Effects Of Co-operative Societies On Agricultural Development (a Case Study Of Selected Co-operative Societies In Enugu State)

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This research work on the topic “the effects of cooperative societies in Agricultural development in Nigeria (A case study of  Ezeagu L. G. A Enugu State Co-operative was carried out to survey the past programmes and polities constituted by government to mobilize farmers into agricultural co-operative and functional ones more productive as a way of facilitating the attainment of self-sufficiency in agricultural productivity in the country. The general constrains that affect the achievement of the objectives in Ezeagu local government area was identified. Data for the study was sourced from two main sources which include Primary and Secondary sources of data collection. Primary data: Questionnaires and oral interviews were used to collect information from the respondents. Secondary data : Journals, magazine and other relevant materials relating to the area of my investigation will be review. Extensive literature review was carried out on direct literature and indirect literature on books, journals and past works. The research instrument used in this study includes oral interview and questionnaire.  The questionnaire is structural as to contain both close and open ended question. Simple tables, pie-charts and percentages were used in treatment of data while chi-square was used in the research work. The researcher found out that some of the problems are: Lack of Appropriate Organization Frame Work, Low Membership, Co-operative Field Staff, Lack of Market, Storage and Processing Facilities, Farming Inputs, Technology Innovations at the end the researcher recommends that government should adopt positive policies that will encourage large-scale co-operative farm production.






Cover page                                                                   i

Title page                                                                            ii

Approval page                                                                      iii

Dedication                                                                           iv

Acknowledgement                                                        v

Abstract                                                                              vi

Table of contents                                                                 vii



1.1 Background of the study                                           2

1.2   Statement of Problems                                             4

1.3   Objective of the study                                              5

1.4   Importance of the study                                           6

1.5   Scope and Limitation of the Study                              8

1.6   Research Questions                                                  10

1.7    Definition of terms                                                  11


Literature Review

2.1 cooperative society’s effectiveness in     

Agricultural credit                                                      14

2.2          Importance of improving agriculture productions    19

2.3 Agricultural cooperative                                            22

2.4 Why farmers form cooperatives                                        24

2.5 Survey of the performance of agricultural

Cooperative societies                                              29

2.6 Farming systems/agricultural system                          35


Research Methodology

3.1 Research Design                                                      45

3.2  Area of study                                                         46

3.3  Population of the study                                           46

3.4  Sample size                                                           47

3.5      Sources of data                                                      48

3.6 Method of data collection                                          50


Data Presentation, analysis and interpretation


Summary of findings, Recommendation and Conclusion

5.1  Summary of Findings                                              61

5.2       Recommendations                                                 65

5.3 Conclusion                                                              68

Bibliography                                                            70

Appendix I                                                              7-3

Appendix II                                                             74





In developing countries as in the case of Nigeria, Agriculture dominates the nation’s economy. It has been established that about 70 percent of Nigeria population is engaged in Agriculture (Obasi and Agu, 2000) while 90 percent of Nigeria total food production comes from small farms and 60 percent of the country population earn their living from these small farms (Oluwatayo et al, 2008).

The recent importation of food items into the country to make up for the shortfalls in food supply is a dangerous indication of dwindling farm productivity and a warning sign that if the nation continue with business as usual, the prospect of food security will be bleak for millions of people (Nweze, 2003). The fall in agricultural production could be attributed to inadequate infrastructure, under mechanisation and inadequate finance (Oshiokoya, 1987). According to Ojo (1998), one problem confronting small scale enterprise including that in agriculture is inadequate capital.  The word co-operative can have different interpretation.  In a layman’s language, it means working together on working mutually.  The second interpretation , which is where the emphasis means a special type of co-operative.  The co-operative has been defined by different schools of thought but the various in the degree of emphasis on one aspect or the other.


The school of thought describes co-operative as business undertaking owned and operated by voluntary associations in order to provide themselves with work and wages or with goods and services. But the International Co-operative Alliance (I C A) defined co-operative as an autonomous association of persons, limited voluntarily to meet their common economic, social and cultural needs aspirations through a jointly owned and democratically controlled enterprises.  The role of co-operative in agricultural is an important topic of study but already much has been done by co-operators to justify its prime role of score securing economic and political development particularly in developed countries like England known for consumer co-operatives.  France known for industrial co-operative and Germany known for credit co-operative.  Co-operative movement is world wide phenomenon.  It has developed from simple traditional form(s) of mutual institution  of modern formally organized institution.  This institution gained world wide acceptance because of the grate role.  It has been playing in the economic development of various countries particularly in the developing countries.  The improvement of agricultural production through co-operative societies has social effects.  Co-operative management bring better yield which in turn yields better living standard, better housing, better  education for members and their families.  This economic success of co-operative society has been witnessed invaluably in co-operative studies.

In Enugu State, most inhabitants survive through and the main occupation is substantial farming, which attracted interest many co-operative societies, both existing ones and new initiated ones.  Improving the agricultural production was their main target and interest and at the same time lifting the level of its individuals.  Improvement target was both in size and qualities were poor and could not be marketed most of the crops having pest scales and most couldn’t grow well in other to produce as expected.  The product that were severely affected were yam tubers, cassava stems and tubers, cocoa yams, vegetables.


