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The Role of Agricultural Cooperatives in Achieving Socio-economic Development of Its Members: In Case of Addiskidam Town, Gojam

Received: 25 February 2022    Accepted: 7 April 2022    Published: 14 April 2022
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Abstract

This research was conducted on analyses of the Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members in Addiskidam town, Gojam, Ethiopia. Thus, the general objectives of the study was to examine Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members and more Specifically; to assess the socio-economic contribution of the agricultural cooperative for its members and to identify factors affecting the success of agricultural cooperatives in the study area. Multistage sampling technique was used; and the samples of 65households were interviewed. Both descriptive and econometric analysis was made so as to achieve objectives. This cooperative is a form of farmers multipurpose cooperative which is a village-based and community-based farmers’ cooperative with several socio-economic functions. The functions include supplying agricultural inputs, agricultural output marketing, and agricultural credit services. Data gathered were analyzed by using tables, and percentages. Using the Logistic Regression Model the study found that the variables, sex of household head, age of household head, educational level of household head, and income of household determine household’s socio-economic development. The first three variables, i.e. sex, age, and education were significant at 5% levels of significance. And the last variable, income of a household was significant at a 1% level of significance. Based on the results of this study, some challenges hinder the activities of the cooperative: lack of well-trained manpower, lack of member's education, and corruption are the major challenges to the activities of the cooperative. Besides, there were some recommendations for each problem that were arrived by us. So, there should be education for the members on how to keep financial and organizational records as well trained manpower and employees should be hired by the organization.

Published in International Journal of Economic Behavior and Organization (Volume 10, Issue 2)
DOI 10.11648/j.ijebo.20221002.12
Page(s) 41-56
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Agricultural Cooperative, Socioeconomic Development, Logistic Regression

References
[1] Bernard T. et al., 2010. Cooperatives for Staple Crop Marketing: Evidence from Ethiopia. International Food Policy Research Institute. Washington.
[2] Bibby A., 2006. HIV/AIDS and Co-operatives, Manchester: Co-operative College.
[3] Birchall, J., 2003. Rediscovering the cooperative advantage: Poverty reduction through self-help. International Labor Office, Cooperative Branch. Geneva.
[4] Chalchissa, L., 2000. Cooperative Entrepreneurship in Transition Economies: the case of Amecha Multipurpose agricultural cooperatives, International Labour Office, Addis Ababa, Unpublished.
[5] Co-operatives UK, 2008. Co-operative Review 2008, Manchester.
[6] DFID, 2010. The role of cooperative the third world countries.
[7] ILO, 2012. Cooperatives offer migrant workers options for better lives. Geneva.
[8] Federal Negarit Gazeta, 1998 E.C. A proclamation to provide for the establishment of agricultural cooperative society: proclamation No. 85/1986. Addis Ababa, Ethiopia.
[9] Francesconi G. and Heerink N., 2010. ‘Ethiopian agricultural cooperatives in an era of global commodity exchange: does organizational form matter?’ Journal of African Economies, 20 (1), 1–25.
[10] Francesconi G. N. and Ruben R., 2007. ‘Impacts of collective action on smallholders’ Commercialization: evidence from dairy in Ethiopia,’ Paper prepared for presentation at the I Mediterranean Conference of Agro-Food Social Scientists. 103rd EAAE Seminar Adding Value to the Agro-Food Supply Chain in the Future Euromediterranean Space, Barcelona, Spain, April 23–25.
[11] Gujarati, D. N., 2004. Basic Econometrics, 4th ed. Boston: McGraw-Hill.
[12] Maddala, G. S., 2001. Introduction to Econometrics. 3rd Ed. New York: J. Wiley and Sons.
[13] Nadezhda Pashkova, 2009Food marketing cooperatives of Crete: A financial assessment within the EU context Department of Business Economics and Management.
[14] Negarit Gazeta, 2004 E.C. The Imperial Government of Ethiopia Ministry of Pen. Co-operative Societies Proclamation No. 241, 3rd September 2004 Ec, Addis Ababa.
[15] TCA, 2013. Annual report for the year UN published.
[16] Tsegay Berhane, 2008. Financial performance of cooperative in Enderta woreda, Tigray region Ethiopia. Mekelle University.
[17] Walton, J., 2001. “Agricultural Cooperatives in Ethiopia.” ACDI/VOCA. World Bank (2002). Report on World Development. World Bank (2009). Poverty Reduction and Economic Management: Assessing the use of Poverty and Social Impact Analysis I World Bank Development Policy Loans.
[18] Wanyama, F. O. et al., 2008. “Encountering the Evidence: cooperatives and Poverty Reduction in Africa.”.
[19] Woldu, 2007. A Working paper on social and cooperative Entrepreneurship.
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  • APA Style

