Value Added By The Farmers Cooperative Societies On The Socio-Economic Development Of The Rural Areas In Anambra State (A Study Of Ayamelum LGA, Anambra State)

Value Added By The Farmers Cooperative Societies On The Socio-Economic Development Of The Rural Areas In Anambra State (A Study Of Ayamelum LGA, Anambra State)
Abstract
This study was carried out to examine value added by farmers’ cooperative societies on the socio-economic development of rural areas in Anambra State using Ayamelum Local Government Area a case study. The study was carried out to determine the level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State, identify the socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State, examine the influence of farmers cooperative societies in food production in Ayamelum Local Government Area of Anambra State, determine the role of farmers cooperative societies in improving the living standard of the people in Ayamelum Local Government Area of Anambra State, and assess the extent to which farmers’ cooperative societies have improved access to credit and markets for farmers in Ayamelum Local Government Area of Anambra State. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of farmers in Ayamelum Local Government Area, Anambra State. In determining the sample size, the researcher purposefully selected 147 respondents and 141 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores. While the hypotheses was tested Chi-square statistical tool. The result of the findings reveals that the socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State includes: access to government support, access to local and international markets,access to micro-credit loan facilities, and access to subsidized government agricultural implements. Furthermore, the study revealed that the extent of credit and market are available to farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State is low. Therefore, it is recommended that serious attempts ought to be made to address these issues at stake that are serving as impediments to the growth and development of the farmers’ cooperatives. The appeal for the promotion of cooperatives at the grassroots and community levels should be seen as an instrumental strategy towards sustainable rural development now that government cannot be depended upon to meet individual numerous needs. To mention but a few.
Table of Content
- Title Page
- Certification
- Dedication
- Acknowledgement
- Table of Content
- List of Tables
- Abstract
Chapter One:
Introduction
- 1.1 Background of the Study
- 1.2 Statement of the Problem
- 1.3 Objective of the Study
- 1.4 Research Questions
- 1.5 Research Hypothesis
- 1.6 Significance of the Study
- 1.7 Scope of the Study
- 1.8 Limitation of the Study
- 1.9 Definition of Terms
Chapter Two:
Review of Literature
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- 2.3 Empirical Review
Chapter Three:
Research Methodology
- 3.1 Research Design
- 3.2 Population of the Study
- 3.3 Sample Size Determination
- 3.4 Sample Size Selection Technique and Procedure
- 3.5 Research Instrument and Administration
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Validity of the Study
- 3.9 Reliability of the Study
- 3.10 Ethical Consideration
Chapter Four:
Data Presentation and Analysis
- 4.1 Data Presentation
- 4.2 Analysis of Data
- 4.3 Answering Research Questions
- 4.4 Test of Hypotheses
Chapter Five:
Summary, Conclusion and Recommendation
- 5.1 Summary
- 5.2 Conclusion
- 5.3 Recommendation
- References
- APPENDIX
- QUESTIONNAIRE
Chapter One
Introduction
1.1 Background of the Study
The cooperative movement gained momentum in various parts of the world, with early examples in Europe and North America. Friedrich Wilhelm Raiffeisen and Hermann Schulze-Delitzsch are recognized as pioneers of the cooperative society, establishing credit unions and consumer cooperatives, respectively. The National Cooperative Business Association in the United States defines cooperatives as “businesses owned and controlled by the people who use them—providing goods and services for the benefit of their members” (NCBA CLUSA, 2021). In a report on the global cooperative economy, the ICA found that cooperatives have over 1 billion members worldwide and generate over $3 trillion in annual revenue (ICA, 2020).
Generally, a cooperative society is a business organization in which a group of individuals with common interests mutually agree to come together with the goal of promoting their economic activities, such as production, distribution or marketing of goods and services, and provision of other welfare benefits to their members (Anyaele 2013). Matthews (2013) view the cooperative as an association of persons, usually of limited means, who voluntarily join together to achieve a common economic end through the formation of a democratically controlled business organization, making equitable contributions to the capital and accepting a fair share of risks and benefits. Over a 100 million jobs have been created by cooperatives around the world (Allahdadi 2011)
Over time, the model evolved to include agricultural cooperatives, where farmers jointly own and manage various aspects of the agricultural value chain (Chidelu, 2022). The concept of farmers’ cooperatives can be traced back to the 19th century when agricultural communities faced significant challenges that impaired their produce. To address these issues, farmers began forming cooperative organizations to pool resources, increase bargaining power, and collectively market their produce. Farmer’s cooperative societies are formed by farmers who come together voluntarily to pool their resources and organize themselves to jointly undertake agricultural activities.
Farmers’ cooperatives are an essential component of the agricultural sector, representing an organized and collective approach to farming and agribusiness. They have a rich history and continue to be a vital part of the agricultural landscape. With their collective strength, shared resources, and commitment to democratic principles, these cooperatives have the potential to enhance the resilience of farmers, promote sustainable agriculture, and foster rural development for the benefit of communities worldwide. They play a crucial role in driving socio-economic development in West Africa by improving agricultural productivity, enhancing market access, providing financial services, empowering marginalized groups, promoting sustainable practices, and fostering community development (Okpara, 2021).
