CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
Agriculture accounts for about 20 percent of GDP, in the
African sub-region (World Bank, 2005); two third of the people derive from
livelihoods and 40 percent of exports commodities come from this sector (World
Bank, 2000). Despite the importance of the agriculture sector, its performance
over the last 30 years has been disappointing: agriculture and food production
per capital in West Africa has stagnated in last ten years (FAO, 2005) yield of
grain crops are less than half, those of other developing regions in Asia and
South America. If Africa is to feed itself, lift its people out of poverty and
attain a satisfactory level of sustainable growth, the poor in the performance
of its agricultural sector must be addressed. It is the dominant sector in the
rural areas of Nigeria as it provides less than 50% of the country’s cultivable
agricultural land is under cultivation particularly because smallholder and
farmers who use rudimentary production techniques cultivate most of this land
with resultant low yields. The smallholder farmers are constrained by many
problems including those of poor access to modern inputs and credit, poor
infrastructure, inadequate access to markets, land and environmental
degradation and inadequate research and extension services (Oluwatayo, et al
2008).
In an effort to overcome some of these issues, donor
agencies and government have re-emphasized cooperative as a strategy to promote
collective action to strengthen smallholder’s livelihoods by linking them to
national and international markets. Cooperatives are defined as autonomous
association of persons who unite voluntarily to meet their common economic and
social needs aspiration, through a jointly owned and democratically controlled
enterprise (International Cooperative Association’s, (ICA) 1995). Cooperatives
are established by like-minded persons to purse mutually beneficial economic
interest and they provide a unique tool for achieving one or more economic
goals in an increasingly competitive global economy. These goals include
achieving economic of size, improving bargaining power when dealing with other
business, purchasing in bulk to achieve lower prices and obtaining product and
services otherwise unavailable.
Develtere (1995), described cooperative as a medium through
which services like provision of farm input, farm implements, farm
mechanization, Agricultural loans, agricultural extension, members education,
marketing of members farm produce and other economic activities and services are
rendered to members. Cooperative can be multi-purpose or focused on area. An
example of the latter is farmer’s cooperative provides smallholder farmers with
economic of scale by facilitating cheaper and more efficient access to inputs,
production technologies, market information and markets.
Today in an area where many people (especially small-holder
farmers) feel powerless to change their lives, cooperative can serve as a
strong, vibrant and viable economic alternative. They are based on the powerful
idea that are formed together, a group of people can achieve goals that none of
them can achieve alone. It has being considered as a third force, an
alternative and countervailing power to both big business and big government
(ICA, 1995)
Agricultural cooperative encourage members to engage in
joint cultivation of food and cash crops among others. In view of the financial
capacity and high level of underdevelopment, an individual farmer cannot
achieve the desire for large-scale production. It is therefore; in the farmers’
interest that resources are pulled together so as to gain tremendous collective
advantage and thus widening the industrial base of the economy and the
management techniques of the farmers (Enikaselu et al, 2005).
Group projects are increasingly being relied upon by
governments, bi-and multi-laterals and non-governmental organizations (NGOs) as
the preferred model for rural development project implementation and poverty
alleviation (Grootaet, 1998; Harris, 1997; World Bank, 1997). Thus despite the
low performance of cooperatives, the World Bank (1997) claims they remain the
preferred form of organization, and perhaps the only organization with which
rural people are familiar (Hussi 199:12). For instance farmers cooperatives
society are formed to bring in more agricultural inputs and product marketing
services members, increase competition in the agricultural service sector and
provide saving and credit to members, among many other function (Porvali,
1993). Small holder farmers stand a better chance with the formation of
agricultural cooperatives.
