Identification And Solution Of Management Problems Of Farmers Multi-Purpose Cooperative Societies

Project and Seminar Material for Agricultural Economics and Extension

Identification And Solution Of Management Problems Of Farmers Multi-Purpose Cooperative Societies


The researcher investigated the management problems and solutions of farmers cooperative societies in Onitsha north local government area. The population of the study was the registered farmers cooperative societies were systematically selected from the six registered societies in the Onitsha axis in such a way that for every three societies appearing on the list, the third one was picked or selected and three were equally selected from ten registered societies in the same axis.

The only instruments used was questionnaires which were distributed to members of the cooperative societies and staff/committee members of the selected societies. The data collected was analyzed by using table and percentages. The summary of the investigation shows that some farmers cooperative societies are not viable and that this emanates from poor financial personnel problems administration and the management cooperative education has viouted in cooperative awareness to both members and staff/management committee members. This cooperative education was discovered not a waste of finance and that the members participation and patronage. Finally some recommendations to remedy the situation were put forward and suggestions for further studies were advanced too.

Chapter One


1.1 Background of the Study

The cooperative movement in a programme designed to bring independent persons together for the betterment of their economic conditions cooperative in one form or the other, have been used for capturing economic of scale effective mobilization of labor combination of Agro Industrial development programmes with the aim of promoting a more egalitarian distribution of economic growth in all communities. Hence, the well known slogan “self help through mutual help” by cooperators.

However, cooperatives in Onitsha north are yet to make the desired impact on the communities, there is then the need for an effective management system that will help direct the activities of the cooperatives towards achieving their objectives, thereby endeavour to examine the extent to which poor management system retards the growth of the farmers cooperative societies in Onitsha north.

The viability of any cooperative society depends on the finance, educational competence and managerial skills of executives and cooperation of all the cooperatives. Therefore poor management have being the brain behind the low productivity and poor generation of revenue of some of the societies in Onitsha north local government area.

The importance of good management of farmers cooperative societies cannot be over emphasized, a good management capitalizes on the economic and social needs satisfaction of its members since when individual joins an organization, they often hope to achieve a personal goal but this cannot be possible without achieving organizational goals. Unfortunately, there is bifurcation i.e division of interest among members and executives. They lack effective management skill and most of them have never had the opportunity to attend seminars, workshop and symposium on management cooperatives societies.

Furthermore, farmers cooperatives society in Onitsha north lack good organizational structure. The principle of democracy in cooperative organization has rendered it playing toy and it has become perpetually unproductive as members with less investment in the cooperative often close their eyes to the risk of poor management strategies in a competitive economy like ours.

It is worthy to point that the researcher’s attempt to formulae strategies geared towards the successful implementation of the cooperative goals and objectives.

In order to highlight the contributions of co-operatives towards the development of agriculture, this study was hence carried out.

1.2 Statement of the Problem

The study is intended to investigate the major management problems and solutions of farmers cooperative societies in Onitsha north local government area of Anambra state.

It is interesting observed that cooperative societies have laudable objectives which they set for themselves but these objectives are never achieved because of the management problems facing them, such as inadequate funding by members, poor and ineffective management of the societies and not having enough members.

Farmers have limited access to credit facilities as commercial bank officials who are aware of the risk-prone enterprises often refuse loan to these farmers. Most of the agricultural produce is lost owing to poor post-harvest handling, storage and processing methods.

This study is geared toward finding out the impact and how cooperative societies are helping to alleviate these problems and to bring about agricultural development in Onitsha north Local Government Area of Anambra State with reference to agriculture cooperatives societies.

1.3 Objectives of the Study

The general objectives of this study is to scientifically and critically highlight managerial problems which affects the efficient functions of farmers cooperative society.

Specifically, it has been designed to:-

  1. Determine the socio-economic characteristics of members of the co-operative societies in Onitsha north L.G.A
  2. Identify the type of activities carried out by the co-operatives in Onitsha north L.G.A.
  3. Examine the contributions of co-operatives to agricultural development in Onitsha north L.G.A
  4. Identify the constraints that hinders the contribution of co-operatives to agricultural development in Onitsha north L.G.A
  5. Make recommendation on the findings.

