1. TITLE PAGE
CONTRIBUTIONS OF CO-OPERATIVE TO AGRICULTURAL
DEVELOPMENT: A STUDY OF AGRICULTURAL CO-
OPERATIVES IN AWKA NORTH LOCAL GOVERNMENT AREA.
BY
DAVID SEUN JOHNSON
REG. NO: 2009434044
A PROJECTWORKSUBMITTED TO THE DEPARTMENT OF CO-
OPERATIVE ECONOMICS AND MANAGEMENT, FACULTY OF
MANAGEMENT SCIENCE, NNAMDI AZIKIWE UNIVERSITY,
AWKA.
IN PARTIAL FULFILLMENT OF THE REQUIREMENTSFOR THE
AWARD OF BACHELOR OF SCIENCE (B.SC) DEGREE IN CO-
OPERATIVE ECONOMICS AND MANAGEMENT.
AUGUST 2013.

2. DEDICATION
I dedicate this project to the Almighty God who in His infinite mercy saw me
through all my stay in the university.

3. ACKNOWLEDGEMENT
Special thanks goes to my project supervisor; Dr. F. O. Nwankwo, for his
devotion, commitment and meticulous guidance towards the successful
completion of this research work despite his busy activities.
I am also grateful to the lecturers of the department of Co-operative Economics
and Management whose text-books and write-ups in journals have proved helpful
in this research work; Mr. Emma Okechukwu, Mr. Onyima Jude, Dr. Anigbogu
Tessy, Dr. C. U. Onugu, Prof. E. E. Umebali and Prof. C. J. C. Akubuilo, I say
thank you to you all. My appreciation also goes to Mr. Gerry Emejulu, Mr. I. D.
O. Chilokwu and Mrs. Ogochukwu for their advices which encouraged me during
this research. Also worth of mention is Mr. O. A. Taiwo who made time for me,
procured the needed study materials and assisted me with the statistical
calculations. I won’t forget to appreciate the efforts of my friends who helped me
during this research; Oluchi, Kelechi, Emeka and Chiamaka, may God bless you
all.
My mother; Mrs. Modupe David and Uncle; Pastor Lekan Popoola who assisted
me both financially and in prayers, I say God bless you all. Finally, I want to
appreciate the Almighty God for His favour and Blessings.

4. ABSTRACT
This study examines the contributions of co-operative towards agricultural
development in Awka North L.G.A. The objectives includes to determine the
socio-economic characteristics of members of the co-operative in the area, to
identify the activities carried out by the co-operatives, examine the contributions
of the co-operatives toward agricultural production and identified the constraints
which hinders their contribution towards agricultural development efforts. Taro
Yamani’s formular was used to determine the sample size of 197 respondents and
descriptive statistics such as mean, percentage, frequency distribution and scale
analysis were used to analyze data. The study revealed that co-operative societies
in the area are engaged in crops, livestock and storage enterprises and that they
provides credit facilities and supply farm inputs to their members. The study
further revealed that mobilization of savings is among the contributions of the co-
operatives towards enhancing agricultural production. In line with the findings of
the study, it was recommended among others that the government should
encourage the co-operative in the area of increase supply of credit from financial
institution and improve on public enlightenment in order to bring about increased
participation and involvement of small-scale farmers.

5. TABLE OF CONTENT
Title Page ………………………………………………………………… i
Certification ……………………………………………………………… ii
Approval Page ……………………………………………………………. iii
Dedication ………………………………………………………………... iv
Acknowledgement ……………………………………………………….. v
Abstract ………………………………………………………………….. vi
Table of Content ………………………………………………………… vii
List of Table …………………………………………………………….. xi
CHAPTER ONE
1.1 Background of the study ………………………………………… 1
1.2 Statement of problem ……………………………………………. 2
1.3 Objectives of the study ………………………………………….. 3
1.4 Research questions ……………………………………………… 4
1.5 Scope of the study ………………………………………………. 5
1.6 Significance of the study ………………………………………... 5
1.7 Limitation of the study ………………………………………….. 5
1.8 Definition of terms ………………………………………………… 6

6. CHAPTER TWO
2.0 Introduction ………………………………………………………. 7
2.1 Concepts of Co-operatives ……………………………………..… 7
2.2 Nature of Agricultural Co-operatives …………………………….. 10
2.2.1 Thrift and Credit Co-operatives Society …………………………… 11
2.2.2. Farm Supply Co-operatives ………………………………………… 12
2.2.3. Agricultural Marketing Co-operatives Society …………………….. 13
2.2.4. Farmers Multipurpose Co-operatives Society ……………………… 13
2.2.5. Other forms of Agricultural Co-operatives ………………………… 14
2.3 The roles of Farmers Co-operatives in Agricultural
Development Effort ………………………………………………… 14
2.3.1. Land Acquisition …………………………………………………… 16
2.3.2 Agricultural Mechanization and Technology Adoption …………… 17
2.3.3 Farm Supply ………………………………………………………… 18
2.3.4. Credit Facilities ……………………………………………………… 18
2.3.5. Agricultural Marketing ……………………………………………… 20
2.3.6 Education, Training and Information Dissemination ……………… 21
2.4 Challenges facing the Agricultural Co-operatives
Society in Agricultural Development Efforts ………..……………… 21
2.4.1. Poor Capitalization ………………………………………………… 22

7. 2.4.2. Corrupt and Fraudulent Officers and Staff ………………………… 23
2.4.3. Illiteracy ……………………………………………………………. 23
2.4.4. Poor Inspection ……………………………………………………… 24
2.4.5. Government Interference …………………………………………… 24
2.5 Overcoming the Challenges facing Agricultural
Co-operative Societies …………………………………………….. 26
2.5.1. The Internal Factor ………………………………………………… 27
2.5.2. The External Factor ……………………………………………….. 29
CHAPTER THREE
3.0 Research Methodology …………………………………………….. 31
3.1 Research Design …………………………………………………… 31
3.2 Area of Study ……………………………………………………… 31
3.3 Population of the Study …………………………………………… 32
3.4 Sampling Procedure and Sample Size Determination …………… 33
3.5 Methods of Data Collection……………………………………… 34
3.6 Methods of Data Analysis ………………………………………. 35
CHAPTER FOUR
4.0 Data Presentation and analysis …………………………………….. 36
4.1 Socio-Economic Characteristics of The Respondent ……………… 36
4.2 Activities Carried out By Co-operatives Societies ………………….. 39