The cooperative as a social organization began early in
human development. Cheney (1999) opined that cooperatives were always inspired
by the doctrine of human fellowship, by the new spirit of social services and
by a firm faith that the time would come when people would work for the whole
community, instead of their own gains. Ghosh and Maharjan (2001), modern
cooperatives started in 1904 in British India when the cooperative societies
act was enacted. The purpose of the cooperatives at inception was to provide
cheap credit to the farmers. Cooperatives was introduced into Russia in
mid-19th century from Germany (Lohlein andWehrheim, 2003), but the exact years
was not stated. However, Lohlein and Wehrheim (2003) reported that by 1883,
there were about 981 cooperatives in Russia. Those in rural areas are called
credit cooperatives while those in the urban centers are refer to as credit
union.
Furthermore, before Rochdale, cooperative pioneers societies
had practiced most of the Rochdale principles. Gates (1998) found profit
sharing and surplus sharing cooperatives between workers and owners, as far
back as 1795 and (as might be expected) the genius of the Rochdale cooperative
was that they actually developed principles, which they then practiced and
popularized. Subsequently, following the guiding principles of cooperative
promotions by the ICA, various cooperatives rapidly developed worldwide-both in
developed and developing countries and this made immense contribution to social
and economic development (ICA, 2008).
The evolution of cooperatives has shown that the cooperative
movement has been influenced by the social and economic conditions. Cooperative
was created by their members to deal with their own difficulties, in relation
to aspects of economic change (Fairbain, 2004a). Djik (1997) summarized the
historical reasons to industrially firms which included the need for
counterbalancing power; to gain access to industrially produced goods and
services; efficiency by economies of scale; risk management and the improvement
of members’ income and the rural economy.
Illiopulous and Cook (2004) over-view the historical
development of famers’ cooperatives in America, and divided them into two main
types which included ‘Traditional’ cooperatives and; new generation’
cooperatives. Traditional cooperatives often refer to producer-owned,
controlled with open membership, and risk capital generated primarily by means
of retained earnings from member patronage and illiquid equity ownership
rights. A new generation cooperative (NGOs) often adapts “a propertyrights
structure that enables them to partially ameliorate the aforementioned
constraint” (Illiopoulous& Cook, 2004). Cook and Burress (2009) further
research also proposed a dynamic life cycle framework includes five phrase of
economic justification: organizational design. Growth, glory and heterogeneity,
recognition and introspection, and choice (Cook and Burress, 2009).
The early cooperative societies in Nigeria were established
to facilitate cocoa farming which led to the establishment of the Cooperative
Registrar of the Colonial Government in 1935.
Later, these cooperative societies began providing
intermediation to members (World Bank, 2000). Eventually multi-purpose
cooperative societies were designed to simultaneous solve several problems
facing members and marketing of farm produce. Consequently one could arguably
state that the need to reduce shortage of loans to the low income farmers among
the members thus promoting agricultural development brought about cooperative
societies in Nigeria (Oluyombo, 2010). The operation of cooperative within and
outside Africa varies from one nation to another. In some countries, there are
rules and regulations guiding the operation of cooperatives which they are
expected to comply with. The regulation may require the cooperative to be under
the direct control the Central Bank of such nation or a separate agency may be
created to monitor and control the affairs of cooperative depending on what the
country deems acceptable to do (Henry and Schimmel, 2011).
The survival of cooperative societies in any country depends
largely on the overall political and economic environment of such nation
because cooperatives exist within the wider economy of the particular country
where it operates (Calkins and Ngo, 2005). The practice of cooperative has
grown over the years across the globe either as formal or informal
institutions. The regulation of farmers’ cooperatives is a function of the roles
they are expected to perform in such economy vis-a-visthe level of economic
development and poverty in such a nation (Oluyombo, 2010). Cooperative with
track records of prudent management and cohesive membership stand to play a
major role in agricultural and rural development in Nigeria.
International organizations such as the United Nations (UN),
the World Bank and the International Labour Organization (ILO) are convinced
that agricultural cooperatives can play a vital role in achieving sustainable rural
development. UN (2008) noted that cooperatives are by nature with concerned
with democratic and human values, as well as car8ing for the environment.
