University of Nigeria Research Publications UZO, Samuel Nnana
Author PG/M. Engr/88/6558
An Appraisal of the Performance of Farmers Muiltipurpose Co-operative Title Societies in Abkaliki and Izzi L.G.As of Enugu State
ty Agriculture Facul
ent Agricultural Economics Departm
February, 1992 Date
Signature
TITLE
AN APPRAISAL OF THE PERFORMANCE OF FARMERS' MULTI- PURPOSE CO-OPERATIVE SOCIETIES IN ABAKALIKI AND IZZI LOCAL GOVERNMENT AREAS OF ENUGU STATE
A THESIS SUBHITTED TO
THE DEPARTMENT OF AGRICULTURAL ECONOHICS UNIVERSITY OF NIGERIA, NSUKKA
IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF SCIENCE IN AGRICULTURAL ECONOHICS #
NNANA, SAHUEL UZO C p~/nsc/88/6558) CERTIFICATION
Nnana, Samuel Uzo, a postgraduate student in the
Department of Agricultural Economics, with the
Registration Number, ~~/~~a/88/6558,has satisfactorily
completed the requirements for the course and redearch
work for the Degree of Master of Science in Agriculture1
Economics. The work embodied in thia thesis ia original and has not been submitted in part or full for any other
diploma or degree of this University or any other
University,
(Head of Department) 23th kherrks is profoundly dedicated to my beloved mother Mrs. Aqelina Wnane, Justice Rapheel
Aguedu Chinwubia, Pa katLhiaa Okeks and 4
Rev. Fs. Cyprian Iwme Tarpsi, all late, for their inmanse Lnspiration.
~syGod A1~19hC-jgrant their souls eternal pace, hen. It will be difficult for me to thank individually, all the persons who assisted in making this researCh work a success.
Consequently, a general gratitude is expressed to all those who contributed directly or indirectly to it8 succese.
However, I am epecifically indebted to Dr. S.A.N.D.
Chidebelu, Dr. E.C. Okorji and Dr, Ebo, EaCo as well as professors M.O. Ijere and 0. Okereke for allowing me drink from their stream of knowledge. @
I am also grateful to Chief J.0, Nnana, AoC. Ameke,
B.O. Nnana and Dr. P,N. Agbalaka for their unquantifiable support and encouragement.
A deep gratitude is equally expressed to A.A. Okeke,
E.1. Nwude, J.O. Udenta, K.0, Onwuka, K. Okoronkwo, S. Obianor,
C.C. Igwe, C.C. Eze, E.E. Umebali, EoUo Nkuma, C. Nwojiji and I M. Akeh for their stimulus in various stages of this work.
Enock, Gloria, Felix, Innocent and Iyke all members of
Nnana family are remembered for their moral contributions.
I owe a special debt of gratitude to my supervisor,
Prof.Dr. E.O. Arua who helped most in bringing this work to a successful conclusion, To him, I am indebted in more ways than can possibly be stated here. I am however responsible for all errors, either of omission or comission herein.
Lastly* I am immensely grateful to God for
Hie profound guidance.
Nnana, Samuel Uzo Dept. of Agric. Economice, University of Nigeria, Neukka . ABSTRACT
Food prices in Nigeria are at present increasing at an increasing rate, This is prtiy due to inflation as well as excess demand for food over supply, In a bid to redress this imbalance, policy makers and government have at various periods introduced programmes ranging from Green
Revolution, Operation Feed the Nation (OFN) to Directorate for Food, Road and Rural Infrastructure (DFRRI) ,-Mass Mobilization for Social Justice and Economic Recovery,
(MMSER), Better Life for Rural Women, Community Bank,
People's Bank etc,
Small farmers and cooperatives such as Farmers' Multi- purpose Co-operative Societies (FMCS) however constitute the bulk of the nations agricultural sector, hence the need to appraise their performance with a view to enhancing their # productivity.
This study shows that while there is improvement in terms of farm sizes cultivated, marketing options adopted and access to credit facilities by members of FMCS as a consequence of belonging to FMCS, there are still areas that demand urgent attention and improvement, Specifically, the potentials of women, the young and the aged vis-a-vis co-operatives, are not being fully exploited, Again, there are still lots of problems militating against increased vii productivity. These include, lack of capital and credit facilities4 Apathy from co-opera tive
members; marketing constraints and lack of access to
extension workers, inadequate co-operative education as well as official corruption.
Consequently, it is recommended that more women, actively the young and the aged be moreLinvolved in co-operative activi tiee. In addition, adequate personnel, logistics * and infrastructural facilities should be provided to aid
the operatione of co-operatives in rural areae. Further
more, conditions of service of extension officers need to be improved to facilitate the effective execution of their
functions.
Finally further researches in co-operatives,
especially farmers' co-operatives should be enkouraged. viii
CONTENTS
Page
TITLE i
Chi3TIFICATION ii
DEDICATION iii
ACKNO'iLEDBLM&NT
ABSTRACT
CONTENTS viii + LIST OF TABLES X
LIST OF FIGURES
CHAPTGR ONE - INTROUUCTION
1.1 Background Information .... 1.2 Problem Statement .... 1-3 Objectives of the Study .... 1.4 Justification for the Study ..
CHAPTER TWO -
2.1 Literature Review ..... 2.2 Definition of Co-operatives ... 2.3 Historical Background ..... 2.4 The Structure and Organization of Primary Co-operatives .... 2.5 The sole of Co-operatives in Agric/kkonomic Development .... 2.6 Problems of Co-operatives .... Page CHAPTER THREE - METHODOLOGY
3.1 Study Area ...... 3.2 Selection of Respondents .... 3.3 Types and Sources of Data .. .. 3.4 Data Analysis .... 3.5 Limitations of the Study ....
