An Analysis Of The Role Of Cooperative Societies In The Provision Of Agro Processing Facilities In The Rural Areas (A Case Study Of Selected Farmers Multi –Purpose Cooperative Societies In Imo State)

Project and Seminar Material for Cooperative Economics and Management (CEM)

An Analysis Of The Role Of Cooperative Societies In The Provision Of Agro Processing Facilities In The Rural Areas (A Case Study Of Selected Farmers Multi –Purpose Cooperative Societies In Imo State)


This topic, an analysis of the role of cooperative societies in the provision of Agro processing facilities in the rural areas has been chosen in order to bring into focus, the explicit role played by the cooperatives in the provision of Agro- products to the rural populace.

Chapter one embraces the introduction, background of study, statement of the problems, objectives of the study, research questions, significance of the study, scope and limitation, definition of terms.

Chapter two deals with the review of the literatures.

Chapter three depicts methodology and procedures used in this work.

Chapter four equally gives the findings, presentation and analysis of the findings. The discussion of findings.

Chapter five includes the summary of findings, recommendation and conclusion.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Certification Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Contents

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problems
  • 1.3 Objective of the Study
  • 1.4 Significance of the Study
  • 1.5 Scope of the Study
  • 1.6 Limitations of the Study
  • 1.7 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 History of Cooperatives in the world
  • 2.2 The nature of Rural Area
  • 2.3 Meaning of Cooperative Societies
  • 2.4 Agro Processing Industries in the Rural Nigeria
  • 2.5 Cooperatives in Agro Processing

Chapter Three

Research Methodology

  • 3.0 Introduction
  • 3.1 Area of the Study
  • 3.2 Population of the Study
  • 3.3 Sampling Techniques and Size
  • 3.4 Methods of Data Collection
  • 3.5 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Presentation of Data
  • 4.2 Test of Hypothesis
  • 4.3 Discussion of Findings

Chapter Five

Summary of Findings, Recommendation and Conclusion.

  • 5.1 Introduction
  • 5.2 Summary of Findings
  • 5.3 Conclusion
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

1.1 Background Of The Study

A cooperative is a pan- humane business organization formed by individuals who are desirous of pooling themselves and their resources together to form a democratically controlled organization devoid of pecuniary gain. The uniqueness of cooperative and it’s flexibility permits it to be practiced among farmers, fishermen, Artisans, Industrial and commercial workers, drivers, students, market men and women etc.

Osy Obodechi (2006) cooperative may be defined as a voluntary association of persons grappling with the same socio-economic problems and legally constituted to serve the economic needs of its members democratically, providing services at cost or and sharing benefits in proportion to use.

Cooperative society helped farmers in numerous ways by providing agricultural equipments, machines and tools to achieve greater out in agricultural farm produce in the rural areas

As Chukwu (1990) put it, the cooperatives is made up of individual farmers, who have joined together to form a cooperative establishment for collective production.

However, the society provides education to the rural farmers concerning the use of machines to avoid break down in production. these machines and equipment include investors, tractor and tillage which enhance large scale production, these machines can be hired or bought from the government with the influence of the registered cooperatives societies.

Prior to the cooperative ordinance of 1935,there exist some cooperatives which includes traditional cooperative institution I e saving club commonly know as Esusu and auxiliary cooperative society.

Cooperative societies as a vehicle for promoting the interest of rural farmer and enhance their own individual welfare starting with the adventure of the Rochdale pioneer in 1844 in England. This medium enable the society to enter successfully into provision of agro processing facilities which cause positive change in the development of agriculture in the rural areas.

Rural areas in developing countries have agriculture as the main stay of their economy, therefore any effort in developing the rural areas must address agricultural development .

According to Okeke E. U. (1999), Agricultural cooperatives are cooperatives found in all the sub sectors of agriculture .these sub sector of agriculture are crop production .livestock ,forestry and wild life .

S.Y Berko (2001), Agricultural producer cooperatives are cooperative whose members are agriculturist or agricultural producers .

