The Role Of Agricultural Cooperative Societies In Economic Development

THE ROLE OF AGRICULTURAL COOPERATIVE SOCIETIES IN ECONOMIC DEVELOPMENT

 (A CASE STUDY OF AGRICULTURAL COOPERATIVE IN ISIALA MBANO. L.G.A)

ABSTRACT

This project work examines the role of Agricultural cooperative societies in economic development of Nigeria. The aim is 70 investigate the ways in which cooperatives can act as agents towards sustainable community development. The first part of this project handled the introduction/Background of the study, population of the study, Objectives of the study, Significance of the study, the research hypothesis, Scope of the study and Limitation and the definition of terms. The researcher reviewed some literatures that relates to the research work on hand. Some of such literature includes the text books, past projects that relates to the current work, journals, magazines etc. this work showed the research methodology employed in this work. It includes the Research Design, Area of Study, Sample and Sampling techniques Instruments used in collecting Data, Method of Data Presentation and Analysis. The data’s as collected was presented, analyzed and testing of hypothesis. Finally, the summary of finding, conclusion and recommendations were made by the researcher.

 

 

 

 

 

 

TABLE OF CONTENT

Title Page                                                              i

Approval Page                                                               ii

Dedication                                                             iii

Acknowledgement                                                  iv

Abstract                                                                v

CHAPTER ONE

INTRODUCTION

1.1      Background of the study                                          1

1.2      Statement of the problem                                 4

1.3      Objective of the study                                      6

1.4      Significance of the study                                   6

1.5      Research Question                                           7

1.6      Research Hypothesis                                        8

1.7      Scope and Limitation of the study                      9

1.8      Definition of terms                                           10

 

CHAPTER TWO

LITERATURE REVIEW

2.1      Agriculture and provision                                  15

2.2      Brief History of Isiala LGA                                 18

2.3      The impact of group and credit cooperative in rural lending                                                        21

2.4      Nigeria Agricultural cooperatives and rural development Bank (NACRDB)                                                23

2.5      Impact of cooperative in Agriculture                   25

2.6      Cooperative and economy                                 26

2.7      Marketing of Agricultural produce                       30

2.8      List of cooperative societies in Isiala Mbano LGA  32

CHAPTER THREE

RESEARCH METHODOLOGY

3.1  Research design                                              35

3.2  Areas of study                                                 36

3.3  Sample size determination                                36  

3.4  Instruments of data collection                                  37

3.5 Validation of the instrument                               38

3.6  Sources of data collection                                 39

3.7  Methods of dada Analysis                                  40

3.8 Questionnaire distribution and retrieval                40

CHAPTER FOUR

DATA ANALYSIS

DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1 Data presentation and analysis                                   42  

4.2 Test of hypothesis                                             58

CHAPTER FIVE

SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION

5.1  Summary of findings                                        61

5.2  Conclusion                                                      67

5.3 Recommendation                                              68

Bibliography

       Appendix   

       Questionnaire

 

 

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

       The study is on the role of agricultural cooperative societies in economic development (a case study of selected Agricultural cooperatives in Isiala Mbano).

       Agricultural cooperative are the type organized by formers in order to promote their economic interest by helping themselves to solve the economic problems collectively.

       It is important to note that agricultural cooperative societies have performed some important roles which has been of immense benefit to the economic development of the country as a whole, some of these roles as stated by Onah (2007) includes:

       Helping their members to mobilize resources among themselves for their operations and also to obtain credit from financial institutions. An agricultural cooperative usually provides joint collateral for loans form banks (e.g) certificate of registration. Such loans are usually distributed to the to help them in production and marketing of their agricultural produce.

       Also, one of the most importance role of every cooperative is to provide education, trading and information to both members and the general public. Agricultural cooperatives provide education and trading to its members in modern agricultural practices and techniques. Disseminating information to its members and general public.

       More so, Agricultural cooperative societies are suppose to be engaged in direct making of their agricultural produce. When this is done, the middle men are usually by – posed. This enables the agricultural cooperative to protect the members from exploitation.

       They are also expected to help their members in acquisition of farm inputs such as seedling, machinery etc. These farm inputs are usually purchased jointly through the society thereby reducing the high units cost which members should have incurred should they have purchased such inputs individually.

