Performance Of Marketing Cooperative In The Distribution Of Farm Produce In Akwa South L.G.A

Project and Seminar Material for Cooperative Economics and Management CEM

Performance Of Marketing Cooperative In The Distribution Of Farm Produce In Akwa South L.G.A


Abstract


The study assessed Performance of marketing cooperative in the distribution of farm produce in Akwa South L.G.A of Anambra State. Specifically the study evaluated the capacity of FMCS in delivery effective marketing services to its members and ascertains the marketing functions performed by FMCS towards effective marketing services to farmers (members) in Anambra state. Data were obtained from 306 respondents who are management committees of 36 selected FMCS. Data obtained were analyzed with appropriate statistical tools.

Thus, evidence from the result revealed that, the FMCS are capable of delivering various marketing services to their members. Findings also revealed that the FMCS performed various functions that facilitate marketing of their members’ farm produce as most of these marketing functions are performed to a great extent, but advertising and awareness campaigned as well as market survey and market research are not properly delivered as part of marketing functions. So in a bid to strengthen the potentials of FMCS towards effective marketing services delivery to members, the following recommendations are provided.

The government should endeavor to partner with FMCS by providing them with expertise and supply them with productive resources; also the government should design a synergy between Nigeria Export Promotion Council and FMCS, so that farmers can export their produce to international market which will boost the contribution of agriculture to the GDP. Finally, the cooperative leaders should design and invest in research and market survey which will boost the competitiveness of cooperative in the competitive environment.


Table Of Contents


Preliminary Page(s)

  • Title page
  • Certification page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

Introduction

  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Research questions
  • 1.4 Objectives of the study
  • 1.5 Hypotheses of the study
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitation of the study

Chapter Two

Literature Review

  • 2.1 The concept of co-operatives
  • 2.2 Nature of agricultural co-operatives
  • 2.3 The roles of farmer’s co-operatives in agricultural development efforts
  • 2.4 Challenges facing the agricultural co-operative society in agricultural development efforts.
  • 2.5 Overcoming challenges facing agricultural co-operative societies

Chapter Three

Research Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sources of Data
  • 3.4 Population of the study
  • 3.5 Sample size determination
  • 3.6 Sample size technique
  • 3.7 Instrumentation
  • 3.8 Reliability
  • 3.9 Validity
  • 3.10 Method of Data Collection
  • 3.11 Method of Data Analysis
  • 3.12 Ethical consideration

Chapter Four

Results And Discussion

  • 4.1 Data analysis and presentation

Chapter Five

Conclusion And Recommendation

  • 5.1 Conclusion
  • 5.2 Recommendations
  • References

Chapter One


Introduction

1.1 Background of the study

The real agricultural GDP growth in the second quarter of 2013 stood at 4.52%, up from the 4.21% recorded in the corresponding period of 2012 and also higher than the 4.14% recorded during the first quarter of 2013; this represents the highest growth rate in the sector in the last seven quarters (National Bureau of Statistics (NBS), 2014). Similarly, Anambra state economy is been driven by agriculture, the state as one of the highest farming population (657,767 crop farmers as at 2010) in Nigeria.

The State is also endowed with of one of the longest stretches of river (River Anambra) in the country with great potential for a viable fishing industry, dry season farming through irrigation and for an inland water-way. There is a growing advocacy for achieving not only sustainable food security in Anambra state, but expanding market for agricultural produce and a lot of efforts have been directed at finding appropriate institutions that will be used to organize millions of small scale farmers towards achieving such goal. Meanwhile, one of the major problems of agricultural development in Anambra state; is how to develop appropriate organizations and platforms to mobilize and induce farmers in the agricultural sector to a greater productivity.

Farmers multipurpose cooperative societies offers platforms to improve agricultural production, as they play a key role in regulating the market: Processing of members farm produce; construction of warehouses, provision for grading and standardization of product, standardization of weight and measures, daily dissemination of information on market prices of agricultural commodities, facilitates transport services etc.

These marketing functions are performing by FMCS to add values to members farm produce and possibly eliminate the exploitation of farmers by the middle men (Kishor, 2010). According to Taiwo, Udunze, and Agbasi (2015), cooperative is viewed as an organization for the promotion of economic interests of its members. Meanwhile cooperative society does not only restrict itself to economic wellbeing of its members but also giving them social inclusion. Farmers Multipurpose Cooperative Society is one of the types of cooperative that organized by farmers with the objective of providing more than one service to themselves. It promotes integration of economic activities such as mobilizing capital to provide credit and inputs for agricultural production to members. FMCS also assists members with storage, processing and marketing of farm produce. The range of services provided by the society is determined by the members and the society’s capability (Adeleye, 2012).

The need for effective marketing and distribution of farm produce has never been pressing as it is presently. In Nigeria, based on the definition of marketing as “a societal process by which individuals and group obtain what they need and want through the process of creating, offering and freely exchanging products and services of value with others”. It still remains difficult given the country’s economic philosophy.