CHAPTSR FOUR - ANALYSIS AND DISCUSSIONS OF 56 FINDINGS + 4.1 Socio-Xconornic Analysis of FMCS in Abakaliki and Izzi local Government Areas...... 36
CHAPTLH FIVE - SUMMARY, CONCLUSION AND RECOMMENDATIONS
59 1 Summary ...... 5.2 Conclusion ...... 5.3 Hecommenda tions ...... References ...... LIST OF TABLES Table- Page
1 Sex Distribution of Respondents .ern 36 2 Age Distribution of Respondents ... 38
3 Distribution of 2espondents" level of. Education . Distribution of Co-operative Experience of Respondents ... Distribution of Mgt. position of Respondents ... Membership of Titled Society Prior to FMCS Membership ... Membership of Titled Societies now ... Income Distribution of Hespondents prior to FMCS membership a.o
Income Distribution of Respondents now
Empirical Analysis of Cost and Returns of sampled FMCS ... I Distribution of aespondents According to Problems encountered in Co-operatives
Farm size Distribution of Respondent Prior to FMCS Membership
Present Farm Size of Respondents
Distribution per week of Respondentu6 labour use prior to FMCS Membership
Present Distribution, per week of Respondents Labour Use. -Table Page ll(a) Respondents Distribution of Modern Farm Inputs and Implements Prior to FMCS Membership
?l(b) Respondents Present Distribution of Modern Farm Inputs and Implements
12(a) Credit and Extension Services Beneficiaries Prior to FMCS Membership
12(b) Present Beneficiaries of Credit and Extension Services
13(a) Distribution of Respondents Marketing Options prior to FMCS Membership
13(b) Present Distribution of kespondents( Marketing Options. LIST OF FIGURLS
Figure
1 Map of Enugu State
2 Map of Abakaliki and Izzi Local Government Areas. CHAPTER ONE
INTRODUCTION
7.1 Background Information
If one takes 1930 (when the Federal Department of
Agriculture was initiated) as a reference date for the
formation of co-operative movement in Nigeria, one may say
that co-operative movement is sixty-one (61) years old in
Nigeria. Prior to this date (l93O), there were .traces of
co-opera tive communal activi tie8 manifesting in the fprm of aseociations like Esusu, age grade, labour groups,
improvement unions, title societies etc. (Ogbuli 1975;
Arua, 1986, 1988). The enactment of the Nigerian
Bo-operative Ordinance and the appointment of a Registray
of Co-operative Societies in 1935 however mark the formal
introduction of co-operation in Nigeria. From this date,
4 to date, the co-operative movement has witnessed an immense
growth in membership strength, economic turnover and share
of commoditiee in the total national market (Ogbuli, 1975).- The regionalization of the country in 1952 and 1963
(midwestern region) as well as subsequent state and 159: creations in 1967, 1976, 1387 -/ witnessed concurent co-operative developments in the newly created regions/ a tates, Each region/atate assumed an autonomous status, co-operative-wise with the adoption of relevant co-operative laws tailored along the 1935 ordinance (Arua, 1988).
Co-operatives generally are regarded as the most important institutions in the agricultural transformation process, They are often seen as institutions that facilitate the technical and economic traneition of the traditional agricultural sector to the modern one and that help create a protective environment for the rural poor, the small farmers 6 and tenants (Andrtou et al, 1979, Pearce, 1986).
Democratically constituted rural workers1 organizations such 8, as the co-operatives are the only organizations which can group together the poorest people in such a way that they can voluntarily and actively participate in the development process (Okonkwo, IggO), Co-operatives in Nigeria, so far,
0 are yet to justify the huge sums of public fund being invested in it (Ijere, 1984).
Farmers Multi-purpose CO-operative Societies (FMCS) play a dpamic role in the socio-economic development of the nation. The emphasis on FMCS is informed by the fact that it takes into account all aspects of the farmers' socio- economic life as against single-purpose co-operatives which serve only a part of the farmersn needs. According to Okonkwo (IggO), 7% of total co-operatives in Nigeria . are Farmers' Multi-purpose Co-operatives, No development can therefore be properly met through co-operatives without the effective involvement of FMCS.
1.2 Problem Statement
Farmers' Co-operatives are recognised the woad over as tools for socio-economic development. No government can fi afford to do without them (Ijere, 1986). In most countries like Israel, Denmark, Japan etc, governments in collaboration with farmers have solved their agricultural problems through effective farmers' co-operatives. Corollarily , the progress of the co-operative movement in any country is an index of growth and development of that country,
Zn Nigeria, the importance of co-operatives i!n national development as regards socio-economic transformation is increasingly being realised by Federal and State governments. This is made manifest via policy measures and concrete action. The Anambra State Government for inatance, in the 1981-1985 plan period, invested the sum of eleven million, eight hundred thousand Naira (~11.8 million) in co-operatives (Anambra state, 1981). An excerpt from the third National plan (1975-1980) reads; **Itis the objective of the government during the plan period to foster the growth of co-operatives more consciously as instruments for achieving increased agricultural productivity and rural trans- formationw.
Co-operative Law of 1935, patronage in the form of tax exemption, subsidised purchases and credit as well as administrative support among others are further manifestations of government assistance (Ijere, 1973; 1978). Despite these massive government aid they enjoy, , co-operatives have so far recorded very limited successes.
"It is common for instance to find peasants joining production co-operatives merely to take advantage of government-provided facilities while their privately cultivated farms are of larger size, higher productivity and greater output per head"
(0beng , 1985). The formation by government of complementary 4 quasi co-operatives like MAMSER, DFRRI, Better Life for Rural
Women, ADP, Peoples1 Bank, Community Bank etc. is most probably as a result of the failure o< orthodox form1 co-operatives.
Meeting further demands for growth of co-operatives in general and FMCS in particular, continuously from public exchequer may jeopardise the mechanism of balanced allocation of scarce funds between competitive components of Cho agricultural seetor over time. It is thus very important that the existing FHCS should prove not only economically viable but also be able to foot the bill of its additional demandn. It is towards thie problem of economic viability that thie research is being addressed. The study therefore seeks to investigate, analyse and appraise the existing FHCS in Abakaliki and Izzi local government areas.
Immediate and remote caueee of unexpected variations in the achievement of set goals will consequently be identified b and appropriate solutions prescribed.
1.3 Objectives of the Study
The broad objective of the study is to undertake an economic appraisal of FHCS in Abakaliki and Izzi local government areas of Anambra State. # Specifically, the study is aimed at
Identifying the costs and benefits of FHCS
in Abakaliki and Izzi local government areas;
Comparing in financial terms the incomes and
expenditures of FHCS in Abakaliki and Izzi local
government areas;
Identifying factors which aid or hinder the progress
of FHCS in Abakaliki and Izzi local government areas; 6
making recommendation8 based on findinge.
Justification for the Study
This study, generally is justified by virtue of the fact that its findings and recommendations will be of immense use not only to policy makers but also to members and would-be members of co-operatives,
Specifically, it will guide policy makers ir~making reliable policies relating to co-operatives; assist , co-operators in re-directing their mode of co-operation along viable projects and better meane of realising the projects; serve as a guide to prospective co-operators vis-a-vis becoming effective members of co-operativee and providing relevant information for further research in co-operativee, 4 CHAPTER TWO
20 I LITERATURE REVIEW
In this chapter, related literature8 underlining this
study are reviewed with a view to finding a sound and
Wholistic theoretical framework for it. This ie done
under the following sub-heading8:-
I, The definition of co-operatives;
2, The historical background of co-operatives; b 3 The structure and organization of primary
co-opera tives4
4, The role of co-operatives in Agric and Economic
development and
5. The problems of co-operatives.
2.2 Definition of Co-operatives I
It will be unrealietic to hope for a universally
satisfactory definition of a co-opezative. This ie
because what co-operative means varies naturally according
to background and view points of different people. A
capitalist for instance will moat likely perceive and
define co-operative in different way to that of a socialist.
In other words, it will not be possible to specify a single, auccint set of necessary and sufficient conditions for a co-operative organizationo "Any account of what is to be termed a co-operative will be long, tortuous and disjunctive, to the extent that it will lose the economy of expression that one would expect of a dictionary definition, It will be unwieldy and possibly bewildering to the reader thus defeating its own ends'
(Whittaker, 1982).
