CONTRIBUTIONS OF CO-OPERATIVE TO AGRICULTURAL DEVELOPMENT A STUDY OF AGRICULTURAL CO-OPERATIVES IN AWKA NORTH LOCAL GOVERNMENT AREA - DAVID SEUN JOHNSON

TITLE PAGE

CONTRIBUTIONS OF CO-OPERATIVE TO AGRICULTURAL DEVELOPMENT: A STUDY OF AGRICULTURAL CO-

OPERATIVES IN AWKA NORTH LOCAL GOVERNMENT AREA.

BY

DAVID SEUN JOHNSONREG. NO: 2009434044

A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF CO-OPERATIVE ECONOMICS AND MANAGEMENT, FACULTY OF

MANAGEMENT SCIENCE, NNAMDI AZIKIWE UNIVERSITY, AWKA.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE (B.SC) DEGREE IN CO-

OPERATIVE ECONOMICS AND MANAGEMENT.

AUGUST 2013.

DEDICATION

I dedicate this project to the Almighty God who in His infinite mercy saw me

through all my stay in the university.

ACKNOWLEDGEMENT

Special thanks goes to my project supervisor; Dr. F. O. Nwankwo, for his

devotion, commitment and meticulous guidance towards the successful

completion of this research work despite his busy activities.

I am also grateful to the lecturers of the department of Co-operative Economics

and Management whose text-books and write-ups in journals have proved helpful

in this research work; Mr. Emma Okechukwu, Mr. Onyima Jude, Dr. Anigbogu

Tessy, Dr. C. U. Onugu, Prof. E. E. Umebali and Prof. C. J. C. Akubuilo, I say

thank you to you all. My appreciation also goes to Mr. Gerry Emejulu, Mr. I. D.

O. Chilokwu and Mrs. Ogochukwu for their advices which encouraged me during

this research. Also worth of mention is Mr. O. A. Taiwo who made time for me,

procured the needed study materials and assisted me with the statistical

calculations. I won’t forget to appreciate the efforts of my friends who helped me

during this research; Oluchi, Kelechi, Emeka and Chiamaka, may God bless you

all.

My mother; Mrs. Modupe David and Uncle; Pastor Lekan Popoola who assisted

me both financially and in prayers, I say God bless you all. Finally, I want to

appreciate the Almighty God for His favour and Blessings.

ABSTRACT

This study examines the contributions of co-operative towards agricultural

development in Awka North L.G.A. The objectives includes to determine the

socio-economic characteristics of members of the co-operative in the area, to

identify the activities carried out by the co-operatives, examine the contributions

of the co-operatives toward agricultural production and identified the constraints

which hinders their contribution towards agricultural development efforts. Taro

Yamani’s formular was used to determine the sample size of 197 respondents and

descriptive statistics such as mean, percentage, frequency distribution and scale

analysis were used to analyze data. The study revealed that co-operative societies

in the area are engaged in crops, livestock and storage enterprises and that they

provides credit facilities and supply farm inputs to their members. The study

further revealed that mobilization of savings is among the contributions of the co-

operatives towards enhancing agricultural production. In line with the findings of

the study, it was recommended among others that the government should

encourage the co-operative in the area of increase supply of credit from financial

institution and improve on public enlightenment in order to bring about increased

participation and involvement of small-scale farmers.

TABLE OF CONTENT

Title Page ………………………………………………………………… i

Certification ……………………………………………………………… ii

Approval Page ……………………………………………………………. iii

Dedication ………………………………………………………………... iv

Acknowledgement ……………………………………………………….. v

Abstract ………………………………………………………………….. vi

Table of Content ………………………………………………………… vii

List of Table …………………………………………………………….. xi

CHAPTER ONE

1.1 Background of the study ………………………………………… 1

1.2 Statement of problem ……………………………………………. 2

1.3 Objectives of the study ………………………………………….. 3

1.4 Research questions ……………………………………………… 4

1.5 Scope of the study ………………………………………………. 5

1.6 Significance of the study ………………………………………... 5

1.7 Limitation of the study ………………………………………….. 5

1.8 Definition of terms ………………………………………………… 6

CHAPTER TWO

2.0 Introduction ………………………………………………………. 7

2.1 Concepts of Co-operatives ……………………………………..… 7

2.2 Nature of Agricultural Co-operatives …………………………….. 10

2.2.1 Thrift and Credit Co-operatives Society …………………………… 11

2.2.2. Farm Supply Co-operatives ………………………………………… 12

2.2.3. Agricultural Marketing Co-operatives Society …………………….. 13

2.2.4. Farmers Multipurpose Co-operatives Society ……………………… 13

2.2.5. Other forms of Agricultural Co-operatives ………………………… 14

2.3 The roles of Farmers Co-operatives in Agricultural Development Effort ………………………………………………… 14

2.3.1. Land Acquisition …………………………………………………… 16

2.3.2 Agricultural Mechanization and Technology Adoption …………… 17

2.3.3 Farm Supply ………………………………………………………… 18

2.3.4. Credit Facilities ………………………………………………………18

2.3.5. Agricultural Marketing ……………………………………………… 20

2.3.6 Education, Training and Information Dissemination ……………… 21

2.4 Challenges facing the Agricultural Co-operatives Society in Agricultural Development Efforts ………..……………… 21

2.4.1. Poor Capitalization ………………………………………………… 22

2.4.2. Corrupt and Fraudulent Officers and Staff ………………………… 23

2.4.3. Illiteracy ……………………………………………………………. 23

2.4.4. Poor Inspection ……………………………………………………… 24

2.4.5. Government Interference …………………………………………… 24

2.5 Overcoming the Challenges facing Agricultural Co-operative Societies …………………………………………….. 26

2.5.1. The Internal Factor ………………………………………………… 27

2.5.2. The External Factor ……………………………………………….. 29

CHAPTER THREE

3.0 Research Methodology …………………………………………….. 31

3.1 Research Design …………………………………………………… 31

3.2 Area of Study ……………………………………………………… 31

3.3 Population of the Study …………………………………………… 32

3.4 Sampling Procedure and Sample Size Determination …………… 33

3.5 Methods of Data Collection ……………………………………… 34

3.6 Methods of Data Analysis ………………………………………. 35

CHAPTER FOUR

4.0 Data Presentation and analysis …………………………………….. 36

4.1 Socio-Economic Characteristics of The Respondent ……………… 36

4.2 Activities Carried out By Co-operatives Societies ………………….. 39

4.3 Contributions of Co-operatives to Agricultural Production ………… 40

4.4 Constraints that Limits the Contributions of Co-operatives to Agricultural Co-operatives ………………………………………. 42

CHAPTER FIVE

5.0 Summary of Findings, Conclusion and Recommendation …………. 45

5.1 Summary of Findings ……………………………………………….. 45

5.2 Conclusion ………………………………………………………….. 45

5.3 Recommendation …………………………………………………… 46

References ………………………………………………………………… 48

Appendix …………………………………………………………………….53

LIST OF TABLES

Table 1: Farmers Co-operative Societies in Awka North L.G.A. …… 32

Table 2: Socio-Economic Characteristics of Respondent …………… 37

Table 3: Activities Carried Out By Co-operative Society ………….. 40

Table 4: Contribution of Co-operatives To Agricultural Production…………………………………….. 41

Table 5: Constraints That Limits The Contributions Of Co-operatives To Agricultural Production ………………. 44

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Agriculture is the mainstay of Nigeria economy, the major occupation of the rural

people. Its role in the socio-economic development of Nigeria cannot be over-

emphasized. It provides employment for more than 80% of the Nigerian

population. Umebali (2002) however pointed out that “despite the fact that more

than 50% of the total labour force is involved in farming yet output is not enough

to feed the ever increasing population” presently the population growth rate is

higher than food production level.

