WOIAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

THE IMPACT OF FARMERS COOPERATIVE ON THE LIVELIHOOD OF

FARMERS (IN CASE OF KONSO WOREDA)

A SENIOR ESSAY SUBMITTED TO THE DEPARTMENT OF ECONOMICS IN

PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR BA DEGREE IN
ECONOMICS

BY: YISHAK KUSSIA

ID: CBE/R/381/08

ADVISOR: MISRAK MISIKIR(Msc)

April, 2017

WOLAITA SODO, ETHIOPIA

STATEMENT OF CERTIFICATE

This is to certify that Birhanu Haligeyo Otoma carried out research paper on the topic in title (the role of
farmers’ cooperative in improving agricultural productivity, in case of konso woreda).

Approved by board of examiner

Adviser Signature Date

_____________________ ________________ _________________

Examiner Signature Date

1._______________________ __________________ _________________

2__________________________ ____________________ _________________

Department head Signature Date

___________________________ _________________________ ____________________

 ACRONYMS

EEA. - Ethiopia Economic Association

ACE. - Agricultural cooperative in Ethiopia

ICA. - International cooperative Alliance

ILO. - International labor organization

NCBE. - National cooperative business association

ICA. - International cooperative agency

FCA. - Federal cooperative agency

USAID. - United State aid

ACKNOWLEDGMENT

First of all, I am short of word to express my deepest thank to the Almighty GOD who are the “garden
maker” of my life. Next to that I would like to thanks my advisor, Mesay E. (MA) whose contribution
to the work by giving necessary advice and sharing knowledge have a great value.

Next, I am happy to acknowledge my beloved family who has supported me morally and financially.

At last but not least my appreciate goes to my friends for their support with different materials to
accomplish my study.
 ABSTRACT

This paper attempts to assess the role of farmers’ cooperative in improving agricultural productivity in
case of konso woreda. The study would focus on the role of farmers ’ cooperative in improving
agricultural productivity. In accomplishment of this task had obtained data from two source of
information. Those are primary and secondary source of data has been used. The primary data was
collected through questionnaires and interviews. The secondary data was collected from report of
various organization, federal cooperative agency, other economic journals, internet and document of
konso office of agricultural cooperative. For this the researcher used simple random sample from total
population household from 1o groups of this study area. The sampling was random method with
sample size of 60 respondents. Data analyzed using descriptive method to discuss the role of farmers’
cooperative in improving agricultural productivity. Depending on the nature and the type of data
gathered through questionnaire and interviews. Analyzing data the researcher would be used
qualitative and quantitative of data analysis. The meaning objective of this study to vindicate that
benefit that the members of farmers agricultural cooperative obtained and should be properly guided
and organized merges and strengthened by donors for meeting the needs of the poor rural area
 CHAPTER ONE

1. INTRODUCTION

1.1BACKGROUND OF THE STUDY

Ethiopia is the one of the least developed nations that depends on agricultural sector, a pillar to its
economy. the economy is highly influenced by the preference of the sector .It is contributed the largest
share of gross domestic product is around 46.6% ,absorbed huge part labor force and hence creating
employment to more than 80%(USDA 2001). According to Ethiopia agricultural research center report
of 1998, Ethiopia is basically an agricultural country. Its economy is agrarian with agricultural
providing the major part of the material production, export and employment's. As matter of the fact that
Ethiopian's principal natural resource is the total areas of the country. It is clear that the large segment
of population between 84%-90% earn their living from agriculture.

Agricultural cooperative is an association with individual voluntary organized to provide them self and
other with good and service via organized to provide domestic control and for mutually shared
benefit .The interdependence and mutual help among human being have been the basis of the social
life. The sprint of association is essential to human progress. Since the beginning of the human society
individual have found advantage in working together and helping one another in all over the country. In
Ethiopia it is common for people to interdependent in mutual help and self-activity in their day to day
socioeconomic condition (Birchll 1997).agricultural cooperative who's farmers pool their resource in
certain areas activities (Wilikipida 2005).

Agricultural have played an important role in rural community where they are encourage democratic
decision making and leadership development education. Cooperative provide economic benefit to farm
familiar though increasing stability of the Farmer sector ,also improve market access for their
productivity and strengthening Farmer position in agricultural food chain improving farmers living
condition, support's rural development and preserve the variability of rural community in Ethiopia
above 73 million individual in rural area member deprive benefits from agricultural cooperative (USD
2004).

Agricultural cooperative is the part of dynamic environment for the nature production. Agricultural
choose manly chooses occur outside the cooperative system which has little ability to influence them
(USDA 2002).Generally agricultural cooperative play crucial role in supporting the rural economy and
local administration live emphasis to improve agricultural production and productivity through
cooperation (J.M.Kumar 1999).this also provide a market for commodities produced by isolated small
farms in the rural area which is collective action. Agricultural cooperative capture the benefit of value
added. In addition the cooperative are responsible for stimulating poor farms to make entry in to market
enhance demand for standard and grades for perishable commodities (Todaro 2004).
1.2 STATEMENT OF THE PROBLEM
In sub-Saharan African countries like Ethiopia, where the small scale farming dominate, the overall
national economy, agricultural production and productivity is very poor. The agriculture of the
economy is characterized by limited use of improved input and back ward agricultural sector has been
declining at the rate of 1.2% per annual, (CSA, 2005).for the last 42year in Ethiopia majority of people
live in rural areas we need no further evidence than the over worsening poverty situation of the rural
population realizing on poor agricultural productivity. Even worse as size of countries population
increase per capital income gained from the agricultural sector has been declining consequently the
level of income is low and failed to meet the food demand of the over growing population (CSA, 2005).

The Farmer adoption rate and preference of prompted technology has been very law. One of the reasons
enticed by farmers was the poor performance of the package. In Ethiopia agricultural farmers’
cooperative have significant role in creating agricultural employment and increase house hold income.
In specific area konso woreda also Farmer cooperative played has role in increasing Farmer
productivity. But it may face problem like, shortage skilled man power, lake of access chose of
improved seed choice in whether condition rain fall variability, Land fragmentation ,lack of accessible
credit ,lack of business information and absence of advocate way of basic services. In other hand konso
woreda we're follow traditional faming system. Additions to this natural condition weather konso
woreda soil are not hilly facilities for farmers. (Source own survey 2017) the important things that
made this study different in their studies conducted regarding the role of farmers’ cooperative in
improving agricultural productivity. The study be try to generate data and information that have
recorded every time. So the researcher is investigated in this to look in to real problem and the study
considered as one stapes forward to ward bring this gap.