However, the philosophy which guidea co-operatives is b virtually the same the world over, with minor variations arising from variations in ideology. The basic ingredient8 underlining co-operatives, irrespective of ideological inclinations are self reliance, self sufficiency and service to and promotion of members' interests through a voluntary movement characterised by noble ideals of equality , economic and social justice. (Hurungu, 1972) CO-operatio: fundamentally is an institution used in harnessing the combined energies of the peasantry towards feeding, clothing, housing, transporting and educating themselves, their children and dependents (Brown, 1972; Shea et al, 1972).
Implicit on the futility and unprofitability of a search for an all-embracing concise definition of the term co-operative and owing to wide-spread acceptance of the 9 co-operative principles ae formulated and amended by the
Rochdale equitable Pioneers and International Co-operative
Alliance (ICA) respectively, the common thing is to define co-operatives from the bedrock of these principles which are:
I) voluntary, open and active membership;
2) democratic control;
3 limited interest on share capital; 4) equitable distribution of surplus dividend; 6
5) promo tion of co-opera tive education and
6) mutual co-operation among co-operatives.
A critical consideration of the aforelisted principles is probably what informed ~ndreo& (1979) choice of words when he defined co-operative as a mvoluntarily organized business, operating at cost, which is gwned, capitalized and controlled by its members, sharing risks and benefits proportional to their participationH. In a somewhat more comprehensive note Arua (7988) agreed with
Andreou by defining co-operative as a
Voluntary, social and economic organization of people based on equality with no profit motive, which carries out an allocated or aelf assigned mutual economic objective". Unlike co-operatives in general, FMCS seems not to pose a problem as par definition. This is because experts
in co-operatives tend to have a concensus of opinion as
far as the definition of FMCS is concerned, FMCS could be
defined as a voluntary and democratic organization wherein persons in agricultural communities join together for the attainment of two or more economic and social objectives regardless of their religious and political ideologies
(~kpi,1955; Ijere, 1977; Onuoha, 1986 etc). This is tn contrast to single-purpose co-operatives which pay attention only to one object.
If for instance a credit society situated in a farming area undertakes co-operative farming, supplies the members
with agricultural requirements, processes and markets their crops as well as grant credit to members, such a society
0 is of a multi-purpose nature . Where as a credit society for instance performs only the function of giving out loans and marketing co-operative, the single function of marketing produce, a farmers multi-purpose co-operative combines several functions such as thrift and credit, production, processing, storage and marketing (Okonkwo,
1989) 0 FHCS is an all sided agency embracing many and various aspects of rural life and serving as service centre for all the needs of the farmers in a village community, Added to this, it provides necessary services to non-farmers such as artisans, tailorss carpenters, fishermen etc, whose economy are blended with that of the agriculturiet. It combines in itself all the functions tha are performed to meet all the needs of the farming community, Invariably, it acts as a nerve-centre for the B servicing of the social and economic lives of the agricultural ~o~ulation,
\
2,) Historical Background
The history o'f Nigeria, co-operative-wise is replete with numerous instances of the application of the , principles of the traditional extended family system which borders on co-operation, self-help, aelf-respect and responsibility. Individuals or groups of people have from time immemorial come together to achieve certain aims in co-operation with othera, They cultivated their land together, grazed their cattle together, built their houses together and even defended the principles for which they stood together (Brown, 1972). In Nigeria, however, the co-operative experiment is now 56 years old as an officially recognized movement,
This is in view of the fact that the Nigerian co-operative
Ordinance was promulgated and a Registrab of co-operatives
(now director of co-operatives) nppointed in the year
1935. Following this development, co-operatives grew in type, number and strength in consonance with the politi- socio-economicti development of the nation. Consequent upon 6 the ordinance promulgation, producers, marketing, credit, consumers, building and service co-operatives emerged and numerically increased and strengthened with the passage of time. Apex organisa tions like co-opera tive unions as well as co-operative tranining institutions like the
Federal Co-operative Colleges at Ibadan, Enugu etc, were opened. Governments' acceptance and recognition of co-operatives as a means of socio-economic gap narrowing became pronouncedboth theoretically and practically as is manifested in the progressive increase in the national fund allocation to co-operatives,
Co-operative development in Nigeria upto 1954 was largely single-purpose co-operatives, Farmers8 Multi- purpose Co-operatives sprang mainly due to Inter-co- operative interface and linkages necessitated by the
short comings of the single-purpose co-operatives. There
was a felt need by each unit to benefit from the activities of the other. For inetance, credit co-operatives
were anxious to improve the price structure of their
products, and the marketing co-operatives needed credit to
carry on their activitieew (Ijere, 1977).
Prior to the establishment of FMCS, it was not
unueual to find one farmer belonging to as many as fw
different co-operative societies, each serving one aspect of his needs, One could then imagine the type of burden
the farmer will be ehouldering in trying to actively participate in all these four single-purpose co-operatives.
FMCS, then makes it possible for a farmer to belong to only one co-operative society and to be effectively served by - d the society (Edward K, 1972).
2-4 The Structure and Organization of Primary Co-operatives
A primary co-operative society is a society whose members are individuals . On the other hand, a secondary co-operative society is a co-operative society whose members are in part or whole, primary co-operative societies. Such secondary co-operative societies are called *unions1 and are established to facilitate the operations of the affiliated societies (Onwukike, 1983).
A typical primary co-operative (FMCS inclusive) comprises the a) general meeting b) committee meeting c) the staff a) The members (General Meeting)
General meeting is the core group in the organizational set-up of primary co-operatives by virtue of the fact that all bonafide members of co-operatives who comprise this stratum of co-operative organization are the founders, funders and customers of primary co-operative societies. Consequently, the supreme authority of the society is vested on them through the general meeting (Yash 1972 ; Onwukike, 1983). conventionally, the general meeting takes place once a year, but provisions exist for calling it into session \ (as a special general meeting) more often, if necessary for the disposal of urgent business or if directed by the director of co-operatives. The general meeting has the right/power to either accept or veto the decisions of the management committee and decisions in the general meeting are arrived at, through majority vote, except in certain specified instances when a higher vote is necessary (rash, 1972;; and Qkpi, 1975 ) .
The Management Commit tee
As the general meeting takes place only a few times a b year, much of the day-to-day activities of primary co-opera tives are being managed by an elected committee known as the management committee,
Members of this committee are elected by and from the general membership and it exercises the powers delegated to it under the bye-laws, These powers include: a) Determining the overall objectives of the so&iety; b) Deciding major policies; c) Keeping the general members fuLly
informed of happenings in the society; d) Employing, fixing the terms of service and
discharging all employees of the co-operative
subject to general meetings' ratification; e) Performing other assignments as may be directed
by the general meeting or the director of and co-operatives (Vidstrand, 1977-L0nwukike, 1983).
The Management staff
The activities of co-operatives may be so broad and specialised that the employment of external hands other than members of co-operatives become8 mndatory.- In cases like, as stated hereabove, the management committee 6 is empowered to appoint a manager and other person8 necessary to assist in the discharge of such dutiee. The approval of the Director of co-operatives is however, necessary before such appointments can be made.