The roles of co-operatives in agricultural development is an important topic of

study and much has been done by scholars and co-operators to justify it prime role

of securing economic and political development in the country. The improvement

of agricultural production through co-operative has economic effect in that; co-

operative enterprise brings better yield which in turn yield better standard of living

for the members and their families.

In Anambra state, a good number of inhabitants survive through substantial

farming; which attracted the formation of many co-operative, and their aim is to

improve the agricultural production. In Awka North Local Government Area, co-

operatives provide locally needed services and inputs to farmers, they also serve as

a medium in which government distribute essential commodities and inputs

needed by farmers for the facilitation of their output. Onugu and Uguwanyi (2007)

noted that agricultural co-operative societies are involved in so many aspects of

agricultural activities directed at giving farmer the support to rise their

productivity and income level. In order to highlight the contributions of co-

operatives towards the development of agriculture, this study was hence carried

out.

1.2 STATEMENT OF THE PROBLEM

In the effort to improve the agricultural sector in Nigeria, the government

embarked on various programmes some of which were listed by Iwuchukwu and

Igbokwe (2012) as; National Economic Empowerment and Development Strategy

(NEEDS) – 1999, National Special Programme of Food Security (NSPFS) – 2002

and the Root and Tuber Expansion Programme (RTEP) -2003. In 2005, it was

recorded that agriculture contributed 6.8% out of 8.2% growth rate recorded by

the entire non-oil sector (NEEDS, 2008) and about 41% of the gross domestic

product (NBS, 2007). However, the alarming growth rate of Nigeria’s population

of about 144 million at 3,2% per annum, which would doubled in less than 25

years if not checked (Oladipupo, 2008) is a challenge in a country where more

than 90% of the agricultural output is accounted for by small-scale farmers. As

such, these small-scale farmers who are characterized by low income, low

resource utilization, small and scattered nature of farmlands will find it difficult to

meet the teeming need of the increasing population.

Farmers have limited access to credit facilities as commercial bank officials who

are aware of the risk-prone enterprises often refuse loan to these farmers. Most of

the agricultural produce is lost owing to poor post-harvest handling, storage and

processing methods.

This study is geared toward finding out the impact and how cooperative societies

are helping to alleviate these problems and to bring about agricultural

development in Awka North Local Government Area of Anambra State with

reference to agriculture cooperatives societies.

.1.3 OBJECTIVES OF THE STUDY

The broad objective of this study is to analyze the contributions of farmer’s co-

operative societies on the improvement of agriculture.

Specifically, it has been designed to:-

1. Determine the socio-economic characteristics of members of the co-

operative societies in Awka North L.G.A

2. Identify the type of activities carried out by the co-operatives in Awka

North L.G.A.

3. Examine the contributions of co-operatives to agricultural development in

Awka North L.G.A

4. Identify the constraints that hinders the contribution of co-operatives to

agricultural development in Awka North L.G.A

5. Make recommendation on the findings.

1.4 RESEARCH QUESTIONS

This study will be guided by the following research questions:

1. What are the socio-economic characteristics of members of the co-

operative society in Awka North L.G.A.?

2. What are the activities being carried out by the agricultural co-operatives in

Awka North L.G.A.?

3. In what ways has the farmer’s co-operative contributed to agricultural

development in Awka North L.G.A?

4. What are the constraint that hinders the co-operatives in contributing to the

development of agriculture in Awka North L.G.A?

5. How can these problems be solved to ensure effective performance of the

co-operative to the development of agriculture?

1.5 SCOPE OF THE STUDY

The study on the contributions of co-operative to agricultural development was

carried in Awka North L.G.A in Anambra state involving some selected

agricultural co-operative societies.

1.6 SIGNIFICANCE OF THE STUDY

The study will be of good help to policy makers, the government and those who

are interested in improving agricultural activities or forming agricultural

cooperative activities by which people take place in formalized long-term,

deliberate and to great extent, specified form in the social and especially

economic  share of human endeavor.

1.7 LIMITATION OF THE STUDY

In an attempt to carry out this study, the researcher was faced with several

constraints which include insufficiency of data, non-co-operative attitude of some

members of the co-operatives visited resulting in their failure to deluge some vital

information about their societies and how they do carry out their operations. The

researcher was also handicapped by inadequacy of finance to take a more detailed

research.

1.8 DEFINITIONS OF TERMS

Agricultural Co-operative:- Co-operatives involved in agro-allied activities.

Agricultural Mechanization:- A system whereby agricultural activities are

carried out using heavy machineries which are attached to tractors such as

harvester, plough, harrow, e.t.c.

Credit Facilities:- These refers to loanable funds provided by a financial

intermediary used to enhance production activities.

Farm Input:- This refers to items used in planting and those that facilitate

planting activities such as improved seeds, fertilizer, insecticides, pesticide, e.t.c.

Farm Implement:- This refers to simple tools used in agricultural activities, such

as cutlass, hoe, wheel barrow, e.t.c.

Group Farming:- A system of collective agricultural practice by association of

people with similar interest.

CHAPTER TWO

2.0 LITERATURE REVIEW

The literature review for this research will be carried out under the following sub-

topics:-

1. Concepts of Co-operatives

2. Nature of agricultural co-operatives

3. The roles of farmer’s co-operative society to agricultural development

4. Challenges facing agricultural co-operative societies in Nigeria agricultural

development efforts

5. Overcoming challenges facing agricultural co-operative societies.

2.1 THE CONCEPT OF CO-OPERATIVES

The word “co-operative” is commonly used when referring to actions or situations

involving mutual effort, joint action or common goals. Co-operatives are referred

to variously as Isusu in Igbo, Esusu or Ajo in Yoruba and Adashi in Hausa

(Ogunnaike and Ogbari, 2007). Onyima and Okoro (2009) observed that the word

“co-operatives” can be applied to many different types of group activities;

however, in the study of Co-operative Economics, the term is used to reference a

formal business model which has a relatively recent origin. The term “co-

operative” was first coined in the early 19th century and has evolved as an

economic and organizational form since then (Aref, 2011). As an association, it

tend to achieve the social interest of it members while as an organization, it aims

to improve the economic well being of it members. Nwankwo (2007) noted that as

an enterprise, co-operatives are active in markets locally, nationally and

worldwide. Thus, the co-operative is a socio-economic group. The cooperative

system is one through which the majority of the less privileged people in the world

can part with misery, depression and oppression by joining the path for self

realization and restriction or any social, political, racial or religious

discriminations to all persons who make use of its services and are willing to

accept the responsibility of membership (Mayopux, 2008).