Successive governments in Nigeria recognize that cooperative
societies are essential for the development of the agricultural sector. This
laudable goal was supported by the establishment of the Agricultural
Development Programme (ADPs) and he River Basin and Rural Development
Authorities (RBRDAa). Both ADPs and RBRDAs always organize farmers under their
programmes into cooperative group for better co-ordination of the farmers’
activities. The cooperatives approach to group action has been effectively utilized
by these two programmes. Although, the primary objectives of forming group
farming cooperatives in ADPs and RBRDAs is to increase agricultural outputs, it
has been possible to get them involved in marketing of their produce as well.
Farmers are the single largest group of users and managers
of land, water, and other ecological resources throughout the world. Most small
holder farmers regardless of gender require services and information obtainable
through membership of agricultural cooperative. Such information includes
appropriate technology and sound technical advice not only to increase their
agricultural productivity and incomes but also make farming and rural life
richer and more sustainable. Herein lies the retinal why agricultural
cooperative is deserving of research attention particularly in Abaji Area
Council where major farming activities are taking place around the Federal
Capital Territory of Nigeria.
1.2 Statement of
Research Problem
Small-holder farmer including Nigeria has accounted for over
90% of all agricultural output in Nigeria (World Fact Book, 2011). The farmers
are burdened with high cost of farm inputs, insufficient farming techniques,
inadequate infrastructure, poor producers’ prices and heavy constraints in
obtaining credits and insurance. Benson (2004) remarked that the situation is
further compounded by the general economic downturn and governments drive to
remove all subsidies on inputs such as fertilizers, vaccines and foundation
stock. Consequently, the cooperative option comes into focus as viable way to
effectively mobilize farmers to form groups and pool resources so as to become
more effective in agricultural production.
In addition to the values and principles of cooperatives,
Veerakumaran (2005) explained that cooperative serve as fundamental tool for
achieving food security at household level. Cooperatives are the best
institution invention for attaining food security in any country.
The developed national like United States of America,
Canada, Australia, almost all European countries and socialist country like
China have attained food self-sufficient through cooperatives (Chambo, 2009)
Gertler (2001) using the profit model studied the potential
impact cooperatives have in sustaining regional economies in Canada. The
results show that cooperatives are practical vehicles for cooperation,
collective action and they build and reinforce community, stabilize regional
economies and provide a favourable climate for further investment cooperatives
reduce inequality and promote equitable sharing of the cost and benefits of
development. Cooperatives can promote economic democracy and the empowerment of
marginalized groups a hallmark of sustainable development and a precondition
for shared responsibility.
Adefila (2012) examined the factors influencing the
performance of farmers’ cooperatives organization in Gurara Area of Niger
State, Nigeria using multiple regressions. The results from the regression
analysis revealed that farmers’ cooperative organizations are variously involved
in agricultural development and that factors’ influencing their role
performance.
Include annual income, experience in farming, leadership
training and membership size. The author concluded that cooperative in whatever
form are seriously viewed as catalyst in the process of rural socio-economic
development and the law should empower cooperatives to perform certain
functions, such as strengthening their bargaining power as effective agents of
socio-economic rural transformation.
Ojiako and Ogbukwa (2012) examined loan repayment capacity
of small-holder cooperative farmers in Yewa North Area Ogun State, Nigeria
using regression technique. The results show that farm credits played vital
roles in the socio-economic transformation of the rural economies. However,
loan acquisition and repayment were characterized by numerous challenges
smallholder cooperative farmers’ loan repayment capacity would require
conscious use of policies directed at increasing loan size and farmers’ farm
holdings and/or reducing household size.
