Problems And Prospects Of Agricultural Cooperative Towards Economic Development (A Case Study Of Oru-West L.G.A Imo State)

Project and Seminar Material for Cooperative Economics and Management CEM

Problems And Prospects Of Agricultural Cooperative Towards Economic Development (A Case Study Of Oru-West L.G.A Imo State)


The project work was carried out to find the “Problems and Prospects of Agricultural Cooperative towards Economic Development. A lot of finding were made on this project work which propelled me to summarize that, prospects of agricultural cooperative towards economic development has contributed a lot to economic development. That is to say, it has done more good than harm, based on the research and analysis. I found out that there are positive impact ranging from having adequate storage and processing facilities transportation facilities, good roads leading to the rural areas, good supervision and sufficient fund etc. Prospects of agricultural cooperatives towards economic development were formed to help cooperator by assembling storage and processing agriculture product. It is obvious that any state without a cooperative society is both physically and socially unsound. However, performance is needed in prospects of agricultural cooperative towards economic development, in Imo State. It has been analyzed and recommended possible solutions. Therefore government should as a matter of necessity attach primary solution in their agenda. More grace to cooperative societies in Imo State and more grace to government of Imo State.

Table of Contents

Preliminary Page(s)

  • Title Page
  • Approval Page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Contents

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Statement of the Problem
  • 1.3 Objectives of the Study
  • 1.4 Research Questions
  • 1.5 Significance of the Study
  • 1.6 Scope of the Study
  • 1.7 Limitation of the Study
  • 1.8 Definition of Terms

Chapter Two

2.0 Literature Review

  • 2.1 Introduction
  • 2.2 The Marketing Concept in Agricultural Cooperative
  • 2.3 The Comparative Mix in Agricultural Cooperative
  • 2.4 Agricultural Cooperative
  • 2.5 Pricing of Agricultural Cooperative
  • 2.6 Processing and Storage
  • 2.7 Distribution Strategy for Agric Cooperative
  • 2.8 Promotional Strategy for Agric Cooperative
  • 2.9 Problems of Agricultural Cooperative

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Sources/Methods of Data Collection
  • 3.4 Population and Sample Size
  • 3.5 Sample Technique
  • 3.6 Validity and Reliability of Measuring Instrument
  • 3.7 Method of Data Analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Introduction
  • 4.2 Presentation of Data
  • 4.3 Interpretation of Results

Chapter Five

5.0 Summary, Conclusion and Recommendations

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • Appendix

Chapter One

1.0 Introduction

Agriculture is still the main base of economic development through cooperative societies. Government have seen the important role cooperative play towards human development, rural transformation and growth in the national economy as well as realization of its millennium development goals hence its participation in all aspect of cooperative development goals in the developing economy. Although cooperative society is a business, yet it is a business organization built on the felt needs or the people desire to solve their most pressing common problems.
Cooperative towards agricultural production builds economic development. Cooperative society was a philosophy of life which a group of people adopted to help themselves solve the economic problems of the time. The cooperative movement was an invention of necessity. It was an attempt to find a solution to the problems of industrial revolution that gave rise to cooperative society.

The industrial revolution started with the invention of different machines that displaced thousands of workers in the factories. The owners of the factories were capitalists who were only interested in making profit at the exploitation of the workers.

The attendant evils the industrial resolution brought include: long hours of work, sometimes up to 16 hours a day, very poor salaries, often below subsistence level, unhealthy or unsanitary surroundings on the factories that led to disease and high price of commodity, adulteration of goods. There were also cutthroat competition, jealousy, greed and avarice and industrial unrest. In the midst of all these, workers cried out to the government to come to their rescue, to help them ameliorate their economic and social condition. The British government paid a deaf ear to their pleading, because they had a policy of non-intervention with the private affairs of the people. The factory worker continued to suffer exploitation from the factory masters as well as the traders and middlemen. The workers were helpless, dejected, rejected and frustrated. Their situation attracted the sympathy of Christians socialists and other groups of people. They spoke against social evil of get-rich-quick.

The social reformers and public spirited people called upon government to intervene and redress the evils of the factory system by passing factor acts to regulate the hours of work. The appeal also fell on deaf ears, until people the worker started crisis. Meanwhile they are some good socialist that fought for the workers. Robert Owen, Dr. William King, stated that cooperative movement is that practiced today.

1.1 Background of the Study

Agriculture is and still remains an important sector of the Oru-West. Agriculture still remains a sector of the Nigerian economy in spite of the importance of crude oil which has been unduly emphasized on agriculture; its practice has remained within a subsistence level at a time in the past.