8. 4.3 Contributions of Co-operatives to Agricultural Production ………… 40
4.4 Constraints that Limits the Contributions of Co-operatives
to Agricultural Co-operatives ………………………………………. 42
CHAPTER FIVE
5.0 Summary of Findings, Conclusion and Recommendation …………. 45
5.1 Summary of Findings ……………………………………………….. 45
5.2 Conclusion ………………………………………………………….. 45
5.3 Recommendation …………………………………………………… 46
References ………………………………………………………………… 48
Appendix ……………………………………………………………………. 53

9. LIST OF TABLES
Table 1: Farmers Co-operative Societies in Awka North L.G.A. …… 32
Table 2: Socio-Economic Characteristics of Respondent …………… 37
Table 3: Activities Carried Out By Co-operative Society ………….. 40
Table 4: Contribution of Co-operatives To
Agricultural Production…………………………………….. 41
Table 5: Constraints That Limits The Contributions Of
Co-operatives To Agricultural Production ………………. 44

10. CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Agriculture is the mainstay of Nigeria economy, the major occupation of the rural
people. Its role in the socio-economic development of Nigeria cannot be over-
emphasized. It provides employment for more than 80% of the Nigerian
population. Umebali (2002) however pointed out that “despite the fact that more
than 50% of the total labour force is involved in farming yet output is not enough
to feed the ever increasing population” presently the population growth rate is
higher than food production level.
The roles of co-operatives in agricultural development is an important topic of
study and much has been done by scholars and co-operators to justify it prime role
of securing economic and political development in the country. The improvement
of agricultural production through co-operative has economic effect in that; co-
operative enterprise brings better yield which in turn yield better standard of living
for the members and their families.
In Anambra state, a good number of inhabitants survive through substantial
farming; which attracted the formation of many co-operative, and their aim is to
improve the agricultural production. In Awka North Local Government Area, co-

11. operatives provide locally needed services and inputs to farmers, they also serve as
a medium in which government distribute essential commodities and inputs
needed by farmers for the facilitation of their output. Onugu and Uguwanyi (2007)
noted that agricultural co-operative societies are involved in so many aspects of
agricultural activities directed at giving farmer the support to rise their
productivity and income level. 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
In the effort to improve the agricultural sector in Nigeria, the government
embarked on various programmes some of which were listed by Iwuchukwu and
Igbokwe (2012) as; National Economic Empowerment and Development Strategy
(NEEDS) – 1999, National Special Programme of Food Security (NSPFS) – 2002
and the Root and Tuber Expansion Programme (RTEP) -2003. In 2005, it was
recorded that agriculture contributed 6.8% out of 8.2% growth rate recorded by the
entire non-oil sector (NEEDS, 2008) and about 41% of the gross domestic product
(NBS, 2007). However, the alarming growth rate of Nigeria’s population of about
144 million at 3,2% per annum, which would doubled in less than 25 years if not
checked (Oladipupo, 2008) is a challenge in a country where more than 90% of

12. the agricultural output is accounted for by small-scale farmers. As such, these
small-scale farmers who are characterized by low income, low resource utilization,
small and scattered nature of farmlands will find it difficult to meet the teeming
need of the increasing population.
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 North Local Government Area of Anambra State with
reference to agriculture cooperatives societies.
.1.3 OBJECTIVES OF THE STUDY
The broad objective of this study is to analyze the contributions of farmer’s co-
operative societies on the improvement of agriculture.
Specifically, it has been designed to:-
1. Determine the socio-economic characteristics of members of the co-
operative societies in Awka North L.G.A

13. 2. Identify the type of activities carried out by the co-operatives in Awka
North L.G.A.
3. Examine the contributions of co-operatives to agricultural development in
Awka North L.G.A
4. Identify the constraints that hinders the contribution of co-operatives to
agricultural development in Awka 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 Awka North L.G.A.?
2. What are the activities being carried out by the agricultural co-operatives in
Awka North L.G.A.?
3. In what ways has the farmer’s co-operative contributed to agricultural
development in Awka North L.G.A?
4. What are the constraint that hinders the co-operatives in contributing to the
development of agriculture in Awka North L.G.A?
5. How can these problems be solved to ensure effective performance of the
co-operative to the development of agriculture?

14. 1.5 SCOPE OF THE STUDY
The study on the contributions of co-operative to agricultural development was
carried in Awka 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.

15. 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.

16. CHAPTER TWO
2.0 LITERATURE REVIEW
The literature review for this research will be carried out under the following sub-
topics:-
1. Concepts of Co-operatives
2. Nature of agricultural co-operatives
3. The roles of farmer’s co-operative society to agricultural development
4. Challenges facing agricultural co-operative societies in Nigeria agricultural
development efforts
5. Overcoming challenges facing agricultural co-operative societies.
2.1 THE CONCEPT OF CO-OPERATIVES
The word “co-operative” is commonly used when referring to actions or situations
involving mutual effort, joint action or common goals. Co-operatives are referred
to variously as Isusu in Igbo, Esusu or Ajo in Yoruba and Adashi in Hausa
(Ogunnaike and Ogbari, 2007). Onyima and Okoro (2009) observed that the word
“co-operatives” can be applied to many different types of group activities;
however, in the study of Co-operative Economics, the term is used to reference a
formal business model which has a relatively recent origin. The term “co-
operative” was first coined in the early 19th century and has evolved as an

17. economic and organizational form since then (Aref, 2011). As an association, it
tend to achieve the social interest of it members while as an organization, it aims
to improve the economic well being of it members. Nwankwo (2007) noted that as
an enterprise, co-operatives are active in markets locally, nationally and
worldwide. Thus, the co-operative is a socio-economic group. The cooperative
system is one through which the majority of the less privileged people in the world
can part with misery, depression and oppression by joining the path for self
realization and restriction or any social, political, racial or religious
discriminations to all persons who make use of its services and are willing to
accept the responsibility of membership (Mayopux, 2008).
Co-operative has been defined by various authors, scholars and bodies, however
all the definitions agreed to the synergy effect of the voluntarily formed group of
people which leads to the achievement of their goals. ICA (2005) stated that “Co-
operatives are autonomous association of persons united voluntarily to meet their
economic, social and cultural needs and aspirations through jointly owned and
democratically controlled enterprises. Equally, Rijk (2011) quoting ILO (1986)
described co-operatives as “an association of human beings, who have voluntarily
come together and agreed to work collectively at their common risk and with
resources contributed by all towards an improvement of common socio-economic