Similarly, Ofuoku and Urang (2009) assessed the effects of
cohesion of farmers’ cooperatives societies on loan repayment among members in
Delta State, Nigeria using Spearman’s rank order correlation analysis. The
study observed that there was almost perfect positive relationship between
rates of loan repayment perception and cohesion. Consequently, they recommended
that extension agents should take advantage of the effect of cohesion on loan
repayment to promote cohesion in upcoming cooperative societies.
In evaluating agricultural credit utilization by cooperative
farmers in Benue State, Nigeria, Okwoche et al (2012), observed a significant
difference between the agricultural output and income of farmers’ before and
after the utilization of loan acquired. The t-test analysis shows that famers
joined the farmers’ cooperatives societies mainly to access credit.
They recommended that the farmers should be adequately
motivated with needed credit facilities as this will further balance agricultural
production.
However, considering various studies (Gartler, 2011
Veerakumareen, 2005; Ofuoku and Urang, 2011; Adetila, 2012; Ojako and Ogbulewa,
2012; and Okwoche, 2012) it is on this aforementioned explanation that informed
the choice in the development of agricultural in Abaji Area Council.
1.3 Objective of
the Study
In general, this study set out to determine the extents to
which the cooperative societies can contribute to the development of
agriculture in the specific objectives are:
1. provide
insight into the role cooperative societies plan in the development of
agriculture in Abaji Area Council.
2. identify the
types of agricultural cooperative societies in the Area Council
3. examine
problems militating against cooperative activities in Abaji Area Council
4. examine the
forms of benefit members derive from cooperative societies in Abaji Area
Council.
5. provide
insight into the process through which the community and cooperative leaders
can ensure genuine development of agriculture in the Area Council through
cooperative societies
6. examinethe
measures which all the levels of government will embark on to enhance the
cooperatives for better development in Abaji Area Council.
1.4 Significant
of the Study
In recognition of the worsening food situation in Nigeria,
successive developments have instituted different policies, programmes and
project directly or indirectly connected with agricultural production these
programmes include, the National Accelerate Food Production Programme (NAFPP of
1973), the Nigeria Agricultural Cooperative Bank (NACB in 1973) transformed to
Nigerian Agricultural and Rural Development Bank (NACRDB) in the year 2000 to
reflect the rural nature of cooperative activities in Nigeria (FGN Budget,
2000), the Agricultural Credit Guarantee Scheme Fund (ACGSF of 1976), the
Agricultural Development Projects (ADPs in 1975), operation feed the Nation in
1976, the River Basin and Rural Development Authority (RBDA in 1976), the Green
Revolution in 1976 and very recently presidential instructive on food
production, National FadamaProgrammes among others.
Despite these programmes, policies and schemes instituted by
the government to improve agricultural development, the sectors remain backward.
Moreover as governments around the world cut services and withdraw from
regulating markets, there is the need to continuously evaluate strategy that
involves the reorganization of rural producers into viable cooperatives (ICA
2007). Cooperative constitute the most appropriate instructional mechanism for
reaching the million of scattered peasant producer in the rural areas for
ensuring their access to suitable markets and credits sources for introducing
new technologies; skills and development oriented attitudes; for protecting
these peasant farmers from the exploitation of the middlemen and money lenders
and for ensuring effective participation by the peasants in the development
process (Njoku, 1998). In other words, cooperative are considered the most
effective instruments for mobilizing the pleasant farmers for rural development
and for ensuring that they benefit substantially from the development process.
This study concentrates on variables of agricultural
productivity that makes for agricultural development. This helps to trace the
role of cooperatives to ownership of farm assets, enterprises assets,
enterprise productivity and increase in farm income to determine their
contribution to agricultural development. This study seeks to contribute to the
emerging body of knowledge on how best to make agricultural cooperative to be
more productive, it will deepen the understanding of the values and principles
of cooperatives, incorporating them into competitive strategies relying on
cooperation, trust loyalty as coordinating forces of economic activities and as
sources of competitive difference in agricultural system.