Reports from the food and agricultural organizations shows that by the year 2013, Nigeria will be able to meet only 47 percentage of the food needs of its projected 150 million people. No doubt agriculture provide the greatest avenue for employment, income and food for the Nigeria populace its intrinsic position as a source of raw-materials for key industries and a major source of foreign exchange earning has further added to its prominence among all known occupation. However, the performance of this sector as regards agricultural production varied widely over the past two decades the enabling environment prevalent at different point in time, have greatly influenced it.
Apparently, agricultural cooperative to a larger extent may be said to begin when farmers plan their output or the expected market prices. Normally, consumers are interested in securing the highest food value at the lowest possible price while at the same time, farmer want the highest possible returns from the sale of their produces. Along the line middlemen seek to earn the greatest possible profit pricing policies and behaviours are therefore important indicators to both the middlemen and the society in general. To explain further to the society, price directly effect aggregate price levels of the economy and hence consumers welfare. Agriculture products uniquely depend on an adequate and flexible transportation system that is why the Oru-West Cooperative Society focus on the geographic movement to acquire market value and also because of the extent to which climate or weather determines where or when and in what quantity transportation service will be needed.

This study tends to look into the problems and prospects of agricultural cooperative within a state and create the need for exchange which in the other hand calls for the might or important middlemen.

1.2 Statement of the Problem

Agricultural production in Imo State has drastically been reduced and this has occasioned scarcity of food in the homes and for export. The situation is different from what it was before when there were abundant food for population and for sale. The present predicament of scarcity in the agriculture sector has let both the consumers and the industrial users to look for explanation to this.

A lot of reasons could be adduced for the short fall that could be traceable to this include the city disturbance in the country increasing rate and population growth. Other factors include draught, unfavorable external environment and inadequate funding for agriculture and development in some of the activities that suppose to backup cooperative are still lacked or not fully utilized.

Most times, agriculture in Imo State are confronted with limited production by design due to lack of facilities of processing and storage. When this is the case, agricultural producers tend to remain only on the subsistence level with little to offer to the market. Despite the enormous resources injected by the government into the sector after the civil war, the impact of the production did not matched and the volume of resources expended on the sector as the agricultural product production stagnated at less than one prevalent annual population growth rate.

1.3 Objectives of the Study

The general objective of the study is to evaluate the problems and prospects of agricultural cooperative as the study of Oru-West L.G.A.

The study intended to look into the following objectives which includes:

  1. Find out the problems agriculture is facing in Oru West and its solution.
  2. Find out if agriculture is a tool for economic development in Imo State (Oru West).
  3. Find out the practice of agriculture in Oru West
  4. Find out how to implement mechanized farming in Oru West.
  5. Find out government roles in agricultural practices in Imo State (Oru West).
  6. Ascertain if there are still practice of peasant farming in Oru West.
  7. Find out the modern equipment used for farming and it technical know-how.
  8. Find out ways of improving agricultural production in Oru West.

1.4 Research Questions

  1. Is agriculture facing problems in Oru West?
  2. Is agriculture a tool for economic development?
  3. Is agriculture properly practiced in Oru West?
  4. Mechanized farming, can it improved the agricultural standard in Oru West?
  5. Is government involved in agricultural practice in Imo or Oru West?
  6. Does peasant farming provides enough for in Oru West?
  7. Is there any modern equipment for agricultural farming?
  8. Can improvement in Agriculture boost food production in Oru-West entire Imo State?

1.5 Significance of the Study

Agricultural planning and development have began to receive some attention in many developing countries. The importance place on agriculture has to do with the experience of those countries which is in constant short supply of food. Many agricultural programme were enunciated by the different regimes ranging from green revolution to operation feed the nation down to Imo State agrarian revolution or River State back to land schemes. All these efforts are aimed substantially to increasing the agricultural product production.

In between the producers and consumers are the cooperative activities and the satisfaction of the consumers depends to a large extent on how these activities are carried out. However, lack of adequate cooperative may cause shortage in some instances thereby increasing the price of the product in particular area while, other experience are surplus with attendant low price.

The study is intended to provide necessary information to the consumers, producers and to the government on how to improve the agricultural product and such improvement will check on the continues, scarcity of the product and thereby enhancing exportation which will help in foreign exchange of the country.

1.6 Scope of the Study

For the purpose of effective research, some of the towns in Oru Local Government Area were selected i.e. Amokwe Nachi, Umabi, Umuaga, Eke, Oghe. Reasons for the selection of towns is to enable the researcher have an in depth study of Oru Local Government and draw a wide conclusion of how the present cooperative systems in Oru local government affects the cooperative of palm produce as an agriculture product.

1.7 Limitation of Study

Imo collection in particular and the research as a whole was not smooth as expected. This is attributed to many foreseen and unforeseen problems. One of such problems includes the uncooperative attitudes of respondents. They did not understand the relevance of the study and though that government was trying to collect names of taxable adults. So this made the reliability of information supplied by some respondents doubtful.

There was also the problem of bureaucratic rebaptism especially with the various planning agency from which information where sought. Some of the information regained by the researcher could not be supplied as they term them top secret. This also affected the research in some ways.

Lastly limitation by factors of time and finance. The limited time at the researcher disposal did not allow for choosing a large sample or even study the population. This also limited extend to which the research findings could be generalized. Finance plays a vital role in any research work. As an individual and above all students, the researcher was financially handicapped. This also affects the research.

1.8 Definition of Terms


This word embraces all domesticated birds such as turkey thing or substance produced by a natural poultry farmer, (Oxford Advance Learners Dictionary).