This seament of the co-operative structural hierachy only work for the co-operative and have no voting
I power, They are usually monitored/evalua ted and remunerated by the management committee,
2-5 The Role of Co-oneratives in Anrid Economic Development-
"More than seventy per cent of Nigerians directly or indirectly depend on agriculture for their livelihoodN
(Chidebelu, 1986). There is no [email protected] the fact that the co-operative systems* contribution to the socio-economic development of Nigeria, primarily must be measured against the role it performs and will continue to perform in agriculture (Manfred, 1988). A stock-taking of the co-operative system shows that the crucial points of co-operative activity lies in the agricultural sector, It is increasingly evident that if agricultural development is to become a viable 4 concept, much more attention must be paid to ways of increasing the receptivity and ability of the rural people
(since they constitute the bulk of farmers) to participate effectively in agricultural development,
The success of all development ,programmes 'and of agricultural development in particular is dependent upon securing the participation of the people involved,r It is not practical to try and secure the participation of millions of individuals; they need to be organized into representative bodies, Co-operatives typically are well suited to serve this purpose of facilitating the organization of representative bodies, and as far a8 possible transforming subsistence farmers into participants in the agricultural development process, Co-operatives, however, do not aim only at achieving an objective but a number of objec tives,
Therefore, there can be no uniformity in terms of roles being played by such co-operatives, Invariably, the usual system of cataloguing the roles of co-operatives can not apply (Ogbuli, 19831, instead, the role of co-operatives could be looked at from two perspectives:- the function of the organization from the point.of view of the society (outer) and the role of the organization from 6 the view point of individual owners of the organization
(inner), Based on this, we speak of inner and outer roles.
The inner roles of co-operatives are usually stated in co-operative bye-laws and this include:
encouraging thrift among members and the
establishment of a fund from which members can be
# given loan for agricultural purposes;
encouraging the adoption of better farming methods and
the extension of farming activities)
marketing for the best price, the produce grown on
members farms and processing of the produce before
sale if necessary;
supplying members with seeds and seedlings,
agricultural equipment, domestic requirements including foodstuffs etc.; e) doing any other thins that may tend to increase
the earning capacity and ultimately improving the
standard of living of the members.
From the 'outer'. or governmental view point, a co-operative movement plays the major role of enhancing
the fruition or realization of the general goal of the nation as is usually stipulated in National Development
Plans. The lggl-'gj Rolling plan for instance targets real growth rate of 4.8%, 4.85% and 7.68% for GNP, Agriculture and manufacturing respectively (Babangida, 1991). The role of co-operatives here, is to contribute perceptively to the attainment of this goal.
Co-operatives are suitable instruments through which farmers are reached and galvanised into purposefu) production towards the fulfilment of national goals which amongst other things include employment promotion and improvement of living standards (Okpi, 1973, Arua, 1988)0
Co-operative movement, by and large, is one of the most effective means of encouraging thrift and channelling credit to small-scale farmers for agricultural development. By so doing, significant contributions towards the acceleration of rural development is achieved
Specifically, FMCS engage in a wide range of activities involving the production, processing4 handling of various farm and livestock products, in addition to offering some essential services as short-term production- credit facilities, tractor-hire services and the supply of inputs for production such as fertilizers, seedling3 and agro-chemicals, Additionally, they make advances for payments of essential social services such as school fees, taxes and medical bills, It is therefore obvious that co-operatives in general and FMCS in particular play essential roles from the developmentaa and socio-economic and points of view in the rural areas (Murungu, 1972;21Pearce, # 1986)
In relation to role accomplishment, the following points can be adduced in favour of m~lti-~ur~ose co-operatives as against single-purpose co-operatives, a) as more than one function is delegated to the
co-operative, the relationship between the farmer and
the society reaches a higher level of integration and
therefore forms a stronger bond; b) the farmer has to raise less capital for his share
contribution, Instead of contributing to several
societies, he has to buy only one share in the multi-
purpose co-operative; c) the co-operative potentials with regards to leadership,
enthusiasm etc, are not split but are concentrated in
one society; d) there is usually a reduction in the cost per unit
produced or turned over, as administrative cost5 will be
reduced by being spread over several activities; e) often, only the formation of multi-purpose
co-opera tives can increase the viability of
co-operative activities which otherwise could not be
carried out, The business volume of one activity
may not be large enough to form an economic basis for # the operation of a co-operative society (Franz, 1968)- 2,6 Problems of Co-operative8
It is a truism that co-operative development
amongst the rural Nigerians have met with more failure^
than successes (Arua, 1986). Various studies have shown
that inspite of the huge amount of resources invested in
co-operative projects by both co-operators and governments,
the results have more often than not, been disappointing
(Ijere, 1977). This is as a result of obstacles which
impede its progress, The problems facing co-operatibes,
the world over and particularly Nigeria are of many kinds and
require much understanding and attention in trying to solve
them, They are in most cases intermixed but could,however,
be discussed under four sub-headings, namely a) Economic
b) Social
c) Administrative and
d) Education
Economic Problems
Lack of capital has become as old as Nigeria in any
co-operative society (Ijere, 1977) large sums of money are
needed by co-operatives for the clearing of land, tilling 23 of the soil and procurement of inputs amongst other things. -. Most members of co-operatives are economically weak and ill-disposed to provide fund for effective running of the co-operative (Onuoha, 1972
Ikekpeazu, 1980).
It is true that banks and government agencies often make loan advances to registered co-operatives without collateral6 but to get registered in the first place, societies are expected to contribute and own shares fiunning into thousands of naira. Considering the amount of cash that ordinarily pass through the peasants' handsp One could imagine how many could afford to purchase the shares necessary to start an economically viable co-operative
(Buse et al, 1968) there is however no doubt that poor utilization of available funds of co-operatives )y co-operative leaders further exacerbates the problem.
Social Problems
Success of rural co-operatives presupposes a modicum of social equality. Unfortunately, social/economic inequalities are yet to be modified by co-operatives. There has developed over the years, especially in developing countries a gaping chasm between the rural bourgeoisie or the economic activiets among the peasants, on the one hand, and the "traditionalM farmers on the other (Widstrand, 1972).
Relationships in co-operatives are still vertical as against horizontal because of their believe that the local bourgeoisie are better placed to defend the interest of the community than they themselves. Invariably, they are yet to develop any significant consciousness of their own situation as an exploited group.
I jere ( 1973) and)'anuoha (1978) further buttressed this b fact when they emphasized that poor peasants in rural communities with meagre means, prefer to contract a 'patron- client' relationship with richer members of their communities rather than challenge the existing system. Contingent on this dependence as well as sheer ignorance, peasants do not exercise any democratic control over the management of
d co-operatives. Consequently, the egalitarian and socialist aims of co-operatives are frustrated with its concomitant adverse effects. In co-operatives, pcirticipation is not a simple measure of democratic control. It is not until the members themselves feel a sense of involvement and have some control over the co-operative through education, involvement in productive activities, understanding of proceedings etc. that efficiency could be guaranteed by pressure from 25 below, by active participation and by the entire membership,
Administrative Problems
Experience in co-operative development has justified the contention that no real and lasting foundation can be laid in the development of co-operatives without sound administrative machinery (Okpi, 1973; I j ere, 1977).