18. interest, which working singularly, they cannot achieve. Okechukwu (2001)
attested to the above definition as he defined co-operative society as “an
incorporated association in which persons join together on their own freewill to
obtain some economic service which would be either too difficult or too costly for
each to obtain by working alone. Co-operatives are based on the values of self-
help, self-responsibility, democracy, equality and solidarity (Nwankwo, 2007).
The basic concepts of co-operatives were identified by different authors as stated
in its principles set by the International Co-operative Alliance (ICA) review of
1995. Onuoha (1998) highlighted the principles as:-
 Open and voluntary membership
 Democratic member participation
 Member economic participation
 Autonomy and independence
 Education, training and information
 Co-operative among co-operatives
 Concern for community.
There are different types of co-operative societies, most common among them are;
agricultural, thrift and credit, consumer, housing, marketing, transport, insurance
and multipurpose co-operative societies. Onugu and Uguwanyi (2007) however

19. observed that the Nigeria co-operative movement is composed largely of
agricultural co-operatives. The reason is not far-fetched when one realized that
most of its population earns their living on agriculture. This has led to the
formation of co-operatives in the agricultural sub-sectors of crops and animal
production, processing and marketing, fishery and forestry.
2.2 NATURE OF AGRICULTURAL CO-OPERATIVES
Agricultural co-operative is one of the two major types of co-operative which is
specifically designed to cater for agricultural sector needs. Thus, it can be found in
area in consumption, production, marketing and credit. Agricultural co-operatives
engage in different types of activities aimed at helping the farmers overcome
difficulties. According to Okeke (1999) Agricultural cooperative consist of all
cooperative found in all sub-sectors of agriculture. These sub-sectors are crop
production, livestock, fishing, forestry and wild life.
Through co-operatives, farmers can pool their limited resources together to
improve agricultural output and this will enhance socio-economic activities,
especially in the rural area (Ebonyi and Jimoh, 2002). Usually, problems facing
the farmers determine the type of agricultural co-operative society which he is
attracted to. Onugu and Uguwanyi (2007) quoting Ndanusa (1986) listed some

20. various types of agricultural co-operative societies and their transformational
expectation in agricultural development:-
2.2.1 Thrift and Credit Co-operative Societies
All such co-operatives perform functions that are practically related. The core
function is to improve access to credits at critical moments or more succinctly,
financial intermediation. Principally, such co-operatives aim at making it easier for
people (especially people with low income) to save, thereby increasing the amount
of money available for lending to members (Otto and Ukpere, 2011).
Rural farmers need institution from where they can save and borrow for their
economic activities, to serve this needs, there is the Co-operative Thrift and Credit
Society (CTCS). Nwankwo (2007) noted that; people’s willingness to save could
be enhanced when institutions provides savings facilities they understand and
trust. This type of co-operative is so structured that it results in the mobilization of
savings and the credit for production which is given to members on a revolving
basis and at low interest rate. Abdulquadri and Mohammed (2011) observed that
the agricultural cooperative handles all kinds of credit including short, medium
and long-term credit. It has mobilized a large amount of funds both from rural and
urban areas and supplied an increasing amount of credit to farmers. Poor farmers

21. who are often left out of the main stream of development can through joint action
raise the needed capital to improve their production and distribution.
2.2.2 Farm Supply Co-operatives
It is important that the farmer should have at his disposal, an efficient and
economic supply system which meets his growing demands. According to Nweze
(2002) co-operative societies serves as avenues for input distribution. Through
their nation-wide structure, they have developed strong and reliable arrangement
for the distribution of food crops, fertilizers, agro-chemicals, credits, seeds and
seedlings. The objectives of this co-operative can be seen as:-
 To minimize cost associated with farm inputs, which constitute the greatest
expenditure incurred by farmers.
 To ensure that farm inputs, which are of good quality are delivered to
members.
 The procurement of fertilizer and high yielding seedlings.
 Procurement of agro-chemicals, feeds and fingerling.
 Provision of farm machinery hardware.
 Accessibility of farm infrastructure such as roads and irrigation facilities.

22. 2.2.3 Agricultural Marketing Co-operative Societies
Umebali (2006) defined agricultural marketing co-operatives as an association
whose primary function is to sell or market products on behalf of members. The
tasks of agricultural marketing co-operatives include all those activities and
preparation which will assist a farmer in disposing off his produce. This ranges
from processing, packaging, storage and transportation of the product (Onugu and
Uguwanyi 2007). The marketing co-operative societies help in providing an
efficient marketing system, which subsequently will improve the farmer’s income
by giving him a better bargaining power and lower trade margin, price
stabilization and also help to search for a better market were their produce can be
sold.
However, Umebali (2006) opined that for the society to operate fully, it pre-
supposed that it must have fulfilled the entire obligation including registration.
2.2.4 Farmers Multipurpose Co-operative Society
As indicative of its name, Farmers Multipurpose Co-operative Society (FMCS) is
a co-operative society that integrates into one, some or all the problems of the
farmers. As presently constituted, this type of co-operative represent about 70% of
all co-operative found in the South Eastern Nigeria (Onugu and Uguwanyi 2007).
They can perform the function of any type of co-operatives depending on the need

23. of its members. While this may be an advantage, it also poses some problems
since no singular co-operative can claim to have the necessary co-institutional and
organizational platform to carry out all functions they may choose to perform.
2.2.5 Other Forms of Agricultural Co-operative Society
There are other specialized types of co-operatives involved in agriculture, there are
not common, especially in Nigeria, they include:-
 Agricultural Insurance Co-operatives.
 Women Agricultural Co-operatives (Processing).
 Co-operatives for water supply and control.
 Co-operatives for fishery production.
 Co-operatives in forestry.
 Co-operatives for pasture improvement and management.
 Co-operatives for poultry, livestock breeding and related service.
2.3 THE ROLES OF FARMER’S CO-OPERATIVES IN
AGRICULTURAL DEVELOPMENT EFFORTS
That the co-operatives have become an important platform for development in the
agricultural sector is not an over-statement. Agriculture more than any sector, has
more attraction to the vision of co-operators in Nigeria than any other sector
(Onugu and Uguwanyi 2007). Agricultural co-operative business has acquired

24. some importance as instrument for development in developing countries, these
enterprises whose members are involved in agriculture and related activities are
organized to provide essential services to farmers in production, processing,
marketing and consumption of food to meet their basic need and that of the society
(Emejulu and Constance, 2011). Nigeria, like most other developing economies is
primarily agrarian. More than 70% of the populace is engaged in one farming
activities or the other to make a living. Eze (2003) opined that the ratio of the
contribution of agriculture to the total level of output is significantly higher in
developing countries than in developed countries. Developing countries, he further
said, are primarily agrarian where most people cultivate land on small plots, using
traditional methods that are in-efficient. Cooperative societies’ increasing
involvement in production and farm inputs distribution in Nigeria has been widely
reported. These include marketing, processing, supply of farm inputs (seeds,
fertilizers, chemicals and modern farm implements), consumer goods, credit and
banking, insurance, warehousing, transportation, farm extension and relevant
support such as research and publication (Alufohai and Ilavbarhe, 2000; FAO,
1993 and Nweze, 2003).

