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Full Project – An appraisal of the contribution of agricultural cooperative to the development of rural areas

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CHAPTER ONE

1.0 INTRODUCTION

An appraisal of the contribution of agricultural rural cooperative to the development of rural areas. (a case study of Nekede Agricultural Cooperative Society Owerri West L.G.A).

Agricultural cooperative are cooperative societies that engage in the production, processing, marketing, and distribution of agricultural product. Therefore all the cooperative societies that operate in the agricultural sector and are engage in these different operations belong to the group of agricultural cooperatives. An important form of agricultural cooperative in Nigeria is the group faming society (GFS), members of this society engage in the production of a variety of crops while they also arrange for the marketing of such crops. Some other agricultural cooperative are devoted to the cultivation of single crops and such societies are named after the crops e.g. tomatoes growers cooperative.

Agricultural cooperative like other cooperative societies operate on a set of principle which distinguish it from other forms of businesses. These principles guide the management staff with research to function that lead to the success of the society.

The development of the agricultural cooperative society is dependent on the knowledge skills and ability of the management staff. It is also dependent to an extent on the government and the support of non-government organization (NGO). The greatest likelihood for success is in communities having progressive development programmes (Williams mostly bring about these community development programmes).

1.1 GENERAL OVERVIEW OF THE STUDY

To develop the rural area, the problem facing them should be solved or at least minimized.

This needs the adoption and efficient implementation of certain development policies strategies and programmes. The concept of rural development is an extension of the term “development”. Development itself can be defined broadly as the process by which people create and recreate themselves and their life circumstances with their own choices and values.

Rural development can be defined as: strategies police and programmes directed at the enlightenment of area and their people through the promotion of social life and economic activities carried out in such area, agricultural rural crafts small scale industries, fishing and building.

Rural development also aimed at the promotion and exploration of economic and social infrastructure and institution with the ultimate aim of achieving a fuller utilization of available physical and human resources and resulted in greater self-sustaining employment opportunities higher output and income rural development also involve improving the literacy level of the people and broadening the democratic base of the grass root communities and the nation at large and this allow the rural people to participate more fully and effectively in the development process and body practices of the nation and ensuring greater economic and social justice. To get properly involved in the development process.

They must be familiar with and accept the institutional method involved and used in the development process. The concept of rural development implies three vital conditions these are:

Improving the living standard of the subsistence population involves mobilization and allocation of resources so as to reach a desirable service available to the subsistence rural sector.
Mass participation requires that resources be allocated to low-income regions and classes and that the production and social services actually reach them.
Making the process self sustaining requires development of the appropriates skill and implementation capacity and the pressure of institution at the local regional land of nationals level to ensure the effective use of additional financial and human resources for continued development of the subsistence sector self-sustenance thus means involving as distinct from simply reacting the sustenance population through development programmes. We therefore need programmes and institution that all ensure total mobilization of all available resource human and materials of social concerns is the mobilization which promotes production in these areas. Traditional saving and credit association have demonstrated their potential in fulfilling the condition above as well as we shows later in this work.

However, since the individual indigenous savings and credit association exist on isolation basis without any form of integration of the local regional or national level, not been fully explored and harnessed to effectively fulfill their objectives.

1.2 STATEMENT OF THE STUDY

The condition of village in Nigeria today is so much in dissatisfactory that those village which were one like heaven and earth to their inhabitance are today the image of poverty hunger, diseases, disunity disorganization. Assault and incident of armed robbery and murder have become the talk of the day. Litigation are resorted to create persistent mutual enmity. They dry and gloomy faces of the villagers who were once farmed for honestly of their inhabitants today gives shelter to people who surpass their urban brother in elicit. In village where at one the ideal of morality was very high, corruption moral degeneration and social relevance have today passed all limits.

In datedness and unemployment have turned the villages into detestable places to live in this numerous rural problem can be grouped into three main classes: economic problem agricultural problems and social problems.