Efficient management according to Lenora is rbcognized as a major factor in the economic functionality and viability of co-operatives and so far, research has revealed serious deficiencies in this respect, Agreeing with this, Brown 1972 stated that the success or failure of co-operatives is closely linked with the character and ability of its management, This, ho,wever , is not surprising because management from a broad point of view is concerned with planning, organizing, staffing of key personnel, direction and leadership, co-ordinating and controlling of all the activities of the co-operative
(Odokara , $964 1. Briefly stated, management deals with all the varied activities of a co-operative such as member relations, 26 financing , handling members* products, pooling sales returns, purchasing supplies, merchandising, transportation, maintaining satisfactory accounting and other necessary records as well as numerous other phases of the co-operatives* operations. (Bain, 1959; Brown, 1972)
Co-operative mis-management is rife in most West African countries, Nigeria inclusive. Top on the list of many management problems facing co-operatives are corruption and deliberate mis-appropriation/misapplication of funds,, bureaucratization and excessive overhead costs, improper -- use of staff ,,. lack of commitment to the society and insufficient control over the management (Widstrand, 1972,
Management problem vis-a-vis co-opera tives is not restricted to leadership from the co-operatives. It is an I all embracing terminology permeating the entire fabric of the co-operative movement. It can emanate even from the government. Cases abouhd where Divisional
Co-operative Officers (DCOs) and their subordinates, appointed by the government are inefficient and dishonest.
The effect of this is that they largely shirk from their supervisory and other responsibilities. The spill over effect of this, need not be overstressed. Educational Problems
One sure way of addr sing the problem of administration is by giving co-operators basic education that will enable them participate actively and effectively in the day-to-day affairs of co-operatives.
Illiteracy and mass ignorance are recognized by most authors as the bane of co-operatives. This thinking, perhaps is what prompted Eldin in 1982 to state that
"If we had occasion to start our co-operative movement afresh and if we were given the * choice between capital and enlightened membership and staff, or on the contrary that of starting with a large amount of capital and ill-formed members, our experience would incline us to choose the first coursev.
It is the contention of so many texts that the leadership of co-operative societies are always entrusted in the hands of few educated or literate minority among farmers who exercise undue influence over the aff&irs of co-operatives and appropriate an undue share in the fruits of the co-operative enterprise,, Meanwhile, the rest of the members, hecause of their educational limitations apathetically, accept unquestion?bl~ the decisions of the feu and fail to develop an individual initiative or drive towards self-help and democratic control which would qualify them as genuine co-operators. 28
Elaborating on this Issue, Biliya (1986) listed the manifestations of the symptoms of lack of co-operative education to include disloyalty of members, large incidence of over-due loans, irregular attendance at meetings, ignorance of members, of society's plans and proposals, poor member relations and low productivity,
Consequently, members find it difficult to take part actively in the activities of co-operatives. For instance, the balance sheets read at annual general meetings in mosb
cases are beyond the comprehension of most members of
co-operatives. In other words, they are left at the mercy of the few educated ones amongst them. CHAPTER THREE
METHODOLOGY
3.1 Study Area
The study area is Abakaliki and Izzi local government areas of Enugu State. It has a combined land mass of about 2,500 square kilometres. It is bounded on the North by Okpokwu local government area of Benue State; on the &st and North-East by Ogoja local government area of Cross River State; on the 2outh by Ezza and Ikwo local government areas of Enugu State and on the West by Ishielu local government area of Enugu
State (Anambra State, 1988).
Abakaliki urban is roughly 82km from Enugu, the capital of Enugu State. Abakaliki and Izzi local government areas have a population of about 454,720 people distributed among fourteen autonomous communities. The communities and their populations as stated in Anambra state publication (1988) are as state'hereunder. Communi ty Population
Amagu 43,790
Izzi Unuhu 7480
Ishieke 54892
Nkaleke/Achara 29065
Agba ja 41630
Ezza Inyimagu 40669
Ndieze-1nyi.mgu 30039 -
Ngbalukwu 19769 6 Nkaliki/Achara Unuhu 7050
mac chi 20856
Edda 8222
Okpui tumo 16730
Igbeagu 37456
Abakaliki Urban Township 97056
4 The people of the area are predominantly farmers, probably due to the marked fertility of their soilo
Specifically, over 75% of the people are engaged in
Agriculture with rice and yam as their key products
(Anambra State 1988).
The Izzi people as they are often called are one, by virtue of not only originating from one big family (the
Nnodo Ekumaenyi family) but by speaking the same language 31 and performing similar customs. Altogether, there are about eighty FMCS in the study area.
3.2 Selection of Respondents
There are about fourteen (14) autonomous communities in both Ahakaliki and Izzi local government areas. Three FMCS were randomly selected from each of the communities bringing the total number of FMCS seiected to fourty-two (42)- b
Two sets of questionnaires were administered to each of the selected societies; one set was for the co-operative members while the other set was for the officials
(President, Secretary and/or ~reasurer),Three and two questionnaires were respectively administered to members and officials of each society. Out of the fourty-two (42) 4 societies interviewed, thirty-eight societies completed and returned their questionnaires while one hundred and eight
(108) out of one hundred and twenty-six individual questionnaires were completed and returned by members,
On the whole, one hundred and fourty-six (146) out of one hundred and sixty-eight questionnaires, representing
86.9% were completed and returned. 3,,3 Types and sources of Data
Both primary and secondary data were used in this work. Primary data were got through two sets of question- naires administered to both co-operative members and officials,
Sec'ondary data on the other hand were collected from official files of the selected societies as well as from related texts and materials. In particular, expenditures incured and returns generated by the * societies were got mainly from official files,
3.4 Data Analysis
Statistical tools such as percentages and means were used in analyaing the collected data, In addition, a sequential tabulation of expenditures and returns incured and generated respectively were compared and useddas a further criterium towards ascertaining the viability of the activity mix of sampled societies. *
3.5 Limitations of the Study
This study was associated with some problems prominent among which w,as that most parts of Abakaliki and especially Izzi local government areas which comprise the study area were not easily accessible, particularly during rainy seasons, Unfortunately, this study was conducted during this period and this was not easy,
Secondly, Anambra Statesembrasing the study areas was affected by the recent creation of additional statesen the federation, The state was split into two, namely
Anambra and Enugu states and some of the co-operators, co-operative assistants and officials from the new
Anambra state were transfered to their new state, This added to the costs of the field work as the researcher had to commute from Abakaliki and Izzi local government areas I which now fall under Enugu state to most parts of new
Anambra state in search of the transfered personnels who wereprior to the state creation exercise, assisting in data collection, 36
CHAPTER FOUR
ANALYSIS AND DISCUSSIONS OF FINDINGS
4.1 Socio-Economic Analysis of FMCS in Abakaliki and Izzi Local Government Areas
An analysis aimed at finding out the socio-economic stature of FMCS sequel to FMCS membership in Abakaliki and
Izzi local government areas was undertaken and this was done in the areas of sex, age, education, co-operative experience, income/occupa tional distribution, labour use ,,, * credit services, farm sizes and marketing channels of respondents as well as benefits and problems accompanying
FMCS membership.