Co-operative has been defined by various authors, scholars and bodies, however

all the definitions agreed to the synergy effect of the voluntarily formed group of

people which leads to the achievement of their goals. ICA (2005) stated that “Co-

operatives are autonomous association of persons united voluntarily to meet their

economic, social and cultural needs and aspirations through jointly owned and

democratically controlled enterprises. Equally, Rijk (2011) quoting ILO (1986)

described co-operatives as “an association of human beings, who have voluntarily

come together and agreed to work collectively at their common risk and with

resources contributed by all towards an improvement of common socio-economic

interest, which working singularly, they cannot achieve. Okechukwu (2001)

attested to the above definition as he defined co-operative society as “an

incorporated association in which persons join together on their own freewill to

obtain some economic service which would be either too difficult or too costly for

each to obtain by working alone. Co-operatives are based on the values of self-

help, self-responsibility, democracy, equality and solidarity (Nwankwo, 2007).

The basic concepts of co-operatives were identified by different authors as stated

in its principles set by the International Co-operative Alliance (ICA) review of

1995. Onuoha (1998) highlighted the principles as:-

Open and voluntary membership

Democratic member participation

Member economic participation

Autonomy and independence

Education, training and information

Co-operative among co-operatives

Concern for community.

There are different types of co-operative societies, most common among them are;

agricultural, thrift and credit, consumer, housing, marketing, transport, insurance

and multipurpose co-operative societies. Onugu and Uguwanyi (2007) however

observed that the Nigeria co-operative movement is composed largely of

agricultural co-operatives. The reason is not far-fetched when one realized that

most of its population earns their living on agriculture. This has led to the

formation of co-operatives in the agricultural sub-sectors of crops and animal

production, processing and marketing, fishery and forestry.

2.2 NATURE OF AGRICULTURAL CO-OPERATIVES

Agricultural co-operative is one of the two major types of co-operative which is

specifically designed to cater for agricultural sector needs. Thus, it can be found in

area in consumption, production, marketing and credit. Agricultural co-operatives

engage in different types of activities aimed at helping the farmers overcome

difficulties. According to Okeke (1999) Agricultural cooperative consist of all

cooperative found in all sub-sectors of agriculture. These sub-sectors are crop

production, livestock, fishing, forestry and wild life.

Through co-operatives, farmers can pool their limited resources together to

improve agricultural output and this will enhance socio-economic activities,

especially in the rural area (Ebonyi and Jimoh, 2002). Usually, problems facing

the farmers determine the type of agricultural co-operative society which he is

attracted to. Onugu and Uguwanyi (2007) quoting Ndanusa (1986) listed some

various types of agricultural co-operative societies and their transformational

expectation in agricultural development:-

2.2.1 Thrift and Credit Co-operative Societies

All such co-operatives perform functions that are practically related. The core

function is to improve access to credits at critical moments or more succinctly,

financial intermediation. Principally, such co-operatives aim at making it easier

for people (especially people with low income) to save, thereby increasing the

amount of money available for lending to members (Otto and Ukpere, 2011).

Rural farmers need institution from where they can save and borrow for their

economic activities, to serve this needs, there is the Co-operative Thrift and Credit

Society (CTCS). Nwankwo (2007) noted that; people’s willingness to save could

be enhanced when institutions provides savings facilities they understand and

trust. This type of co-operative is so structured that it results in the mobilization of

savings and the credit for production which is given to members on a revolving

basis and at low interest rate. Abdulquadri and Mohammed (2011) observed that

the agricultural cooperative handles all kinds of credit including short, medium

and long-term credit. It has mobilized a large amount of funds both from rural and

urban areas and supplied an increasing amount of credit to farmers. Poor farmers

who are often left out of the main stream of development can through joint action

raise the needed capital to improve their production and distribution.

2.2.2 Farm Supply Co-operatives

It is important that the farmer should have at his disposal, an efficient and

economic supply system which meets his growing demands. According to Nweze

(2002) co-operative societies serves as avenues for input distribution. Through

their nation-wide structure, they have developed strong and reliable arrangement

for the distribution of food crops, fertilizers, agro-chemicals, credits, seeds and

seedlings. The objectives of this co-operative can be seen as:-

To minimize cost associated with farm inputs, which constitute the greatest

expenditure incurred by farmers.

To ensure that farm inputs, which are of good quality are delivered to

members.

The procurement of fertilizer and high yielding seedlings.

Procurement of agro-chemicals, feeds and fingerling.

Provision of farm machinery hardware.

Accessibility of farm infrastructure such as roads and irrigation facilities.

2.2.3 Agricultural Marketing Co-operative Societies

Umebali (2006) defined agricultural marketing co-operatives as an association

whose primary function is to sell or market products on behalf of members. The

tasks of agricultural marketing co-operatives include all those activities and

preparation which will assist a farmer in disposing off his produce. This ranges

from processing, packaging, storage and transportation of the product (Onugu and

Uguwanyi 2007). The marketing co-operative societies help in providing an

efficient marketing system, which subsequently will improve the farmer’s income

by giving him a better bargaining power and lower trade margin, price

stabilization and also help to search for a better market were their produce can be

sold.

However, Umebali (2006) opined that for the society to operate fully, it pre-

supposed that it must have fulfilled the entire obligation including registration.

2.2.4 Farmers Multipurpose Co-operative Society

As indicative of its name, Farmers Multipurpose Co-operative Society (FMCS) is

a co-operative society that integrates into one, some or all the problems of the

farmers. As presently constituted, this type of co-operative represent about 70% of

all co-operative found in the South Eastern Nigeria (Onugu and Uguwanyi 2007).

They can perform the function of any type of co-operatives depending on the need

of its members. While this may be an advantage, it also poses some problems

since no singular co-operative can claim to have the necessary co-institutional and

organizational platform to carry out all functions they may choose to perform.

2.2.5 Other Forms of Agricultural Co-operative Society

There are other specialized types of co-operatives involved in agriculture, there

are not common, especially in Nigeria, they include:-

Agricultural Insurance Co-operatives.

Women Agricultural Co-operatives (Processing).

Co-operatives for water supply and control.

Co-operatives for fishery production.

Co-operatives in forestry.

Co-operatives for pasture improvement and management.

