hundreds of 2million jobs worldwide and count more than a billion members3. Cooperatives, particularly those in the agricultural. This brief highlights the actual contribution of co operatives to the twelve sdgs proposed by the highlevel panel of eminent persons in the post 2015 development agenda in their report of 20. The ability of agricultural cooperatives to improve the welfare of smallholder farmers in africa is mixed and contextual. Ethiopia, cooperative membership is generally very low. Role of cooperatives in agriculture in africa the githunguri coffee and daily agricultural cooperatives are making lives of many kenyans flourish.
Agricultural cooperatives hold much potential to enable economically weak farmers, in developing countries, to increase their collective bargaining power and so enhance their incomes. The role of agricultural cooperatives in accessing input and output markets an overview of experiences of srfcf, snnpr, ethiopia by yehulashet a. Burt t his publication is designed to help you learn more about agricultural cooperatives or to help you think through the process of organizing and operating. A brief introduction to agricultural cooperatives l. Agricultural cooperatives, opportunities and challenges, the case of bench maji zone, ethiopia dejen debeb matthews haile department of cooperatives, college of business and economics, mizan tepi university, ethiopia abstract the establishment of agricultural cooperative in ethiopia.
The case of ethiopian coffee farmers cooperatives yuka kodama institute of developing economies, jetro abstract since 1991, policies of economic liberalization in ethiopia. The impact of agricultural cooperatives membership on the. Agricultural cooperatives in ethiopia agriprofocus. Return to investment in agricultural cooperatives in ethiopia dambala gelo, edwin muchapondwa and abebe shimeles1 jel codes. Burt t his publication is designed to help you learn more about agricultural cooperatives or to help you think through the process of organizing and operating such a business. The next stage in dairy development for ethiopia dairy value chains, end markets and food security cooperative agreement 663a00050043100 submitted by land olakes, inc.
International cooperative research group, a division of the us overseas cooperative. Cecilia navarra, barbara franchini, federica tolotti euricse, paul hazen, emile g. Agricultural cooperatives, food security, women empowerment, income, awareness background and justification cooperatives play vital role in ethiopian socio economic betterment. The role of agricultural cooperatives in accessing input and. These factors can influence the success of cooperatives, especially in developing countries, where cooperatives are still underdeveloped.
First, the more they use the cooperative, the more service they receive. A study entitled factors determining farmers decision to cooperative membership status in ethiopia was conducted with the aim of identifying factors influencing decision to membership in primary agricultural cooperatives in the study area. Cooperative is a special group of people with mutual interest to solve their individual problems through common efforts and ultimately attaining economic and social empowerment to the group members. In ethiopia, women participation in agricultural cooperatives is generally very low.
In ethiopia, there is a renewed interest in agricultural cooperatives as an institutional tool to improve the welfare of smallholder farmers. The derg regime established an extensive network of socialist agricultural cooperatives throughout ethiopia by organizing the peasants, but it was virtually no. The role of cooperatives on the socioeconomic development of ethiopia eshetie berhan1, sisay geremew gebeyehu2 1associate professor, school of mechanical and industrial engineering, addis ababa institute of technology, addis ababa university, ethiopia. Women face major obstacles in joining and being active members of typically maledominated cooperatives. In general, prior to 1990 agricultural cooperatives in ethiopia were pseudo cooperatives. The establishment of agricultural cooperative in ethiopia is significantly associated with and responsible to overcome the problems that individual farmer could not. A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Finally, as cooperatives are assuming much larger role for the distribution and marketing of improved agricultural inputs in ethiopia we believe further research is needed to know more about the pathways of the impact of cooperatives on intensification of smallholder agriculture in ethiopia. The structure of cooperatives cooperative information report 45, section 3 cooperatives exist in nearly every business sector and are organized in a variety of ways. Federal democratic republic of ethiopia 2002 includes cooperatives as one of its main goals for agricultural. Womens participation in agricultural cooperatives in ethiopia. Assessment of the role of agricultural cooperatives in. As per the federal national cooperative promotion directives, in ethiopia, there are four tiers of cooperatives, namely primary cooperative, cooperative unions, cooperative federation and cooperative confederation.
