The Role Of Farmers Multi-Purpose Cooperative Societies In Accelerating Food Production (A Case Study Of Orlu Local Government Area)

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

The Role Of Farmers Multi-Purpose Cooperative Societies In Accelerating Food Production (A Case Study Of Orlu Local Government Area)


The subject matter of this research is the role of farmer’s multi-purpose cooperative society in accelerating food production. A case study of Orlu Local Government Area.

The aim of the study is to determine the effective ways the role of farmers multi-purpose cooperative society can accelerate food production in different ways i.e. through marketing of food production, processing, supply of farm inputs and credit facilities.

The researcher also research on the opportunities made available of these food productions and the means of getting them available for the members.

The concept that leads to these Farmers Multi-purpose Cooperative Society, which was, researched through different research method/designs such as experimental research, descriptive research and etc. and also different data collection method such as personnel interview, questionnaires and etc, which was use to investigate on people’s view whether cooperative society has been able to play its role well in the economic development and social transformation.

Finally, the researcher suggests ways of improving the role of farmer’s Multi-purpose cooperative society in the accelerating of food production for the society, the state and the country and others relating to it.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgment
  • 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/The concept of Farmers Multi-purpose Cooperative Societies
  • 2.2 The concept of accelerated food production
  • 2.3 The role of Farmers Multi-purpose Cooperative Society in accelerating food production
  • 2.4 The problems of Farmers Multi-purpose Cooperative Society
  • References

Chapter Three

3.0 Research Design and Methodology

  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sources/method of data collection
  • 3.4 Population and sample size
  • 3.5 Sample techniques
  • 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 result(s)

Chapter Five

5.0 Summary, Conclusion and Recommendations

  • 5.1 Introduction
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendations
  • References
  • Appendix

Chapter One

1.0 Introduction

1.1 Background Of The Study

The term cooperative can be used in its generic term to cover a wide area of activities which two or more people join together either formally on adhoc or permanent basis, for legal or illegal or socially accepted or unaccepted actions to fulfill certain aims. Such action may be selfish in nature or may be in the interest of those performing the action without it being detrimental to any one else.

However, cooperation is often used in the positive sense. It is also used in a much narrower sense to mean activities undertaken by cooperative organizations. The study of cooperation in this later sense therefore means the scientific or academic study of cooperative organizations.

Cooperative has been defined for different purpose and in slightly different ways by economists, lawyers, philosophers and others. Precisely, cooperative is an association of persons, usually of limited means, who have voluntarily joined together their resources to achieve a common economic end and through the formation of a democratically controlled business enterprise, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking. Cooperative started in Great Britain in 1760. And different cooperative societies exist since then. There are types of cooperative, thrift and credit cooperative, thrift and loan, agricultural cooperative and etc.

Agricultural cooperative can be defined as cooperative societies that engage in the production, processing, marketing and distribution of agricultural products. Types of agricultural cooperative are group-farming society. Member of the society engage in the production of a variety of crops while they also arrange for the marketing of such crops. Some other agricultural cooperative is marketing cooperative. These societies are involved in the marketing of member’s products. This is done at low cost and efficiently for members benefits.

Agricultural cooperative thrift and credit these societies are concerned with the mobilization of credit and making the available to members at a low cost for either prosecution, marketing or consumption purpose. Agricultural consumer cooperative societies engages in the sale of manufactured/consumer products to members at reasonable prices they are also similar to other consumer cooperative but for the fact that they are mainly found in the rural areas while the members are mostly farmers.

Agricultural multi-purpose farmer’s cooperative societies combine many of these functions as their main criteria’s like production, processing of agricultural produce, marketing of the3 processed agricultural produce, credit facilities to members etc. the can also be known as service centers for the benefit of their members.

1.2 Statement Of Problem

Most often, business activities are faced with numerous problems, which hinder achievement of their objectives. Some of these problems are posed by the vagaries in the economy such as inflation while some area high and expensive. This situation is neither of interest to the consumer nor the producers. In effect, marketing cooperative was introduced to arrest the situation especially in the rural areas, so as to bring society into the distribution sector and increase its efficiency.

Consumers cooperative are societies made up of consumers, found basically by consumer who in a bid to take advantage of mutual efforts, ensuring that the quality of goods, they buy is of high standard and at a reasonable price. The idea of consumer cooperative sprang up in Britain during the middle of the nineteenth century as a reaction to the growing exploitation of the workers by the capitalist. Goods were not only expensive, but were adulterated with in correct weights and measures.

Farmers’ Multi-purpose Cooperative Society in indicating from its name, it ingrates into itself from problems farmers. As presently constituted, Farmers’ Multi-purpose Cooperative Society represents about 70 percent of all cooperative found in south-east, Nigeria.

The idea of a Farmers’ Multi-purpose Cooperative Society stems from the understanding that the chief occupation of rural dwellers is agriculture. So in order to accelerate significant rural resource productivity, an organization has to be found that will champion this course.

With effective financing, Farmers’ Multi-purpose Cooperative Societies can undertake all the functions we have discussed. It can ever go further to provide other services, which we have not discussed like agricultural insurance and the rest. Below are ways and means through which agriculture can be better the well-being of their members they include:-

  1. To acquire agricultural inputs
  2. To take advantage of the economic of scale in production, processing and buying and selling.
  3. To obtain credit from financial institution.
  4. To by-pass exploitative middlemen (money lenders, traders, miller and industrialists)
  5. To educate farmers and spread useful information.

