An Assessment of the Factors Affecting Multipurpose Agricultural Cooperative Development in Ambo district, West Shoa Zone, Oromia National Regional State, Ethiopia

Abstract

For a long time, cooperatives have played a significant part in the socioeconomic life of communities, but they have also faced problems and disadvantages. As a result, countries now have their own individual histories of agricultural cooperative development while there are some parallels. Cooperatives may also provide some non-economic benefits as they are claimed to be an alternative organizational model for sustainable development and well-being of the society where economic, social, and environmental factors are inherently interdependent. however, the general objective of this study was to assess factor affecting the Multipurpose agricultural cooperative development in Ambo District, West Shoa Zone, in order to achieve objective of the study the researcher used mixed research approach in order to triangulate the validity of the study and descriptive research design in order to describe the problems of the study area. Also a primary and secondary source of data was applied for the stud. For qualitative approach the researcher used interview, KI, FGD and document analysis and for quantitative research descriptive and inferential statics were used. Among them frequency, percentage, tables and chi square and Logistic Regression models (Binary Logit). Purposive sampling technique was used to select the study area Ambo district and four multipurpose primary cooperatives from the frame and proportionally 122 sample respondents have been selected and four multipurpose cooperatives are selected randomly by using simple random sampling techniques. For the realization of the stated objectives, the study included the variables like cooperative status factors (membership size, capital growth, supply): institutional factors (credit service, information service, training service, committee, extension service support): socio-economic factors (dividend, surplus, income, trust, member’s confidence, member’s participation). According to the results of the survey, 7 out of 14 nominal variables (membership size, capital growth, committee, training service, extension service, surplus, and trust) were found with 1%,5% and 10% significant levels in model respectively. The model result show that (the Nagelkerke R Square shows that) about 78.6% of the variation in the outcome variable is explained by this logistic model, hence this is a good model fit. The most important factors affecting multipurpose agricultural cooperative development, as perceived by sample respondents with respect to internal and external factors include reasons such as membership size, capital growth, supply, credit service, information service, training service, committee, extension service support), socio-economic factors (dividend, surplus, income, trust, members confidence, members participation does not help multipurpose agricultural cooperative development. Even, where all these have been put in place, other factors that need to be considered for the sustainable agricultural cooperative development include capacitating the human and technical resources of the Woreda cooperative promotion bureau by the state machinery and enforcement of laws and regulations favor of such development.