25. Agricultural co-operative societies are involved in so many aspects of agricultural
activities directed at giving farmers the support to raise their productivity and
income level. Such supportive activities are listed below:-
2.3.1 Land Acquisition
Land acquisition co-operatives are the result of voluntary land consolidation by
individual land owners whose joint efforts contribute to efficiency in agriculture.
Land acquisition co-operatives include co-operatives which are formed so that
they could be apportioned land (Onugu and Uguwanyi 2007). Uguwanyi (2000)
cited the National Agricultural Land Development Authority as a successful land
acquisition programme where the co-operative played a crucial role. Also, land
acquisition co-operatives can be made up of those that are formed for the
management of water resources through irrigation and drainage, the installation of
tanks, well and pumps. Nigeria is mostly affected by co-operatives in the later
group. These are the co-operatives that cultivated the irrigated lands of the River
Basins Development Authorities (RBDA). In Nigeria, the Adani Rice Project in
Enugu state owes it success partly to these co-operatives. Uguwanyi (2000)
observed that such co-operatives can be found in northern Nigeria where the
FADAMA lands are provided with bore-holes and water pump.

26. 2.3.2 Agricultural Mechanization and Technology Adoption
Agricultural mechanization is the application of agricultural engineering principles
and technology, by the use of mechanical systems in the process of food, feed,
fiber, fuel production, protection, processing, handling and storage (Aseogwu,
1998). It also refers to the replacement of manual labour and simple hand tools
with human, animal, electrical and internal consisting engine powered machinery
(Wikipedia, 2011). Mechanization of agriculture contributes to higher
performance of the farmer’s output and income (Rijk, 2011). The co-operatives
can provide a vehicle for the dissemination of intermediate technology; farmers
through their co-operatives can buy or hire tractors to work on their farms, either
as individuals or on co-operative basis (Onugu and Uguwanyi 2007). The
application of machines on farms become easier and cheaper under co-operative
arrangement. They are wide spread and often enjoy the support of state and local
government in providing flexible organizational structure for channeling technical
information, equipment and services to individual producers. One way to ensure
productivity in agriculture is to break the socio-cultural barriers that inhibit the
adoption of new technologies. Co-operative organizations can effectively
influence their members to adopt innovations, which would increase production.

27. 2.3.3 Farm Supply
Co-operative organizations are able to obtain high quality farm inputs such as
seeds, insecticides, fertilizer e.t.c Hermida (2008) stated that agricultural co-
operatives play important role in the agricultural development through providing
the farmers with production inputs such as fertilizer, seeds and chemical
substance. Nweze (2002) attested to the above fact, he stated that Co-operative
societies serves as avenues for input distributions and through their nation-wide
structure, they have developed strong and reliable arrangements for the
distribution of food crops, fertilizers, agro-chemicals, credits, seeds and seedlings.
Adding to this is the Nigeria government policies of distributing these inputs,
usually at subsidized prices to farmers through them. The task of the co-operative
is not just to regulate the price of the inputs but also ensure that quality products
with appropriate technical knowledge are offered to the farmer through their
extension agents.
2.3.4 Credit facilities
The importance of agriculture credit has already been mentioned while discussing
the credit and thrift co-operative society, knowing that it is cheaper and more
secured to grant credit through co-operatives. Otto (2006) noted that loans and

28. credits are provided to members at much more traditional and easier conditions
than the methods adopted by commercial banks and other financial institutions.
Abdulquadri and Mohammed (2011) observed that agricultural production
generally is capital intensive and in developing countries like Nigeria, small scale
farmers need to inject capital into agriculture to increase production. The critical
role of credit in economic development has never been in doubt either directly or
indirectly in building the capacity of the small-holder farmers in increased
agricultural mechanization for household food security and poverty alleviation
(Mohammed, 2009). With adequate supply of credit to farmers, the retarded
agricultural sector will make progress because agricultural credit can stimulate the
growth of agriculture, enhanced productivity and promotes standard of living by
breaking vicious cycle of poverty of small scale farmers. It also enable farmers to
meet their needs, expand their farms increase output, and aids small scale farmers
to engage in commercial agriculture (Adebayo and Adeola, 2008). The recent
Federal Government restructuring and funding of the NACRDB to the tune of fifty
billion naira (N50,000,000,000) in 2006 is an indication of its belief in the positive
role of co-operative societies in finances intermediation (FGN, 2006)

29. 2.3.5 Agricultural Marketing
The art of marketing is more difficult than that of production, especially in the
case of agricultural produce. The marketing of farm products should be so
systematic, scientific and well organized as to enable the farmer to negotiate a
square deal and get a fair share of the value of his produce (Szabo, 2007). Umebali
(2006) observed that one of the major problems the farmers do face is marketing
their product; particularly obtaining satisfactory returns. The formation of viable
and efficient marketing co-operatives will improve this situation. Nwobi (2006)
opined that the co-operative helps to solve the problem of marketing by organizing
collective marketing of the products of the farmers. Umebali (2006) stated that the
co-operatives are in a position to market jointly, what the society as a body
produced or market member’s product. In the opinion of Onyima and Okoro
(2009), there is a great range of additional functions the co-operatives in this group
perform; they include bargaining co-operatives, which negotiate with processors
and other businesses in the supply chain for better terms of trade for their
members. Some marketing co-operatives establish marketing agency co-operative
for it s members but does not physically take title or handle products.

30. 2.3.6 Education, Training and Information Dissemination
Hermida (2008) reported that co-operatives provide functional education to
members in the areas of production, processing and marketing of agricultural
produce. The education to members of co-operative members could be formal
where members are trained in courses like accounting and farm management.
They could also be trained informally through the attendance of national and
international conference and seminars. Onyima and Okoro (2009) also observed
that Co-operative attach great importance to formal and informal education. Co-
operatives always organize civil education and the same time; send their officers
to training and studies.
2.4 CHALLENGES FACING THE AGRICULTURAL CO-OPERATIVE
SOCIETY IN AGRICULTURAL DEVELOPMENT EFFORTS.
Co-operatives have existed in Nigeria for more than seventy years since it
introduction in 1935 by the colonial masters as the fifth form of business
organization after the sole-proprietorship, partnership, limited liability companies
and public corporations (Okechukwu, 2006). It has not made the expected impact
despite the fact that successive regimes in Nigeria both at federal and State level
recognize it as a veritable medium of rural transformation and agricultural
development. The rate at which societies go moribund is very alarming.

