The Role of Agricultural Marketing Cooperatives in Reducing Rural Poverty: the Case of Yirgachefe and Sidama-Elto Cooperative Unions in SNNP Regional State

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Addis Ababa University


The study on The Role of Agricultural Marketing Cooperatives in Reducing Rural Poverty- the case of Yirgachefe Coffee Farmers Cooperative Union and Sidama Elto Farmers Cooperative Union tried to analyze the overall impact of agricultural marketing cooperatives on rural farmers with a view of assessing the real and potential role of agricultural marketing cooperatives on the reduction of rural poverty through Socio-Economic Development of the rural poor. The study used cross qualitative and quantitative approach by means of structured interview with sample members in the cooperative sector as the basic data gathering tool followed by in- depth interviews with leaders and officials in selected cooperative societies and concerned bodies at different levels and focus group discussions with a view to illuminate on the finding from the secondary data reviews. The study shows that the selected case study cooperatives have considerably contributed to rural poverty reduction through agricultural cost reduction, access to market and better price for outputs to their members. However, the potentials of the cooperatives and the extent of their development have fallen short of success due to low standard of performance, narrow scope of services, poor management, financial limitations, corruptions and misuse of funds, and lack of coordinated work of stakeholders. The findings of the study on the selected cooperatives and households show that given the willingness of the farmers to join cooperatives, the feeling of belongingness they have to the cooperatives and the participatory method of development the cooperatives have, the rural low- income population would take any opportunity to join cooperatives that would help members to end poverty at the household level



Cooperative unions, SNNP regional state, Sidama-Elto