THE IMPACT OF AGRICULTURAL CO-OPERATIVES ON CASH CROPS DEVELOPMENT,
(A CASE STUDY OF SELECTED AGRICULTURAL CO-OPERATIVES IN BENDE LOCAL GOVERNMENT AREA OF ABIA STATE).

ABSTRACT

This research examines the impact of Agricultural co-operatives on cash crops development in Nigeria – a case study of selected Agricultural cooperatives in Bende L.G.A of Abia State. This is against the backdrop of the declining performance and poor development in its cash crops production. The study observes that the agricultural sector hitherto dominated the economy especially as a source of development but soon gave way to crude oil. This development adversely affected agricultural production. The study population were five agricultural co-operative societies and data was collected from both primary and secondary source. Oral interview and questionnaire were used and “Yaro Yamane” formular was used to determine the sample size. The data was treated in table and percentage and the hypothesis was treated using chi-square method. The study showed that over reliance on crude oil exploration and exportation, inadequate land and land tenure system, poor procurement of farm inputs and absence of forwarding integration in Nigerian agricultural co-operatives are the major challenges to cash crops development. Finally, some recommendations like government diversifying the economy, federal government procurement and distribution of fertilizers through agricultural cooperatives, and reforming the land tenure system etc, were put forward to remedy the unsatisfactory situation.

TABLE OF CONTENTS

Title Page- - - - - - - - - - i

Approval Page - - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - - - - - - - iv

Abstract - - - - - - - - - - v

Table of contents - - - - - - - - vi

CHAPTER ONE

1.0 Introduction- - - - - - - - - 1

1.1 Background of the study - - - - - - 2

1.2 Statement of the problem- - - - - - 3

1.3 Objective of the study- - - - - - - 4

1.4 Research Question - - - - - - - - 5

1.5 Research Hypothesis - - - - - - 6

1.6 Significance of the Study - - - - - - 7

1.7 Scope and Limitation of the study - - - - - 8

1.8 Definition of terms-- - - - - - - 9

References- - - - - - - - - 11

CHAPTER TWO

2.0 Review of related Literature- - - - - - 12

2.1 The role of Agriculture in the Nigeria Economy- - 12

2.2 A downturn in the agricultural sector- - - - 13

2.3 Scheme and Programmes to enhance agricultural production in Nigeria- - - - - - - - - 14

2.4 The development of agricultural cooperatives cash crops export in the eastern region- - - - - - 15

2.5 Roles of agricultural cooperatives in economic

Development-- - - - - - - - 17

2.6 Establishment of Marketing/Commodity board- - 20

2.7 Mitigating factors against agricultural cooperatives on cash crops Development in Nigeria - - - - - 21

CHAPTER THREE

3.0 Research design and methodology - - - - - 23

3.1 Research Methodology - - - - - - - 23

3.2 Areas of study - - - - - - - - 23

3.3 population of the study - - - - - - 24

3.4 Sample Size - - - - - - - - 24

3.5 Source of data - - - - - - - - 25

3.6 Method of data collection - - - - - - - 26

3.7 Administration of Instrument - - - - - 26

3.8 Methods of dada Analysis - - - - - - 27

CHAPTER FOUR

4.0 Presentation, Analysis and Interpretation of Data- 37

4.1 Presentation and Analysis of Data - - - - 37

4.2 Testing of Hypothesis - - - - - - - 38

4.2 Interpretation of Data - - - - - - 47

CHAPTER FIVE

5.0 Summary of Findings, Conclusion and

Recommendation - - - - - - - 48

5.1 Summary of Findings - - - - - - 48

5.2 Conclusion - - - - - - - - - 49

5.3 Recommendation - - - - - - - 50

References - - - - - - - - 52

Appendix - - - - - - - - - 53

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

It is not out of place to state that mutuality, which was the basic norm of social living in Africa contributed to the rise of cooperatives activities in Nigeria just like in other African countries. Indeed, co-operative movement was transplanted into the third world from Europe by colonial masters starting form India, with the aim of stimulating indigenous economic activities. Unlike Europe, Co-operative began in Africa and Asia as Agricultural supply and produce co-operatives.

During the early, 1930s, the cocoa farming in the western part of Nigeria were organized into small co-operative societies, the initiative was taken by the then Ministry of Agriculture. These co-operative societies could be described as the fore-runners of modern agricultural co-operative. In other words, marketing co-operative started with productive co-operative since what was produced needed to be sold. Production as it is said is incomplete until what is products gets to the final consumers at the right time, place and in good condition.

The first co-operative to be registered in Nigeria was an Agricultural produce marketing society known as GBEDUN CO-OPERATIVE COCOA SALES SOCIETY ON 19^TH OF AUGUST 1937. The co-operative effort in Nigeria before the end of the world war was concentrated on cocoa marketing among the Yoruba which otherwise referred to as western region. In those days, the export of Nigeria’s cash crops were in the hands of British firms served by the West African Produce Central Board. Amahalu A.C (2007).