31. Okechukwu (2006) identified some factors which attributed to the poor
performance of the co-operative societies:-
2.4.1 Poor Capitalization
Inadequate finance has remained the most limiting problem of agricultural
production. This is because capital is the most important input in agricultural
production and its availability has remained a major problem to small scale
farmers who accounted for the bulk of agricultural produce of the country (Izekor
and Alufohai, 2010). Onyima and Okoro (2009) opined that the greatest limitation
of the co-operatives is the restriction that members must provide the majority of
the capital; this is a challenge for members who have limited capital or are in
heavy debt. Many co-operatives were formed by “persons usually of limited
means” who see the formation as a way out of their inadequacies. Unfortunately,
the inadequacies are exported to the co-operatives which tend to be under-funded
and as such they cannot on their own mobilize investible capital (Okechukwu,
2006). Also, certain provisions of the co-operative laws militate seriously against
possible capital mobilization. The Section 27 of the Nigeria Co-operative Society
Acts stated that “No member other than a registered co-operative society shall
hold more than one fifth of the share capital of a society”. Other restrictions such
as; limited interest on capital invested and equality of members irrespective of

32. their financial involvement in the co-operative society, discourage members who
are financially viable from investing huge sum of money in the society (Onugu
and Uguwanyi 2007).
2.4.2 Corrupt and Fraudulent Officers and Staff
There are some employees of the society whose minds are geared towards the
methods of defrauding the society of it funds (Onugu and Uguwanyi 2007). A co-
operative society with big investment has to employ workers to run the business
for them. These employees who mostly are not members do not have much at
stake in the society. They use the facilities of the society to enrich themselves.
Over-bloated contract, false transportation claims, engagement on parallel
business with the society, embezzlement and fund mis-appropriation are typical of
such activities (Okechukwu, 2006). Onje (2003) added that the problem of
dishonesty among co-operative leaders is another factor retarding the growth of
co-operative in Nigeria.
2.4.3 Illiteracy
A reasonable percentage of the co-operators including their officers are illiterates
and it affects every facet of the society’s business. They find it difficult to
articulate, execute and monitor good projects, conduct of meetings and record
keeping are equally found difficult. The management team cannot imbibe modern

33. management and administrative technique and find it difficult adapting to the ever
changing socio-economic and technological environment (Okechukwu, 2006;
Onugu and Uguwanyi, 2007).
2.4.4 Poor Inspection
One factor which distinct co-operative registration from other business registration
is the continuous monitoring of the registered society to ensure it smooth growth
and development. This supervision is usually carried out by a co-operative field
worker who can also offer extension services. As a result of inadequacy of staff in
the supervising ministry coupled with the withdrawal of such incentives as;
mileage allowance, local transport and travel (LT&T) to cover the out-of-pocket
expenses of these field workers, routine inspection are no longer done on the
societies; their books are no longer audited, co-operative education is no longer
given to the co-operator as well as the needed extension services. This will make
the societies to drift till they become moribund or even liquidate.
2.4.5 Government Interference
After more than seventy years of introduction of this very important socio-
economic institution in Nigeria, cooperatives remain very misunderstood. This
misconception may be traced to the circumstances under which cooperatives were
introduced into Nigeria by the colonialists as tools to enhance further exploitation

34. of abundant agricultural raw materials in the colony. Of note is also the content of
Mr. C.F. Strickland’s Report on the introduction of cooperatives in Nigeria, which
confirmed that Nigeria was ripe for the introduction of cooperatives but warned
that the indigenous population would be incapable of running a modern
cooperative business. It therefore recommended a heavy dose of government
control of cooperative activities in the colony
(Arua, 2004; Agbo, 2006). After political independence, various governments in
Nigeria still upheld Strickland Report’s recommendation of total government
control of cooperative activities in Nigeria (Agbo, 2009). For instance,
government staff at all levels is still expected to organize, promote, register,
supervise, audit and control cooperative activities in Nigeria. This is in spite of
ILO Recommendation 193 of 2000 (FMARD, 2002) which specified full
autonomy for cooperative societies with government role limited to the provision
of appropriate law and policy environment under which cooperative businesses
should be carried out (Onuoha, 2002).
Government control of cooperative activities in Nigeria is clearly demonstrated in
her insistence that the only way farmers can benefit from most agricultural
development programmes promoted by government is for them to join
cooperatives. Past agricultural development programmes including the Operation

35. Feed The Nation (OFN), the Green Revolution (GR), the Directorate For Food
Roads And Rural Infrastructure (DFRRI), the Better Life Programme (BLP), the
Family Support Programme (FSP) and the Family Economic Advancement
Programme (FEAP) all required farmers to join cooperatives controlled by the
government to be able to access services provided by these programmes. The
situation gave rise to the establishment of “emergency” cooperative societies
which supplanted the existing true cooperative societies giving rise to their
premature death (Nweze, 2001; Onuoha, 2001). The continued control of
cooperative activities by various governments in Nigeria has given rise to apathy
on the part of the citizenry towards cooperatives and cooperative development
programmes. At best these programmes are seen as those government programmes
that should not be taken seriously (Onuoha, 2002).
2.5 OVERCOMING CHALLENGES FACING AGRICULTURAL CO-
OPERATIVE SOCIETIES
Agricultural co-operative societies have become a key platform for agricultural
development efforts in Nigeria. However for the full realization of its potentials,
the aforementioned challenges must be overcome. Daman (2002) stated two key
factors that should be looked into in order to enhance the performance of the
agricultural co-operatives.

36. 2.5.1 The Internal Factors:
This factor examines the activities within the organization of the co-operative
society; areas to be focused on include the following:
 Trained professional and motivated staff
 Enlightened, dedication and selfless leadership
 Good means of encouraging member’s involvement and participation
 Comprehensive programmes for member’s education and information
 Provision for reasonable coverage of risk for loss of crops and deposits
 Value-added activities through the use of advance technologies
Onugu and Uguwanyi (2007) attested to the intensive co-operative education as
mentioned above. They were of the opinion that there is a dire need for co-
operative education of members, which is necessary so as to enable them to
understand the rudiments of co-operative organizations and know how best to
manage them. Okechukwu (2000) also opined that co-operative societies require
constant and proper education for their business to enable them function well and
achieve the targeted goal. Good co-operative education will minimize the ease
with which societies go moribund and will make societies wait less on government
for their growth and development. It will also enhance funding and fund
management in the society (Okechukwu, 2006).