Co-operatives for poultry, livestock breeding and related service.

2.3 THE ROLES OF FARMER’S CO-OPERATIVES IN

AGRICULTURAL DEVELOPMENT EFFORTS

That the co-operatives have become an important platform for development in the

agricultural sector is not an over-statement. Agriculture more than any sector, has

more attraction to the vision of co-operators in Nigeria than any other sector

(Onugu and Uguwanyi 2007). Agricultural co-operative business has acquired

some importance as instrument for development in developing countries, these

enterprises whose members are involved in agriculture and related activities are

organized to provide essential services to farmers in production, processing,

marketing and consumption of food to meet their basic need and that of the society

(Emejulu and Constance, 2011). Nigeria, like most other developing economies is

primarily agrarian. More than 70% of the populace is engaged in one farming

activities or the other to make a living. Eze (2003) opined that the ratio of the

contribution of agriculture to the total level of output is significantly higher in

developing countries than in developed countries. Developing countries, he further

said, are primarily agrarian where most people cultivate land on small plots, using

traditional methods that are in-efficient. Cooperative societies’ increasing

involvement in production and farm inputs distribution in Nigeria has been widely

reported. These include marketing, processing, supply of farm inputs (seeds,

fertilizers, chemicals and modern farm implements), consumer goods, credit and

banking, insurance, warehousing, transportation, farm extension and relevant

support such as research and publication (Alufohai and Ilavbarhe, 2000; FAO,

1993 and Nweze, 2003).

Agricultural co-operative societies are involved in so many aspects of agricultural

activities directed at giving farmers the support to raise their productivity and

income level. Such supportive activities are listed below:-

2.3.1 Land Acquisition

Land acquisition co-operatives are the result of voluntary land consolidation by

individual land owners whose joint efforts contribute to efficiency in agriculture.

Land acquisition co-operatives include co-operatives which are formed so that

they could be apportioned land (Onugu and Uguwanyi 2007). Uguwanyi (2000)

cited the National Agricultural Land Development Authority as a successful land

acquisition programme where the co-operative played a crucial role. Also, land

acquisition co-operatives can be made up of those that are formed for the

management of water resources through irrigation and drainage, the installation of

tanks, well and pumps. Nigeria is mostly affected by co-operatives in the later

group. These are the co-operatives that cultivated the irrigated lands of the River

Basins Development Authorities (RBDA). In Nigeria, the Adani Rice Project in

Enugu state owes it success partly to these co-operatives. Uguwanyi (2000)

observed that such co-operatives can be found in northern Nigeria where the

FADAMA lands are provided with bore-holes and water pump.

2.3.2 Agricultural Mechanization and Technology Adoption

Agricultural mechanization is the application of agricultural engineering principles

and technology, by the use of mechanical systems in the process of food, feed,

fiber, fuel production, protection, processing, handling and storage (Aseogwu,

1998). It also refers to the replacement of manual labour and simple hand tools

with human, animal, electrical and internal consisting engine powered machinery

(Wikipedia, 2011). Mechanization of agriculture contributes to higher

performance of the farmer’s output and income (Rijk, 2011). The co-operatives

can provide a vehicle for the dissemination of intermediate technology; farmers

through their co-operatives can buy or hire tractors to work on their farms, either

as individuals or on co-operative basis (Onugu and Uguwanyi 2007). The

application of machines on farms become easier and cheaper under co-operative

arrangement. They are wide spread and often enjoy the support of state and local

government in providing flexible organizational structure for channeling technical

information, equipment and services to individual producers. One way to ensure

productivity in agriculture is to break the socio-cultural barriers that inhibit the

adoption of new technologies. Co-operative organizations can effectively

influence their members to adopt innovations, which would increase production.

2.3.3 Farm Supply

Co-operative organizations are able to obtain high quality farm inputs such as

seeds, insecticides, fertilizer e.t.c Hermida (2008) stated that agricultural co-

operatives play important role in the agricultural development through providing

the farmers with production inputs such as fertilizer, seeds and chemical

substance. Nweze (2002) attested to the above fact, he stated that Co-operative

societies serves as avenues for input distributions and through their nation-wide

structure, they have developed strong and reliable arrangements for the

distribution of food crops, fertilizers, agro-chemicals, credits, seeds and seedlings.

Adding to this is the Nigeria government policies of distributing these inputs,

usually at subsidized prices to farmers through them. The task of the co-operative

is not just to regulate the price of the inputs but also ensure that quality products

with appropriate technical knowledge are offered to the farmer through their

extension agents.

2.3.4 Credit facilities

The importance of agriculture credit has already been mentioned while discussing

the credit and thrift co-operative society, knowing that it is cheaper and more

secured to grant credit through co-operatives. Otto (2006) noted that loans and

credits are provided to members at much more traditional and easier conditions

than the methods adopted by commercial banks and other financial institutions.

Abdulquadri and Mohammed (2011) observed that agricultural production

generally is capital intensive and in developing countries like Nigeria, small scale

farmers need to inject capital into agriculture to increase production. The critical

role of credit in economic development has never been in doubt either directly or

indirectly in building the capacity of the small-holder farmers in increased

agricultural mechanization for household food security and poverty alleviation

(Mohammed, 2009). With adequate supply of credit to farmers, the retarded

agricultural sector will make progress because agricultural credit can stimulate the

growth of agriculture, enhanced productivity and promotes standard of living by

breaking vicious cycle of poverty of small scale farmers. It also enable farmers to

meet their needs, expand their farms increase output, and aids small scale farmers

to engage in commercial agriculture (Adebayo and Adeola, 2008). The recent

Federal Government restructuring and funding of the NACRDB to the tune of fifty

billion naira (N50,000,000,000) in 2006 is an indication of its belief in the positive

role of co-operative societies in finances intermediation (FGN, 2006)

2.3.5 Agricultural Marketing

The art of marketing is more difficult than that of production, especially in the

case of agricultural produce. The marketing of farm products should be so

systematic, scientific and well organized as to enable the farmer to negotiate a

square deal and get a fair share of the value of his produce (Szabo, 2007). Umebali

(2006) observed that one of the major problems the farmers do face is marketing

their product; particularly obtaining satisfactory returns. The formation of viable

and efficient marketing co-operatives will improve this situation. Nwobi (2006)

opined that the co-operative helps to solve the problem of marketing by organizing

collective marketing of the products of the farmers. Umebali (2006) stated that the

co-operatives are in a position to market jointly, what the society as a body

produced or market member’s product. In the opinion of Onyima and Okoro

(2009), there is a great range of additional functions the co-operatives in this

group perform; they include bargaining co-operatives, which negotiate with

processors and other businesses in the supply chain for better terms of trade for

their members. Some marketing co-operatives establish marketing agency co-

operative for it s members but does not physically take title or handle products.