Therefore, for the rural farmers to be involved in the agro processing facilities ,they must be familiar with the modern method and accept the institution involved such as :

  1. careful handling and maintenance of the facilities to avoid break down and enhance long term usage of the facilities .
  2. Accepting technical assistance in response to specific problem
  3. Improving the standard of the sustenance population involves the rural dwellers to accept the mobilization and allocation of resources and facilities to reach a desirable balance over time between the welfare and population service available to rural populace
  4. mass participation required that equipment should be allowed to poor farmers .

1.3 Statement Of The Problem

The present condition of farmers and rural dwellers in Nigeria is unsatisfactory, the image of poverty ,hunger ,disease totally disorganize the farming and agriculture sectors .

The percentage of the total population engaged in agriculture is diminishing ,villages that are known for agricultural production has reduced since the invention of oil at Oloibiri in Bayelsa state 1956 .Farming activities have been on low rate ,rural urban migration take effect since their is know incentives given to this farmers and as such lack facilities to enhance production .

Farmer in Nigeria with reference to rural dwellers face major set back such as .

Economic Problem

This is primitive system of farming which made it possible to be more of subsistence economy .poverty captured the rural farmer since they can not afford the facilities required for production .

Agricultural Problem

The land tenure system makes it difficult to acquire large piece of land for modern large scale farming .The government owns the big portion of land ,the private sectors took to an extent which makes it difficult for the rural farmer to acquire .

Social Problem

This involves absence of storage facilities ,inadequate research ,poor technological net work and infrastructure .

1.3 Objective Of The Study

The specific objectives are:-

  1. To study the economic activities carried out by the cooperative society in the provision of agro processing facilities in the rural acres
  2. To study the ways of improving agro processing facilities
  3. To identify the problem faced by cooperative society in their bid to contributed to the development of agro processing facilities in selected multipurpose cooperative society in Imo state .
  4. To study the perception of it member about the cooperative society
  5. To study the function of cooperative society .
  6. To make policy recommendation based on the finding

Agro processing cooperative have taken shape in some part of Nigeria ,for instanced zone of Ebonyi state is known for its cooperative rice mills .These helped to raise the future of farmers as they sell their raw material to the factories or process their produce as they avoid inconvenience to carry the raw material to sell at the market

The cooperative mills enables the farmers to taste a better means of processing their raw material rather than the inefficient crude traditional manner .The establishment of industrial cooperative motivates produces to produce more and guarantees them high incomes .

The prevailing economy depression in the country worsen the situation by the rise in general price of good and services ,inflation, unemployment ,low income ,low saving low investment ,low return which the vicious cycle of poverty explains this situation weigh heavily on the whole population especially farmers whose deplorable socio- economy condition in the rural areas call for urgent attention from the federal government to revive the sector to improve agriculture by providing agro processing facilities ,encourage the formation of cooperative society which stands a better position to revive the farmers by supplying input at subsidized rate and setting up various cooperative banks .

1.4 Significance Of Study

This study is of benefit to members of cooperatives societies since it shows to what extent cooperative societies contributes to the development of agro processing facilities to rural area .It checks the problem facing the society toward the provision of these agro facilities to the rural areas .

To the non members ,rural dwellers they are encourage to join an existing cooperative society or form one to improve on their agricultural practices through the introduction of modern agro processing facilities to the rural areas .

It will also be of interest to the Federal, state and local government by using the data from the study in formation of policies that concerns agricultural development to the rural populace .

The great concern which various government of Africa show in recent times towards agro processing facilities is encouraging when viewed against the relative neglect of these area in spite of their importance .in Nigeria, this significances is stated above .

  1. About 7% of Nigerians live in the rural areas
  2. These rural area ,in spite of the crude oil revenue ,account for about 25% of the gross domestic product (GDP) through agriculture.
  3. The rural areas provide employment about 55-64% of the active population.
  4. During the period of very high foreign exchange earnings (1973-1981) over 95% of the food consumed was grown in these rural areas.
  5. The rural areas through agro facilities, provide an appreciable percentage of the agricultural products for Nigeria.
  6. Periods of low crude oil and poor agro facilities, these rural areas are used for solution.

However, it is equitable that these rural people benefit from agro processing facilities efforts which their urban counter parts enjoy. these issue associated with this social equity justification is the issue of the effectiveness of regional balance(IGBOZURUIKE,1983)the persistence of a wide socioeconomic and agricultural facilitate between urban and rural area encourage the continuation of the present volume of the rural urban migration.