37. Onyima and Okoro (2009) agreed to member’s involvement and participation,
stating that; members are the foundation of the co-operative, their support through
patronage and capital investment keeps it economically healthy and their changing
requirements shape the co-operatives’ future. They also noted that the most
important obligation of co-operative members is to participate in the governance
of the co-operative which is practice means to be kept informed about the co-
operative from reliable sources, attend co-operative meetings and take their turns
at the committee. In the view of Nwobi (2006) the need for proper business
practices by co-operatives through proper selection, training and development of
effective management of professional managers should be adopted. She further
stated that co-operative should be able to afford to hire competent managerial
personnel, who will engage in research and conduct intensive educational
programmes for their members.
On Daman’s view of coverage of risk for loss of deposits, Onyima and Okoro
(2009) opined that financial records as well as physical check should be made
monthly by the committee members as stipulated by the co-operative society law
and rules. They further stated that even though there is legal provisions for
protecting the society’s funds, members of the co-operatives themselves have a
role to play to ensure that their money is safe. Umebali and Ekwueme (2007) also

38. recommended that farmers should be encouraged to take agricultural insurance
policy to minimize risks and to avoid being thrown out of business.
In the support of the view of Daman (2002) concerning value-added activities
through the use of advance technology, Abdulquadri and Mohammed (2011)
stated that co-operative organizations are expected to provide the appropriate
avenue for the demonstration of the modern technologies to meet farmer’s needs
in agricultural production and processing.
2.5.2 The External Factors:
This factor refers to the actions of the agents, organization, groups and institution
other than the co-operative society whose actions and decision will have direct or
indirect influence on the performance of the co-operative society. The following
roles will enhance the performance of the co-operative:
 Positive support and helpful roles of the government
 Market reforms
 Reasonable rate of growth in agriculture
 Availability of basic infrastructure
 Healthy linkages with regulatory and development agencies and institution
Nwobi (2006) attested to the help role of the government but however opined that;
the interference of the government in the day to day activities of co-operatives

39. should be discourage and reduced to the barest minimum. The role of the
government should be to provide leadership and legislative framework. Onugu
(2007) supported the healthy linkage of co-operatives with financial institutions.
He opined that removal of notable constraints; high interest rate and colaterization,
by commercial banks should be made; there should rather be more reliance on co-
operative-history, co-operative-character and group-guarantee as security
measures for lending, which will enhance the sourcing of credit by agricultural co-
operative societies. Nwobi (2006) in her view also support the linkage of the co-
operatives with regulatory agencies; the government, however, she stated that co-
operatives should not only seek financial assistance from government but should
also utilize the service of banks like the Nigerian Agricultural Co-operative and
Rural Development Bank (NACRDB). Supporting this view, Osusu and Iyede
(2006) opined that government should ensure that every local government has a
branch of the Nigerian Agricultural Co-operative and Rural Development Bank
(NACRDB).

40. CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
This study research is to a large extent descriptive research and the design adopted
is survey design. It has been designed to enable the use of questionnaires to gather
information which was the main instrument for data collection.
3.2 AREA OF STUDY
The study area is restricted to Awka North Local Government of Anambra State.
Awka- North LGA is one of the twenty one (21) LGAs, which make up Anambra
State. Awka-North LGA is bounded by Awka-South, Njikoka, and Oji-River LGA
of Enugu State. The local government area has a total area of 320 sq km with an
estimated population of 112,192 persons (NPC, 2006) and the headquarters of the
local government is situated in Achalla. Awka North Local Government Area is a
typical example of a rural community with it dwellers being pre-dominantly
farmers. Agriculture is the major occupation of the people of Awka-North LGA
and economic activities center largely on food production, food processing,
marketing and distributive trade. There are readily provision of social amenities in
the area that would make life more worth-living, such as:- the renovated health

41. centre at Mkpomkpo, Ite-Achalla, provision of bore-hole, motor-powered boats at
Ebenebe river, solar-powered street lights, e.t.c
The ten towns that made up the local government are:- Achalla, Amansea,
Amanuke, Awba-Ofemili, Ebenebe, Isu-aniocha, Mgbakwu, Ugbene, Ugbenu and
Urum.
3.3 POPULATION OF THE STUDY
The population of the study comprises of all the registered and active farmers co-
operative societies in Awka North Local Government Area. The table below
shows the information of the co-operative societies:-
Table 1: Farmers Co-operative Societies in Awka North L.G.A
Towns Names of the Co-operative Societies Membership Size
Achalla
Oye-Achalla Strangers (Achalla) FMCS Ltd 78
Udodili (Achalla) FMCS Ltd 21
Igwebuike (Achalla) FMCS Ltd 25
Enest (Achalla) FUG-MCS Ltd 25
Obioma (Achalla) FUG-MPCS Ltd 16
Pan (Achalla) FMCS Ltd 32
Amansea
Easylink (Amansea) FMCS Ltd 10
Umuakumma (Amansea) FMCS Ltd 15
Ifechukwu (Amansea) MPCS Ltd 15
Awba-
Ofemili
Udokanma (Awba-Ofemili) FMCS Ltd 25
Umuchukwu Youth (Awba-Ofemili) FUG-
MPCS Ltd 15
Widow & Widower (Awba-Ofemili)FUG-
MPCS Ltd 25
Amanuke
Eziama (Amanuke) FMCS Ltd 10
Favour (Amanuke) Cassava Farmers MCS Ltd 11

