KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

FACULTY OF AGRICULTURE

AGEC 356: AGRICULTURAL COOPERATIVES

Individual Assignment

CEPHAS JOSHUA BEUJUNG SAMWINI

INDEX NUMBER: 9842106

Course Tutor:

• Mr. Patrick Appiah

Cooperatives play a very important role in the socio-economic and agricultural development of

both developed and developing countries in which they operate. The world summit for social

development (1995) recognized this people centered approach to development and committed to

using this paradigm in poverty eradication and generation of employment and social integration.

The International Labour Conference (2002) also adopted the recommendation that the

promotion of cooperatives should be considered as one of the pillars of national and international

economic and social development. These events underline the essence of cooperatives. This

essay seeks to summarize the roles of cooperatives in socio-economic and agricultural

development as outlined in the UN secretary- general’s report dated 21 July 2005.

Cooperatives contribute both directly and indirectly to the eradication of poverty through social

progress of their members and employees and by stimulating the economies and enhancing the

social fabric of the community respectively. They help farmers with appropriate channels to

increase and stabilize their incomes. They again provide farmers with the agricultural supplies

they need to increase their productivity at a lower cost, they help farmers with mechanisms for

the sale of their produce; again they give essential services such as marketing, credit, insurance,

and transportation. Through mutual insurance and farm credit, members of cooperatives are

better able to cope with crop failures and other emergencies.

Cooperatives members by their sharing of common equipment are able to reap economies of

scale and better access to markets. The increased efficiency of cooperatives places them in a

better position to compete with larger businesses. They have better bargaining power as buyers
and sellers in the market and are able to mobilize for collective action, help farmers with small

savings accounts, loan services and microfinance to maintain or expand their production.

Cooperatives also help curb social disintegration, dysfunction, ethnic tension and civil conflicts

which occur partly due to increasing poverty and deepening inequalities by creating wealth and

distributing among members on the basis of their use.

Cooperatives are also involved in other activities such as the provision of electricity, provision of

housing for slum-dwellers, health services, rehabilitation and health education and provision of

safe drinking water for tier members and the community at large which reflects their principle of

concern for community.

We can conclude by saying that Cooperative “by pooling the limited individual resources of

members to create business enterprises that enable them to participate in production profit-

sharing cost saving, or risk-sharing activities” promote the economic and social well-being of

individuals who may never be able to form their own businesses, acquire certain inputs and

services and market their products and services as individuals acting alone “especially when they

are poor”.
REFERENCES

 UN General Secretary’s report on cooperatives 2005

 UN General Secretary’s report on cooperatives 2007

 www.copac. Coop

 www.ica.coop