The underlying argument of the study is that cooperatives,
based upon some principles represent a unique third way of social organization
that enhances technology development and extension markets information and
organization, and government policy, it is particularly useful in cases of
simultaneous markets and government failure to assure adequate credit, input
delivery, technology training, output delivery and social development in poor
areas of Africa (Brayerman et al 1991).
The findings of this study will help to suggest to
government and non-governmental agencies how social institutions like
agricultural cooperatives could overcome the problem of low agricultural
productivity and betterment of living condition
1.5 Scope of the
Study
The spatial scope of this study is Abaji Area Council Abuja,
FCT. The area council is made up of ten wards: Abaji Central ward, Abaji
Southeast ward, Abaji Northeast ward, NukuSabon-Gari ward, Rimba-Ebagi ward,
Yaba ward, Agyana ward, Alumamagi ward, Guridi ward and Gawu ward.
The content scope of the study focuses on the influence
agricultural cooperativeshave in gradual but sustained in substitution of local
implement with improved or modern ones and local species with improved ones.
That is gradual transformation from subsistence farming culture to commercial
farming.
The choice of the study area is centered on the fact that
agricultural cooperative are better and efficiently organized in those areas.
In addition, the study area is dominated by poor peasant farmers who come
together with common goal of influencing the value-chain with respect to
agricultural production, distribution, transfer and marketing. The study
focused on agricultural cooperatives such as producers, consumers, marketing
and multipurpose. Thrift and credit and not in any way cooperative in general.
1.6 Research
Questions
The objectives of the study will be served with the
following research questions:
1. What role do
cooperative societies play in the development of agriculture in Abaji Area
Council?
2. How many types
of agricultural cooperative societies are in Abaji Area Council?
3. What are the
problems associated with the cooperatives in Abaji Area Council?
4. What forms of
benefits do members derive from the cooperative societies in Abaji Area
Council?
5. What are the
processes that community and cooperative leaders take to ensure genuine
development of agriculture in Abaji Area Council?
6. What measures
can government embark on to enhance cooperative development?
CHAPTER TWO
CONCEPTUAL FRAMEWORK AND REVIEW OF LITERATURE
2.1 Conceptual
Framework of the Study
There are some fundamental and technical concepts that
demand for clarifications in the way they are being used in this study and they
include: the concepts of development, cooperatives agricultural development.
2.2 Concept of
Cooperative
The idea of people working together is the basis for the
formation of cooperatives. The International Cooperative Alliance (ICA, 2010)
as an autonomous association of persons united voluntarily to meet their common
economic, social, and cultural needs and aspirations through a jointly-owned
and democratically-controlled enterprise. This definition emphasizes that
cooperatives are based on the values of self-help, self-responsibility,
democracy and equality (ICA 2007).
Cooperative societies are community based, self co0ntrolled
and self funded microfinance institution (Simkhada, 2001) because they are
meant to operate at the micro level in most cases to serve the low level strata
of the economy, to people who in most cases lack access to formal banking
system.
Cooperatives are financial organizations that are owned and
controlled by the members and they provide savings and credit services to their
members in the community (Sharma et al, 2005). Cooperatives are a form of
microfinance institutions owned by group of people who are the members and they
provide small scale financial services-majorly savings and loans just like any
other microfinance institutions to their members. This is different from the
formal microfinance institutions such as the microfinance banks (MFBs) in
Nigeria which are meant to serve the general public. Cooperatives are voluntary
associations that are member owned, self managed and democratically controlled
within a specific location (Adebayo and Yusuf, 2004). The existence of
cooperative in a community suggest that they may be location bound or
restricted which also apply to some formal microfinance institutions especially
the MFBs in Nigeria with the microfinance policy delineating the operational
locations of MFB (CBN, 2005) either as a unit MFB or a state-wide MFB.