Table 1: Sex Distribution of Respondents
Sex Frequency of Respondent % of Tdtal
Male 86 87-76
Female 12 12-24
Source: Field Survey, 1991, Table 1 indicates that 87.76% and 12.24% of respondents are male and female respectively. This means that the numerical strength of men involved in co-operative activities in Abakaliki and Izzi local government areas is by far greater than that of female.
Women generally are more pre-occupied with maintaining the home front unlike their male counterparts who are mostly full-time co-operatorso Limitations imposed by husbands and society in terms of land ownepship and freedom of association in the study area also account in no small measure for the reduced membership of women in co-opera tive activities in the area, lmplicitk=y. speaking, this may be in favour of co-operative development in the area as men are known to be more involved in harder aspects of co-operative work., On the other hand, the numerical 4 strength of women and hence their overall contribution to co-operative growth and development in the area is diminished. Table 2: Age Distribution of Respondents
~ge(years) Frequency of Respondents % of Total
17 0 0
Above 59 23 23047 . Total 98 100
Source: Field Survey, 1991.
Table 2 shows that the highest concentration of co-operators in the area of study fall within the 50-59 age bracket. Theyconstitute 41.84% aa against the less # than17 age range where there is no respondent and above -
59 year range which constitute only 23.47% of total respondents. This further shows thak the very young and old are not actively involved in co-operative activities in the area studied.
The younger ones, in most cases are immersed with the intricasies of personal developmental processes such as education and training. 39 Equally, their mental perception of life is often
captured by the attractions of the misconceived "money
ceme easy" ventures, to the detriment of co-operative
development, Additionally, they lack the financial and
moral where withal to effectively participate in
co-operative work. Similarly, older men, in most cases are scared from actively participating in co-operative
work due mainly to the inherent impediments accompanying
old age. In other cases, they (older men) are b
discriminated against by able bodied/middle aged class in
terms of admission to co-operatives,
Table 3: Distribution of Respondents' level of Education
Level of Education Frequency of % of T~tal
No formal Education 7 7.14 Attended primary Sch, 56 W014 Att. Secondary School 24 24.49 Attended Higher School 5 5.11
Total 98 100
Sourcet Field Survey, 1991. 40 Fifty-six (56) respondents in table
3 representing 57.14 percent of total respondents attended primary school while 24.49 and 5.11 percents attended
secondary school and higher schools respectively, On the other hand, 7.14% attended no formal education while 6.12% attended schools other than the ones specified in the
tabla. that This furthersuggest&L majority of members of
Farmers' Mu1 ti-purpose co-opera tives in ,the study area fall b within the semi-literate and unskilled class, This has the
tendency of adversely affecting the productivity of co-operatives in the area since semi-literate and unskilled members will be ill-disposed to grasp with modern technology which enhances productivity, They are equally prone to the problem of introducing and sustaining an effective and efficient mauagement machinery, t Table 4(a): Distribution of Co-operative Experience of Respondents
Experience Frequency of Respondents % of Total ( yead
2 years 12 12.24 2 - 4 years 17 17.35 4 - 6 years 23 23.46 above 6 years 37 37-75
Total 98 100 4
Source: Field Survey, 1991.
Table 4(b)t Distribution of Mgt. position of Res~ondents
Yes/No Option Frequency of Respondents % of Total 4 Yes 7 1 72-45
Total 98 100
Source: Field Survey, 1991.
Table 4(a) indicates that most of the respondents
(37.75%) have been in the co-operative business for upwards of six years while 12.24% responded . in favour of less than tLo years span. About 17% and 23:A
respectively stand for between .'two' and six years
Table 4(b) on the other hand shows that a greater
percentage of respondents (72045%) have held management
positions while 27.55% have not. This statistical break-
down speaks well of co-operative development in the area and this naturally ought to contribute perceptively
to the enhancement of FMCS productivity in the area.'
Table 5(a): Membership of Titled society _prior to FMCS Membership
Yes/No options Frequency of Respondents % of Total
Yes
No
Total 98 100
Source: Field Survey, 1991. Table 5(b): Membership of Titled Societies now
Yes/No Options Frequency of % of Total Respondents
Yes
No
'l'otal 98
Scurce: Field Survey, 1991.
Tables 5(a) and 5(b) shows that 23-57?: ana
60.39~~of respondents celong to titled societies before and after joining FF'CS respectively.
'I'his implied that more members belong to titled societies now than prior to joining FECS. 3his further implies that co-operatives in the stuay area have contri~utedin enhancqng the social/ material welbbelng of co-operatives. However, it follows equally that much or tnis materlai gain were not galnrully re-invested. Table 6(a): Income Distribution of Respondents prior to FMCS membership
Income per year Frequency of Respondents % of Total (I4 1
1,201 - 1800 1,801 - 2,400
Above 2,400
b Total 98 100
Source: Field Survey, 1991.
Table 6(b): Income Distribution of Respondents now
Income per year Frequency of Respondents % of Total (H ) #
1,200 12 12.24
Above 2,400 13 13.27
Total 98 100
Source: Field Survey, 1991, A comparative analysis of tables 6(a) and 6(b) shows that a greater percentage (67,,35) of respondents in table 6(a) earn an average of #1,200 per annum while
59.18% of respondents in table 6(b) earn an average of #2,100 per annum, his shows that there is a - significant appreciation in income of members of FMCS as a result of participation in co-operatives, The same
trend is reflected in respondents in both tables that earn above ~2,400per annum, In table 6(a), only tyo respondents representing 2.04% earn an average of
~2,400per annum as against table 6(b) where 73.27% earn an average of ~2,400per annum, With higher incomes, members of co-operatives are better placed to invest in other income yielding ventures as well as take proper care of their socio-economic problems,
# Table 7: Empirical Analysis of Cost and Returns of sampled FMCS
Total Total Net Rev. Names of Society Cost (TC) Rev (TR) (NR)
Abakaliki Young Farmers 12,421.80 FMCS Ltdm Umano Abakaliki FMCS Ltd g,460.00 Abakaliki 'ifomen FMCS Ltd 4,412.00 Agba tobi Amike Abakaliki FMCS Ltd 9&38 a5 Abakaliki Farmers Coop Rice Mill Ltd 19,945. Ifemelunma Abakaliki FMCS Ltd 9,805. Abakaliki Rice Planters FMCS Ltd 18,006. Umunna Abakaliki FMCS Ltd 12,106 Echemugh Abakaliki Young Women FMCS 7,540 Abakaliki Indigenous workers FMCS 8,640 Abakaliki Obinwanne Progre- ssive FMCS ~td 6,514 Kpirikpiri Abakaliki PMCS Ltd 8,25 .80