The impact of agricultural cooperatives membership on. The role of agricultural cooperatives in accessing input. A multi stage stratified random sampling technique was used to select representative districts, kebeles, and farmers. The case of gedeb hasasa district, ethiopia tewodros biset amene department of marketing, college of business and economics, hawassa, ethiopia. Full length research performance of multipurpose agricultural cooperatives in woliata zone, southern ethiopia 1merihun fikru meja and 2endrias geta phd 1dean of woliata sodo agricultural technical vocational education and training college, south nations and. The development of agricultural cooperatives in ethiopia.
In ethiopia, the apex in many regional states is the cooperative union. Performance of multipurpose agricultural cooperatives in. Spielman international food policy research institute addis ababa, ethiopia revised draft for. Impact of agricultural cooperatives on smallholders technical efficiency 3 1introduction enhancing productivity and commercialization among smallholder farmers is widely perceived as a key strategy for rural development, poverty reduction, and food security in subsaharan africa world bank 2008.
Historically ethiopia has experienced modern cooperative. Pdf the development of agricultural cooperatives in ethiopia. The 1904 cooperative societies act, was repealed by 1912 cooperative. Raising awareness of the role of agricultural cooperatives in reducing poverty and improving food security. Cultural cooperatives in ethiopia ethiopians have a long history of working together by practicing cooperative like institutions which we call cultural cooperatives. A federated cooperative is a cooperative of cooperatives. Research fellow, international food policy research. In conclusion, agricultural cooperatives have a great contribution for the farming community in the study area through supplying agricultural inputs i. This paper explores the development of agricultural.
Second, earnings are allocated to members based on the amount of business they do with the cooperative. Ace, currently working with 85,800 farm families, focuses on training at all levels of the cooperative community from farmers, cooperative. The case of ethiopian coffee farmers cooperatives yuka kodama institute of developing economies, jetro abstract since 1991, policies of economic liberalization in ethiopia have been effective in releasing the economy from rigid state control. Frederick wrote this report in 1997 and revised it in 2005. As part of its effort to transform the agricultural sector, the ethiopian government has placed large emphasis on. Department of geography ahmadu bello university zaria, nigeria abstract cooperatives. The role of agricultural cooperatives in accessing input and output markets. Farmers cooperatives and agricultural development in. Currently agricultural cooperatives in ethiopia are assumed to play significant role of producers organization that are mainly able to insure the benefits of the member farming rural community through effective value chain development and market linkage with like we do with wfp through p4p program. The agricultural cooperatives in ethiopia ace program is supporting the establishment of secondary level unions, allowing members to take advantage of economies of scale in purchasing and marketing. The role of agricultural cooperatives in promoting food. However, the establishment of cooperatives in ethiopia seems to pay little attention to the size of the organizations.
Agricultural cooperatives are important rural organizations supporting livelihood development and poverty reduction. Results of 2012 ata baseline survey reference url share. Cooperatives are highly relevant and important in the realization of the proposed sustainable development goals. This report provides a comprehensive summary of basic information on the cooperative way of organizing and operating a business. A broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives, which provide various services to their individually farming members, and agricultural production. With the enactment of 1904 act, cooperatives were to get a direct legal identity as every agricultural cooperative was to be registered under that act only. As part of its effort to transform the agricultural sector, the ethiopian government has placed large emphasis on promoting co. Agricultural cooperatives in ethiopia emerging issues and recent evidences getaw tadesse phd research fellow, international food policy research institute ifpri. A case study of agricultural marketing and smallholder cooperatives in ethiopia by tanguy bernard and david j. Pdf to what extent can cooperatives strengthen rural development in subsaharan africa. Home ifpri publications agricultural cooperatives in ethiopia.
They benefit in two ways from the cooperative, in proportion to the use they make of it. The methodology section outlines the econometric procedures employed to estimate the impact of cooperative membership on adoption of improved agricultural technologies. An agricultural cooperative, also known as a farmers coop, is a cooperative where farmers pool their resources in certain areas of activity. Role of cooperatives in rural development, the case of. Agriculture in ethiopia is the foundation of the countrys economy, accounting for half of gross domestic product gdp, 83. Accordingly, ethiopias growth and transformation plan foresees a central role for agricultural cooperatives in increasing the productivity and household income of smallholder. Like other businesses in our economy, they range in size from organizations with only a few memberowners to large and complex organizations with thou. Accepted 10 may, 2017 the purpose of this study is to provide an explanation of factors affecting agricultural cooperatives. According to the ica 2011, in total, about one billion people are involved in cooperatives. The findings suggest that a major barrier to womens access are gender biases within households, communities, and cooperatives themselves that favor educated male household heads and land owners over resourcepoor women. In recognition of such roles of cooperatives, ethiopia showed a renewed interest in recent years in promoting cooperative.