In Nigeria, attempts had been made to improve the agro processing facilities plan,1975-1980.that the federal military government actually trade agro processing facilities as its central objectives.

Generally, some of the provision can be said to be quite successfully, and their are some that have left the rural people worse than they were. The modern imported cooperatives which most people have implicit faith for their potential forwards the provision of agro processing facilities and agricultural development.

The research for appropriate institutional strategies. frame work and programmes for the provision of these products, the potential for self help organization (SHO) which refers to ngo”s (shafer 1974,Herman 1974).including age grades, village and town development unions, youth clubs, mutual aid had been identified. Reason for this is the recognition for the success of any provision, the people to be benefited should be mobilized, motivated to play active role in the provisional process. Amos, (1974.91) and degree 1977.

Reasons also for this is the realization and conviction that the provisional goals are not quite achieved due to the uncritical adoption of implacable foreign model, ideas, structures and behaviour pattern. This is not to cast away foreign institution, but to intellectually adopt and modify those that are not quite suitable and restructure the agricultural product.

This could be in a way of effective utilization of the economic and farm variables, which are already in progress and proved to possess the potential for agro processing development.

1.5 Scope Of The Study

The variables investigated in this study covers only selected farmer multipurpose cooperative society in Imo state, proper coordination and organization of selected farmers into, using multipurpose cooperatives as a tool for mobilization of economic resources of the rural areas and the state.

The act of rural development have been in the mind of policy decision makers and non-governmental organizations yet, nothing has been done to this effect to improve the lives of the rural dwellers.

1.6 Limitations Of The Study

Among different types of cooperative societies, only selected farmers multipurpose cooperative societies were chosen in this study. The selected farmers multipurpose were involved in this study base on their congevity and to be easily reached with in the time allowed for this work. this is likely to limited the validity of the implication of our findings.

Also, the nature of data collected also limit the applicability of the study result since there is know availability of any published data of many multipurpose cooperative societies.

Information on the nature and composition of cooperative plans are not shown. The level of indecision and information from books on the subject matter from enterprising selected farmers multi purpose cooperatives is not encouraging.

1.7 Definition Of Terms

Coopeerative Societies:

This could be defined as an autonomous, voluntary, open association of persons, in a sociological sense. With variable membership and variable capital whose members have pulled their resources on mutual assistant through a business organization to achieve their needs.

Agro Facilities:

This means all those equipments, machines, tools used in promoting agriculture for large scale production.
it is a better means of production technologically rather than the traditional tools used in operation.


This has to do with the common people, the general public and the masses of a particular area.


Processing means series of action charges especially voluntary or unconscious. it is a method used in the manufacturing industry for production.


It means providing, preparation especially or future needs.

Agricultural Cooperative:

This involves all the cooperative activities which are aimed at helping the farmer in his profession as a farmer.

Chapter Five

Summary Of Finding Recommendation And Conclusion

5.1 Introduction

Finding out the role of cooperative societies in the provision of agro processing facilities in the rural areas, using selected farmers multipurpose cooperative society in Imo State which 5 viable Cooperative Society was used.

5.2 Summary Of Finding

The role of Cooperative societies in the rural populace are the economic result of joint action it manifest in the greater degree of satisfaction and fulfillment of members economic needs than by individual action.

The provision of agro processing facilities to the rural populace and development entails the following

A. Superior market position and control over process through
  1. The accumulated programming power of individual members.
  2. Shorten market chains after the exclusion of the middlemen.
B. An increase adaptability to the market through
  1. The greater commercial experience of the societies who can make better use of the existing trade practice.
  2. The status of a society as a body corporate subject to audit supervision which make it a more desirable market partner than an individual.

5.3 Conclusion

A lot can be achieved to promote the efficiency in provision of agro processing facilities in developing rural populace, if these recommendation can be considered such as:

  1. Clear government policy
  2. Employing qualified man power, training and retraining of staff.
  3. Establishing an effective organizational structure.
  4. Reduced the interest rate from the government and other financial institution.
  5. Introduction of cooperative friendly banks.

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