Abakaliki Urban Women FMCS It 5,460 Abakaliki Food and Meat FMCS ~td 8,865. Abakaliki youth FMCS Ltd 5,214 Amike Aba Abakaliki 'domen FMCS Ltd - Abakaliki General FMCS Ltd 18,200 Oganiru Abakaliki FMCS Ltd 7.92.5 Abakaliki Universal FMCS Ltd 2,800 Abakaliki Unique FNCS Ltd 6,640 Izenyi Ishieke Abakaliki FMCS Ltd Izzi Unuhu FMCS Agbaja Unuhu FMCS Ltd Igidiagu Okpui tumo FMCS Ltd Uburu Amachi FMCS Izicha Edda FMCS Ltd Izzi Nnodo FMSS Ltd Oroke Onuoha Abia Unuhu FXS Omege Okpuitumo FMCS Ltd Idebia Ofia Oku Amachi Uomen FMCS Abofia Agbaja Izzi FMCS Ogbala Ishieke Izzi Young FMCS Amainyima Xmachi FMCS Ltd Ndiagu Nkaleke FMCS Ltd Ofu-Obi Agbaja Izzi Young FMCS Izzi Young FMCS Ltd Umua jagbo Inyimagu Unuhu FMCS Ltd. Ndube Enyigba FMCS Ltd Uwalakande Oferekpe Enyigba FKCS Odeligbo Obpui tumo FMCS Ltd Amachi FMCS Ltd Ogada Edda FMCS Ltd Total Table 7 shows the total cost (SC), Total Revenue
(TR) and Net Renenue (NR) of the fonrty-two (42) sampled
FMCS as well as the Grand Net Revenue and Average Sevenue of the societies, The Table further shows that four societies were in deficit of between 891.00 and ~832.49,
Annual accounts of three societies; Amike Aba Abakaliki
Yomen FMCS, Igidiagu Okpuitumo FMCS Ltd, and Uwalakande
Oferekpe Enyigba FMCS Ltd were not readily available while the remaining thirty-five FMCS made net revenue ranging from fi between W5.12 to ~6,481.50, In general terms, the sampled societies made #25935-05 and H617.50 as total revenue and average revenue respectively for the year 1990,
Though supluses were registered, an average net revenue of 3617.50 for co-operative associations in the area is not very encouraging and needs to be improved,
I Problems encountered in Co-operativccs
Prequencyof %of Total Respondents
Apathy bmm 9 Lack of capital 43 toan defaults 20 baprrcs from f iald staff 26
Total
Lack of capitel was the most pronotincad pFOb2ea bedevilling FHCS, going by table Y above while apathy from we-8, loan defaults, and f Iald staff indficimcy were ranked fourth, thired end sec~rtQ respectively. Other problems such as illness like guinea waran problem, lack of sacla1 menltfes such as good feeder roads, electricity etc. High interest rates on borrod loans, 'kick backs' MinQ damndd by field staff, and fsck of educetion were equally listed -ingly as other pra31e.w of co-operatives by respndsnts, Table g(a): Farm size Distribution of Respondent prior to FMCS Membership
Farm Sizes (ha) : Frequency of Respondents % of Total
1-3 48 48.98
4-6 29 29.59
6-9 10 10.20
Above 9 11 11.23
Total 98 100 1
Table g(b): Present Farm Size of Respondents
-
Farm Size (ha) Frequency of Respondents % pf Total
1-3 12 12.25
4-6 16 16-32 6-9 44 44.90
Above 9 26 26053
Total 98 100
Source: Field Survey, 1991.
A close look at table g(a) reveals that a greater peroentage of respondents have farm lands ranging from hestares one to three L prior to FMCS membership contrary to table 9(b) where 44.9% representing the highest have range farm lands within the *6-9* hectare _/*- Again, only' 11.23% of respondents have farm lands exceeding nine acres prior to joining FMCS as against now when upto
26053% of total respondents have farm lands exceeding nine acres. .
Table lO(a): Distribution per week of Respondent labour use prior to FMCS Membership-
Labour use in days Ptequency of Respondents % of total 1 - 3 days 4 - 6 days 7
Total 9 8 100
Source~Field Survey, 1991. Table lO(b): Present Distribution, per Week of Respondents Labour use
Labour use in days Frequency of Respondents $ of Total
1-3 54 55.10
4-6 42 42.86
7 2 2.~4
Total 98 - 100
Source: Field Survey, 1991. 6
The distributions in tables 10(a) and ?O(b) shows that nore days were worked per week by co-operative members prior to FMCS membership than after joining ito
69.39% as against 42.86% of total respondents put in between four to six days per week in table 10(a) and 10(b) 0 respectively,
The decrease in number of days worked vis-a-vis pre and post membership days may be as a result of improved technology which compliments and replaces human labour,
Alternatively, it could be as a result of the prevailing laxity characterising team work in the country. People tend to expend more st-rength and effort in personal than in collective endeavours. Table ??(a): Respondents Distribution of Modern farm inputs and implements prior to FMCS Membership
Yes and No options on Frequency of Respondents % of Total use of Improved Farm Inputs
Yes' 21 21.43
N o 77 78057
Total 98 100
b Source: Field Survey, 1991.
Table Il(b): Respondents Present Distribution of modern- Farm Inputs and Implements
Yes and No options on Frequency of % of Total use of modern Farm Inputs Respondents
Yes
No
Total 98 100
Source: Field Survey, 1991. Table Ila gives the percentage of respondents
that used modern farm inputs and imglements prior to
FMCS membership as 21.43% as against 78.57% that did
not use same. On the other hand, table llb indicates
that 40.82% of total respondents now uae modern farm
inputs and implements as against 5ga18% who are not using
same. The *picture9 in table llb though better than
that of table lla in terms of use of modern far= inputs
still leaves much to be desired. That 59,182: of total
respondents are still not being availed the use of
modern farm inputs and inplements, to say the least, needs
to be looked into.
Table 12(a) : Credit and Extension Services beneficiaries prior to FMCS Mecbersnip
Yes and Ro option on Frequency in % of Total beneficiaries of Respondents Credit facilities
Yea
N 0
Total 98 100
Source: Field Survey, 1991- Table 12(b): 'Present Beneficiaries of Credit and Extension Services
Ye.& and No options Frequency of aespondents % of Total
Yes 74 75.51
Total 9 8 100
Source: Field Survey, 1991.
b Tables 12a and 12b show that 6.12% of total respondents enjoyed. Govercment and/or bank credit facilities prior to joining FMCS as against 75051$ that are presently doing same. Corollarily, 24.49% are presently yet to benefit from such facilities as against 93.88% in the pre-FMCS membership years.
One then wonders why members are finding it increasingly difficult to mximise and retire their loans as at when due. Could be attributed to factors earlier stated i,e, diversion of loan to non-profit ventures and high interest rates. Table 13(a): Distribution of Respondents Marketin& options prior to FMCS Membership
Marketing options Frequency of Respondents $ of Total
Local markets 63 64.29
Urban markets 25 25.51
Other states I0 10.20
Source: Field Survey, 1991
Table l3(b) : Present Distribution of Respondents' market in^ Options
Marketing options Frequency of Respondents % of Total
Local marke te 2 1 21.43
Urban markets 53 54 08
Other states 2 4 ' 2bOr+9
Total 9 8 100
Source: Field Survey, 1991, 57
A comparative analysis of tables 13 and l3b indicate that more co-operative members (64p29%) dispose of their products in local markets prior to joining FI.ICS.
On the other hand, 53 respondents, representing 54,08$ are presently marketing their products in urban markets.