Their collaborative and collective approach strengthens the resilience and livelihoods of small-scale farmers and contributes to overall economic growth and development in the region by helping them overcome individual limitations and challenges by pooling resources, knowledge, and efforts. According to Elo, (2019), farmers co-operatives are agricultural-producer-owned coops whose primary purpose is increase member producers’ production and incomes by helping better link with finance, agricultural inputs, information, and output markets.
The United Nations has recognized cooperatives as a key player in achieving sustainable development goals, particularly in the areas of poverty reduction and social inclusion (United Nations, 2021). Adam (2020) also noted that farmers cooperatives can have a positive impact on the communities they serve by contributing to local economic development, creating jobs, and supporting small businesses. In Nigeria, cooperative societies have been recognized as a means of improving agricultural productivity, reducing poverty, and promoting rural development (Oyekale & Adepoju, 2020).
According to Ohams (208), farmers cooperatives are essential to the Nigerian agricultural sector as they provide farmers with the opportunity to come together and address the issues and challenges they face. They can provide resources, training, and support to help farmers improve their operations and increase their profitability. Farmers cooperative in Nigeria can be a powerful tool for farmers to collaborate and tackle problems or seize opportunities in the agricultural sector. For instance, an agricultural cooperative may be formed to improve access to inputs such as seeds and fertilizers, to provide training on best practices for farming, or to collectively negotiate better prices for their crops.
Farmers’ cooperative is an instrument that can be used to foster socio-economic development in the rural areas of Anambra State, Nigeria. Rural development, in turn, has been described as a multidimensional process by which a group of people or a society harnesses, mobilizes, and utilizes its human and material resources for the purpose of transforming its socio-physical environment (Obasi 2010). This transformation is intended to advance the rural population to the point of being able to provide the basic necessities of life, such as food, shelter, education, health, employment, security, and electricity; it also encourages participation of the rural population in decision making about their governance (Akaruese 2012).
The main roles of farmers’ cooperative in socio-economic development in the rural areas include improvement of agricultural development, enhancement of community growth, strengthening of rural-based industries, mobilization of participation in rural projects, provision of financing for rural projects, and employment creation. Other roles include human resources development, fostering unity in solving community problems, training of leaders who manage other rural organizations, poverty reduction, advancement of welfare of women and youths, etc. Farmers’ cooperatives in the rural area is said to have enabled the consolidation of fragmented land and facilitated investment in mechanization and irrigation.
Having said these, it is the desire of the researcher to ascertain if the above listed roles has been met by the the farmers cooperative societies present in the Local Government Area under study.
1.2. Statement of the Problem
However, despite the multiple benefits of membership in a farmers’ cooperative, the participation of farmers in cooperative formation has been declining due to several factors that includes urbanization and migration, land fragmentation, lack of incentives, limited access to resources, weak institutional support, internal challenges like mismanagement, lack of transparency, or conflicts among members, market access and price volatility, cultural and social factors such as traditional cultural norms and practices that may not always align with the cooperative model, etc (Emeaghalu, 2022).
According to Eze (2022), the failure of many farmer’s cooperative programmes in Nigeria could be traced to poor organizational structure and implementation at the grassroots level. The rural poor farmers are isolated, under-educated and lack the means to win greater access to means of production such as capital, labour and this engendered pulling together financial resources towards a common goal.
Donald (2012) remarked that some project targeted ranged from medium to large-scale producers and supporting them with technology, credit and extension services hoping that improvements will gradually extend to the more backward and disadvantaged rural area but unfortunately none of such projects brought about increases in yield of crops for participants and non-participants. Indeed, a good number of factors are responsible for this such as constantly changing technology through education and research, availability of equipment and supplies including the ability of farmers to obtain them on time, poor transportation network, among others (Adefila, 2011).
To reverse the decline in farmers’ participation in cooperatives, it is essential to address these challenges and provide adequate support, training, and incentives for cooperative formation and functioning. Governments, NGOs, and other development agencies can play a crucial role in promoting cooperative development and providing the necessary resources and support to farmers in the region.This study therefore evaluates some of the factors influencing role performance of these farmers’ cooperative organizations in agricultural development in the study area.
1.3 Objectives of the Study
The broad objective of this study is to justify the value added by farmers’ cooperative societies on the socio-economic development of rural areas in Anambra State using Ayamelum Local Government Area a case study. The specific objectives are to:
- Determine the level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State.
- Identify the socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State.
- Examine the influence of farmers cooperative societies in food production in Ayamelum Local Government Area of Anambra State .
- Determine the role of farmers cooperative societies in improving the living standard of the people in Ayamelum Local Government Area of Anambra State.
- Assess the extent to which farmers’ cooperative societies have improved access to credit and markets for farmers in Ayamelum Local Government Area of Anambra State
1.4.Research Questions
- What is the level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State?
- What are the socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State?
- What level of influence does farmers cooperative societies have on food production in Ayamelum Local Government Area of Anambra State?