There for the sturdy would be answered the following questions

1. Do the farmer's cooperative increase the from levels productivity?
2. What is the role of farmer cooperative in increasing farm level productivity?
3. Does the farmer’s cooperative improve the living standard of the farmer?
1.3 OBJECTIVE OF THE STUDY
1.3.1 GENERAL OBJECTIVE
The study examined the role of farmers’ cooperative in increasing the agricultural productivity
1.3.2 SPECIFIC OBJECTIVE OF THE STUDY
The sturdy addressed the following specific objectives
 Identify the role of farmer’s cooperative in improving farms productivity.
 Examine the contribution of the agricultural cooperative in improving living standard of the
farmer.

1.4 SIGNIFICANCE OF THE STUDY

This study would be play a significant role to providing useful information regarding to technical in
efficiencies in production and marketing and help to identify that factor affecting the development of
agricultural economy. This would made used full information regarding the situation of agricultural
cooperative and who need to make further agricultural cooperative on Farmer productivity in konso
woreda .The study would significant role in giving for those who went to undertake detailed study on
the related topic in the future.
1.5. SCOPE OF THE STUDY

The study would be focused on race of agricultural cooperative on farmer productivity. The study
would emphasize only on farmers supply agricultural cooperative. Cooperative economics is impact
which purchase in volume, distribution Farmer supply and impact to members of cooperative in konso
woreda.

1.6 limitations of the study

The researcher depended more on response provided from the respondent that were practiced in the
woreda as agricultural activities. The researcher faced different limitations including time constraints,
financial constraints, luck of documents and other raw materials. But the researcher despite the
mentioned limitations, tried to resist them.

1.7 organization of the study

The study was being organized in to five chapters. The first chapter described the introduction that
includes; background of the study, statement of the problem, and objectives of the study, Significance
of the study, Scope of the study, limitations of the study and organization of the study. While the
second chapter includes literature review, the third chapter methodology, the fourth charter describes
the data analysis and interpretation. Then the fifth chapter focuses on conclusions and
recommendations
 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

2.1. THEORETICAL REVIEW

2.1.1 Definition of Agricultural Cooperative

Agricultural cooperative is defined according to different scholars in different ways. This definition
resolves around one main idea joining to help each other. Agricultural cooperative land associate of
person who have voluntary join to other to achieve common and through the formulation of
democratically controlled of organization making equitable contribution to capital required and
accepting a fair of share of the risk and benefit of under talking in which the member actively
participated (ICA,Geneva,2004).Agricultural cooperative is a group of small produce of good or
consumer of good and service that wishes to band together to achieve competitive advantage of large
site marketing or places such groups may form agricultural cooperative in which production marketing
or purchasing facilities are jointly one end and are operated many to provide a services to members
rather than make profit farmers tailor and other producer (Worku 2006).

The basic principle of cooperative societies as a farm self-help and mutual help are the membership
shall been open, not determined by religious and political or other considerations irrelevant to the
objective of the society, that the affairs of the society be controlled in a democratic manner on the basis
of one man one vote, not in proportion to capital. That interest on capital be fixed, and the member
benefit from the activity of the society in proportion to the business they do with in a consensus
membership is voluntary based on mutual interest in removing disadvantage or achieve the desirable
objective, and regarding a willing ness and ability to confirm to the condition agree up on (N.Gregraru
Mandiw 2000).

The primary proposes is to make a profit for its patron’s use of the cooperative, not for its investor. The
member of cooperative serves themselves. A contractual agreement between the cooperative and
patrons requires that all margin above the cost of production to their cooperative. An agricultural
cooperative represent an attempt by farmers each of who has a different set of resources and perhaps
gals. The cooperative involves farmers an elected board of director, hired management, organized
labor, government officials, bankers, and other may be involved decision by cooperative (M.P Todro
1994).

Agricultural cooperative is a business owned and control by the people who use its service. The finance
and operate the business or service for their mutual benefit of working together they can reach an
objective that would attainable. Agricultural cooperative are member ship based on organization owned
by their “users " people to be provided direction facilities. Agricultural cooperative have documented
potential role on agricultural commodities through agricultural cooperative. Although agricultural
cooperative create the ability for the supply of required agricultural input's that production of
commodity done timely to enhance production. They also provide the insured for commodity's
produced by isolated small farmers to the rural area. In addition agricultural cooperative are responsible
for stimulating enhancing demand for standard and grade for perishable commodities (Hollo way et al .
1999).

2.1.2 ECONOMIC BENEFIT OF AGRICULTURAL COOPERATIVE

As Barton (1998) puts its agricultural cooperative is user controlled business that distributes benefit on
the basis use which indicate the distributing concept and principle use, principle that person who owned
and finance agricultural cooperative is by those who use cooperative. Their control principle that
controlled agricultural cooperative is those who use cooperative. The user benefits principle, benefit
that agricultural cooperative distributed user on the basic. Theirs service member receive benefit of
economic social value because other association with agricultural business .benefit of economic value
to stock holder are numerous including the product ,service and Price variable person who by from or
sell to the business. The distribution of income to participating the farmer of patron ages .they also
include is lasted capital paid to owner water paid to employee according to profit sharing plan since
members are those who organized and controlled agricultural cooperative benefit are primary intended.
Other may share in the benefit also share the risk to the cooperative. Although there are motivation
force agricultural cooperative activities it's accepted that the primary motivation in agricultural
cooperative to improve their economic benefits.

2.1.3. AGRICULTURAL COOPERATIVE DEVELOPMENT

Diner to need to engage statically with cooperative as play's in a broader market system.
They need to be clear how their engagement will improve the performance and profitable
of agricultural cooperative and how this will lead to poverty reduction. They recognized
agricultural cooperative as part of private sector and looked are carefully at their support
has ended and its benefit to the poor are sustained through market form action. It is
important that work on sector such rural and urban. Diner engage the network level diner
have they key role strengthening contribution of agricultural cooperative diner can
develop profitable business (OFLO; 2008).