2.3.6 Education, Training and Information Dissemination

Hermida (2008) reported that co-operatives provide functional education to

members in the areas of production, processing and marketing of agricultural

produce. The education to members of co-operative members could be formal

where members are trained in courses like accounting and farm management.

They could also be trained informally through the attendance of national and

international conference and seminars. Onyima and Okoro (2009) also observed

that Co-operative attach great importance to formal and informal education. Co-

operatives always organize civil education and the same time; send their officers

to training and studies.

2.4 CHALLENGES FACING THE AGRICULTURAL CO-OPERATIVE

SOCIETY IN AGRICULTURAL DEVELOPMENT EFFORTS.

Co-operatives have existed in Nigeria for more than seventy years since it

introduction in 1935 by the colonial masters as the fifth form of business

organization after the sole-proprietorship, partnership, limited liability companies

and public corporations (Okechukwu, 2006). It has not made the expected impact

despite the fact that successive regimes in Nigeria both at federal and State level

recognize it as a veritable medium of rural transformation and agricultural

development. The rate at which societies go moribund is very alarming.

Okechukwu (2006) identified some factors which attributed to the poor

performance of the co-operative societies:-

2.4.1 Poor Capitalization

Inadequate finance has remained the most limiting problem of agricultural

production. This is because capital is the most important input in agricultural

production and its availability has remained a major problem to small scale

farmers who accounted for the bulk of agricultural produce of the country (Izekor

and Alufohai, 2010). Onyima and Okoro (2009) opined that the greatest limitation

of the co-operatives is the restriction that members must provide the majority of

the capital; this is a challenge for members who have limited capital or are in

heavy debt. Many co-operatives were formed by “persons usually of limited

means” who see the formation as a way out of their inadequacies. Unfortunately,

the inadequacies are exported to the co-operatives which tend to be under-funded

and as such they cannot on their own mobilize investible capital (Okechukwu,

2006). Also, certain provisions of the co-operative laws militate seriously against

possible capital mobilization. The Section 27 of the Nigeria Co-operative Society

Acts stated that “No member other than a registered co-operative society shall

hold more than one fifth of the share capital of a society”. Other restrictions such

as; limited interest on capital invested and equality of members irrespective of

their financial involvement in the co-operative society, discourage members who

are financially viable from investing huge sum of money in the society (Onugu

and Uguwanyi 2007).

2.4.2 Corrupt and Fraudulent Officers and Staff

There are some employees of the society whose minds are geared towards the

methods of defrauding the society of it funds (Onugu and Uguwanyi 2007). A co-

operative society with big investment has to employ workers to run the business

for them. These employees who mostly are not members do not have much at

stake in the society. They use the facilities of the society to enrich themselves.

Over-bloated contract, false transportation claims, engagement on parallel

business with the society, embezzlement and fund mis-appropriation are typical of

such activities (Okechukwu, 2006). Onje (2003) added that the problem of

dishonesty among co-operative leaders is another factor retarding the growth of

co-operative in Nigeria.

2.4.3 Illiteracy

A reasonable percentage of the co-operators including their officers are illiterates

and it affects every facet of the society’s business. They find it difficult to

articulate, execute and monitor good projects, conduct of meetings and record

keeping are equally found difficult. The management team cannot imbibe modern

management and administrative technique and find it difficult adapting to the ever

changing socio-economic and technological environment (Okechukwu, 2006;

Onugu and Uguwanyi, 2007).

2.4.4 Poor Inspection

One factor which distinct co-operative registration from other business registration

is the continuous monitoring of the registered society to ensure it smooth growth

and development. This supervision is usually carried out by a co-operative field

worker who can also offer extension services. As a result of inadequacy of staff in

the supervising ministry coupled with the withdrawal of such incentives as;

mileage allowance, local transport and travel (LT&T) to cover the out-of-pocket

expenses of these field workers, routine inspection are no longer done on the

societies; their books are no longer audited, co-operative education is no longer

given to the co-operator as well as the needed extension services. This will make

the societies to drift till they become moribund or even liquidate.

2.4.5 Government Interference

After more than seventy years of introduction of this very important socio-

economic institution in Nigeria, cooperatives remain very misunderstood. This

misconception may be traced to the circumstances under which cooperatives were

introduced into Nigeria by the colonialists as tools to enhance further exploitation

of abundant agricultural raw materials in the colony. Of note is also the content of

Mr. C.F. Strickland’s Report on the introduction of cooperatives in Nigeria, which

confirmed that Nigeria was ripe for the introduction of cooperatives but warned

that the indigenous population would be incapable of running a modern

cooperative business. It therefore recommended a heavy dose of government

control of cooperative activities in the colony

(Arua, 2004; Agbo, 2006). After political independence, various governments in

Nigeria still upheld Strickland Report’s recommendation of total government

control of cooperative activities in Nigeria (Agbo, 2009). For instance,

government staff at all levels is still expected to organize, promote, register,

supervise, audit and control cooperative activities in Nigeria. This is in spite of

ILO Recommendation 193 of 2000 (FMARD, 2002) which specified full

autonomy for cooperative societies with government role limited to the provision

of appropriate law and policy environment under which cooperative businesses

should be carried out (Onuoha, 2002).

Government control of cooperative activities in Nigeria is clearly demonstrated in

her insistence that the only way farmers can benefit from most agricultural

development programmes promoted by government is for them to join

cooperatives. Past agricultural development programmes including the Operation

Feed The Nation (OFN), the Green Revolution (GR), the Directorate For Food

Roads And Rural Infrastructure (DFRRI), the Better Life Programme (BLP), the

Family Support Programme (FSP) and the Family Economic Advancement

Programme (FEAP) all required farmers to join cooperatives controlled by the

government to be able to access services provided by these programmes. The

situation gave rise to the establishment of “emergency” cooperative societies

which supplanted the existing true cooperative societies giving rise to their

premature death (Nweze, 2001; Onuoha, 2001). The continued control of

cooperative activities by various governments in Nigeria has given rise to apathy

on the part of the citizenry towards cooperatives and cooperative development

programmes. At best these programmes are seen as those government programmes

that should not be taken seriously (Onuoha, 2002).

2.5 OVERCOMING CHALLENGES FACING AGRICULTURAL CO-

OPERATIVE SOCIETIES

Agricultural co-operative societies have become a key platform for agricultural

development efforts in Nigeria. However for the full realization of its potentials,

the aforementioned challenges must be overcome. Daman (2002) stated two key

factors that should be looked into in order to enhance the performance of the

agricultural co-operatives.