Equally, 24.49% of total respondents presently market their products in other states of the federation as against pre-membership years when only 10.2& do same, Invariably, more and more members are availing, themselves of the availability and profitability of selling their products in urban aarkets. Xhen this is correlated with the issue of bad and non-existent feeder roads, the problems affecting the effectiveness of co-operative enterprise in the area could be adduced. I CHAPTER FIVE 1 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5*1 Summary
The study was necessitated by the need to
contribute to existing researches geared towards the
enhancement of the performance of co-opera tives in
general and FMCS in particular. The study areas of
Abakaliki and Izzi local governments were chosen * specifically due to the agricultural importance of the
areas.
Exhaustive efforts were made to appraise the
performance of FMCS in the study areas as well as find
solutions on the basis of this evaluation. The
appraisal was done with due consideration of the socio-
economic characteristics of respondents, benefits
accruing to co-operators as co-operative members,
problems and prospects of co-operatives labour use,
credit services, farm size and marketing channels as it
relates to the respondents.
Both primary and secondary data were employed in
sourcing the needed informa tion. Collection of
primary data was done via two sets of structured questionnaires which were administered to fourty-two
(42) purposively selected FMCS and their officers..
Secondary data on the other hand were got mainly from official files of selected societies as well as from related materials. Statistical tools such as percentages and means . were used in data analysis.
The findings showed that 87.76% of total reqondente were men as against 12.24% female. Majority of the @ respondents fall within the '50-59' age bracket while those below the age of 17 were not represented at all.
Only 23.47% of total respondents responded in favour of above 60 years.
Most of the respondents attended either primary or secondary schools. Additionally there was an # appreciation in the income of respondents as a result of participation in co-operative activities. Prior to membership, most respondents (67.35%) in the study area earned an annual income of less than #1,200. However, by availing themselves of co-operative services, most of them (59.18%) started earning an average annual income of
#2,100. In an empirical cost/benefi t analysis conducted, it
was observed that W25,935.05 and 617.50 .were registered as total and average revenue respectively for the year
Majority of the respondents have acquired a marked
degree of co-operative experience having served for
between 4 to 6 years (23.46%) and above 6 years
(37.75%). In addition, 72.45% of respondents have at one time or the other been in management position. *
There was a pronounced improvement in respondents membership of titled societies resulting from their ,/ membership of co-operatives. Altogether, 69.39% of total
respondents presently belong to titled societies as .- against 28.57% in the pre-FMCS years.
The re-occuring problems of co-operatives in the 6 study area, going by observed responses include; lack of
capital, Apathy from co-opera tive members, loan default,
field staff's inefficiency, ill-health, lack of social amenities, official corruption from both field staff and
co-operators, lack of co-operative education and procedurial impediments accompanying registration. More farm sizes are being cultivated now than pre-
FMCS years. In addition, less days, between one to three are worked now as atested by 55.10% of total respondents, This is as against 4 - 6 days worked by 69.39% in the pre-FMCS days. Table llb also indicates that only 40.82% of total respondents are at present availing themselves of the benefits of modern farm inputs like improved seedlings and fertilizer,
However, a greater percentage of respondents (75.51% are now enjoying credit facilities as a consequence of
FMCS membership, contrary to 6.12% in the pre-FMCS era.
An improved trend was equally observed in marketing options adopted by respondents. The 64.29% and 25.51% previous trends observed in marketing of products in local and urban markets respectively was
# reversed following FMCS membership. Consequently, the trend changed to 21.43% and 54.08% in respect of local and urban markets respectively. 62
5,2 Conclusion
A critical consideration of facts and figures raised in Analysis/Discussion of findings and summary herein indicate that there is a significant positive difference in the lot of co-operators in Abakaliki and
Izzi local government areas of Knugu State sequel to their membership of Farmers Multi-purpose Go-operatives*
However, there are still areas that need improvement, To this end, the following are being recommended, B
5.3 Recommendations
The marginalization of women folk who constitute a greater part of the population in the study area needs to be properly and solidly addressed, This could be done by * legally allowing them (women) to enjoy as many rights and privileges as possible, including rights to land ownership. The minds and consciences of their husbands and the men folk in general, as regards men/women inequality should be disabused. The present efforts of the
"Better Life for Rural Women Programme1l is a step in the right direction. Secondly, the co-operative enterprise in
Abakaliki and Izzi local government areas '
tends to be monopolized by the middle-aged class to the detrirnefit of co-operative growth in the study area. This as was further shown is due mainly to the governments' disregard of the potentials of the young and the aged, co-operative-wise. To redress this imbalance, it is recommended, that membership of co-operatives be encouraggd in secondary and tertiary institutions. This could further be enhanced by attaching a lot of attractive incentives to it which should be denied non-memberso Again, the issue of interest rate needs to be properly tackled. A situation where government lending agencies like Anambra
Co-operative Financing Agency (ACFA) and co-operative banks lend money to co-operatives at the same interest rate with conventional banks should be reversed.
A rea6,onable subsidy from the government is recommended.
Thirdly, efforts should be made to provide the right and adequate personnel and logistics required to cover as many co-operative societies as possible.
Motorcycle and car refurbishing advances should be made available to co-operati ve assistants and officers.
A situation where field officiers treck long distances and cover their areas of duty with their personal fund only to be denied their Local Tour and
Transport (LT & T) claims leaves much to be desired,
Study leaves and Inservice training should be encouraged,
The agricultural products of members, in most cases were sold in local markets due to lack of good roadsband means of conveying their goods, This, in addition to lack of standard storage facilities jeopardises the efforts of co-operatives in the study area, Government should start and extend the buffer stock program to rural areas so that at worst, co-operatives could sell their products to government at reasonable prices, In 4 addition, the extension of social amenities to rural areas should be intensified, The present work of the
Directorate for Food, Road and Rural Infrastructure
DFRRI should be closely monitored and encouraged with a view to enhancing its productivity,
Finally, the encouragement of further researches in this field (FMCS) is recommended, Mrcsou, P, (19801, *An Apprafsal of the Fbla af co-opautativss in t&e Agrfcultrual
* PP. 3-.
*Appropriate strategies for c8-operatives. ~roclucti& System - An &nkqxsnernral Approach to Pfl.oductian Co-operatires in a uevcloplng Economy*, Jaumal of Agr&@. Administration Vol. 21, pp, 21 - 32.
miversity Press.
37, Ojo, M.C. and C.C. Edordu (mlslti981) Aarlcultural Cred4.t and Finance in Niqerls t Problem and Proamcts. CWL
38. Onudra, El (lW3), *Co~operatf.vesDeserve A31 the Patmager they getn in Renaissance of 1362113~p.3. Publishers, E&&my, -pp. 63-76,
47. Uuaabali, ti.&. (19631, %n Appraisal of Co-operatlve Socisties (The Casa of P'WS Ltd. in Umtmhia Area of Im Stats) Unpublished M.Sc, Thesis, URi of Ibedan.
48, Widstrandt, C.G. (1973),Aftican co-o~stativ ~fficiency; The Scandlnavim Xnst of African Studies, Upgsrla.