Poultry Product:

This includes such products eggs, chickens (fowls) ducks geese, turkey’s guinea fowl, swan, quail ostrich, pea-fowls peacock.

Agricultural Cooperative of Poultry Product:

This is defined as an aspect of the entire agricultural cooperative and concerning poultries products. (Oxford Advanced Learners Dictionary).


Condition caused by not getting enough food or enough portentous foods condition resulting from a lack of right type of food (Oxford Advanced Learners Dictionary).

Agricultural Cooperative Mix:

This is a term used to describe which constitute the core of a company’s agricultural cooperative variables comprising the four p. (product, place, price and promotion) which the firm uses to operate successfully within the agricultural cooperative environment (Adirika, Ebue and Nnolim, 1996)


This is the qualities of commodity which consumers are willing and able to buy at a particular price and a given time. Desire of customers for goods or services which they wish to pay or used (Oxford Advanced Learner’s Dictionary).


This is the 21 days incubation period of domestic fowl. (Oxford Advanced Learners Dictionary). Hatch out of a young bird of fish etc) emerge from an egg where by egg to produce a young bird.

Mechanized Farming:

This refers to the use of animals in the operation of farm implements and tools. It is also the use of modern farm implements to replace the old ones example are hoes and cutlasses being replaced by the use of tractors, ploughs and riggers. Change a process factory etc so that is run by machines rather than people or animals (Oxford Advanced Learner’s Dictionary).

Promotional Activities:

This refers to activities involved in communication with the target audience and persuading them to purchase one product. It sacks to inform and influence. The promotional activities include advertising, public relation, sales promotion and personal selling (Adirika, Ebue and Nnolim, 1996).


Demand out forward, take for granted as a necessary fact, as a basis for reasoning which may be considered axiomatic. Putting something forward as a fact or accept something as true, especially as basic for reasoning or argument (Oxford Advanced Learner’s Dictionary).


Regular use and enjoyment of the best and most expensive food, drink, cloths, and surroundings things that please the senses (Oxford Advanced Learner’s Dictionary).

Agricultural Cooperative:

The Institute of Agricultural Cooperative defined it as a management process responsible for identification and satisfying consumer or customer requirement profitable through an exchange made effectively and efficiently. Principle and practice of agricultural cooperative (Ebue, 1996).

Chapter Five

5.0 Summary of Findings, Conclusion and Recommendations

5.1 Introduction

This is the conclusion of the research work carried out in Oru-west local government area in Imo State. This study has looked into the background economic activities, problems and agricultural production. However, it concentrated mostly on the problems and prospect of agriculture towards economic development.

5.2 Summary of Finding

In view of the fact that the study was based on the problem and prospect agricultural cooperative on finding palm product as agricultural product. The finding stated that crude implements militate against agricultural production.

Therefore the alternative which states that the use of crude implement do not militate against agricultural production is accepted.

Also lack of adequate storage and processing facilities hinder production, lack of adequate storage and processing facilitate do not hinder production, but majority of the producers were of the opinions that it hinder but when this was done, we will not lack. Lack of loans and other incentives like subsidized fertilizer from the government hinders production. The researcher tested this claim by using chi-square.

Findings show that bad network, discourages the distribution of product in this case which states that bad road network hinder transportation and agricultural products was accepted.

5.4 Conclusion

Generally, research are carried out with a view to find out better and new method of improvement to all fields of human Endeavour. This study is however concerned with identifying the problem and prospects of cooperative of palm produce as an agricultural products in Imo State.

The problems of cooperative of agricultural products is not new in Nigeria. In the second national development plan (1994-2003) it was stated that the cooperative of agricultural producers neither give a fair return to the producers not fair price to the consumer that consider price variation occur within and between season. Therefore is making farming an attractive business.

In the light of these therefore, the study has attempted to evaluate the pricing distribution storage and processing facilities in the cooperative and agricultural products. Efforts should be made at national level to enhance agricultural productivity by mobilizing them so far under utilized potentials.

5.4 Recommendations

Based on the above identified problem affecting the cooperative palm produce as an agricultural product in Oru West local government and infact in Imo State in general, the researcher made the following recommendations:

  1. It should be noted that the improvement of transport facilities will not only be essential for developing agriculture but will also provide the pre-requisites for penetration of other industries into the hitherto underdeveloped area in Oru local government area and entire Imo State.
  2. They can make use of available surplus labour. It is also necessary to bring down the cost of transportation by reducing the distance over which the producers is carried improving the transport and communication facilities and improving more vehicles.
  3. The provision of adequate and suitable storage and processing facilities constitutes an important cooperative functions. In improving this situation the researcher has a point out on the fact that the government should play a decisive role by attempting some schemes aimed at providing storage and processing facilities to farmers and middlemen. In doing this it may be necessary to build a certain amount of new storage facilities.
  4. The researcher has discovered that most of the farmers or producers have not received formal education or rather are illiterate in this regard effort should be made to enlighten them especially on the fertilizer. The young ones among them should be told to attend the school of agriculture.
  5. Prices for the same commodity very substantially from market since available supplies are not always directed to the market with highest demand. In improving this, the government should have some scheme of price stabilization through buffer stocks.

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