2.1.4 THE REASON FOR AGRICULTUR AL COOPERATIVE

There are many reasons for agricultural cooperative. According to (ICA) the following are reasons of
agricultural cooperative a community enterprise, keep economic benefit with community. Agricultural
cooperative exist still a need community that is not being meet by other business. That is agricultural
cooperative satisfy the need for supply, processing and marketing good and service required of prettied
guilty of cooperative price. Works productive agricultural cooperative are formed to create or to
maintain employment in community.

AGRICULTURAL COOPERATIVE PROMOTE DEMOCRACY

Agricultural members Owen the business they provide share capital, elected boarder, and receive the
benefit of ownership through better service and pathogens refund based on use. Agricultural
cooperative bring people outside the main stream in to the national economy and political life it also
teach people how to resolve problem democratically.

AGRICULTURAL COOPERATIVE BUILDING OPEN MARKET

A more and more government divests state owned enterprise. There is doper that the monopoly may be
moved it to private hands. Agricultural cooperative helps to avoid this fall by ensuring wide
participation by user or Farmer state service, cooperative speed economy power and encourage
completion. The provide market to small victimized by powerful sole source companies. They under
the middle mean and money lenders whole charge are other exorbitant.

AGRICULTURAL COOPERATIVE CREATE HUMAN DIGNITY

Agricultural help scope poverty and achieve dream. Such as owing a home or having their children to
educate success, literary to business operation, cooperative power individual by having the change to
participate in decision to social and economic need. Agricultural cooperative provide an organized own
for who people for related to the some distance government and economic power structure.

AGRICULTURAL COOPERATIVE SYSTEM FOR DEVELOPMENT

Agricultural cooperative drown community business in to regional and national network. Local
agricultural cooperative is benefit from larger business value, operating efficiencies and professional
management. The economy programs are profit from value added processing and consumer sales.

2.1.5. FUTURE OF AGRICULTURAL COOPERATIVE

Agricultural cooperative are special typeset corporation that is owned and controlled by those who in
use its service. It is state character business or organized and operated under its law to further their
mutual benefit member may finance and operate business. By working together member any able to
meet objective that would not be feasible for them to do as individual hence the financial retrying to
individual operation may be increased (L. Insur 1997).

However, in significance way cooperative is purpose of ownership control and distribution of benefit.
Cooperative interest is providing service to the members at lower possible constant together. The high
possible return to meet continuing needs for found most corporates controlled democratically on one
member one basic. However some cooperative a limited proportional vote based on member use of the
cooperative service. Returns to member equality investment usually are limited in order to focus
attention and return to members for their use the cooperative service (Chang Kefun 2011)
2.1.6. THE BRIEF HISTORY OF COOPERATIVE IN ETHIOPIA

Cooperative is the way of life of Ethiopia and has large or long year of experience. This cooperative
may be cultural or religious that makes the population a close lie, for example, iddir, ikub and wenifel.
However a modern cooperative relative in Ethiopia was standard at the time of Emperor Haile Selassie
I in 1961. During this time the cooperative legal action was made and it is known as by degree member
44/1961. According to wolddiya (2003), cooperative movement in Ethiopia started in the late 1960 ’s
with launching of comprehensive agricultural development until (CADU), the main reason for this
degree was the increase member of unemployment, past increase of migration from rural to urban, the
increase member of student who drop out of their education, and finally the disagreement of the
military without proper compensation and pension.

The second attempt to Ward legal cooperative was in 1994, and the time was end of first 5 year
development plan. Based on evaluation of this plan, the need for cooperative form of organization for
the development of the nation was considered to be inevitable. There for the first cooperative
organization legal proclamation known as proclamation number 241/1964 was declared. The objective
of his law was to decrease the amount of interest paid for credit, to minimize the risk of individual in of
bankruptcy and to increase the implementation of innovation in particular life. Nevertheless it focuses
on area that can cultivate economically importance crops. So it was unable to meet the demand all
Ethiopian poor.

In 1974 Emperor Haile Selassie government fall was replaced by socialist government, and proclaimed
cooperative organization in 1978 and its proclamation number 138/1978.The main objective of the
proclamation was transform rural part of the Ethiopia agriculture to socialistic type and have socialistic
marketing relation between the rural and urban area up to 1990. At that time the government gave
attention for the cooperative. There were 10,524 different type were rural cooperative.

However the government intervention was beyond the level of support, so there benefit were making
harmful effect and society become reluctant even to hear and talk about the cooperative. Cooperative in
this period suffered; because they were occurred to serve other political purpose than the purpose they
were established. In this respect, the farmer regard the primary society in this part was manifested in
damaging the property of cooperative by the member themselves at as the existing type of cooperative
were not meeting the interest of farmers. Because, of bad reputation in the past and other factors, such
as lack of proper training and capital. The cooperative creditability was undermined and it made them
vulnerable to mismanagement.

Nonetheless the cooperative failed to survive the collapse of military government. The farmer was
themselves largely viewed them as the creation of the government no genus and voluntary participation
by Farmers and an individual with closed association with the ruling party managed the cooperative.
2.2 Empirical review literature

In World Bank estimate that food demand Wii double by 2036 as the world population by another 2
billion on people. There is an agree need for development and agricultural development has shown on
solution to courage farmers to mobilize collection in production processing and marketing of
agricultural product and give them to assess to market.

Many researches on food security have carried out in depth. According to caver (2003) food security is
achieved they will people all time have physical and economic access to sufficient on the other mean
avoiding hunger for all from the research. It is evidence that recorded law figures of food in security. In
2000 Uganda and Tanzania recorded 36.9% of food security. In 1997 Kenya had owned ratio of 43.9%
from either conclude that there is a close correlation between food security or the country with their
long history and large size of agricultural cooperative. However, the mass made possible account that
small farmer on account that small farmer’s disposal cash income earned from activity.

In recent early time agricultural cooperative one of different cooperative which can help farmers to let
bitter better deal of various stages production on distribution in many country. Agricultural farmer
cooperative have significant role in great employment. It also the farm of agricultural cooperative has
role to increase the productivity.

According to (Holo Way et al 1999) it has been responsible for introducing the exchange economic
remote rural area. The agricultural cooperative provides ready market for farmer production and crops.
But also absorbs transaction cost would other way hinder smaller farmer for market and production
integration. There are farmer producer cooperative which supply input s and market processing of
product for farmer. Freshman and workers, they include same of the business, same are agricultural
cooperative of farmer struggling to service. Although market where policy by support being cut.
Merited walzar (2001) analyzed the new generation cooperative is us where member contribution
capital in production to the produce the intended to supply to processing cooperative. The resulting
share center at the market value and in returns have aureate from the cooperative that all value from
processing Bank to the farmer in 2002 the federal agricultural farmer cooperative at national level.

