Determinants Of Multipurpose Cooperatives Member Participation In Agricultural Output Marketing In Southwest Ethiopia

Abstract

This study was conducted on determinants of multipurpose cooperative’s member participation in agricultural output marketing at kersa district of Jimma zone, Oromia Regional State, Ethiopia. A two-stage sampling procedures were used and 4 multipurpose cooperatives were selected to obtain a sample size of 196 cooperative members. Quantitative data from primary sources were collected through household survey while qualitative data were collected through key informant interview, focus group discussions and personal observations. Data were analyzed using descriptive statistics like mean, chi-square, standard deviation, frequency, percentage and binary logit model. The result showed that 66.36% of cooperative members were participants in agricultural output marketing where as 33.64% were non-participants. Multipurpose Cooperatives are serving as the primary source of agricultural inputs. However, the output marketing activity of the sampled multipurpose co operatives in the district is not as such remarkable. The binary logit model result showed that Out of 9 significant explanatory variables, age, education, landholding, change in standard of living due to joining of cooperative, membership in other cooperatives other than Multipurpose Cooperatives, determined participation decision of members in agricultural output marketing positively and significantly while the other four variables determined negatively and significantly. Moreover, the result of key informant and focus group discussion indicated that the participation of multipurpose cooperative’s member in agricultural output marketing were hindered by internal and external challenges. In general, the agricultural output marketing of multipurpose cooperatives in the study area have been affected by different demographic, socio-economics and institutional factors. Therefore, the study has suggested that as Woreda cooperatives promotion agency should also help these cooperatives to increase members’ participation in agricultural inputs as well as outputs and create linkages with financial institutions to solve their shortage of capital. Moreover, they are required to improve the role of multipurpose cooperatives and address challenges in agricultural output marketing, among governmental organizations, NGOs and the community.