Analysis of the role of cooperatives in agricultural input out put marketing in Eastern Zone, Tigray Region

Ethiopia is among the poorest countries in the world where agriculture is the major source of living for more than 83 per cent of its people. Besides, the sector is the dominant one in the national economy. But agricultural performance in production and productivity is poor to bring sustainable changes in the living standards of the rural community. Among others, underdeveloped agricultural marketing system is a major factor responsible for the poor performance of the sector. The overall objective of the study is to analyze role and functions of MPCSs in agricultural input/output marketing in Eastern Tigray Zone of Ethiopia. In order to see the role of cooperatives, it was preferred to give emphasis on evaluating their overall performances and members’ participation as well as perceived problems in using the available services. Simple percentage analysis, ratio analysis, descriptive and econometrics model were employed to identify determining factors of the role of cooperatives in performing their activities as well as participation of the members. Therefore, two districts and seven MPCSs were selected at random from Eastern Tigray Zone for the study. A total of 162 member households of cooperatives were considered for this study and were included in the econometric model. In addition, secondary data obtained from relevant institutions were used. The result of performance of MPCSs was presented organizing into three categories such as functional, organizational and financial performances. The result shows that MPCSs in Saesi-Tsaeda-Imba are functioning better in food grain distribution, input supply and credit provision than MPCSs in Atsiby Womberta. MPCSs in the two districts provided both medium term and short term loans for fertilizer and seed, and household package programs. With regard to organizational performances, the cooperatives have their own working procedures and systems, by-laws, employees and boards, and working areas. Ratios were analyzed taking the five years financial data (2002 and 2006). The liquidity analysis, financial leverage and profitability ratio showed that the over all performance of cooperatives under investigation were weak or below the desirable level. T-test and result showed significant difference in the age, Livestock ownership, crop production, annual income, expenditure, input purchased, share capital contribution between the mean of two sample groups at less than 10 per cent probability level, and Chi-square test result: sex, access to input/credit, membership, educational status, and so on showed that significant differences between the two sample groups at less than 10 per cent probability level. Econometric software called "Limdep" was employed to estimate the Tobit model to identify factors influencing the participation (intensity of participation). Probability of participation appeared to be significantly and positively influenced by education status, sex, number of paid up share capital, off-income, livestock owned, access to input credit, membership status, access to alternative marketing and members’ satisfaction; while the influence of members’ age, off-farm income and access to alternative market had inverse relationship and significant to determine participation. Perceived role performance, perception of members’ on transparency, expenditure, on-farm income, annual income, input purchased, perception on input/output prices, etc. were not significantly related to the dependent variable. Moreover, perceived problems and members’ suggestions were also identified sufficiently to analyze role of cooperatives such as internal/organizational, external and infrastructure related problems. Performance of cooperatives and members’ participation were used as key factors to analyze cooperatives’ role in agricultural input/output marketing in the study area. The policy implication is that Government, NGOs and other stakeholders need to give emphasis on improving individual, organizational and institutional capacity of cooperatives.

Bibliographic Details

Main Author:	Mahmud, J.
Format:	Thesis biblioteca
Language:	English
Published:	Mekelle University 2008-03
Subjects:	marketing, cooperatives,
Online Access:	https://hdl.handle.net/10568/717
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