Cooperatives are independent association of people who
voluntarily unite to form a jointly owned and democratically controlled
enterprise called cooperatives, to meet members’ economic, social and cultural
needs (Henry and Schimmel, 2011). Cooperative can be seen as an arrangement
designed to improve the lot of individuals and enhance micro and small scale
entrepreneurs both in the rural and urban areas in mobilizing savings and
accessing fund as loans as at when needed from the scheme. Cooperative
societies are privately organized association of individuals of like minds who
come together to operate a savings and loan programme among themselves
(Oluyombo, 2010).
Cooperative is therefore, owned and controlled by the member
who voluntarily come together based on share on share value to meet members’
needs. Cooperative is an association of individuals who voluntarily
formcooperative societies (Lohlein and Wehrheim, 2003) who are united in their
quest for the economic benefits of the members. Cooperative can be an
intervention based on social intermediation in which poor people can mobilize
their savings, link them with credit and finally become self employed (Singh,
2004). The social intermediation in cooperative societies includes training of
members on different areas of vocations, health, literacy, business record
keeping and management skills as found necessary. Social intermediation also
include support for member in trouble such as sickness and those having
essential social function to perform such as burials and weddings.
Cooperative is one of a range of financialarrangement design
to attract the poor as either borrower and/or savers (Montgomery and Weiss,
2005). Cooperative is a microfinance arrangement to help the low income earners
with financial services that will enable them to create wealth without any
discrepancy as to access financial and non financialservices that are packaged
in a manner that enable those who are unable to access formal financial
services to access comparatively small loans, saving schemes and other services
for working capital and income generation (Nathan et al, 2004).
Cooperatives are privately organized institutions that are
owned and controlled by their members (Branch, 2004). One person, one vote is therefore
applicable to cooperative societies because the association is jointly owned
and by the members. There is uniformity in membership class of cooperative
members, unlike ownership of a limited company that can comprise of ordinary
shareholders and controlled enterprise (Alladadi, 2011). “They appear to be the
most standardized informal financial institutions with well organized savings
mobilization strategy in the informal market” (Oloyede, 2008)
Cooperative societies, also known as credit cooperatives,
credit unions, financial cooperatives, and savings and credit cooperatives
could be government sponsored, members sponsored or programme sponsored (Ghosh
and Maharjan, 2001; Simkhada, 2004). Those names of cooperatives are used
interchangeably in this study to mean the same. The government sponsored
cooperatives are cooperatives established, owned and funded by the government
to accomplish it economic objectives. Cooperatives that are established and
owned by the individual members of the cooperatives are regarded and owned by
an existing organization which may be an NGO, bank, donor etc. with specific
purpose of poverty eradication, target towards a particular group of people in
specified location.
Government of different nations defines and promotes
cooperatives according to their own social, cultural and economic conditions.
In America, a cooperative is a business owned and democratically controlled by
the people who use its services and whose benefits are derived and distributed
equitably on the basis of use (USDA, 1997). In New Zealand, Cooperative
Companies Act (1996) defined cooperative as an organization in which those who
transact with the organization also own and formally control the organization
and derive significant benefits from those transactions over and above any
financial returns they derive from their investment in the organization (Evans
and Meade, 2006). In China however, the newly enacted farmers’ cooperatives law
defined cooperatives as a self-help organization which associated voluntarily
and controlled by producers of the same agricultural products or
serviceproviders and users of the same agricultural business operations (Zhang,
1999).
The definition of cooperatives is built on four major words;
first, they are formed by groups of people, who have a specified need or
problem. Second, the organization is formed freely by members after
contributing to its assets. Thirdly, the organization formed, is governed
democratically in order to achieve desired objectives on equitable norms, and
fourth, it is an independent enterprises promoted, owned and controlled by
people to meet their needs (DFID: 2008). It is about peoples’ organization to
capture different opportunities in the economy where they can address their
economic needs and aspirations. A cooperative can therefore provide a hub for
organizing particular local economic interest and/or for protecting common pool
resources (Simmons and Birchall, 2008a).