       Furthermore, it is the duty agricultural cooperative societies to help the member to enjoy the economics of large scale in production. Such economic advantages as bulk purchase of farm economic inputs, mechanized farming, group and large scale farming are economics of scale which are enjoyed by members of agricultural cooperatives which cannot ordinarily enjoy as individual farmers.

Finally, Agricultural cooperative societies supposed to be first runner in providing employment in rural areas by encouraging youth to involve in large scale/group mechanized farming. Not forgetting that agricultural cooperative societies that engages in multipurpose activities helps in providing other essential service and goods for the farmer in the rural areas.

Having said these, it is the desire of the researcher to ascertain if the above listed roles has been met by the agricultural cooperative societies; only time will tell.

1.2 STATEMENT OF THE PROBLEM

       The major concern of his researcher work is to identify the specific roles of agricultural cooperative societies in the economic development of Isiala Mbano L.G.A specifically and Nigeria in general.

       In tackling this topic, the study will seek to fund answer to the following:

1.  The impact of agricultural cooperative societies in agriculture.

2.  The link between cooperative and economic development.

3.  To ascertain the level impact of the roles on the economic development of the country.

4.  The hindrances of the said of the cooperative societies in agriculture towards our economic development.

Finally, the study will equally ascertain the level impact technological backwardness have had on the agricultural cooperative societies towards our economic development.

 

 

1.3 OBJECTIVES OF THE STUDY

This general objective of this research work is on the role of agricultural cooperative societies in economic development of the country.

       Also, the research work will seek to:

1.  Examine the role of agricultural cooperative societies in food production.

2.  Determine the role of agricultural cooperative societies in improving the living standard of the people.

3.  Determine the involvement of cooperative society in agriculture in Nigeria.

1.4 SIGNIFICANCE OF THE STUDY

In this study, it is hopeful that the end of this research work will bring most problems that the small scale farmers suffer in accessing the funds, farm inputs extension service, though cooperatives will come to lime light. Those who are increased in knowing these issues will have them of their finger tips.

       The recommendations of this study will help as follows:

i.            The inhabitants of Isiala Mbano Local Government Area.

ii.           The society in general

iii.         The cooperatives cum agricultural organizations

iv.         The academicians etc.

1.5 RESEARCH QUESTIONS

       The research questions are arranged questions meant to be asked by the researcher and receive a feed back from the respondents for the purpose of the study the following research question were posed.

i.            Do Agricultural cooperative societies provide credit facilities for agricultural?

ii.           Do agricultural cooperative societies provide adequate farm input?

iii.         What are the importance of agricultural cooperative societies in agriculture?

1.6 RESEARCH HYPOTHESIS

       For the purpose of the study, the following hypothesis are formulated.

Ho: Cooperative do not provide credit (finance) facilities for agriculture.

Hi: Cooperative do provide credit (finance) facilities for agriculture.

Ho: cooperative do not provide adequate farm input.

Hi: cooperative provide adequate farm input.

 

 

1.7  SCOPE AND LIMITATION OF THE STUDY

       The study covers the extent of cooperative practices in Isiala Mbano Local Government Area. The work therefore covers the period between 2005 – 2008 with great emphasis on the impact of cooperatives towards providing the required changes and growth in agriculture.

       The topic of this research work is to elaborate that it would have been more defensive but narrowly based as a result of time constraints, lack of data information, cost of finance estimates have been a handicap (the exorbitant cost of writing materials). Transport and other associated problems has greatly influenced the data.

       However, within the frame work of the limitations great pain has been taken to put them together, facts and figures to make the objective of the research reliable.

 

1.8 DEFINITION OF TERMS

Cooperative Society:

Voluntary association person with similar need who paid their resources together in order to improve their socio-economic well being through a democratically ruined business enterprise.

Agriculture:

       This is an art that deals with the production of both food crop and cash crops, roaring of animal fishery production for the production food for man and raw materials for industrial use.

Development:

       This is defined as the qualitative improvement in the living standard of the whole population and in the structural changes in the distributive input system of the economy.

Economy:

Economy can simply be defined as the relationship between production, trade and the supply of money in a particular country or region.