Mekelle University FDANR The school of Graduate Studies Faculty of Dryland Agriculture and Natural Resources A Study on Maize Marketing Performance of Damot Multipurpose Farmers’ Cooperatives Union and its Affiliates, Amhara Region, Ethiopia By Belete Alem Fentie A Thesis Submitted in Partial Fulfillment of the Requirements for the Master of Science Degree in Cooperative Marketing Major Adviser: Dr.G.Veerakumaran (Asso. Prof.) June 2008 Mekelle 1 DEDICATION Cooperatives are the key players of the development arena. Therefore, this manuscript is dedicated to the development actors called “Cooperatives”. DECLARATION This is to certify that this thesis entitled “A Study on Maize Marketing Performance of Damot Multipurpose Farmers’ Cooperatives Union and its Affiliates, Amhara Region, Ethiopia” submitted in partial fulfillment of the requirements for the award of the degree of M.Sc. in Cooperative Marketing to the School of Graduate Studies, Mekelle University, through the Department of Cooperatives, done by AtoU Belete Alem Fentie,U Id.No. FDA/PR0015/99U U is an authentic work carried out by him under my guidance. The matter embodied in this project work has not been submitted earlier for award of any degree or diploma to the best of my knowledge and belief. Name of the student BeleteU Alem Fentie U Signature and date____________________ Name of the Advisor _______________________ Signature and date____________________ ii TABLE OF CONTENTS DEDICATIONT T ................................................................................................................................. i DECLARATIONT T ............................................................................................................................ ii TABLET OF CONTENTS T ............................................................................................................... iii LISTT OF TABLEST ....................................................................................................................... viii LISTT OF FIGUREST ....................................................................................................................... xi LISTT OF TABLES IN THE APPENDIXT ..................................................................................... xii BIOGRAPHYT OF THE AUTHORT .............................................................................................. xiii ACKNOWLEDGEMENTT T ............................................................................................................ xv ACRONYMST AND ABBREVATIONST ..................................................................................... xiv ABSTRACTT T ................................................................................................................................. xviii CHAPTERT I: INTRODUCTIONT .................................................................................................... 1 1.1.T Background T .............................................................................................................................. 1 1.2.T Statement of the ProblemT ......................................................................................................... 4 1.3.T Research Questions T .................................................................................................................. 6 1.4.T Objectives of the study T ............................................................................................................. 7 1.5.T Hypothesis T ................................................................................................................................ 7 1.6.T Scope and Limitation of the study T ........................................................................................... 7 1.7.T Significance of the study T .......................................................................................................... 8 1.8.T Chapter SchemeT ....................................................................................................................... 8 CHAPTERT II: LITERATURE REVIEWT ....................................................................................... 9 2.1.T Theoretical Concepts T ................................................................................................................ 9 2.1.1.T Definitions and Concepts of Cooperatives T ............................................................................ 9 iii 2.1.2.T Cooperative Values and principles......................................................................................T 10 2.1.3.T The Nature of Cooperatives T ................................................................................................ 12 2.1.4.T Ethiopian Experience in Cooperative Movement and Development T .................................. 13 2.1.T 5. Structures and Activities of Farmers’ Cooperative Societies in Ethiopia T ......................... 16 2.1.6.T Marketing Performance T ....................................................................................................... 18 2.2.T Empirical Studies T ................................................................................................................... 20 2.2.1.T Studies on Cooperatives in Ethiopia T ................................................................................... 20 2.2.2.T International Studies on the Performance of Agricultural Cooperatives T ............................ 23 CHAPTERT III: METHODS AND MATERIALST ........................................................................ 25 3.1.T Description of the Study Area T ................................................................................................ 25 3.1.1.T An Overview of Amhara National Regional State T .............................................................. 25 3.1.2.T An Overview of West-Gojjam Zone T ................................................................................... 28 3.1.3.T An Overview of DMFCU and its Affiliates T ........................................................................ 30 3.2.T Sampling Techniques T ............................................................................................................. 35 3.2.1.T Sample FrameT ..................................................................................................................... 35 3.2.2.T Sample Selection T ................................................................................................................. 35 3.2.T 3. Data Sources and Techniques of Data collection T ............................................................... 38 3.3.T Operational Definition T ........................................................................................................... 39 3.4.T Definition of Variables and Hypothesis Development T .......................................................... 39 3.5.T Methods of Data Analysis T ...................................................................................................... 47 3.5.1.T Analysis of Marketing Margins T .......................................................................................... 47 3.2.2.T Analysis of Factors Affecting Members’ participation and volume of Sales T ..................... 48 3.2.3.T Identification of Marketing Problems to suggest Possible Strategies T ................................. 53 iv CHAPTERT IV: RESULT AND DISCUSSIONT ............................................................................ 54 4.1.T Marketing of Maize T ................................................................................................................ 54 4.2.T Marketing Margins T ................................................................................................................. 55 4.3.T Socio-Economic Characteristics of Sample Farmers T ............................................................. 60 4.3.1.T Personal and Family Characteristics of Member farmers T ................................................... 60 4.3.1.1.T Sex T .................................................................................................................................... 60 4.3.1.2.T Age T ................................................................................................................................... 61 4.3.1.3.T Marital Status T ................................................................................................................... 62 4.3.1.4.T Education Status T ............................................................................................................... 62 4.3.1.5.T Religion T ............................................................................................................................ 63 4.3.1.6.T Family Size T ...................................................................................................................... 63 4.3.1.7.T Farming Experience T ......................................................................................................... 64 4.3.1.8.T Duration of Membership in the Cooperatives T .................................................................. 65 4.3.2.T Farm Characteristics of Member Farmers...........................................................................T 66 4.3.2.1.T Land Ownership T ............................................................................................................... 66 4.3.2.2.T Land Renting Situation T ...................................................................................................