Agricultural cooperatives can therefore be defined as
voluntary business association formed by people (mostly farmers) of limited
means through contribution of share capital that forms the basis of sharing out
the profits that accrue from the business (Wanyama, et al 2008). In developed
countries, rural cooperatives have significantly contributed to the
mobilization and distribution of financial capital, created employment, and
constituted a forum for education and training, social welfare and poverty
alleviation and other socio-economic problems (Tanzanian Federation of
Cooperatives, 2006). Agricultural cooperatives offer new opportunities for
farmers to expand and strengthen their own organization to reach their full
economic and social potential. It is an organization created by people of
common felt need and means to help their members both from a business point of
view, as they enable private farmers to benefit from economies of scale and
stimulate competition, and from a social point of view, since they encourage
cohesion and cooperation at the community level.
There are three main types of cooperatives:
(i) Consumer
Cooperatives that enable members to buy or obtain goods or services close to
cost price.
(ii) Producer
Cooperatives that enable members to achieve higher profits through reduced
input costs and better marketing.
(iii) Worker or
employee owned Cooperatives that provide members with opportunities for
employment and skills improvement (UN, 2009). Irrespective of the type, the
Cooperatives business model operates on the same values and principles that
confer to their members the triple benefits of ownership, control and utility.
Cooperatives are classified as business and social enterprises (UN, 2009). Many
key international development agencies such as the UN, World Bank, ILO and FAO
recognize the enormous current and potential contribution made by cooperatives
as social and business enterprises in terms of economic development, development
of social capital including social inclusion, social integration and cohesion,
gender equity, democratization, equity (fairness and Justice), community
development and environmental management (Birchall, 2008).
2.3 Agricultural
Development
Agricultural development is an integral part of national
development. It is that aspect of development that is related to agrarians.
Considering the contribution of agriculture to the socio-economic development
of many countries, several scholars have postulated theories linking
agriculture with national development. Agricultural development is defined as
the process that creates the conditions for the fulfillment of agricultural
potential. Those conditions include the accumulation of knowledge and
availability of technology as well as the allocation of inputs and output.
Therefore, Agricultural development can be viewed as another area of
development, which connotes improvement in the principles and practice of
agriculture given both human and material resources that will result in maximum
output from a combination of minimum input (Ashley and Maxwell, 2001).
Agricultural development in Nigeria faces several
constraints; the most critical of these include lack of appropriate technology,
land tenure system, inputs problems, under developed marketing system, lack of
finance and lack of coherent national policy framework. While most of these
problems have generated a lot of interest and debate among academics and policy
makers in Nigeria. Much still needs to be done by the government in
establishing tentative development projects and programmes for the achievement
of national objectives. Again the most crucial, is provision of deliberate
frame work for policy consistency in the execution of such Agricultural development
programmes(Nkang et al).
Today when population is increasing so fast, there is the
need to think more seriously about the improvement of farming methods in order
to get increasing yield of food and raw materials to the society and
industries. Afterall, (Komolofe and Joy, 1990) had remarked that Agricultural
development basically means getting more out of soil in the farm of crops and
breading more live stock in order to meet the word’s increasing needs. The
things that need to be developed include the soil growing crops breading and
raising farm animals, processing, packaging and storing.
However, Todaro (2009) viewed Agricultural development as
the transformation of agricultural sectors through three stages of agricultural
production. The first is the low productivity, mostly subsistence pattern of
production characterized by peasant farmers still prevalent in Africa. The
second stage is diversified or mixed family agriculture, where a small part of
the produce is grown for domestic consumption and a significant part for sale
to the commercial sector as food in parts of Asia. The third stage represent
the modern farm, with high productivity engaging in specialized Agricultural
development can be described in terms of global but sustained transition from subsistence
to diversified and specialized production.