1.3 Objectives Of The Study

  1. This write up focuses on the numerous problems of Farmers’ Multi-purpose Cooperative Society and threats which these problems pose for the cooperative enterprise.
  2. The study also looks are the opportunities and tries to relate them as factors necessary for social and economic development.
  3. In addition to this, it also thrown more light on activities of cooperative societies as unique form of business organization.
  4. Finally, this write up is also aimed in improving the general knowledge of cooperative societies for which the lack of proper knowledge on the part of the general public has contributed immensely in the set back which the cooperative societies have witness for so long leading to its delineation.

1.4 Research Questions

The research questions for the study were made up of the following:-

  1. What are the roles of Farmers’ Multi-purpose Cooperative Society in accelerating of food production?
  2. What are the roles of Farmers’ Multi-purpose Cooperative Society towards the provision of infrastructural facilities?
  3. What are the various sources of finance for the cooperative in Orlu Local Government Area?
  4. What are the major benefits derivable from Farmers’ Multi-purpose Cooperative Society in Orlu Local Government?

1.5 Significance Of The Study

The important of this work cannot be over emphasize. This work will enlighten the reader and bring out the hidden problems which the cooperative societies are faced with at the same time put up some suggestions and would help in solving the problems.

This will ensure proper and well-articulated programme aimed ay withstanding the problems posed against farmers’ Multi-purpose Cooperative Society. the present day is a point time when bad business practices has became the order of the day, this can be attributed to people’s drive to maximum profit. This brought about serious competition in the economy.

In the wake of this, this work will relate the efforts of cooperative societies in trying to curb these bad business practices with the aim of bringing a relief to the poor masses by forming Farmers’ Multi-purpose Cooperative Society in ten rural areas. This believed would usher in a new socio-economic world where the suffering populace will enjoy some form of economic freedom.

1.6 Scope Of The Study

The scope of this study is of the type that relate and deals on the role of Farmers’ Multi-purpose Cooperative Society and how they help in the acceleration of food production in Orlu Local Government Area in Imo state. Due to the limited resources and time available for this research work, the time given for the study was too short.

Secondly, this study helps farmers to pull themselves together and their resources on a mutual or self-help basis to form a business enterprises which seek to solve economic problems of its members.

1.7 Limitations Of The Study

In carrying out this study within the given scope. Some of the limiting factors that is in existence which causes the major constraints while carrying out this research work as follows:

  1. There is in existence scarcity of cooperative establishment with Orlu L.G.A.
  2. Also, the constrains face during the conduct of this research work is lack of finance or financial constraints, which if finance was provided enough, this research work would have given a more vivid study of the scope.
  3. Another major constraint to this research work is the unwillingness of the cooperative staff in the area of the study Orlu L.G.A to release certain document which contains vital data or information needed for this research work.
  4. Finally, the limitation of this study is also base on research work in order to find out the problems and give solution to them.

1.8 Definition Of Terms


This implies individuals that are engage in cultivating and rearing of animals.


This implies the engagement of people in the production, processing, marketing, storage and in the distribution of agricultural products.


This means an association of people united voluntarily to meet their common economic, social, cultural needs and their respective aspirations through a jointly owned and democratically controlled enterprise.


This means a term or something of economical worth that engage on many different activities or purpose. On this project context, Farmers’ Multi-purpose Cooperative Society engages in various functions of agricultural products.


This simply means processed data


This simply means raw facts that are not yet processed.

Chapter Five

5.0 Summary, Conclusion And Recommendations

5.1 Introduction

The work so far discussed issues pertaining/relating it farmer’s multi-purpose cooperative society. The area of study is Orlu Local Government Area in Imo state by the researcher and three different groups were chosen for the work. The data collected was presented using frequency table, figures and percentages.

5.2 Summary Of Findings

The data presented and analysis is represented in a tabular form such as most of the cooperative members said that farmer’s multi-purpose cooperative society complete favourably in the other cooperative societies and that people in the rural area benefit from the society that ahs the terms of multi-purpose functions of services.

  1. Majority of the members consider the rural area as posing threat to farmer’s multi-purpose cooperative society, the threat is the problem of input supplied and they think it will discourage people from joining the society.
  2. The most of the corporate organization believe that farmer’s multi-purpose cooperative society can contribute to the economic growth and would consider government support to the cooperative necessary, especially in terms of finance.
  3. In the case of productivity, price and employment, the reasons why there is increase in employment is because cooperative societies help people to achieve their aims and purpose by setting up their own business. As in the area of providing them or to the members supply of farm inputs, marketing of products, productive and processing of products which is made available to the members and non-members.
  4. However, farmer’s multi-purpose cooperative society is best known for attending to cooperator to his various problems. It helps the members to do so many things and it does so many good things to the members.
  5. Farmer’s multi-purpose cooperative societies is among the state apex society and it is under the category of fields of operations which the societies are engaged in various functions in terms in inputs purchase,. For saving and production loan and provide credit facilities for the members.

5.3 Conclusion

Farmer’s multi-purpose cooperative society is a voluntary association of individuals, united by a common bond, which have joined together their resources in order to encourage each other to provide for the members and also made provision for the areas where they lack services. The society has made significant impact on the well being of its members and the general public because they serve as a remedy to rural indebtedness. Therefore, their efforts should be encourage of the general public and government to ensure that they achieve that objectives for which they were established.

5.4 Recommendations

In view of some of the findings and what has been discussed, the following suggestions were made by the researcher on the ways of reducing problems of the society and ways of enhancing/improving the functions of the society.

  1. There should be more effort on the areas of marketing of farm products which the producers or the framers has decide on the issue of satisfying the needs and wants of the consumers, the kinds of farm product needed in the area of operation, the price should be moderate, the distribution network or channel that should be suitable for this products and undertaking advertisement. If there is being put into consideration improvement of marketing of farm products will be enhanced.
  2. In the area of credit facilities guarantee to the members according to regulation 45 which room for each members maximum credit limit.
  3. Government should support cooperative societies financially and otherwise.

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