Abstract:
This study examined the marketing challenges and benefits associated with cooperative
membership among farmers engaged in teff, maize, and wheat production in Ambo District,
Oromia Regional State, Ethiopia. Data were collected from 240 respondents selected from the
Sakale Faris and Wolkite Cooperative Societies using a structured questionnaire, achieving a
high response rate of over 96%. The majority of participants were male (65%), aged 26–35, with
at least a secondary education and over three years of cooperative experience. Key marketing
challenges identified included unstable market prices (approximately 46%), exploitation by
middlemen (about 44%), high competition from private traders (39%), inadequate storage
(36%), poor transportation infrastructure (32%), and limited access to credit (30%). Nearly one
third of respondents rated market linkages as fair, while 18%–23% described them as poor or
very poor. Despite these constraints, cooperatives supported members by supplying seed and
fertilizer (65%), providing technical training (49%), and improving market access (60%).
Reported benefits included increased income (81%), job creation (60%), and improved food
security (49%). However, persistent issues such as shortages of quality inputs (43%) and
climate-related risks (32%) continued to hinder productivity. To explore the predictors of
marketing problems, a binary logistic regression model was applied. The results revealed that
higher service quality (p = 0.004) and availability of collateral (p = 0.009) were significantly
associated with reduced likelihood of facing marketing challenges. Similarly, effective use of
credit (p = 0.045) was also linked to a lower probability of marketing difficulties. These findings
suggest that improvements in service delivery, credit access, and collateral mechanisms can
significantly enhance marketing performance. The study concludes that while cooperatives
contribute meaningfully to farmers’ livelihoods, addressing structural issues such as
infrastructure, financing mechanisms, and market connectivity is critical to enhancing their
sustainability and long-term impact.
