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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Date
2011-07
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Addis Ababa University
Abstract
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
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Keywords
Cooperative unions, SNNP regional state, Sidama-Elto