As today, they ambitious five year development plan aims at providing farmers’ cooperative service to
many percent on the population by 2010 increasing share in farmer cooperative output market ( FCA
2006). According USAID (2005) Ethiopia evaluation of agricultural cooperative in Ethiopia (ACE)
programming activity farmer’s society supported in the same reports. It has mentioned that fertilizer
sales have increased domestically 14% from 86.638 million to in 2003 to that this growth is attributable
in part to increase membership, be more importantly to sale members who sought more fertilizer to talk
advantage of the improved market opportunities made available to them by more over. The generalized
definition which is acceptable by all nations and creates garment on the society is given by the
international cooperative alliances (2005), defined agricultural cooperative person united voluntary to
meet their common economic, social and environmental need. Agricultural cooperative rate support the
rural economic and local people like emphasis to improve productivity through cooperative.

Agricultural cooperative also provide market for commodity they represent model of economic that
agricultural cooperative high record agricultural for democratic human value (Barraket 2002).
Generally agricultural cooperative maintain which level of income marketing small farming able to
contract decent house send their children to school and provide health insurance to sustainable rural live
hood.

The NCA (2005) also argue that cooperative are formed to strength bargaining power maintain access
to cooperative market, capitalized and new market opportunity obtained needed product and service on
completive basis improve income opportunities reduce cost and market risk.
 CHAPTER THREE

3. METHODOLOGY

3.1. DESCRIPTION OF THE STUDY AREA

The study would be conducted in seven area people zone in konso woreda. It located in south western
part of Ethiopia and 600 km away from Addis Ababa. The altitude of konso woreda various from
500meter to 2000 meter above mean sea level. The woreda has population 306,000 and area of 2274
Km. The climate of konso is characterized as Sami aired with irregular and seasonal varied rain fall.
The annual rain fall is 550 MM, the temperature of areas is mostly expressed hot and warm also rain
fall follows a bimodal pattern. There are two raining seasons, i.e. spring “Bilge" big rain with the
period starting mid-February and lost to April and the autumn "Maher" the small rain period around
October and lost to December (Bershah 2003; ETV Konso documentary August 2009).

3.2 DATA TYPE AND THE SOURCE

To achieve the objective of the study, the researcher used both primary and secondary data. Primary
data was collected from randomly selected respondents through distributing questionnaires and
interviewing. The questionnaire was including both close ended and open ended questions so as to
correct suggestions of respondents. The interview was unstructured which helped to get more
information in detail and give freedom for interviewer to question and gather the direct data.

The secondary data would be collected from different source such as book, internet and other published
documents related to the topic like agriculture and rural development office of the woreda. Generally
farmers and cooperative office of the woreda are the main source of the study containing the farmers’
cooperative in agricultural productivity of the woreda.

3.3 METHOD OF DATA COLLECTION

The researcher would use sample survey to collect the required information. Sampling is chosen
because it can save time and cost and also can provide efficient accurate and wider information
regarding to obtain information from Farmer cooperative groups including in sample. Questionnaire
would develop in both open and closed ended questions to get consistence information and answer
from respondents.

On other hand, secondary data would be obtained from various sources such as AOARD at different
level and essential source.
 3.4 SAMPLING TECHNIQUE

Since, it is difficult to observe the entire target population. The respondents of questioner and interview
would be selected by taking the small proportion of the population. Stratified random sampling
procedure would be adopted for the selection of the sample respondents from the agricultural
cooperative of the woreda. Since there 10 groups which use the farmer's agricultural cooperative in
konso woreda. The researchers would select 3 groups, which be select are; Alumala, Olikaba, and
Olikoto. The populations of those groups of house hold are, 65, 80, and 84 respectively. Consequently a
total of 60 sample respondents would select. By using stratified sampling formula (Agrestic, A and
finally B 2008 statically option for social sciences, 4 the edition) the sampled house hold can be
collected for each group by strata.

Sample size =n * pi/ N. Where n: total sample size

N: total population of selected groups.

Pi: proportion of population in the groups.

PROPORTIONAL DISTRIBUTION OF SAMPLE SIZE

No Name of Total no of house Total sample size

groups hold

1 Alumala 65 17

2 Olikaba 80 21

3 Olikoto 84 22

Total 3 229 60

Finally, the researchers would address 60 respondents to conduct the study.

3.5 METHOD OF DATA ANALYSIS

After data collected primly the process of editing, coding and classifying the data collected would be
done. This analysis extensively employed for the matter of easy understanding of the interpretation.
The study use statistical techniques such as percentage and table are used.
 CHAPTER FOUR

4. DATA ANALYSIS AND INTERPRETATION

This chapter deals with data analysis and interpretations based on the data gathered from the
respondents. In order to see the role of farmers’ cooperative in improving agricultural output in konso
woreda, questionnaire was randomly distributed to 60 respondents. Analysis is made using tables and
percentages.

4.1. Demographic characteristic

4.1.1. Sex
The surveyed groups were Alumala, Olikaba, and Olikoto, according to their population size, 17
respondents were taken as sample respondents from Alumala, 21 respondents were taken from Olikaba
and the remaining 22 respondents were taken from Olikoto.

Pi-chart 1 Sex distribution of the sample respondents

Source: own survey, 2017

From the above pi-chart, 75% of the sample respondents were males and the remaining 25% of the
sample respondents were females. This implied that female participation in agriculture Cooperative
production is very low. In the study area men and women have a separate role to play a greater
contribution to agriculture Cooperative production. There is backward attitude behind the culture of the
society in the study area. This make women to work long hours in home and spend less time in
agricultural cooperative production. From this point of view, what the researcher is observing is that the
majority of the society in the study area have back ward attitude for women regarding to agriculture
Cooperative. Therefore, gender discrimination in the study area in terms of agricultural activity by the
societies.
 4.1.2. Age

Table 2 Age distribution of respondents

Age Respondents Percentages

18-30 10 17
31-45 30 50
46-65 20 33
Above, 65 0 0
Total 60 100
Source; own survey, 2017

The above table shows 10% of the respondent’s age range from 18_30 years, 50% of respondent ’s age
ranges from 31-45 years and 20% and 0% of the respondents are age is between 46_65 and above 65
years old, respectively.