42. Njikobi (Amanuke) FMCS ltd 10
Ebenebe
Ideal (Ebenebe) FMCS Ltd 15
Umunna (Ebenebe) FUG-PMCS Ltd 23
Ifechukwu (Ebenebe) Rice Farmer MPCS Ltd 10
Isu-aniocha
Food growers (Isu-aniocha) FUG-MPCS Ltd 25
Chisom (Isu-aniocha) FUG-PMCS Ltd 15
Sky (Isu-aniocha) Women Farmers MPCS Ltd 10
Mgbakwu
Igwebuike (Mgbakwu) FUG-MPCS Ltd 20
Ofuobi (Mgbakwu) FUG-MPCS Ltd 17
SOCA (Mgbakwu) FUG-MPCS Ltd 25
Umunwaotu (Mgbakwu) FMCS Ltd 18
Central Store (Mgbakwu) FMCS Ltd 23
Ugbene Nwankwo Fan (Ugbene) FMCS Ltd 10
Ugbenu
Udokanma (Ugbenu) FUG-MPCS Ltd 20
Chukwuemeka (Ugbenu) FUG-MPCS Ltd 16
Ndi-Uno (Ugbenu) FUG-MPCS Ltd 18
Njikoka (Ugbenu) FMCS Ltd 27
Afulukwe (Ugbenu) FMCS Ltd 16
Urum Anike (Urum) FUG-MPCS Ltd 20
Ogo-amaka (Urum) FUG-MPCS Ltd 21
Source: Research Field Survey, June 2013
The table above revealed a population of thirty-four (34) farmer’s co-operative
societies with a total member of six hundred and eighty-two (682).
3.4 SAMPLING PROCEDURE AND SAMPLE SIZE DETERMINATION
The researcher purposefully selected all the farmer’s co-operative societies from
Achalla, Amansea, Mgbakwu and Isu-aniocha based on their accessibility and
manageability, the result however gave a total of seventeen (17) co-operative
societies with three hundred and ninety (390) members.
Taro Yamani’s formular was used to determine the sample size.

43. Formular:- n = N/1 +N(e)
2
where:- N = 390
e = 0.05
n = 390/1+390(0.05)
2
= 390/1.975
= 197.46
With the above calculation, one hundred and ninety seven (197) questionnaires
was distributed.
3.5 METHODS OF DATA COLLECTION
The research employed two basic sources of data collection namely; primary and
secondary data collection.
Primary Data:- Structured questionnaires were the major source of primary data
collection. The questionnaires were designed in line with the objectives of the
study and the researcher employed the use of multiple choice questions and likert-
type scale procedure with five levels. One hundred and ninety seven (197)
questionnaires were produced and distributed but one hundred and eighty two
(182) were properly filled and use for the study.

44. Secondary Data:- The research’s secondary data were sourced from co-operative
publications, text-books, journals, internet and hand-books which are relevant to
the subject of the study.
3.6 METHODS OF DATA ANALYSIS
Descriptive statistics such as mean, percentage, frequency distribution and scale
analysis were used to present and discuss data.
Responses to the Likert-type questions with respect to determine the member’s
opinion on the contribution of co-operative to agricultural production and the
constraints that limits the performances of the society were analyzed to obtain
their means.
A theoretical mean value of 3.0 was taken as a basis to judge the means for the
items in the questionnaire; items with a mean equal to or higher than 3.0 was
regarded as “Agreed” while items with mean less than 3.0 was regarded as
“Disagreed”.

45. CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS
In this chapter, the result of the respondent are presented and discussed.
4.1 Socio-Economic Characteristics OfThe Respondent.
The socio-economic characteristics of respondents are presented in Table 2. The
socio-economic variables considered for the study are: gender, age, marital status,
family size, education status, farm size, farm income, years of membership and
primary occupation.
The male constitute about 55 percent of the population while the remaining 45
percent are female. The high percentage of female members is due to the fact that
co-operative membership is free from gender consideration. Age of the
respondents showed that the majority of the co-operative members (77%) belongs
to the age bracket of 25 – 50 years, the rest are either above 50 years (19%) or
below 25 years (4%). The marital status of the respondent showed that about 68
percent of them are married, 14 percent are single and the remaining 18 percent
are divorced. Household size of most respondents ranged from 1 – 4 (57%),
followed by 5 – 10 persons (38%) and 5% above 10 persons.
The educational status of the respondent revealed that about 26 percent had no
formal education, 38 percent possessed first school leaving certificate, 25 percent
had either NCE or OND certificate, and 11 percent had either HND or B.Sc. In
Summary, 74 percent of the co-operative farmers are literate. Investigations into
the farm size of co-operative farmers showed that 35 percent of them had less than
one hectare of farmland, about 47 percent operated between 1.0 and 3.0 hectares
and the remaining 18 percent of the respondent had above 3 hectares.

46. The study in farm income showed that about 24 percent had less than N100,000 as
annual income, 38 percent had between N100,000 – N500,000, 25 percent had
between N501,000 – N1,000,000 and 13 percent had between N1,100,000 –
N5,000,000. The result of the study revealed that about 71 percent of the
respondent had been in co-operative business for less than 10 years, 23 percent
between 11 – 20 years and 6 percent above 20 years. The study further revealed
that only 42 percent of them are full time farmers while the remaining 58 percent
of the respondent took farming as secondary occupation.
Table 2: Socio-Economic Characteristics of Respondent
No. Variables Frequency Percentage
(%)
1. Gender
Male
Female
100
82
55%
45%
Total 182 100%
2. Age
Less than 25
25 – 50
Above 51
7
141
34
4%
77%
19%
Total 182 100%
3. Marital Status
Single
Married
Divorced
25
124
33
14%
68%
18%
Total 182 100%

47. 4. Family Size
Less than 5
5 – 10
Above 10
104
69
9
57%
38%
5%
Total 182 100%
5. Educational Status
No formal Education
First School Leaving Certificate
NCE/OND
HND/BSC
47
69
45
21
26%
38%
25%
11%
Total 182 100%
6. Farm Size (Hectares)
Less than 1.0
1.0– 3.0
Above 3.0
64
86
32
35%
47%
18%
Total 182 100%
7. Annual Farm Income (Naira)
Less than N100,000
N101,000 – N500,000
N501,000 – N1,000,000
N1,100,000 – N5,000,000
44
69
46
23
24%
38%
25%
13%
Total 182 100%
8. Years of Membership
1 – 10
11 – 20
130
41
71%
23%

48. Source: Field Survey, June 2013
4.2 Activities Carried Out By Co-operative Society
The summary of the activities carried out by co-operative societies in Awka North
L.G.A is presented in Table 3. The table revealed that credit facilities and supply
of farm inputs; which both have 22 percent, are the most popular activities being
carried out. This result attested to the view of Hermida (2008) that agricultural co-
operatives play important roles in the agricultural development through providing
the farmers with production inputs such as fertilizer, seeds and chemical
substance.
The next popular activity is crop enterprises which constitute about 17 percent.
Other activities as revealed in the table are marketing of produce (11%), group
processing (9%), group farming (8%), group storage (6%), livestock enterprises
(4%) and transportation scheme (1%). The co-operatives in Awka North L.G.A do
not engage in insurance service and health care services; this may be due to the
fact that these activities are relatively new and have not being widely practiced.
Above 20 11 6%
Total 182 100%
9. Primary Occupation
Civil Servant
Farming
Trading
Artisan
Retired
34
77
45
21
5
19%
42%
25%
12%
2%
Total 182 100%