2.5.1 The Internal Factors:

This factor examines the activities within the organization of the co-operative

society; areas to be focused on include the following:

Trained professional and motivated staff

Enlightened, dedication and selfless leadership

Good means of encouraging member’s involvement and participation

Comprehensive programmes for member’s education and information

Provision for reasonable coverage of risk for loss of crops and deposits

Value-added activities through the use of advance technologies

Onugu and Uguwanyi (2007) attested to the intensive co-operative education as

mentioned above. They were of the opinion that there is a dire need for co-

operative education of members, which is necessary so as to enable them to

understand the rudiments of co-operative organizations and know how best to

manage them. Okechukwu (2000) also opined that co-operative societies require

constant and proper education for their business to enable them function well and

achieve the targeted goal. Good co-operative education will minimize the ease

with which societies go moribund and will make societies wait less on government

for their growth and development. It will also enhance funding and fund

management in the society (Okechukwu, 2006).

Onyima and Okoro (2009) agreed to member’s involvement and participation,

stating that; members are the foundation of the co-operative, their support through

patronage and capital investment keeps it economically healthy and their changing

requirements shape the co-operatives’ future. They also noted that the most

important obligation of co-operative members is to participate in the governance

of the co-operative which is practice means to be kept informed about the co-

operative from reliable sources, attend co-operative meetings and take their turns

at the committee. In the view of Nwobi (2006) the need for proper business

practices by co-operatives through proper selection, training and development of

effective management of professional managers should be adopted. She further

stated that co-operative should be able to afford to hire competent managerial

personnel, who will engage in research and conduct intensive educational

programmes for their members.

On Daman’s view of coverage of risk for loss of deposits, Onyima and Okoro

(2009) opined that financial records as well as physical check should be made

monthly by the committee members as stipulated by the co-operative society law

and rules. They further stated that even though there is legal provisions for

protecting the society’s funds, members of the co-operatives themselves have a

role to play to ensure that their money is safe. Umebali and Ekwueme (2007) also

recommended that farmers should be encouraged to take agricultural insurance

policy to minimize risks and to avoid being thrown out of business.

In the support of the view of Daman (2002) concerning value-added activities

through the use of advance technology, Abdulquadri and Mohammed (2011)

stated that co-operative organizations are expected to provide the appropriate

avenue for the demonstration of the modern technologies to meet farmer’s needs

in agricultural production and processing.

2.5.2 The External Factors:

This factor refers to the actions of the agents, organization, groups and institution

other than the co-operative society whose actions and decision will have direct or

indirect influence on the performance of the co-operative society. The following

roles will enhance the performance of the co-operative:

Positive support and helpful roles of the government

Market reforms

Reasonable rate of growth in agriculture

Availability of basic infrastructure

Healthy linkages with regulatory and development agencies and institution

Nwobi (2006) attested to the help role of the government but however opined that;

the interference of the government in the day to day activities of co-operatives

should be discourage and reduced to the barest minimum. The role of the

government should be to provide leadership and legislative framework. Onugu

(2007) supported the healthy linkage of co-operatives with financial institutions.

He opined that removal of notable constraints; high interest rate and colaterization,

by commercial banks should be made; there should rather be more reliance on co-

operative-history, co-operative-character and group-guarantee as security

measures for lending, which will enhance the sourcing of credit by agricultural co-

operative societies. Nwobi (2006) in her view also support the linkage of the co-

operatives with regulatory agencies; the government, however, she stated that co-

operatives should not only seek financial assistance from government but should

also utilize the service of banks like the Nigerian Agricultural Co-operative and

Rural Development Bank (NACRDB). Supporting this view, Osusu and Iyede

(2006) opined that government should ensure that every local government has a

branch of the Nigerian Agricultural Co-operative and Rural Development Bank

(NACRDB).

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

This study research is to a large extent descriptive research and the design adopted

is survey design. It has been designed to enable the use of questionnaires to gather

information which was the main instrument for data collection.

3.2 AREA OF STUDY

The study area is restricted to Awka North Local Government of Anambra State.

Awka- North LGA is one of the twenty one (21) LGAs, which make up Anambra

State. Awka-North LGA is bounded by Awka-South, Njikoka, and Oji-River LGA

of Enugu State. The local government area has a total area of 320 sq km with an

estimated population of 112,192 persons (NPC, 2006) and the headquarters of the

local government is situated in Achalla. Awka North Local Government Area is a

typical example of a rural community with it dwellers being pre-dominantly

farmers. Agriculture is the major occupation of the people of Awka-North LGA

and economic activities center largely on food production, food processing,

marketing and distributive trade. There are readily provision of social amenities in

the area that would make life more worth-living, such as:- the renovated health

centre at Mkpomkpo, Ite-Achalla, provision of bore-hole, motor-powered boats at

Ebenebe river, solar-powered street lights, e.t.c

The ten towns that made up the local government are:- Achalla, Amansea,

Amanuke, Awba-Ofemili, Ebenebe, Isu-aniocha, Mgbakwu, Ugbene, Ugbenu and

Urum.

3.3 POPULATION OF THE STUDY

The population of the study comprises of all the registered and active farmers co-

operative societies in Awka North Local Government Area. The table below

shows the information of the co-operative societies:-

Table 1: Farmers Co-operative Societies in Awka North L.G.A

Towns Names of the Co-operative Societies Membership Size

Achalla

Oye-Achalla Strangers (Achalla) FMCS Ltd 78Udodili (Achalla) FMCS Ltd 21Igwebuike (Achalla) FMCS Ltd 25Enest (Achalla) FUG-MCS Ltd 25Obioma (Achalla) FUG-MPCS Ltd 16Pan (Achalla) FMCS Ltd 32

AmanseaEasylink (Amansea) FMCS Ltd 10Umuakumma (Amansea) FMCS Ltd 15Ifechukwu (Amansea) MPCS Ltd 15

Awba-Ofemili

Udokanma (Awba-Ofemili) FMCS Ltd 25Umuchukwu Youth (Awba-Ofemili) FUG-MPCS Ltd 15Widow & Widower (Awba-Ofemili)FUG-MPCS Ltd 25

Amanuke Eziama (Amanuke) FMCS Ltd 10Favour (Amanuke) Cassava Farmers MCS Ltd 11

Njikobi (Amanuke) FMCS ltd 10

EbenebeIdeal (Ebenebe) FMCS Ltd 15Umunna (Ebenebe) FUG-PMCS Ltd 23Ifechukwu (Ebenebe) Rice Farmer MPCS Ltd 10

Isu-aniochaFood growers (Isu-aniocha) FUG-MPCS Ltd 25Chisom (Isu-aniocha) FUG-PMCS Ltd 15Sky (Isu-aniocha) Women Farmers MPCS Ltd 10

Mgbakwu

Igwebuike (Mgbakwu) FUG-MPCS Ltd 20Ofuobi (Mgbakwu) FUG-MPCS Ltd 17SOCA (Mgbakwu) FUG-MPCS Ltd 25Umunwaotu (Mgbakwu) FMCS Ltd 18Central Store (Mgbakwu) FMCS Ltd 23

Ugbene Nwankwo Fan (Ugbene) FMCS Ltd 10

Ugbenu

Udokanma (Ugbenu) FUG-MPCS Ltd 20Chukwuemeka (Ugbenu) FUG-MPCS Ltd 16Ndi-Uno (Ugbenu) FUG-MPCS Ltd 18Njikoka (Ugbenu) FMCS Ltd 27Afulukwe (Ugbenu) FMCS Ltd 16

Urum Anike (Urum) FUG-MPCS Ltd 20Ogo-amaka (Urum) FUG-MPCS Ltd 21

Source: Research Field Survey, June 2013

The table above revealed a population of thirty-four (34) farmer’s co-operative

societies with a total member of six hundred and eighty-two (682).