- What are role do farmers cooperative societies play in improving the living standard of the people in Ayamelum Local Government Area of Anambra State?
- To extent of credit and market are available to farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State?
1.5. Research Hypothesis
- Hi: The level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State is significant
- Hi: There are socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State
- Hi: There is a significant relationship between farmers cooperative societies and food production in Ayamelum Local Government Area of Anambra State
- Hi: There is a significant relationship between farmers cooperative societies and living standard of the people in Ayamelum Local Government Area of Anambra State.
- Hi: The extent to which farmers’ cooperative societies have improved access to credit and markets for farmers in Ayamelum Local Government Area of Anambra State is significant
1.6. Scope of the Study
This study will be limited to Ayamelum LGA in Anambra State, Nigeria. The study will focus on farmers’ cooperative societies and their impact on the socio-economic development of rural areas.
1.7 Significance of the Study
This study is significant in several ways. First, it will contribute to the existing literature on the impact of farmers’ cooperative societies on rural development in Nigeria. Second, it will provide insights into the challenges faced by farmers’ cooperative societies in Anambra State and suggest ways to address them. Third, it will provide policymakers with evidence-based recommendations on how to promote the growth of farmers’ cooperative societies in Anambra State .
1.8 Limitation of the Study
During the course of this research, a lot of obstacles were encountered. Some of the members of the cooperative society under study did not feel safe letting us have access to some information that were relevant to this research.
Financial constraint is another limitation to this work which is as a result of high cost of transportation fare to the areas of study to gather data, combined with the cost of materials to carry this work to conclusive end.
Lastly, it also took great strength to convince the respondents that their responses to the questions in the questionnaire will be treated with great confidentiality and are purely academic.
1.9. Definition of Terms
Cooperative:
Is “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.
Farmers’ Cooperatives Society:
Is a producer cooperative in which farmers pool their resources in certain areas of activity.
Small-scale Farmers:
A small-scale farmer is a producer who rears livestock, raises fish or cultivates crops on a limited scale:
Economic Development: Is programs, policies or activities that seek to improve the economic well-being and quality of life for a community
Rural Development:
The process of improving the quality of life and economic well-being of people living in rural areas, often relatively isolated and sparsely populated areas.
Chapter Five
Summary, Conclusions and Recommendations:
5.1 Introduction
This chapter summarizes the findings on value added by farmers’ cooperative societies on the socio-economic development of rural areas in Anambra State using Ayamelum Local Government Area a case study. The chapter consists of summary of the study, conclusions, and recommendations.
5.2 Summary of the Study
In this study, our focus was to examine value added by farmers’ cooperative societies on the socio-economic development of rural areas in Anambra State using Ayamelum Local Government Area a case study. The study specifically was aimed to determine the level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State, identify the socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State, examine the influence of farmers cooperative societies in food production in Ayamelum Local Government Area of Anambra State, determine the role of farmers cooperative societies in improving the living standard of the people in Ayamelum Local Government Area of Anambra State, and assess the extent to which farmers’ cooperative societies have improved access to credit and markets for farmers in Ayamelum Local Government Area of Anambra State.
The study adopted the survey research design and randomly enrolled participants in the study. A total of 141 responses were validated from the enrolled participants where all respondents are farmers in Ayamelum Local Government Area, Anambra State.
5.3 Conclusions
Based on the findings of this study, the researcher made the following conclusion.
- The level of participation of farmers in cooperative societies in Ayamelum Local Government Area of Anambra State is high.
- The socio-economic benefits of joining farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State includes: access to government support, access to local and international markets,access to micro-credit loan facilities, and access to subsidized government agricultural implements.
- The level of influence farmers cooperative societies have on food production in Ayamelum Local Government Area of Anambra State is high.
- The role farmers cooperative societies play in improving the living standard of the people in Ayamelum Local Government Area of Anambra State includes: increases household food security, improves innovative capacity, increases income, ensures inter-business relationship.
- The extent of credit and market are available to farmers’ cooperative societies in Ayamelum Local Government Area of Anambra State is low.
5.4 Recommendations
Based on the findings the following recommendation are proposed to assist cooperative societies to be effective and responsive to problems that rural farmers face in relation to increase productivity:
- In this regard, serious attempts ought to be made to address these issues at stake that are serving as impediments to the growth and development of the farmers’ cooperatives. The appeal for the promotion of cooperatives at the grassroots and community levels should be seen as an instrumental strategy towards sustainable rural development now that government cannot be depended upon to meet individual numerous needs.
- The attitudes of government and the generality of the people must be changed positively towards cooperative development since it will be too difficult to achieve a meaningful balanced development without involving and stimulating the under-utilized rural resources which these cooperatives are trying to pool together to develop themselves.
- The government should create enabling environment for holding and managing the means for production in the process of developing under-privileged and disadvantaged areas.
- There should be no discrimination in granting loan to farmers.
- Good communication with farmers on available loans should be encouraged as this will make the farmers informed on available credit opportunities.
- There should be consistency in government policies as this will give the farmers confidence to apply for loans when needed without the fear of fluctuating interest rates.

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