1.4 Research Questions

This study will be guided by the following research questions:

  1. What are the socio-economic characteristics of members of the co-operative society in Onitsha north L.G.A.?
  2. What are the activities being carried out by the agricultural co-operatives in Onitsha north L.G.A.?
  3. In what ways has the farmer’s co-operative contributed to agricultural development in Onitsha north L.G.A?
  4. What are the constraint that hinders the co-operatives in contributing to the development of agriculture in Onitsha north L.G.A?
  5. How can these problems be solved to ensure effective performance of the co-operative to the development of agriculture?

1.5 Scope of the Study

The study on the contributions of co-operative to agricultural development was carried in Onitsha north L.G.A in Anambra state involving some selected agricultural co-operative societies.

1.6 Significance of the Study

The study will be of good help to policy makers, the government and those who are interested in improving agricultural activities or forming agricultural cooperative activities by which people take place in formalized long-term, deliberate and to great extent, specified form in the social and especially economic share of human endeavor.

1.7 Limitation of the Study

In an attempt to carry out this study, the researcher was faced with several constraints which include insufficiency of data, non-co-operative attitude of some members of the co-operatives visited resulting in their failure to deluge some vital information about their societies and how they do carry out their operations. The researcher was also handicapped by inadequacy of finance to take a more detailed research.

1.8 Definitions of Terms

Agricultural Co-operative:

Co-operatives involved in agro-allied activities.

Agricultural Mechanization:

A system whereby agricultural activities are carried out using heavy machineries which are attached to tractors such as harvester, plough, harrow, e.t.c.

Credit Facilities:

These refers to loanable funds provided by a financial intermediary used to enhance production activities.

Farm Input:

This refers to items used in planting and those that facilitate planting activities such as improved seeds, fertilizer, insecticides, pesticide, e.t.c.

Farm Implement:

This refers to simple tools used in agricultural activities, such as cutlass, hoe, wheel barrow, e.t.c.

Group Farming:

A system of collective agricultural practice by association of people with similar interest.

Chapter Five

5.0 Summary of Finding, Conclusion and Recommendation

In this chapter, the results of the findings are summarized and recommendations were made on the research.

5.1 Summary of Findings

The findings of the study showed that agricultural co-operatives in Onitsha north L.G.A. are involved in both livestock and crop enterprises, group processing and supply of farm inputs. The society also enables it members to access credit facilities, farm implements, storage facilities and participate fundamentally in the marketing of member’s farm products. They encourage capital formation in the rural community by mobilizing savings which then form the capital needed for carrying out agricultural activities. The study further revealed that high rate of loan default, inadequate infrastructural facilities and lack of co-operative and technical education are among the constraints that hinders the performances of the co-operatives.

5.2 Conclusion

The co-operative is no doubt a vehicle of agricultural development, this is due to the effect of it activities which ensures that both human and material resource are efficiently mobilized, granting the small-scale farmers who carry out the bulk of the nations agricultural activities opportunities to expand and diversify their product which will bring about food security to the ever-increasing population. The poor financial state of the co-operative societies which is caused by inadequate capital formation, mis-appropriation of fund and high rate of loan default will however restrict the performance of the co-operative towards efficiency. There is no disputing the fact that agricultural co-operatives if well managed, supported by government and development agencies, are well position to enhance agricultural development.

5.3 Recommendations

Based on the findings and conclusion of this research work, the following recommendations are offered:-

  1. As a result of low capital accumulation by co-operative members, co-operative societies in Onitsha north L.G.A. should be encouraged in the areas of increased supply of credit to them from financial institution.
  2. The financial policy of the co-operative societies should be rectified to minimize the rate of loan default and increase the utilization of fund.
  3. The government should intensify efforts on co-operative education, training and public enlightenment in order to bring about increased participation and involvement of small scale farmers in the co-operative movement.

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