This implies that the majority of the respondents’ age is between 31-45 years old. The age groups are
mostly productive. So, this indicate that agricultural farmers’ cooperative of the study area have
productive labour participation in agricultural production to improve its farm level productivity. But the
age of 46-65 and above 65 years old people are not more participated day to day in their agricultural
activities.

4.1.3. Educational level

Education increase the ability to use modern inputs, such as fertilizers, improved seeds, pesticides,
improved tools (tractor) and implements agricultural equipment and it increases the ability of farmers to
obtain and analysis the information related to agriculture. It is known that agriculture in Ethiopia is the
backbone the economy, but it is mostly practiced traditional methods and back ward.

Table 3 Distribution of the sample respondents with respect to education level

Education level Number of respondents Percentages

 Illiterate 28 47
Primary 20 36
Secondary 7 12
Tertiary 3 5
Total 60 100
Source: own survey, 2017

According to this survey, 47% of the respondents are under illiterate, 36% of under primary grouped,
the remaining 12% and 5% of the respondents are grouped under secondary and tertiary education
respectively. This information implies that most respondents are illiterate. Because in the early time
there was no such expand educational infrastructure in rural area. So this implies that the more
illiterate, has an impact on agricultural farmers’ cooperative production to use modern inputs, such as
fertilizer, improve seeds, pesticides, improved tools (tractor) and have no to listen current of market and
taking of other necessary things.

4.1.4. Marital Status

Table 4, marital status of the respondents

Marital status Member of respondents percentage
Single 2 3
Married 49 82
Divorced 7 12
Windowed 2 3
Total 60 100
Source: own survey, 2017
From the above table we can understand that the majority of the sample respondents are married which
accounts 82%, 3% single, 12% divorced and the remaining3% widowed. The researcher concludes that
marriage has positive contribution on the agricultural production. This indicates that two persons
having different ability and property have greater advantage over the single, divorced and widowed
farmers.

4.1.5. Number of households with their family size

Table 5 family size of respondents

Family size Respondents percentages

 -2 5 8

3-4 13 22

5-6 12 20

7-8 30 50

Total 60 100

Source; own survey, 2017

The above table shows 50% of the respondents have family size of 7-8, 20% of the respondents have
family size of 5-6, and 22% of 3-4 and 8% of the respondents have family size of 1-2. This implies that
the majority of the sample respondents have family size of 7-8. This implies the higher family size
leads increasing population in the study area which exerts high pressure in the environment and the
land size very small and constant. But the large family size has more labor human resource to increase
the agricultural farmer’s production. If more productive human resource is invested in agriculture the
more output can produced.

4.1.6. Income level of farmers’ cooperative

Source: own survey, 2017

The above table shows the majority of respondents earn income between 5001_7500 birr per year from
agricultural product which accounts 18%, 50% of the respondents have income earned between
7501_1000, 10% have earned income between 10001 – 12500 birr, 13% of the respondents earned
2500_5000 birr per year and the remaining 8% of the respondents have earned above 12500 birr per
year from agricultural product. So the majority income of the sample respondents of the cooperative
production is improved. But the others income of the respondents are influenced by shortage of rainfall,
small size of land, improperly used of the modern inputs.

4.1.7. Production Method of farmers’ cooperative

Table .7 Indicates producing method in agricultural production by the sample respondents

Producing method Number of respondents Percentages

Tractor 0 0
Oxen 35 58
Hand dug 11 18
Both hand dug and oxen 14 24
Total 60 100
Source: own survey, 2017

The above table indicates 58% of the respondents produced by using only oxen, 24% of the
respondents plough by using both oxen and hand dug and 18% of the respondents produced by using
hand dug and there are not uses mechanized (Tractor) tools. This implies that the majority of the
sample household uses oxen to plough the land and traditional hand dug method. So, using mechanized
farming tools to produce higher product with less effort time and labor are not applicable in the study
area.

4.1.8. Crop rotation

Table 8 shows uses of crop rotation by the sample respondents their agricultural activities.

Do you use crop rotation Number of respondents Percentages

Yes 13 22
No 47 78
 Total 60 100
Source: own survey, 2017

The above table’s shows 22% of the respondents used crop rotation and 78% of respondent not uses
crop rotation. The majority of the sample population of the farmers’ cooperative is not uses crop
rotation. Due to the lack of awareness, lack of land that cannot is suitable for crop rotation and so on.

4.1.9 Irrigation activities of the sample household

Table 9 Shows irrigation activities of the sample respondents

Source: own survey, 2017

The above table that 35% of the responded have non user of irrigation and 65% of the respondents have
irrigation user. Irrigation is the most important to increase agriculture output during shortage of rain
fall. But most responded have use irrigation and same of respondents not use irrigation because of lack
of awareness, lack of land that cannot suitable for irrigation and so on. Therefore, agricultural farmers’
cooperative productivity is improved through irrigation.

4.1.10 Fertilizer users the amount of fertilizer

Table 10 shows fertilizer and amount by to sample respondents

No Fertilizer Number of respondents Percentages

1 Yes 46 77
No 14 23
Total 60 100
 Amount of quintal - -
2 0.5 – 1 12 26
2_3 31 67
Above 3 3 7
Total 46 100
Source: own survey, 2017
According to the respondent answer 77% use fertilizer and 23% of the respond not used fertilizer from
the sample respondents. As the above table shows the amount of fertilizer users are; 26% of the
respondent used 0.5 -1 quintal of fertilizer per year, 67% of the respondents use 2_3 quintal, 7% of
respondent uses above 3 quintal.

This implies that the majority of the respondent has used fertilizer and others used little fertilizer
because of high price of the modern fertilizer and they mostly use traditional fertilizer as well as lack of
awareness about the use of modern fertilizer on the farmers.

Therefore, the fertilizer become improves agricultural farm level productivity on the study area of
households.

4.1.11. Improved seed used and amount of improved seed used

Improved inputs a critically important technological required for higher yield and productivity of
formers. But the majority of the farmers use local seeds FAO/WFP (2009) reports show that in the 2008
Maher seasoning at Least 95% of all improved input where local inputs carried over from the previous
harvest either farmers themselves following the traditional on farm. Selection process whereby the form
identifies the next year improved input stocked while it is still maturing in the field and gives specially
protection and buying from performed input stock kept by other farmers in same locally (EEA,. 2009).