Nigeria had embarked on various programmes and  policies  costing hundreds of millions of naira aimed at reviving the depressed agricultural sector.

In view of this, agricultural co-operative was instituted so as to organize the small scale farmers who are still involved in manual labour type of farming in co-operative and had failed to produce enough food for our teeming population thereby the country to be involved in importation of large quantity of food with a huge percentage decline in agricultural exports.

All those governmental effort have not actually had much significant improvement in this sector as much emphasis now being placed on agriculture.  The call for urgent re-examination of the role of these agricultural production sure it’s aim of facilitating the attainment of self-sufficiency in agriculture and making agriculture to take its prime position in the national economy of this country in danger.


The general purpose of this project work is effect of cooperative societies on agricultural development with particular reference to selected cooperative societies in Ezeagu LGA Enugu state.

Finally, the study has the following specific objectives:

(a)   To examine the role of cooperative societies in Agricultural development in Ezeagu LGA of Enugu state.

(b)  To examine the effect cooperative societies on Agricultural productivity in Ezeagu LGA.

(c)   To investigate the problems facing cooperative societies in Ezeagu LGA of Enugu state.

(d)  To suggest pragmatic ways and means for enhancing the effectiveness of these cooperative societies in the area.


Agriculture is so importance in order to sustain any economy.  Moreover, co-operative using the agricultural sector, thus any effort geared towards carrying out research aimed at improving the agricultural production should be considered work while any suggestion on the improvement of agricultural co-operatives should have bearing on the sector.  This is therefore the most appropriate time to study the agricultural sector concerning the prevailing economic condition of Enugu state.

Presently, our farmers are not adequately remunerated despite the fact they bend over double trying to make the state sufficient and self-reliant in food production.  They cannot compete with their counterparts in Nigeria not to talk of the part of the world.

If they are organized in co-operative, increased productivity enhanced the profit maximized to them and then farming will once more look attractive.

Based on the findings of this study and suggestions proffered it is strongly believed that the policy makers government would encourage our peasant farmers to voluntarily join the co-operative societies.  Moreover, healthy progrant and policies on co-operative and development would be mounted in addition, it would enable the manager of co-operative and organization to adequately organize the co-operative farmer for increased food production.  Furthermore, colleges of co-operatives, schools and researcher who wish to carry  out research in this field have been provided a springboard from where they can take off.


The area of this research work is Ezeagu Local government area and the study is on effects of cooperative societies on Agricultural development. 


The researcher in carrying out this study encountered numerous problems, which includes:

i)     Fund.

ii)    Time.

iii)   Lack of research materials

iv)   Responds of the respondents

i)     FUND – This included lack of enough fund to move around and visit the various areas in the state, and also lack of money to buy enough research material which constitutes on impediment of to researchers high cost of transportation in the city due to long distance also imposed its own limitation on the researcher.

ii)    TIME – Time is also another constraints to the researcher.  This is because the researcher is combining school activities and at the same time this made her unable to cover a lot of interesting areas but therefore limited her research work only at Enugu metropolis.

iii) LACK OF RESEARCH MATERIALS: lack of research materials was also one of the problems faces by the researcher in the cause of this research work

iv) RESPONDS OF THE RESPONDENTS: Another constraint to the researcher is that some of the respondents found it difficult to express their problem as regards the subject matter. 

From the above points the researcher tried her best to bring out in details study on effects of cooperative societies on Agricultural development in Enugu state but the above constraints have limited the researcher to carry out her research work effectively.


The following research questions were formulated by the researcher;

1.     What are the roles of cooperative societies on Agricultural development in Ezeagu Local Government area?

2.     What are the effect of cooperative societies on Agricultural development in Ezeagu Local Government area?

3.     Is there any problems facing cooperative societies on Agricultural development in Ezeagu Local Government area?


Most of their term (words or phrase that are used in this projects report may be unfamiliar or may have peculiar meaning and connotation.)

These terms includes:-

1.  Agricultural Productivity:  The index of the ratio of the value of the total form output to the value of the total input used in farm production.

2.  Farm Management: The application of farming science and technology as the solution of the day to day problems facing the farms.

3.Bye –Laws:  We  mean the registered bye-laws made by a co-operative society which governs the activities of such society and which is made by a society in the exercise of any power conferred by the co-operative laws.

4.Small-scale Individual farmers:  This implies that a farmer whose total cultivable farm land is not more than hectares and whose farm labour requirement are largely supplied by his family, his sells are good in a localized market.  He requires low initial capital investment farms on small holdings with simple technology and at least 60% of his annual income from agriculture.

5.Co-operative Society:   It is a form of organization whereby people voluntarily associate together as human beings on the basis of equality for the promotion of the economic interests of themselves.

6.Auxiliary Co-operatives:  This type provides individual service to members.  The co-operatives main function are to provide credit supply and market and storage the co-operative has no hand in the supervision and management affairs of member farm.

7.Productive Type:  Here there is a full integration.  The co-operation absorbs all the member business enterprise that is members’ economic responsibilities are borne be the co-operatives is found in Enugu, Ezeagu Local Government Area.

8.Production Promotion Co-operative:  This is co-operative by integration, the farmer depends on society for his production activities.  This is a strong link between the co-operative and members in areas of management marketing credit and decision making.

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Effects Of Co-operative Societies On Agricultural Development