49. Table 3: Activities Carried Out By Co-operative Society
No. Activities Frequency Percentage
(%)
a. Group Farming 66 8%
b. Supply of farm inputs 182 22%
c. Group storage 42 6%
d. Group processing 78 9%
e. Credit Facilities 182 22%
f. Marketing of Produce 93 11%
g. Insurance Service - -
h. Health Care Service - -
i. Transportation Scheme 11 1%
j. Crop Enterprises 145 17%
k. Livestock Enterprises 37 4%
TOTAL 836 100%
Source: Field Survey, June 2013
4.3 Contribution of Co-operatives To Agricultural Production
Responses to the contribution of co-operative to agricultural production are
presented in Table 4. The table revealed a mean of 4.81 and 4.84 for mobilization
of savings and access to farm inputs respectively; this signifies that the majority of
the respondent strongly agreed that co-operatives play a major role in these
aspects. This can be attributed to the practice of all co-operatives in savings
mobilization and the government’s decision to support farmers with inputs nation-
wide through the agricultural co-operatives. Response on access to farm
implement showed a mean of 4.36, thus justifying the view of Onugu and

50. Uguwanyi (2007) that the co-operative can provide a vehicle for the dissemination
of intermediate technology. The result of the respondent also agreed to the fact
that they have access to credit facilities; this was showed with a mean of 4.11
Responses on the increase in quality and quantity of farm output and increase in
income both have a mean of 3.83 and 4.01 respectively. A mean of 3.62 showed
that the respondent agreed to the fact that members of the co-operatives enjoyed
improved living condition and a mean of 3.09 and 3.97 as well indicated an
agreement that the co-operative provides both employment and access to storage
facilities. The majority of the respondent however disagreed to the impact of the
co-operative on the training on modern agricultural technique to members. A mean
of 2.62 was obtained for this variable which indicated that members of the co-
operatives in Awka North do not receive substantial training on modern
techniques used in agriculture.
The grand mean of the response on the contribution of co-operative to agricultural
production was obtained as 3.92. This result implies that the respondent agreed to
the fact that the co-operative contributes to agricultural production.
Table 4: Contribution of Co-operatives To Agricultural Production
No. Contributions Frequency
(fx)
Mean (x) Decision
a. Procure farm input for members 881 4.84 Agreed
b. Access to credit facilities 749 4.11 Agreed
c. Training on modern agricultural
techniques
477 2.62 Disagreed
d. Increase in quantity and quality of 698 3.83 Agreed

51. farm output
e. Mobilization of savings 876 4.81 Agreed
f. Improved living condition 659 3.62 Agreed
g. Increase income 730 4.01 Agreed
h. Employment 563 3.09 Agreed
i. Access to farm implement 795 4.36 Agreed
j. Access to storage facilities 727 3.97 Agreed
GRAND MEAN 3.92 Agreed
Source: Field Survey,June 2013
4.4 Constraints That Limits The Contributions Of Co-operatives To
Agricultural Production
Table 5 shows the response on constraint that hinders the contributions of co-
operatives to agricultural development.
The greatest constraint as determined by the respondent is inadequate
infrastructural facilities which have a mean of 4.26. Inadequate capital
accumulation which has a mean of 4.09 was also observed as a problem that
hinders the contributions of co-operative towards agricultural production. The
result obtained from the respondent also identified lack of co-operative and
technical education as a barrier in the performance of co-operative; this variable
has a mean of 3.51. Mean results of 3.46 and 3.43 were obtained on mis-
management by leaders and unavailability of loan respectively, this implies that
respondent agreed to the fact that the inefficiency of the management committee
affects the operations of the co-operative and also that members do not always get
the needed loan to carry out their production activities.

52. Response on high rate of loan default has a mean of 4.02 which is an indication of
the problem faced by the co-operatives in loan recovery. The mean results of 3.45
and 3.08 on responses on lack of skilled personal and high illiterate level of
members revealed that the agricultural co-operatives in Awka North L.G.A do not
lay emphasis on the fifth co-operative principle of the ICA; Education, training
and information. This has led to their poor performance. Responses on corrupt and
fraudulent officers produced a mean of 3.01 which implies that embezzlement and
mis-appropriation of fund affects the performances of co-operative.
The responses of the majority of the respondent however disagreed to the fact
government interference constitute a barrier in the contribution of co-operatives.
The variable which recorded a mean result of 2.90 indicated a low level of
interference of the government on the operation of the co-operative society.
A grand mean of 3.52 was obtained which implies that the opinions of the
respondent attested to the fact that constraints exist that limits the contribution of
co-operatives towards agricultural production in Awka North L.G.A.

53. Table 5: Constraints That Limits The Contributions Of Co-operatives To
Agricultural Production
No. Constraints Frequency
(fx)
Mean
(x)
Decision
a. Inadequate capital accumulation 745 4.09 Agreed
b. Unavailability of loan 815 3.43 Agreed
c. Mis-management by leader 630 3.46 Agreed
d. Lack of skilled personal 628 3.45 Agreed
e. Government interference 528 2.90 Disagreed
f. High rate of loan default 732 4.02 Agreed
g. High illiterate level of member 562 3.08 Agreed
h. Corrupt and fraudulent officer 548 3.01 Agreed
i. Lack of co-operative and technical
education
639 3.51 Agreed
j. Inadequate infrastructural facilities 777 4.26 Agreed
GRAND MEAN 3.52 Agreed
Source: Field Survey, June 2013

54. 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 Awka 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

55. 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:-
i. As a result of low capital accumulation by co-operative members, co-
operative societies in Awka North L.G.A. should be encouraged in the
areas of increased supply of credit to them from financial institution.
ii. The financial policy of the co-operative societies should be rectified to
minimize the rate of loan default and increase the utilization of fund.

56. iii. 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.

57. REFERENCES
Abdulquadri A.F and Mohammed B.T (2011) “The Roles of Agricultural Co-
operatives in Agricultural Mechanization in Nigeria”. Continental J.
Agricultural Economics 5 (2): 17 - 20, 2011 Retrieved from
http://www.wiloludjournal.com.
Adebayo, O.O and Adeola, R.G (2008): Source and uses of Agricultural credit
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