    Feleke Shitu. (2022). The Role of Agricultural Cooperatives in Achieving Socio-economic Development of Its Members: In Case of Addiskidam Town, Gojam. International Journal of Economic Behavior and Organization, 10(2), 41-56. https://doi.org/10.11648/j.ijebo.20221002.12

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    ACS Style

    Feleke Shitu. The Role of Agricultural Cooperatives in Achieving Socio-economic Development of Its Members: In Case of Addiskidam Town, Gojam. Int. J. Econ. Behav. Organ. 2022, 10(2), 41-56. doi: 10.11648/j.ijebo.20221002.12

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    AMA Style

    Feleke Shitu. The Role of Agricultural Cooperatives in Achieving Socio-economic Development of Its Members: In Case of Addiskidam Town, Gojam. Int J Econ Behav Organ. 2022;10(2):41-56. doi: 10.11648/j.ijebo.20221002.12

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  • @article{10.11648/j.ijebo.20221002.12,
      author = {Feleke Shitu},
      title = {The Role of Agricultural Cooperatives in Achieving Socio-economic Development of Its Members: In Case of Addiskidam Town, Gojam},
      journal = {International Journal of Economic Behavior and Organization},
      volume = {10},
      number = {2},
      pages = {41-56},
      doi = {10.11648/j.ijebo.20221002.12},
      url = {https://doi.org/10.11648/j.ijebo.20221002.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221002.12},
      abstract = {This research was conducted on analyses of the Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members in Addiskidam town, Gojam, Ethiopia. Thus, the general objectives of the study was to examine Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members and more Specifically; to assess the socio-economic contribution of the agricultural cooperative for its members and to identify factors affecting the success of agricultural cooperatives in the study area. Multistage sampling technique was used; and the samples of 65households were interviewed. Both descriptive and econometric analysis was made so as to achieve objectives. This cooperative is a form of farmers multipurpose cooperative which is a village-based and community-based farmers’ cooperative with several socio-economic functions. The functions include supplying agricultural inputs, agricultural output marketing, and agricultural credit services. Data gathered were analyzed by using tables, and percentages. Using the Logistic Regression Model the study found that the variables, sex of household head, age of household head, educational level of household head, and income of household determine household’s socio-economic development. The first three variables, i.e. sex, age, and education were significant at 5% levels of significance. And the last variable, income of a household was significant at a 1% level of significance. Based on the results of this study, some challenges hinder the activities of the cooperative: lack of well-trained manpower, lack of member's education, and corruption are the major challenges to the activities of the cooperative. Besides, there were some recommendations for each problem that were arrived by us. So, there should be education for the members on how to keep financial and organizational records as well trained manpower and employees should be hired by the organization.},
     year = {2022}
    }
    

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  • TY  - JOUR
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    AU  - Feleke Shitu
    Y1  - 2022/04/14
    PY  - 2022
    N1  - https://doi.org/10.11648/j.ijebo.20221002.12
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    JF  - International Journal of Economic Behavior and Organization
    JO  - International Journal of Economic Behavior and Organization
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    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.ijebo.20221002.12
    AB  - This research was conducted on analyses of the Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members in Addiskidam town, Gojam, Ethiopia. Thus, the general objectives of the study was to examine Role of Agricultural Cooperatives in achieving Socioeconomic Development of its Members and more Specifically; to assess the socio-economic contribution of the agricultural cooperative for its members and to identify factors affecting the success of agricultural cooperatives in the study area. Multistage sampling technique was used; and the samples of 65households were interviewed. Both descriptive and econometric analysis was made so as to achieve objectives. This cooperative is a form of farmers multipurpose cooperative which is a village-based and community-based farmers’ cooperative with several socio-economic functions. The functions include supplying agricultural inputs, agricultural output marketing, and agricultural credit services. Data gathered were analyzed by using tables, and percentages. Using the Logistic Regression Model the study found that the variables, sex of household head, age of household head, educational level of household head, and income of household determine household’s socio-economic development. The first three variables, i.e. sex, age, and education were significant at 5% levels of significance. And the last variable, income of a household was significant at a 1% level of significance. Based on the results of this study, some challenges hinder the activities of the cooperative: lack of well-trained manpower, lack of member's education, and corruption are the major challenges to the activities of the cooperative. Besides, there were some recommendations for each problem that were arrived by us. So, there should be education for the members on how to keep financial and organizational records as well trained manpower and employees should be hired by the organization.
    VL  - 10
    IS  - 2
    ER  - 

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Author Information
  • Faculty of Agriculture, Department of Agricultural Economics Wolaita Sodo University, Sodo, Ethiopia

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