Assessing the Challenge and practice of Cooperatives in Agricultures Output Marketing: The Case of Selected Multipurpose Agricultural Cooperatives in Ambo Districts, West Shoa Zone, Oromia, Ethiopia

Abstract

When the issue of economic growth and development of the country is raised, one has to take into account is the performance of the growth of smallholder farmers. Reducing the challenges they are facing and utilizing their potential can help to accelerate the agricultural cooperatives for self-reliance, higher productivity, and promotion of agricultural development. Therefore, the major concern of this study is to empirically analyze the role of agricultural multipurpose cooperatives in agricultural output marketing found in the Ambo District Oromia State, Ethiopia. Both primary and secondary data were used for this study. Primary data pertaining to the year 2014/15 EC is collected from the selected sample respondents through structured questionnaires. Secondary data of cooperatives were taken into consideration to examine the performance of the output marketing by the cooperatives in the districts. The major concern of this study is to empirically analyze the role of agricultural multipurpose cooperatives in agricultural output marketing found in the Ambo District Oromia State, Ethiopia. The study is a descriptive and explanatory type of research design. The target populations of the study were cooperative members and users of the cooperative of the agricultural output marketing of the ambo district. To take a sample, the researcher employs simple random sampling methods. The researcher has purposively select Meti kebeles from kebeles of Ambo district, and research has taken a sample of 354 respondents. In the study, both primary and secondary data were used by the researcher. The researcher analyzed the data by using descriptive statistics and SPSS software package to analyze the available data which refers to the transformation of raw data into a form that would make it easy to understand and presented in tabular form by using percentage and frequency. The Results of findings show that, the majority of sample households buy items from cooperatives assuming buying items from cooperatives secure such advantages as relatively cheaper price, better quality, and correct measurement of items over buying items from private businesses or shops, farmers, however, were not getting all the agricultural inputs from their cooperative society on the right time and at the required quantity; cooperatives are not at encouraging level in their performance of output marketing and households could not guarantee improvement in agricultural production for they were not getting all the agricultural inputs from cooperatives. Cooperatives also face a wide array of constraints both internally and externally ranging from maladministration to market uncertainties; cooperatives have been found hardly successful in creating direct and indirect job opportunities for members; the day-to-day activities of cooperatives were run by a board of directors, volunteers, government body, Finally, recommendations were made in order to enhance the performance of cooperatives and for further research to look deep into policy options to improve performance of cooperative