1.3 OBJECTIVES OF THE STUDY

The key objective of this paper is to show how agricultural cooperative can contribute to the rural development. Only the agricultural aspect will be handled here, this is more of a conceptual framework than empirical evidence. A brief global assessment of agricultural cooperative in Nigeria is also going to be made. The problems, which normally inhabit the efficient performance of agricultural cooperative are mention but not discussed processing cooperative have now taken root in some part of Nigeria. The Abakiliki zone of Ebonyi State for example known for its cooperative rice mills. These mills have helped to raise the hope of farmers that they can sell their raw materials to these factories or process worse of then before. Our modern and imported cooperative which most people had and still have implicit faith for their potential for rural development in general (1966) farmer multi-purpose cooperative society Owerri West local government. Therefore continued, and potentials for self-help, organization (SHCs) sometimes referred to as NGO’s (Shafer 1974, Horman 1974) including the indigenous ones such as issue clubs, age grade, social clubs, village and town developed unions, youths clubs, mutual has been identified.

One reasons for this call is the recognition that the success of any development strategy, the people who are to be the beneficiaries should be effectively mobilized and motivated (Amos, 1974, Ducfer, 1997) and Muneknor 1981:47) another reasons for this call is the realization not been sufficiently achieved due to the foreign model, ideal structure and behavior pattern. This is not to even if they are suitable, its objective is simply:

To examine the nature structure and actual performance of some traditional financial institutions locate in the rural areas.
To establish whether those institution generally posses the potential as instrument for rural development.
To suggest the necessary conditions for their more effective utilization in mile development.

1.4 RESEARCH QUESTIONS

The study covers Nekede agricultural cooperative society Nekede Owerri West L.G.A. community including Umudibia, Umualu, Imioma communities and their rural subordinate.

1.5 HYPOTHESIS

The following hypotheses were formulated for this study and they are be tested at 5% level of significance.

Ho: Null hypothesis assumes that there is a difference between two things. It follows that if I accept null hypothesis, I have to reject alternative hypothesis.

HA: Alternative hypothesis assumes that there is a difference between two things. If follows that if I accept null hypothesis, I have to reject alternative hypothesis.

Ho: There is no significant different in an appraisal of the contribution of agricultural; cooperative to the development of rural areas.

HA: There is significant different in an appraisal of the contribution of agricultural; cooperative to the development of rural areas.

Ho: Agricultural cooperative does not make any impact in the development of rural areas.

HA: Agricultural cooperative make any impact in the development of rural areas.

1.6 SIGNIFICANCE OF THE STUDY

The great concern which various government of Africa are showing in recent years towards rural development is understandable when viewed against the background of the relative neglect of these inspire of their importance.

In Nigeria, this significance is reflecting mainly in terms of the following:

About 7% of Nigeria live in the rural areas.
These rural areas inspire of the crude oil revenue accounts for about 25% of the gross domestic product (GOP) is through agriculture.
The rural areas provide employment to about 55-65% of the active population.
Even during the period of very high foreign exchange earnings (1873.1981) over 95% of the food consumed was grow in those areas.
The rural through agriculture, provide quite an appreciate percentage of the low materials for Nigeria’s industries.
During the period of low crude oil earnings, these rural areas are tuned for salvation. It is therefore only equitable that this urban counterpart enjoy. Closely associated of the effectuation of regional balance (Igbozurike, 1983:47) according to Igbozurike (1983:47). The persistence of a wide socio-economic and cultural disparity between urban and rural areas encourages the continuance of the present massive violence of the rural urban migration.

1.7 SCOPE OF THE STUDY

In the request for accelerated rural development Nigeria has adopted several strategies.

Agricultural development strategy.
Integrated development strategy.
Commodity export (diversification and expansion) strategy.
Small substitution strategy.
Import substitution strategy.
The encouragement of the formation of cooperative and other self help organizations.

Nigeria, a true attempts had been made earlier to improve the socio-economic situation development plan 1975-80, that the federal military government actually more rural development was not taken so seriously until in general Babangida regime.

1.8 LIMITATION OF THE STUDY

In writing this project, there are some difficulties that militate against this study such as the time schedule, gathering of the research materials even lack of finance. All these seem to be the major problem of this study is this research work.

Another limitation of this study is the respondent attitude: poor attitude and way of life of Nigeria, coupled with illiteracy was one of the greatest obstacles. Some respondents were unwilling to give out the relevant information and this uncooperative attitude occur mostly when they are not sure that the will be used only research purposes.

1.9 DEFINITION OF TERMS

For classification purpose and evidence of doubt this project work have taken into cogitation some definitions of notable key work follows;

Appraisal: According to Oxford Advanced Learners Dictionary, appraisal could be defined as a judgment of the value, performance or nature of something or somebody.

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