Again Agricultural development was recognized as
agricultural modernization as you have in irrigation schemes employing
innovative ideas, modern techniques that dramatically reduces hunger and
poverty and diversified the economy (Bill and Melinda Gates Foundation, 2009).
In the context of Nigeria, Agricultural development can be expressed as a
gradual transformation from subsistence’s farming culture to commercial
farming, from the use of inefficient farming methods to the use of more
efficient farming methods and techniques. The process will involve the gradual
substitutionof local species with improved ones.
Agricultural development promotes the proper conditions for
farming so that planting, harvesting and processing of crops can be done
effectively, which ultimately can empower small holders and reduce poverty
(World Bank, 2002). In Nigeria problems with roads and infrastructure interface
with farmer’s ability to sell his or her goods. Communication is another
component to agricultural practices. This is because in other for a farmer to
know the type of crop they must yield to generate a profit, they need to know
the market prices for the type of crops they are growing. Solving these
problems is where agricultural development and government funding come into
play. Example, until some developing nations adapt aggressive funding
programmes to improveharvesting conditions, agricultural development is
limited. There are endowments and foundations, however, which embark large sums
of capital towards improving farming conditions in development nations.
The implementation of new technology may require new forms
of social organization such as regrouping of peasant in peasant’s associations
to allow the distribution of inputs, and information on the application. These
continue efforts may affect peasant values, and, subsequently, goes. If this
plan is successful, peasants may change their cropping patterns in favour of
crops which provide more profitable (Birchall, 2004). This has effects on other
parts of the farm, and may for instance; cause a reduction of animal husbandry.
If the proceeds of animal husbandry belong traditionally to the women, as in
some societies, this affects the internal relation of the family.
A change in land tenure affects in turn the power structure
and may change the goal-setters in the societies and, thus, the relevant goals
(Serag, 1995). This example could be elaborated further. It all resolves in the
recognition that then system approach reflects most closely in development
process, and projects and programmes aiming at one isolated element of the
system are dysfunctional. It is true that it often is very difficult to
countrified the influence of individual elements. This, however, most not
prevent understanding development as a system of interrelated changes which
requires integrated intend of isolated measures. Development is one of the main
goals that all communities try to achieved in other improve the living
standards of individuals in those communities (Muhamed, 2004). Agricultural
cooperatives haveplayed an important role in rural development through
development of agriculture. The agriculture cooperatives are considered to be
the most important organizations that pay attention and try to support rural
development in general and the agriculture development in particular through
the activities and services achieved for the sake of farmers (Mohamed 2004).
Levin (2002) remarked that although cooperatives are
economic organizations in the first place, they also have social aims in
addition to the economic ones they seek. They aim at developing the
agricultural processes with its various fields as well as participating in
achieving the rural development in villages. The role of the cooperative is not
only confined to providing farm inputs such as fertilizers, seedling and
chemical materials, but also engaged in symposiums for the farmers to acquire
necessary knowledge and skills on new technology that aims at increasing
agricultural production and promoting rural welfare. The cooperatives also seek
to urge members to participate in social activities (UN, 1990)
The Role of Agricultural Cooperatives in Agricultural
Development.
A cooperative is a widespread and important governance structure
within the agricultural sector. The cooperatives sector worldwide is comprised
of approximately 800 million members in over 100 countries and it’s estimated
to account for more than 100 million jobs around the world (ICA, 2007).
Agricultural cooperatives in particular, account for 80 to 90% of milk
production in Norway, New Zealand and United States; 71% of fishery production
in the republic of Korea; and 40% of agriculture in Brazil (ICA, 2007).
Cooperatives are important form of organizational structure
in many agricultural markets. For example, in the EU, cooperatives firms
account for over 60% of the harvest, handling and marketing of agricultural
products, with a turnover of approximately 210, 000 Million Euros (Gertler,
2001). Furthermore, over 50% of global agricultural output is marketed through
cooperatives (Bibby & Shaw, 2005). There are several benefits that farmers
receive from being part