Table 11 shows improved seed used and amount of using by sample respondents.

No Improved seed Number of respondents Percentages

1 Yes 37 62
No 23 38
Total 60 100
 2 Amount in kilogram - -
5_15 27 73
16_25 10 27
Total 37 100
Source: own survey, 2017

The above table indicated 63% of the respondents used improved seeds and 38% of the sample
respondents none used improved seeds. But the amount of used in Kilogram has very low ,73% of the
sample respondents used 5_15 kilogram improved seed per year, 27% of uses 16_25 kilogram of
improved seed. The majority of respondents use improved seeds to improve agricultural productivity
and the others use local seeds and little use of modern improved seeds due to lack of experience
sharing, lack of farmer training and them to use improved seeds.

4.1.12 Fertility of land of the farmers’ cooperative

Table 12 show the fertility of land the sample respondents

Land fertility Number of respondents Percentage

Low 42 70
Good 13 22
Very good 5 8
Total 60 100
 Source: own survey 2017

The above tables show the fertility land of the sample respondent. According to the respondent 70% of
the land fertility is low 22% is good and 8% is very good. It implies that fertility of land for the study
area is low. So due to low fertility of land farmers uses traditional fertilizer and modern fertilizer to
improve agricultural output.

4.1.13. Mechanism Extension services from agricultural cooperative office to farmers

Table 13 show extension service of the sample respondents

Type of extension service Number of respondents Percentage

Input supply 26 43

Seeds supply 18 30

Technical support 10 17

Marketing 6 10

Total 60 100

Source: own survey 2017

From the above table indicated 43% of the sample respondent’s accessed input supply, 30% of the
sample respondents accessed seeds supply, 17% of the sample respondents accessed technical support
and 10% of the sample respondents accessed marketing. Input supply service is very essential for
farmer’s agricultural cooperative to produce high product. So the use of extension service from
agricultural cooperative office to the farmers is essential in order to improve production of agriculture
and use modern factors of inputs.

4.1.14. The Access to credit

Table 14 the access to credit and the amount of credit to the sample house hold.
No farmers access to credit Number of respondents Percentage
1 Yes 38 63
No 22 37
Total 60 100
2 Amount in Birr - -
Less than 5000 31 81
5000-10000 6 16
 More than 10000 1 3
Total 38 100
Source: own survey 2017

Based on the above table 63% of the respondents have access to micro finance institutions and 37% of
the sample respondents did not have a similar access. Credit system is one of the important factors to
improve agricultural output to small scale farmers.

When farmers get the access of this credit, they get a chance to use agricultural in put like fertilizer,
improved seeds and other essential agricultural implement. But the amount of access to this credit is
inadequate. As it can be seen in table 81% of the respondents have access only less than 5000 birr, 16%
of the sample respondents have access 5000-10,000 birr from finance institutions and 3% of the sample
household get more than 10,000 birr. The majority of the household in the study area have less often
use of credit, improved seed, fertilizer and modern input. This implies that low use of credit is because
of higher interest rate as the respondent’s answered and the shortage of awareness and unable to use
properly

4.1.15. Cultivation period

It is the fact that Ethiopia agriculture is highly dependent up on unreliable rainfall which may produce
surplus only in the year of favorable weather. This is make it has not always been timely. Sometimes it
comes early or later. Other times it short of the required amount or overly this result in under
production and hence too in security (Ayele, 2006).

Table 15 shows the cultivation period in year by the sample respondent

Amount of Cultivation period Number of respondents Percentage

Once a year 15 20

Twice a year 45 80

Three times a year 0 0

Total 60 100

Source: own survey 2017

 In the study area, agricultural production is seasonable which mean that they depend on rain fall. As
indicated in the above table 20% of the sample respondents cultivated once a year and 80% of the
sample respondents cultivated twice in a year. From the total number of respondents 80% of the
respondents are cultivated twice a year and other cultivated once a year they are Influenced by shortage
of rainfall, climate, fertility of land and other factors in order to produce agricultural output twice a year
and inadequate them to produce once a year.

4.1.16. Livestock owned

Table 16 show types and number of livestock owned by the sample household.

Owner of livestock Number of respondents Percentage

Donkey 0 0

Cattle 20 33

Goat 13 22

Sheep 5 8

Both sheep, coats and cattle 22 37

Camel and cattle 0 0

Total 60 100

Source: own survey 2017

As shows in the above table 33% of the sample respondents owned cattle, 22% of owned goat, 8% of
owned sheep and 37% of the respondent owned both cattle, goat and sheep and the reaming 0% owned
both camel and cattle. But as use knows reaming animals or owned livestock’s is the major economic
activity in agricultural production. Therefore, the agricultural output is improved because the types of
livestock owned by the respondents are very important to improve farmer’s productivity in the study
area.
 4.1.17. The effect of agricultural cooperative in improving income of the farmers
Table 17 shows the effect of agricultural cooperative productivity income of the farmers by the sample
respondents.

Agricultural production Number of respondents Percentage

Increase 40 67

Decrease 12 20

Constant 8 13

Total 60 100

Source: own survey 2016

As the above table respondent that 67% of the sample respondents increase their agricultural product,
20% of respondents decrease agricultural production output through a year and 13% of the sample
respondents are Constant.

This implies that the minorities of the respondents is not improving their agricultural output through a
year. Due to the absence of adequate rainfall, lack of modern fertilizer and so on. But majority of 67%
of the respondents improve their agricultural output due to use properly use modern fertilizer, improved
seeds, irrigation and so on.

4.1.18. The role of farmer’s agricultural cooperative in food security

Food security refers to the ability of household to meet the consumption level on a year to year. In
order to increase food production, while at the same time insuring sustainable relationship with the
natural environment and sustainable rural society forming acting through the own organization need to
take at central role.

Hence agricultural cooperative provides appropriate food staff's as well as the household equipment
and ensure their consumption at maximum nutritional value to members and their families. Such food
can be supplied through household respectively. The agricultural cooperative has a major role in food
production in konso woreda.

