Fund for agricultural development ifad and the world food programme wfp work closely with agricultural cooperatives and will act as a driving force throughout the iyc and beyond, promoting the growth of cooperatives in many ways. Agricultural cooperatives transform lives in kenya role of cooperatives in agriculture in africa the githunguri coffee and daily agricultural cooperatives are making lives of many kenyans. While in 2014, there were 21,769 agricultural cooperatives with 6,2 mln members and their total turnover was 347,3 billion. Throughout the thesis the cooperatives are also referred to as agragrian. Raising awareness of the role of agricultural cooperatives in reducing poverty and improving food security.
The cooperatives continued to be registered and expand in their outreach and impact into farm purchase, savings and credit. The current state of agricultural cooperatives in kenya the history of cooperative development in kenya is tied closely to the aims of the governments rural development policy. Agricultural cooperatives play an important role in. Last autumn jordan treakle successfully defended his master of science thesis agricultural cooperatives and the social economy in kenya s changing governance landscape in wageningens rural sociology group to complete his international master in rural development.
Return to investment in agricultural cooperatives in ethiopia. This paper presents the principles of cooperation and briefly describes the history and development of agricultural cooperatives in developed and lessdeveloped countries, with particular emphasis. Due to the democratic nature of the cooperative form, it is assumed agricultural cooperatives empower their members and allow small farmers to. Many leaders of cooperative unions became very rich at the expense of poor farmers. The promotional efforts of government started soon after independence in 1963 with an overall aim to use cooperatives as a tool to facilitate commercialisation of. These five service areas offer different services and benefits engineered to fit a specific need for the membersowners of the cooperative. Ncdc offers assistance in five different service areas of cooperatives retail, worker, producer, service, housing. A multiple case study was used to investigate factors that contribute to the unsuccessful performance of agricultural cooperatives. An investigation of the impact of cooperative movement in. Knfc kenya national federation of cooperatives kpsu kenya planters cooperative union ocdc overseas cooperative development council mafisa micro agricultural financial institutions of south africa medcs more economically developed countries ncasa national cooperative of association of south africa. Strengthening market linkages for smallholder rural farmers. By end of 1963, kenya had registered 1,030 cooperatives, mostly in the agricultural sector. Pdf cooperative development in kenya augustus m u t e m i. The current membership in farmer cooperatives in kenya is approximately 600,000 active members, located in two main sectors.
List of best agricultural cooperatives in africa of 2020. The overall objective of each report was to generate information on the present status and development i. According to fca, the number of primary agricultural cooperatives increased from 6825 in 2008 to 15,568 in 2014 fca 2015. Agricultural cooperatives and the social economy in kenya. A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Kpcu kenya planters cooperative union kshs kenya shillings moa ministry of agriculture mocd ministry of cooperative development mtads medium term agricultural development strategy mtm movementtomovement collaboration nacmdc national agricultural cooperative management development center nacmo nigerian agricultural cooperative marketing. The nature, role and status of cooperatives in south african. In 2012, there were 43,256 registered primary cooperatives agricultural cooperatives accounts for 26. This study is on the role of agricultural cooperatives in kenya s rural development.
The thesis research examines the socioeconomic challenges facing family farmers in kenya. Some cooperatives have not performed well as the result of poor governance structures, multiple and competing goals, but also problems that arise from insufficient trust between members. Enhancing cooperatives impact in the food and agriculture sector. Four cooperatives were selected by a combination of market failure and apriori sustainability. The agricultural sector is changing as quickly as the world around it. Return to investment in agricultural cooperatives in ethiopia dambala gelo, edwin muchapondwa and abebe shimeles1 jel codes. May 27, 20 whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a familyfarm model to avoid. Collective action is the core resource of agricultural cooperatives. The major challenge is the failure rate of the cooperatives. The kenya national federation of cooperatives knfc board 2007, observed that the cooperatives in kenya are organized into service and producer cooperatives. Emerging markets are growing rapidly and have become major drivers of demand. Cecilia navarra, barbara franchini, federica tolotti euricse, paul hazen, emile g.
For example, cooperatives can help farmers benefit from economies of scale to lower their costs of acquiring inputs or hiring. Mckinsey on cooperatives five trends and their implications. Gunga, chair of department of educational foundations, university of nairobi, kenya, email. The cooperative movement in kenya and its potential for enhancement of ict livelihoods by samson o. Although most of the neoclassical theory of cooperatives has been developed in the context of marketing cooperatives, we will first focus our attention on the theory of farm supply cooperatives.
An agricultural cooperative, also known as a farmers coop, is a cooperative where farmers pool their resources in certain areas of activity. This is because most cooperatives in kenya s countryside are based on the production, processing, and marketing of agricultural commodities. One reason for this may be that the idea of forming cooperatives is not entirely from the members. Iv strengthening market linkages for smallholder rural farmers in uganda po producer organization plhiv people living with hiv and aids rafo regional agricultural field officers rutf readytouse therapeutic food sacco savings and credit cooperatives seatini southern and eastern african trade, information and negotiations institute. In the minds of many kenyans, cooperative movement, especially in the agricultural sector, is a corrupt, mismanaged and goodfornothing sector. This indicates that 88% of the cooperatives failed. The ability of agricultural cooperatives to improve the welfare of smallholder farmers in africa is mixed and contextual. Cooperative society who will use it to understand the factors that affect growth of sacco within the agricultural sector in kenya and what areas to concentrate on in order to gain competitive advantages. Public disclosure authorized agriculture and rural. A cluster analysis page 6 of 34 assessment of national business environment macro, political, legal, and social context political instability in the country is common but not usually severe and, until the recent political crisis, kenya was known for its relative stability in the region. Top 100 cooperatives for 2016 usda rural development.
Wanyama, school of development and strategic studies, maseno university, kenya. Five trends and their implications for agricultural coops as markets shift, technology develops, and tastes change, the agricultural sector must adapt. The challenges of lack of sustainability of cooperatives. Role of cooperatives in improving livelihood of farmers on. Whereas valentinov 2007 emphasised the strategic function of the agricultural cooperatives in fostering the division of labour in agriculture, aiming at maintaining a familyfarm model to avoid.
The cooperative movement in kenya and its potential for. Burt t his publication is designed to help you learn more about agricultural cooperatives or to help you think through the process of organizing and operating. This study is on the role of agricultural cooperatives in kenyas rural development. Last autumn jordan treakle successfully defended his master of science thesis agricultural cooperatives and the social economy in kenyas changing governance landscape in wageningens rural sociology group to complete his international master in rural development.
This is because most cooperatives in kenyas countryside are based on the production, processing, and marketing of agricultural commodities. The current state of agricultural cooperatives in kenya. The impact of agricultural cooperatives membership on the. Find agricultural cooperatives in africa and get directions and maps for local businesses in africa. Factors affecting sustainability of agricultural cooperatives. P4p, welfare effect, distributional bias, semiparametric did 1 dambala gelo is a postdoctoral fellow, school of economics, faculty of commerce, university of cape town.
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