Project Topic – REVITALIZATION OF COOPERATIVE SOCIETIES FOR INCREASE AGRICULTURAL PRODUCTION

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CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

The agricultural cooperative societies have been there over the years to play this role of drastic structural change in agriculture towards achieving food security and also the socio-economic upliftment of the farmers. Uchendu (1998) noted that the original impetus for the organization of cooperatives in Nigeria came from agriculture, or more precisely, from the marketing of cash coops for export. Since then cooperative development has taken different forms and dimension. According to FMRD (2001), emphasis in cooperative development is now on multipurpose agricultural cooperative for food production and marketing. He noted that, ninety-six percent of cooperative societies in this country are designed basically to serve the needs of agriculture. Even the four percent which constitute non-agricultural cooperative societies have great relevance for agriculture and use agricultural product and bye-products. In summary, it does appear that the government has committed itself to the realization of food security in the country.

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 production 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 most part of Nigeria, 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 most Local Government Areas, co-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

High production cost are compounded by high processing and transportation cost on account of the primitive state of rural infrastructures especially rural roads, heavy post harvest losses both in storage and transportation reduce available marketable and marketed surpluses and result in high food prices, especially in the urban areas (ldachaba, 1995). Limited finance and poverty of the Nigeria farmers have also been identified as factors militating against food production. As noted by Obinyan (2000), their holdings are small, most often less than two hectares and are characterized by low productivity. This leads to low income and low capital investment. Consequently, one of the possible ways of redressing these constraints is to mobilize the desperate small holder farmer for economy of scale and agricultural cooperative is a veritable platform for this exercise.

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.

Food production in Nigeria is not keeping pace with population growth. This has resulted in the upward trend in the price of food stuff. Thus, creating a wide gap between the demand and supply of food. According to Ajayi (2008), the resulting effect of this imbalance between demand for and supply of food is malnutrition, poverty and deteriorating living conditions. Hence, the need to improve Nigeria agriculture. Over the years Nigeria has been having a teething problem feeding it teeming population all year round and this is partly because it has not been able to adopt an improved farming technique. According to Idachaba (1995), the Nigeria agriculture depends overwhelmingly on low productivity resources, land of progressively declining fertility, unskilled farm labour, the hoe matchet, low yielding seed variety and planting material. Low yielding agricultural and traditional farming practices, poor yield and high cost of food prices. This study is geared toward finding out the impact and how cooperative societies are helping to alleviate these problems.

.1.3      OBJECTIVES OF THE STUDY

The broad objective of this study is to analyze the revitalization of cooperative societies for increase agricultural production.

Specifically, it has been designed to:-

1. Determine the socio-economic characteristics of members of the co-operative societies in Nigeria
2. Identify the type of activities carried out by the co-operatives in Nigeria.
3. Examine the contributions of co-operatives to agricultural production in Nigeria
4. Identify the constraints that hinders the contribution of co-operatives to agricultural production in Nigeria
5. Make recommendation on the findings.
   • 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 Nigeria.?
2. What are the activities being carried out by the agricultural co-operatives in Nigeria?
3. In what ways has the farmer’s co-operative contributed to agricultural production in Nigeria?
4. What are the constraint that hinders the co-operatives in contributing to the development of agriculture in Nigeria?
5. How can these problems be solved to ensure effective performance of the co-operative to the development of agriculture?

1.5       SCOPE OF THE STUDY

The study on the revitalization of cooperative societies for increase agricultural production was carried in South-East s 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.

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Project Topic – REVITALIZATION OF COOPERATIVE SOCIETIES FOR INCREASE AGRICULTURAL PRODUCTION