I prior to the discovery of crude oil, agriculture formed the plank of the Nigerian economy, from the stand point of occupational distribution and contribution to the GDP she was the world’s largest producer and exporter of the following Cash crop, Cocoa, Palm kernel, Palm oil, Cotton, Groundnuts, rubber, hide and skins. Agricultural sector contributed over 60 percent of the GDP in the 1960s and despite the reliance of Nigerian peasant farmers on traditional farming methods, these farmers produced 70 percent of Nigeria’s export and 95 percent of its food needs. However, the agricultural sector suffered neglect during hey days of oil booming in the 1970s till date.

Asuquo A. (2008), economist say that, years of mismanagement, inconsistent and poorly conceived or implemented government policies, in addition to the lack of basic infrastructure also contributed to the decline.

They stress that the oil boom particularly exacerbated the situation and brought about distortion in the labour market which also contributed to decreasing production of food and cash crops.

1.2 STATEMENT OF THE PROBLEM

Agricultural co-operative are greatly involved in cash crop development so as to improve the social and economic life of the members and the country as a whole. But some challenges have been identified as being responsible for them not achieving the desired development in the agricultural sector which once contribution immensely to the economic development of the Nigeria state. These challenges include;

i. A greater reliance on crude oil exportation by the Federal government.

ii. Inadequate land and land tenure system

iii. Difficult procurement of farm inputs like high yielding seeds, agro-chemical disinfectant and fertilizers.

iv. Absence of forward integration and lack of good roads.

Therefore, in the light of this, the researcher wants to study the impact of Agricultural cooperatives on cash crops development in selected cooperative in Bende L.G.A of Abia State so as to examine the unsatisfactory situation and proffer possible solution.

1.3 OBJECTIVE OF THE STUDY

The main objective of this study is to know the impact of agricultural co-operatives on cash crops development. Other objectives include:

i. To identify the factors that can cause poor cash crops development in agricultural cooperatives in Bende L.G.A of Abia State.

ii. To investigate whether problems identified are associated with the agricultural co-operatives.

iii. To investigate the firm of support and incentives provided by the government to the agricultural co-operatives.

iv. To find out ways and methods of improving cash crop development.

1.4 RESEARCH QUESTION

For the purpose of this study, the researcher based it on the following research questions.

i. What are the causes of the poor cash crop development among agricultural co-operative in Bende L.G.A of Abia State.

ii. Are the problems identified associated with the government policies on agriculture.

iii. To what extent has agricultural co-operative strike balance with government’s agricultural policies on cash crop productivity and marketing?

iv. What are the ways or methods that can afford possible solution to the problems of poor cash crops development?

1.5 RESEARCH HYPOTHESIS

In evaluating this research work, the researcher postulated the following hypothesis in determining the impact of agricultural co-operatives on cash crops development in Bende LGA of Abia State. The hypothesis are formulated in both Null Hypothesis[Ho] and Alternative Hypothesis (H₁).

HYPOTHESIS ONE

H_O: Agricultural co-operatives has no impact on cash crops development in Bende L.G.A of Abia State.

H_i: Agricultural co-operative has impact on cash crops development in Bende L.G.A of Abia State.

HYPOTHESIS TWO

H_O: There are no problems associated with cash crops production and development in Bende LGA

H_i: There are so many problems associated with cash crops production and development in Bende LGA.

HYPOTHESIS THREE

H_O: The problems identifies are not associated with government policies on agriculture

H_i: The problems identified are more associated with government policies on agriculture.

1.6 SIGNIFICANCE OF THE STUDY

It is important to point out that on completion of this work by the researcher, it would be of immense significance to the following:

AGRICULTURAL COOPERATIVES: It is no doubt that the result of this study will help to improve their impacts on cash crops development in Nigeria.

GOVERNMENT: The result will also help policy makes to review their policies on cash crops development in Nigeria which will improve the national output and thereby nation income.

RESEARCHER: Other researcher on this same or similar topic would find this work helpful as it will form a base of review of related literature and also a stepping stone for future researchers.

1.7 SCOPE AND LIMITATION OF THE STUDY

The study covers five selected agricultural cooperative societies in Bende LGA of Abia State, determining their impact on cash crops development. For a proper exposition, however, there are constraints that make it difficult as regards to this project.

i. TIME: This was a major constraints to the researcher. The limited period at hand is not enough to gather information and data for proper analysis. This is because the researcher is combining school activities which made him unable to cover more societies thereby limited his research work on five agricultural co-operative societies.

ii. FINANCE: This was a problem which nearly hindered the completion of this research. It required transportation for one to move form one place to another, which involves a lot of money. Thereby, imposing its own limitation on the work.

iii. LIMITED RESEARCHABLE MATERIALS: Need of materials for the research work was limited. Difficulty in contacting some officials of the co-operative whose experience would have helped the researcher to develop a broad approach. All this posed a limitation to acquisition of information.

1.8 DEFINITION OF TERMS

i. AGRICULTURAL COOPERATIVE SOCIETY: These are co-operative societies that are involved in agricultural activities.

ii. CASH CROP: This is an agricultural crop which is grown for sale for profit. In least development countries, cash crops are usually crops which attract demand in more development

iii. CO-OPERATIVE SOCIETY: It is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise.

iv. FORWARDS INTEGRATION: This occurs when agricultural cooperatives join together and add value to their produce before marketing. They do not have to sell their produce in the raw nature.

v. MOVEMENT: This is the series of action and endeavours of a body of persons for a specific objective. That is, the pursuit of an ideal.