3.4 SAMPLING PROCEDURE AND SAMPLE SIZE DETERMINATION

The researcher purposefully selected all the farmer’s co-operative societies from

Achalla, Amansea, Mgbakwu and Isu-aniocha based on their accessibility and

manageability, the result however gave a total of seventeen (17) co-operative

societies with three hundred and ninety (390) members.

Taro Yamani’s formular was used to determine the sample size.

Formular:- n = N/1 +N(e)2

where:- N = 390

e = 0.05

n = 390/1+390(0.05)2

= 390/1.975

= 197.46

With the above calculation, one hundred and ninety seven (197) questionnaires

was distributed.

3.5 METHODS OF DATA COLLECTION

The research employed two basic sources of data collection namely; primary and

secondary data collection.

Primary Data:- Structured questionnaires were the major source of primary data

collection. The questionnaires were designed in line with the objectives of the

study and the researcher employed the use of multiple choice questions and likert-

type scale procedure with five levels. One hundred and ninety seven (197)

questionnaires were produced and distributed but one hundred and eighty two

(182) were properly filled and use for the study.

Secondary Data:- The research’s secondary data were sourced from co-operative

publications, text-books, journals, internet and hand-books which are relevant to

the subject of the study.

3.6 METHODS OF DATA ANALYSIS

Descriptive statistics such as mean, percentage, frequency distribution and scale

analysis were used to present and discuss data.

Responses to the Likert-type questions with respect to determine the member’s

opinion on the contribution of co-operative to agricultural production and the

constraints that limits the performances of the society were analyzed to obtain

their means.

A theoretical mean value of 3.0 was taken as a basis to judge the means for the

items in the questionnaire; items with a mean equal to or higher than 3.0 was

regarded as “Agreed” while items with mean less than 3.0 was regarded as

“Disagreed”.

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

In this chapter, the result of the respondent are presented and discussed.

4.1 Socio-Economic Characteristics Of The Respondent.

The socio-economic characteristics of respondents are presented in Table 2. The

socio-economic variables considered for the study are: gender, age, marital status,

family size, education status, farm size, farm income, years of membership and

primary occupation.

The male constitute about 55 percent of the population while the remaining 45

percent are female. The high percentage of female members is due to the fact that

co-operative membership is free from gender consideration. Age of the

respondents showed that the majority of the co-operative members (77%) belongs

to the age bracket of 25 – 50 years, the rest are either above 50 years (19%) or

below 25 years (4%). The marital status of the respondent showed that about 68

percent of them are married, 14 percent are single and the remaining 18 percent

are divorced. Household size of most respondents ranged from 1 – 4 (57%),

followed by 5 – 10 persons (38%) and 5% above 10 persons.

The educational status of the respondent revealed that about 26 percent had no

formal education, 38 percent possessed first school leaving certificate, 25 percent

had either NCE or OND certificate, and 11 percent had either HND or B.Sc. In

Summary, 74 percent of the co-operative farmers are literate. Investigations into

the farm size of co-operative farmers showed that 35 percent of them had less than

one hectare of farmland, about 47 percent operated between 1.0 and 3.0 hectares

and the remaining 18 percent of the respondent had above 3 hectares.

The study in farm income showed that about 24 percent had less than N100,000 as

annual income, 38 percent had between N100,000 – N500,000, 25 percent had

between N501,000 – N1,000,000 and 13 percent had between N1,100,000 –

N5,000,000. The result of the study revealed that about 71 percent of the

respondent had been in co-operative business for less than 10 years, 23 percent

between 11 – 20 years and 6 percent above 20 years. The study further revealed

that only 42 percent of them are full time farmers while the remaining 58 percent

of the respondent took farming as secondary occupation.

Table 2: Socio-Economic Characteristics of Respondent

No

.

Variables Frequency Percentage

(%)

1. Gender

Male

Female

100

82

55%

45%

Total 182 100%

2. Age

Less than 25

25 – 50

Above 51

7

141

34

4%

77%

19%

Total 182 100%

3. Marital Status

Single

Married

Divorced

25

124

33

14%

68%

18%

Total 182 100%

4. Family Size

Less than 5

5 – 10

Above 10

104

69

9

57%

38%

5%

Total 182 100%

5. Educational Status

No formal Education

First School Leaving Certificate

NCE/OND

HND/BSC

47

69

45

21

26%

38%

25%

11%

Total 182 100%

6. Farm Size (Hectares)

Less than 1.0

1.0 – 3.0

Above 3.0

64

86

32

35%

47%

18%

Total 182 100%

7. Annual Farm Income (Naira)

Less than N100,000

N101,000 – N500,000

N501,000 – N1,000,000

N1,100,000 – N5,000,000

44

69

46

23

24%

38%

25%

13%

Total 182 100%

8. Years of Membership

1 – 10

11 – 20

130

41

71%

23%

Above 20 11 6%

Total 182 100%

9. Primary Occupation

Civil Servant

Farming

Trading

Artisan

Retired

34

77

45

21

5

19%

42%

25%

12%

2%

Total 182 100%

Source: Field Survey, June 2013

4.2 Activities Carried Out By Co-operative Society

The summary of the activities carried out by co-operative societies in Awka North

L.G.A is presented in Table 3. The table revealed that credit facilities and supply

of farm inputs; which both have 22 percent, are the most popular activities being

carried out. This result attested to the view of Hermida (2008) that agricultural co-

operatives play important roles in the agricultural development through providing

the farmers with production inputs such as fertilizer, seeds and chemical

substance.

The next popular activity is crop enterprises which constitute about 17 percent.

Other activities as revealed in the table are marketing of produce (11%), group

processing (9%), group farming (8%), group storage (6%), livestock enterprises

(4%) and transportation scheme (1%). The co-operatives in Awka North L.G.A do

not engage in insurance service and health care services; this may be due to the

fact that these activities are relatively new and have not being widely practiced.

Table 3: Activities Carried Out By Co-operative Society

No

.

