THE INFLUENCE OF AGRICULTURAL COOPERATIVES IN THE DEVELOPMENT OF FOOD PRODUCTION IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Statement of Research Problem
Small-holder farmer including Nigeria has accounted for over 90% of all agricultural output in Nigeria (World Fact Book, 2011). The farmers are burdened with high cost of farm inputs, insufficient farming techniques, inadequate infrastructure, poor producers’ prices and heavy constraints in obtaining credits and insurance. Benson (2004) remarked that the situation is further compounded by the general economic downturn and governments drive to remove all subsidies on inputs such as fertilizers, vaccines and foundation stock. Consequently, the cooperative option comes into focus as viable way to effectively mobilize farmers to form groups and pool resources so as to become more effective in agricultural production.
In addition to the values and principles of cooperatives, Veerakumaran (2005) explained that cooperative serve as fundamental tool for achieving food security at household level. Cooperatives are the best institution invention for attaining food security in any country.
The developed national like United States of America, Canada, Australia, almost all European countries and socialist country like China have attained food self-sufficient through cooperatives (Chambo, 2009)
Gertler (2001) using the profit model studied the potential impact cooperatives have in sustaining regional economies in Canada. The results show that cooperatives are practical vehicles for cooperation, collective action and they build and reinforce community, stabilize regional economies and provide a favourable climate for further investment cooperatives reduce inequality and promote equitable sharing of the cost and benefits of development. Cooperatives can promote economic democracy and the empowerment of marginalized groups a hallmark of sustainable development and a precondition for shared responsibility.
Adefila (2012) examined the factors influencing the performance of farmers’ cooperatives organization in Gurara Area of Niger State, Nigeria using multiple regressions. The results from the regression analysis revealed that farmers’ cooperative organizations are variously involved in agricultural development and that factors’ influencing their role performance.
Include annual income, experience in farming, leadership training and membership size. The author concluded that cooperative in whatever form are seriously viewed as catalyst in the process of rural socio-economic development and the law should empower cooperatives to perform certain functions, such as strengthening their bargaining power as effective agents of socio-economic rural transformation.
Ojiako and Ogbukwa (2012) examined loan repayment capacity of small-holder cooperative farmers in Yewa North Area Ogun State, Nigeria using regression technique. The results show that farm credits played vital roles in the socio-economic transformation of the rural economies. However, loan acquisition and repayment were characterized by numerous challenges smallholder cooperative farmers’ loan repayment capacity would require conscious use of policies directed at increasing loan size and farmers’ farm holdings and/or reducing household size.
Similarly, Ofuoku and Urang (2009) assessed the effects of cohesion of farmers’ cooperatives societies on loan repayment among members in Delta State, Nigeria using Spearman’s rank order correlation analysis. The study observed that there was almost perfect positive relationship between rates of loan repayment perception and cohesion. Consequently, they recommended that extension agents should take advantage of the effect of cohesion on loan repayment to promote cohesion in upcoming cooperative societies.
In evaluating agricultural credit utilization by cooperative farmers in Benue State, Nigeria, Okwoche et al (2012), observed a significant difference between the agricultural output and income of farmers’ before and after the utilization of loan acquired. The t-test analysis shows that famers joined the farmers’ cooperatives societies mainly to access credit.
They recommended that the farmers should be adequately motivated with needed credit facilities as this will further balance agricultural production.
However, considering various studies (Gartler, 2011 Veerakumareen, 2005; Ofuoku and Urang, 2011; Adetila, 2012; Ojako and Ogbulewa, 2012; and Okwoche, 2012) it is on this aforementioned explanation that informed the choice in the development of agricultural in Abaji Area Council.
1.3 Objective of the Study
In general, this study set out to determine the extents to which the cooperative societies can contribute to the development of agriculture in the specific objectives are:
- provide insight into the role cooperative societies plan in the development of agriculture in Abaji Area Council.
- identify the types of agricultural cooperative societies in the Area Council
- examine problems militating against cooperative activities in Abaji Area Council
- examine the forms of benefit members derive from cooperative societies in Abaji Area Council.
- provide insight into the process through which the community and cooperative leaders can ensure genuine development of agriculture in the Area Council through cooperative societies
- examine the measures which all the levels of government will embark on to enhance the cooperatives for better development in Abaji Area Council.
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