Full length research paper assessment of factors affecting. Cooperatives play a crucial role in reducing poverty, improving food security and generating employment opportunities. The paper contributes to the existing body of literature on the impact of cooperatives by providing empirical evidence about the role of third generation cooperatives in ethiopia in terms of livelihood development and poverty. In particular, a lot is expected from agricultural cooperatives since they depend mainly on natural resourcebased activities where sustainability issues are central concerns. Evidence from ethiopia gashaw tadesse abate, gian nicola francesconi and kindie getnet abstract using household survey data from ethiopia, this paper evaluates the impact of agricultural cooperatives on smallholders technical efficiency. It covers the nature and extent of the use of cooperatives. Development, challenges and proposed intervention kifle tesfamariam assistant professor, department of cooperative studies, mekell university email. Since the coming to power of the present government in 1991, ethiopia has been undergoing major political and economic changes. According to a study based on 2005 data, only 9 percent of smallholders were members of agricultural cooperatives and only 40 percent of rural households had access to cooperatives. Full length research performance of multipurpose agricultural cooperatives in woliata zone, southern ethiopia 1merihun fikru meja and 2endrias geta phd 1dean of woliata sodo agricultural technical vocational education and training college, south nations and nationalities of people region, ethiopia. A report on the national agricultural cooperatives indaba. Role of cooperatives in rural development, the case of south nations nationalities and people region, ethiopia. Analysis of the role of cooperatives in agricultural input and output marketing in southern zone of tigray, ethiopia by alema woldemariam atsbaha a thesis submitted in partial fulfillment of the requirements for the master of science degree in cooperative. Those women who are members face problems and constraints that adversely affect the benefits that their membership in such groups should bring.
Social and environmental impacts of agricultural cooperatives. One of the pathways through which cooperatives benefit their members is scale economies. The establishment of agricultural cooperative in ethiopia is significantly associated with and responsible to overcome the problems that individual farmer could not solve solely. Agricultural cooperatives, opportunities and challenges, the case of bench maji zone, ethiopia dejen debeb matthews haile department of cooperatives, college of business and economics, mizan tepi university, ethiopia abstract the establishment of agricultural cooperative in ethiopia is significantly associated with and responsible to. Argaw managing director, southern region farmers cooperative. Factors influencing farmers membership preferences in.
The development of agricultural cooperatives in ethiopia african. Many social events are still taking place in rural ethiopia through collective effort. This study evaluated the impact of agricultural cooperative membership on the. Agricultural cooperatives, opportunities and challenges, the. In ethiopia, womens participation in agricultural cooperatives is generally very low. The next section briefly describes the evolution of cooperatives and the main agricultural tasks they perform in ethiopia. Analysis of the role of cooperatives in agricultural input. Fund for agricultural development ifad and the world food programme wfp work closely with agricultural cooperatives and will act as a driving force throughout the iyc and beyond, promoting the growth of cooperatives in many ways. The federal government of ethiopia has identified cooperative as form of business organizations as an instrument of socioeconomic change of the people. May 27, 20 whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a familyfarm model to avoid. Using consumption per adult equivalent as a wellbeing indicator, we measured the impact of agricultural cooperative membership by implementing propensity score matching and endogenous switching regression.
Whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a familyfarm. Using household survey data of 305 coffee farmers from ethiopia, the impacts of cooperative membership on farmers social and environmental performances are examined. The members of a federated cooperative are local cooperatives, each operated by a manager responsible to a board of directors. The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers. Agriculture and trade operations were carried out through cooperative efforts. Some cooperatives have not performed well as the result of poor governance structures, multiple and competing goals, but also problems that arise from insufficient trust between members. A study entitled factors determining farmers decision to cooperative membership status in ethiopia was conducted with the aim of identifying factors influencing decision to membership in primary agricultural cooperatives. Return to investment in agricultural cooperatives in ethiopia. An overview of experiences of srfcf, snnpr, ethiopia. An introduction to cooperatives cooperative information report 55 united states department of agriculture.
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