According to the respondents total agricultural production for which farmers’ cooperative provide
inputs. This thank as greater influence to set enough food for household consumption of this that have
reserved the service.
Table.18 Response of food security

Item Response No of Percentage

response share

Effect on Yes 54 90 %
food security
No 6 10 %

Total 60 100 %

Source own survey: 2017

Depending on the above facts the farmer were requested whether they are food secured or not after
become the member of agricultural cooperative.

As table three show that 90% of the respondents replaced that the agricultural cooperative have helped
them able to be food secured while the rest of them that means 10% of the respondents replaced that
give they have been food measure for those official of the farmers’ cooperative argued that , their
access to resource peasants combine input manners which yielded high production to attain food
security and also official agreed that 10% is not food secured because the proportion of female headed
in small with respective to Male in the study area and access problem related mainly with low income
diversification capacity poor infrastructure with marketing and transport are made them of food secure,
you seen the reality agricultural cooperative are effective of food security and also increasing
productivity of farm level.

Agricultural is the process of development, increasing food supply and rural income to enlarge market
for urban output as well as provide resources to expand output. However, agricultural productivity is
low and there by low output because of traditional way of farming.

4.1.19. The improvement of agricultural activities of farmer’s cooperative

Table.19 Improvements in farming activities after joins cooperative

Description Member of respondents Percentage

Improvements in technology 4 7

Improvements in saving credit 16 27

Improvements in living standards of family 40 66

Total 60 100

Source: own survey 2017

 The above table indicates 66%of the total sample of respondents can improve their living standards of
their family after joining the farmer’s agricultural cooperative. 27% of respondents are improving
saving credit habits and 7% improve in technology. Generally in the study area majority of respondents
can improve in living standards of their family and the cooperative of farmers has fewer improvements
in technology, so the farmers’ cooperative is not available in modern technological tools to produce
high level of agricultural output

4.1.20. The main factor affecting agricultural output of farmers’ cooperative

Agricultural output in the developing countries is decrease due to different factors like, climate change,
the degradation of land, low soil fertility, illiteracy, lack of quality seeds, lack of entrepreneurship in
agricultural zone, weak at agricultural structure internal and international migration and draught, most
farmers in developing countries are characterized by dependency of traditional instrument and farming
practice. In addition to this, proper production practice are not utilized and farmers systems are
traditional and backward, land preparation, planting methods, seeding rate, crop production cultivation
and harvesting are not performed properly. According to the surveyed sample there are many factors
that affect low agricultural output in the study area and analyzed in the following table.

Table 20 shows main factors affecting agricultural output of farmers ’ cooperative on the sample
respondents

Factors Number of respondents Percentage

Rain fall variation, traditional method, land30 50

fragmentation and climate change

Lack of technological in puts like, fertilizer,14 23

improved seed, pesticides, herbicides

Soil erosion, deforestation 4 6

Lack of extension service, like, experience sharing,4 6

farers training agricultural credit.

Lack of oxen, lack of awareness, natural hazards,9 15

low fertility of land, high price of fertilizer

Total 60 100

Source: own survey 2017

As we can see in the above table most respondents 50% of the sample respondents respond there is high
variation of rainfall, land fragmentation or small land producing by traditional method in the areas. If
there is high variation of rainfall, there will be risk and uncertainty on the rural people when they start
their activities (or to plough) because are depend on rain fall so as to produce their agricultural
products. And as the respondents said there is shortage of land (land fragmentation), And 23% of the
sample respondents have problem on lack of technologies inputs like, fertilizer, improved seed,
pesticides, herbicides, 6% of the sample respondents affected their lands by soil erosion and
deforestation are the main problems of agricultural output, this increase from time to time due to higher
population. 6% of the sample respondents have problem on lack of extension service. 15% of the
sample respondent have problem on lack of oxen, lack of awareness, natural hazards, low fertility of
land and high price of fertilizer. By this and other factors the agriculture output of the household are
affected and influenced farmer’s production of agriculture.

CHAPTER FIVE
CONCLUSION AND RECOMMENDATION

5.1. Conclusion
The study examined the role of agricultural farmers’ cooperative in improving agricultural productivity
in insuring household food security improving members income, price input supply and supply
accessibility.

Female participation in agricultural cooperative activities is very low and leads to low agricultural
output. The majority of the respondents that participated in the agricultural cooperative activities are
between the ages of 31_45.Most of farmers of agricultural cooperative of konso woreda are illiterate
and have awareness about modern farming system and their level of income is sufficient to improve
farm level productivity.

In konso woreda the farmers’ cooperative owned and cultivated land is medium size. It is the main
causes to improve agricultural output of farmer’s agricultural cooperative of the woreda.
Most households of the farmer’s agricultural cooperative of the woreda have access to micro finance
institutions credit system, extension service, farmer training, and sharing experience and use modern
inputs like fertilizers, improved seeds and tools of agricultural. This leads to improve agricultural farm
level productivity of outputs.

Most households in the woreda have less fertile land. But by using modern fertilizer usage leads to
improve agricultural outputs. Most farmers have enough Oxen and most of the societies use traditional
production method, and traditional fertilizers, majority of the farmers practiced ploughing by oxen,
both oxen and dug.

Cultivation period of production in the Woreda is twice a year and because of rainfall variability; soil
erosion and desertification are expanding agricultural lands and increasing of the number of population
from time to time.

5.2. Recommendation

 In order to improve the farm level productivity of agricultural farmers’ cooperative output and
to improve the productive capacity of farmers, the following policy measures have to be
undertaken:

 The farmer should enhance the land quality through improve soil structure, organic matter and
controlling land degrading, cropping and pasturing practice contribution to production
intensification and sustainable land use.

 Women’s affairs office, educated people, and other concerned body should work in order to
change the backward social attitudes that undermine women and increases the productive
capacity of women in agricultural cooperative production and the government should create
awareness for female and avoid bad culture influencing towards agriculture.

 Reducing traditional farming system by training farmers and experience sharing in the
agricultural techniques through distributing of new technologies, expanding integrated
 agricultural extension services, intensive farming and developing working habit by motivating
farmers to reduce negative side of bad working culture of farmers’ cooperative.

 Government and other concerned body should go through the provision of agricultural
extension, motivation and promoting the expansion of credit institution to the farmers’
cooperative advisory service on continuous basis in addition proving advanced technologies.