FMCS is therefore, set up to add value to their member’s farm produce which then guarantee high market price for members produce as much as increase earnings on the member’s farm output. The cooperative offer its members an improved bargaining power in respect to services such as storage; processing and transportation which is capable of affecting the cost of production and the market value of the members produce. The better the quality of value added to farm produce, the more farmers will be keen to sale their produce through their cooperative society. This is because it is possible to maintain services such as storage, transportation, extend credit, market processing, which a single farmer is unable to achieve outside FMCS (Bob-Igwe, 2006).

FMCS has created many outlets in the rural and semi urban areas of Anambra state, creating value chain and enhancing productive capacity and competitive ability of the farmers. However, cooperative are facing new big challenges of severe competitions in keeping qualitative standards of farm produce. Anambra State government has improved the system of agriculture to a significant extent. But, majority part of the benefits accrued from the government policies and programmeshave been denied by large and buoyant farmers who have adequate marketable surplus.

Therefore it is essential to encourage small and marginal farmers to market their farm produce through cooperative society so as to enable them obtain bargaining power and market access which is part of marketing and distribution functions. The necessity for this study arose from the imbalance in bargaining power and market access between the contracting parties in the food supply chain which have drawn much of researchers’ attention. This will be closely examined by assessing how FCMCS perform in marketing of their members farm produce in Agricultural Zones and blocks of Anambra State. As such, for FMCS in Anambra State to improve on their performance, they must be guided by both simple economic and marketing functions/activities that are capable of facilitating efficiency and ultimately higher returns.


1.2 Statement of the problem

It is believed that the characteristics of modern cooperative businesses have mostly been developed in the past 160 years. People form cooperatives to do something better than they could do individually or through a non-cooperative form of business. 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 Awka South Local Government Area of Anambra State with reference to agriculture cooperatives societies.


1.3 Research questions

  1. Does FMCS profile influence their marketing functions?
  2. What are the marketing activities rendered by FMCS to their members?
  3. Do marketing activities render to the members have any effects on the performance of FMCS?
  4. Are there any constraints that limit FMCS effective marketing of members (crop farmers) farm produce in Anambra State?

1.4 Objectives of the study

  1. To examine the influence of FMCS profile on marketing functions.
  2. To examine the marketing activities rendered by FMCS to their members.
  3. To examine the effects of marketing activities on the performance of FMCS.
  4. To examine the constraints that limit FMCS effective marketing of members (crop farmers) farm produce in Anambra State.

1.5 Hypotheses of the study

The following hypotheses for the study are stated in null form:

H01; The socioeconomic profile of the FMCS has no significant influence on their marketing function performed.

H02; Marketing functions/activities have no significant effect on FMCS performance.


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 Scope of the study

The study on Performance of marketing cooperatives in the distribution of farm produce is carried in Awka South L.G.A in Anambra state involving some selected agricultural co-operative societies.


1.8 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.


Chapter Five


Conclusion And Recommendation

5.1 Conclusion

This study was carried out on Performance of marketing cooperative in the distribution of farm produce in Akwa South L.G.A of Anambra State. The need for marketing of farm produce arose as Nigeria is trying to move from mono-economy to diversify the economy with agricultural and non oil sector economy that will be built around specialization, industrialization, and agriculture. As such cooperative societies, especially farmer multipurpose cooperative societies have proven to be a force to reckon with when it comes to marketing of members farm produce. They (FMCs) help the members to attain wellbeing satisfaction with their bargaining power in which they cannot achieve if they market their produce individually.


5.2 Recommendations

In order to strengthen the potentials of FMCs toward effective marketing of their members produce, the following recommendations are considered necessary:

  1. Since the FMCs have the capacity to market farm produce the government should partner with them by given them needed expertise and supply them with productive resources that will enhance their market functions. This will not only benefit the farmers alone but it will also strengthen food security programme for the state and the nation at large.
  2. Also the government should promote exportation of farm produce by facilitating strong collaboration between the Nigerian Export Promotion Council (NEPC) and FMCs. This will not only generate more income for the farmers but it will also boost and strengthen the Gross Domestic Product (GDP) of Nigeria as well as providing more direct and indirect employment opportunities.
  3. The cooperative leaders and board members should design and invest in awareness campaign programmes and advertisement strategies that enable the cooperative compete favorably. This will enhance the sales of farm products to wide coverage of target market which will in turn improves the scales turnover and income.
  4. Also, the cooperative should endeavor to invest on market survey and market research which are very important aspect of marketing. This will enable to disseminate relevant, reliable and significant information to their members. Also, this will enable the cooperative know what is obtainable in the market and understand the demand of the target market; also enable the cooperative to follow and adjust to market trend. More so, investing in research will enhance the competitiveness of the cooperative societies in the competitive environment.

Since the marketing activities of FMCs have significant effects. The cooperative members should be encourage to sale their produce through cooperative society. This will strengthen their bargaining power and also add value to their produce. Also the cooperative should endeavor increase the amount of credit approved and disbursed to their members. By so doing it will increase their output which will result to high income.


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