Activities Frequency Percentage

(%)

a. Group Farming 66 8%

b. Supply of farm inputs 182 22%

c. Group storage 42 6%

d. Group processing 78 9%

e. Credit Facilities 182 22%

f. Marketing of Produce 93 11%

g. Insurance Service - -

h. Health Care Service - -

i. Transportation Scheme 11 1%

j. Crop Enterprises 145 17%

k. Livestock Enterprises 37 4%

TOTAL 836 100%Source: Field Survey, June 2013

4.3 Contribution of Co-operatives To Agricultural Production

Responses to the contribution of co-operative to agricultural production are

presented in Table 4. The table revealed a mean of 4.81 and 4.84 for mobilization

of savings and access to farm inputs respectively; this signifies that the majority of

the respondent strongly agreed that co-operatives play a major role in these

aspects. This can be attributed to the practice of all co-operatives in savings

mobilization and the government’s decision to support farmers with inputs nation-

wide through the agricultural co-operatives. Response on access to farm

implement showed a mean of 4.36, thus justifying the view of Onugu and

Uguwanyi (2007) that the co-operative can provide a vehicle for the dissemination

of intermediate technology. The result of the respondent also agreed to the fact

that they have access to credit facilities; this was showed with a mean of 4.11

Responses on the increase in quality and quantity of farm output and increase in

income both have a mean of 3.83 and 4.01 respectively. A mean of 3.62 showed

that the respondent agreed to the fact that members of the co-operatives enjoyed

improved living condition and a mean of 3.09 and 3.97 as well indicated an

agreement that the co-operative provides both employment and access to storage

facilities. The majority of the respondent however disagreed to the impact of the

co-operative on the training on modern agricultural technique to members. A

mean of 2.62 was obtained for this variable which indicated that members of the

co-operatives in Awka North do not receive substantial training on modern

techniques used in agriculture.

The grand mean of the response on the contribution of co-operative to agricultural

production was obtained as 3.92. This result implies that the respondent agreed to

the fact that the co-operative contributes to agricultural production.

Table 4: Contribution of Co-operatives To Agricultural Production

No. Contributions Frequency

(fx)

Mean (x) Decision

a. Procure farm input for members 881 4.84 Agreed

b. Access to credit facilities 749 4.11 Agreed

c. Training on modern agricultural

techniques

477 2.62 Disagreed

d. Increase in quantity and quality of

farm output

698 3.83 Agreed

e. Mobilization of savings 876 4.81 Agreed

f. Improved living condition 659 3.62 Agreed

g. Increase income 730 4.01 Agreed

h. Employment 563 3.09 Agreed

i. Access to farm implement 795 4.36 Agreed

j. Access to storage facilities 727 3.97 Agreed

GRAND MEAN 3.92 Agreed

Source: Field Survey, June 2013

4.4 Constraints That Limits The Contributions Of Co-operatives To

Agricultural Production

Table 5 shows the response on constraint that hinders the contributions of co-

operatives to agricultural development.

The greatest constraint as determined by the respondent is inadequate

infrastructural facilities which have a mean of 4.26. Inadequate capital

accumulation which has a mean of 4.09 was also observed as a problem that

hinders the contributions of co-operative towards agricultural production. The

result obtained from the respondent also identified lack of co-operative and

technical education as a barrier in the performance of co-operative; this variable

has a mean of 3.51. Mean results of 3.46 and 3.43 were obtained on mis-

management by leaders and unavailability of loan respectively, this implies that

respondent agreed to the fact that the inefficiency of the management committee

affects the operations of the co-operative and also that members do not always get

the needed loan to carry out their production activities.

Response on high rate of loan default has a mean of 4.02 which is an indication of

the problem faced by the co-operatives in loan recovery. The mean results of 3.45

and 3.08 on responses on lack of skilled personal and high illiterate level of

members revealed that the agricultural co-operatives in Awka North L.G.A do not

lay emphasis on the fifth co-operative principle of the ICA; Education, training

and information. This has led to their poor performance. Responses on corrupt and

fraudulent officers produced a mean of 3.01 which implies that embezzlement and

mis-appropriation of fund affects the performances of co-operative.

The responses of the majority of the respondent however disagreed to the fact

government interference constitute a barrier in the contribution of co-operatives.

The variable which recorded a mean result of 2.90 indicated a low level of

interference of the government on the operation of the co-operative society.

A grand mean of 3.52 was obtained which implies that the opinions of the

respondent attested to the fact that constraints exist that limits the contribution of

co-operatives towards agricultural production in Awka North L.G.A.

Table 5: Constraints That Limits The Contributions Of Co-operatives To

Agricultural Production

No Constraints Frequency Mean Decision

. (fx) (x)

a. Inadequate capital accumulation 745 4.09 Agreed

b. Unavailability of loan 815 3.43 Agreed

c. Mis-management by leader 630 3.46 Agreed

d. Lack of skilled personal 628 3.45 Agreed

e. Government interference 528 2.90 Disagreed

f. High rate of loan default 732 4.02 Agreed

g. High illiterate level of member 562 3.08 Agreed

h. Corrupt and fraudulent officer 548 3.01 Agreed

i. Lack of co-operative and technical

education

639 3.51 Agreed

j. Inadequate infrastructural facilities 777 4.26 Agreed

GRAND MEAN 3.52 Agreed

Source: Field Survey, June 2013

CHAPTER FIVE

5.0 SUMMARY OF FINDING, CONCLUSION AND

RECOMMENDATION

In this chapter, the results of the findings are summarized and recommendations

were made on the research.

5.1 SUMMARY OF FINDINGS

The findings of the study showed that agricultural co-operatives in Awka North

L.G.A. are involved in both livestock and crop enterprises, group processing and

supply of farm inputs. The society also enables it members to access credit

facilities, farm implements, storage facilities and participate fundamentally in the

marketing of member’s farm products. They encourage capital formation in the

rural community by mobilizing savings which then form the capital needed for

carrying out agricultural activities. The study further revealed that high rate of

loan default, inadequate infrastructural facilities and lack of co-operative and

technical education are among the constraints that hinders the performances of the

co-operatives.

5.2 CONCLUSION

The co-operative is no doubt a vehicle of agricultural development, this is due to

the effect of it activities which ensures that both human and material resource are

efficiently mobilized, granting the small-scale farmers who carry out the bulk of

the nations agricultural activities opportunities to expand and diversify their

product which will bring about food security to the ever-increasing population.

The poor financial state of the co-operative societies which is caused by

inadequate capital formation, mis-appropriation of fund and high rate of loan

default will however restrict the performance of the co-operative towards

efficiency. There is no disputing the fact that agricultural co-operatives if well

managed, supported by government and development agencies, are well position

to enhance agricultural development.

5.3 RECOMMENDATIONS

Based on the findings and conclusion of this research work, the following

recommendations are offered:-

i. As a result of low capital accumulation by co-operative members, co-

operative societies in Awka North L.G.A. should be encouraged in the

areas of increased supply of credit to them from financial institution.

ii. The financial policy of the co-operative societies should be rectified to

minimize the rate of loan default and increase the utilization of fund.

iii. The government should intensify efforts on co-operative education, training

and public enlightenment in order to bring about increased participation

and involvement of small scale farmers in the co-operative movement.

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