 Modern agricultural inputs are beyond the capacity of farmer to purchase because of their
expensiveness. So government should distribute these inputs with low price by subsidizing and
providing access to credit with low interest rate to bring desired economic development. The
demand of modern fertilizers is very low in the woreda because of high price. So the
government should distribute at low price and to increase the demand of these inputs.

 To increase agricultural output the government should provide the infrastructure, and to make
the market nearest to the farmers’ association.

 To increase agricultural output the government should provide the extension service to the
farmers and agricultural cooperative office managers should give training to small scale
farmers, giving advice and awareness for the illiterate farmers about importance of modern
technology, improved seeds and other mechanisms of that improving the agricultural output.

 The farmers should use different mechanisms to control the factors affecting agricultural output
like using irrigation for uncertainty of rainfall distribution, by reforestation for conservation of
forests, using crop rotation and other mechanisms should be taken carefully.

 Research must be done on the agricultural farmers’ cooperative production or activities so as to

improve the output of the agricultural farm level productivity.

 The government should encourage farmer’s participation in cooperative by using it as a medium

to reach the farmers in giving out incentive to farmer’s father than targeting individuals who
would divert such incentive to unintended purposes.

 Extension agents should utilize cooperative farm to reach the farmers on information to
increased productivity.
 Government should empower farmers’ cooperative so as to be able to grant more loans to
farmers, as loans administered under this condition will be managed and supervised with high
resultant effect.

REFERENCE

 Barton. D (1998) what is agricultural cooperative in agricultural cooperative ed.o.cobial 1-20

New Jersey USA, prenficehallince.

 Barraket (2002) Sustainable Communities Cooperative Solution for rural renewal accora report.

 Bershah 2003; ETV konso documentary August 2009.

 Chang Ken fun .C Menegilie (2011) performance evaluation indexes system construction on
farmer specialized cooperative.

 CAD Fijian LIU HULIN .G.HOA (2010) performance evaluation on spread cooperative
organization of farmer.

 Clover .J. Food security in sub-Saharan, Africa Security review voles 12, 213 cooperative
review 2008:

 Holloves .J Michislon co, egadoic agro industrialization cost cooperative international food
research Washington DC 1999.
 Jonat Bhutan kary (2000) Ethiopia rural development options.

 ICA (2005) http// www.ICO.coop/ accessed. September (2005).

 ICA Geneva (2004) international cooperative agency volume (2004).

 ICA 2008; international cooperative agency, international labor organization: 2004.

 NCFC (2005) http// www.Act.ones/ accretion on output Sep 2005.

 LCBA (2005) http// www.Nab.accvedion on Apr 29 2005.

 M.P. Todaro - Economic development 2nd / orgmen .London, 1994.

 Ministry of agricultural and rural development (Aug. 24, 2004), productive save net program
implementation manual.

 N.Gregaru Manliw (2000) Macroeconomics 4th edition.

 USAID Coffee cooperative help small farmers let affair trade price through fair trade other
specifically coffee market Washington DC 2003.

 Volume 2 2004 report of Ethiopia Economic association.

 Wikipedia (2011

 Woldiya 2003; agricultural development in Ethiopia Economy

 APENDEX

I am third year economics student in Wolaita sodo university, conducting a research for the fulfilled of
bachelor art in economics under a topic (the role of farmers’ cooperative in improving agricultural farm
level productivity, in case of konso woreda). I kindly request you give an information important for the
research that confidential and use only for academic purpose. So give your answer by making (✔) in
the box provided for given questions.

General information

1. Sex. Male female

2. Age. ---------------------

3. Marital status. A. Married B. Single C. Divorced

4. Family size. --------------------

5. Educational background. A. Primary B. Secondary

 C. tertiary D. Others

6. Do you have another occupation in addition to farming? A. Yes B. No

. If "yes" what is your additional occupation? A. Gov.t employee B. Trading

C. Hand craft D. Others

8. Livestock holdings

No Type of Numbers of
livestock livestock

1 goat

2 Oxen

3 Sheep

4 Caw

5 Donkey

9. What type of crop do you produce?

A. Maize B. Tiff C. Sorghum D. Barley

10. For what purpose do you produce?

A. For home consumption

B. for commercialization C. Others

11. What is the annual amount of crop production /quintal? ----------------------

12. Which service do you receive from agricultural cooperative?

A. Input supply B. Seed supply

C. Technical support D. market

13. What type of tools used to plough the farm land?

A. Tractor B. Oxen C. Traditional hand tools D. Others

14. Do you use improved seed to increase agricultural productivity?

 A. Yes B. No

15. If "yes" how much the amount of improved seed used /kg? -----------------

16. The price for inputs provided by farmers is----------

High Law Medium constant

17. If your answer no" 16" is high, what is your reason?

A. exist of competition for other cooperative

B. Farmers high willingness to pay

C. Lack of accessibility of inputs supply to farmers in time

18. Are you able to produce sufficient amount to feed your family?

A. Yes B. No

19. If your answer no19 is "No” what is the reason? A. Climate change

B. Absence of agreement between farmers

C. Lack of rainfall D. Geological location of farm land

20. Do you save in bank from your income? A. Yes B. No

21. If yes how much do you save per year? ---------------------------

22. Do you receive fertilizer usually? A. Yes B. No

23. If your answer is "No” what is reason?

A. Lack of awareness B. Lack of accessibility

C. High cost of fertilizer D. Ability of farmers

24. What amount of fertilizer is used in each hectare per Kg. -------------------?

25. What contribution of cooperative to the society in your opinion?

A. Opportunity of employment B. Job creation to the society

C. Market contribution of output D. Others

26. Is there an improvement in your farming activists after you join cooperative?

A. Improvement in technology B. Improvement in saving credit

C. Improvement in living standard of family D. Others

27. How many times do you cultivate in a year? A. Once a year

B. Twice a year C. Three times a year

28. Are you familiar with crop rotation?

A. Yes B. No

29. Would you get access to credit? A. Yes B. No

How much you borrowed_______________

30. Konso woreda farmers have interest to participation in agricultural cooperative production?

A. Yes B. No

If "No" What is main reason.

----------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------
--------------------------

----------------------------------------------------------------------------------------------------------------------

31. Do you facing any problems in producing crop production?

A. Yes B. No

If yes least the problems ?

--------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------
---------------------------

----------------------------------------------------------------------------------------------------------------------------
---------------------------