Development Economics

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Browsing Development Economics by Subject "Arsi Region"

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    The Development of Agricultural Producers' Cooperatives in Ethiopia: Cases from Arsi Region
    (A.A.U, 1989-06) Yirko, Wegenie; Gebre Kiros, Fassil (Dr)
    This thesis is directed at the performance evaluation of the cooperatives sub sector - both at the macro and micro levels- as well as the study of the problems of development of the cooperate vies with a view of making recommendations which may enhance the development of the agricultural sector in general and the cooperative sector in particular . Results indicate that the performance of the cooperative sub sector at the macro level have been less than satisfactory . While the cooperative farms are becoming more and more resource intensive, productive Vities of the main factor s of production, l and labor are declining . This imply a need to counteract against factors which cause the decline . The climatic condition is one nbviou5 cause. The need to counteract the drought condition on the one hand, and the availability huge , labor or, the other then suggests labor investment towards the development of irrigated agriculture. Macro level studies also indicated poor performance of the cooperative sector compiled with the individual and state farms in terms of yield . From the view point of maximizing returns from l and to the society, this suggests retaining land under private holdings than placing them under cooperatives , which in turn may imply a slow rate of growth of t hat sub sector . The performance evaluation of the cooperatives at the micro level was specifically directed at looking in to their allocate efficiency. Towards that end this study was conducted on 26 agricultural producers' cooperatives in Arsi Region . These cooperatives were classified into groups on the bas is of techno logical factors. Representative farms were derived from each group and Linear Programming mode l s were developed for each of the representative farms . comparison of the acute with the optima pattern indicated sub-optimality their cropping pattern,. In all cases results suggested a reallocation of land away from the two basic products of the region. great and barley to other crops . The optimal pattern which was obtained from the computer analysis differed from one typical farm to another - a situation which suggest a differentiated l and use policy. as far as resource use is concerned, l and, in the optimal solution was found to be a limiting factor, in all the cooperatives, whose marginal value product increases with a decrease in land - labor ratio suggesting a need for an appropriate land holding and land allocation policy for each of the cooperatives with takes resource availability of the cooperatives into account. Our study also showed underutilization of plowing labor and ox power. still, however, during this operational of period cooperatives utilize hired tractors. Underutilization/labor and Ox power, on the one hdnd, and the use of harder tractors on the other then implies a need to ovoid hired tractors, which, in turn suggest a need to look into the governments' policy of hiring stat ions. The Optimal solution also showed that weeding, harvesting and/or threshing labor are Limiting for same cooperatives. in these cooperatives, However, there exists abundant unutilized family labor. This then suggest a need to draw policy which will ensure the flow of f family labor into the operations of the cooper actives. in most of the socialistic countries this problem .was resolved by introducing family contract system The study also indicated a number. of problems which hamper the development of cooperatives. one important problems is the input - out put pricing system which creates disincentive on the cooperatives to increase their products . This problem is mainly the result of the Marketing policy of the government which restrict s the cooperatives sale of their produce to the AMC a problem whose solution call for the Introduction of competition the in the of inputs and the. Sale of output. other problems in clued the problem of declining income of Members which cannot cover their expenditure, problems of forced member and absence of democracy in the decision milking process, the solutions of which respectively require untying labor from,1I unnecessary operations of the cooperatives, so that it may create additional income, by introducing the family contract system, establishing the cooperatives in accordance with the principle of voluntarism and enhancing members' participation in the decision making process.