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Full Project – The role of marketing cooperative society towards increased production of agricultural goods

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CHAPTER ONE

1.0 INTRODUCTION

A marketing cooperative is a business organization owned by to collectively sell their products. It allows producers to accomplish collectively, functions they couldn’t achieve on their own. Most agricultural producers have relatively little power or influence with large agribusinesses or food companies that purchase their commodities. In addition, cooperatives can give producers more control over their products as they make their way to consumers by allowing them to bypass one or more middlemen in the market channel.

Objectives of cooperative marketing societies;

Major objectives of marketing cooperative are:

Maximize income from the sale of members product.
Achieve quality improvements not available to individual producers through grading and marketing large volumes.
To help members to produce the best product and those in high demand.
To give the farmers a better understanding of all stages of marketing process.

1.1 BACKGROUND OF THE STUDY

The history of cooperative development in Isiala Mbano Multi-purpose cooperative society Ltd Aba may be traced from its origin in Nigeria in the early 1930s, that the agricultural development agents began to organize cocoa farmers in Western Nigeria into small cooperative organization after the creation of Isiala Ngwa multi-purpose cooperative society Ltd Aba on Feruary 13^th 1976.

Efforts were made between the months of February and April to establish a cooperative division. Thus, before the end of May 1976 an enviable and viable cooperative division was established.

The division was formally under the local government but through several restiufflement and changes of government. It finally came through the ministry of commerce and industries. The estate inherited a total number 685 cooperative societies from the farmer eastern with membership of 15 155. As a result of individual defines and government encouragement coupled with the inherent benefits desirable from the formation of cooperative in the state has increased asthcononically to 2,757 which also increased membership of 86,812.

Though the number of cooperative societies in the state has drastically reduced since the creation of Abia State, it will be necessary to know what marketing of agricultural products is marketing is a social activity that involves the identification of needs and wants, producing goods and services that satisfy them and ensuring their delivery through the specialized functions of pricing and promotion.

Agricultural products are those products which come from nature in the form they can be used. They are classified into two groups which are consumed crops and cash crops. Consumed crops are crops grown for immediate consumption while cash crops are grown mainly for effort to earn foreign exchange example coca.

1.2 STATEMENT OF THE PROBLEMS

In the marketing of farm commodities or agricultural produce farmers and other market agents face different problems which include;

Transportation system inadequacy: In most production there are not enough vehicles to carry farm products from the villages to the cities. In some villages, there are not good roads and most are accessible only in the dry season. Farmers and buyers therefore pay very high transport cost.
Use of crude tools: The use of primitive implements such as machetes, hoes etc in farming results in low yield compared to the use of modern or improve tools such as tractors, ploughs, harrows etc.
Price fluctuation: The prices of most farm products one not stable. This is due to inadequate storage facilities and supply storage. In some cases, prices are manipulated by speculators thereby marketing them to gain more than the farmers and this discourage them from producing more.

1.3 OBJECTIVES OF THE STUDY

The objective of this work is;

To determine the role of cooperative societies in the marketing of agricultural products in Isiala Ngwa Multi-purpose cooperative society Ltd Aba.
To identify the importance of cooperatives in the application of market variables in the marketing of agricultural products.
To identify the problems farmers face in the marketing of agricultural products.
To identify how agricultural cooperative operate to solve these problems of the farmers.

1.4 SIGNIFICANCE OF THE STUDY

This research tends to reveal the need and usefulness of cooperative societies in the marketing of agricultural products. Its role in price stabilization of agricultural product in Abia State.

Moreover, to determine the quality and price of products that enter the market so that producers will market their products effectively. By so doing, they minimize the excessiveness of middlemen.

In most state today, particularly Isiala Ngwa Multi-purpose cooperative society Ltd Aba were self sufficiency in the production of agricultural product is embarked upon by all most every household including the government, there comes the need for this research and the government at large to recognize the famous role of cooperative in the marketing of agricultural products. This will go a long way to alleviate and correct the problem of food shortage in Isiala Ngwa Multi-purpose cooperative society Ltd Aba.

1.5 SCOPE OF THE STUDY

The study was limited to Abia State Isiala Ngwa to be precise. There are also various types of cooperative societies that embark on production and marketing of agricultural products. They include:

Agricultural multi-purpose cooperative society.
Agricultural consumer cooperative thrift and credit society.
Agricultural marketing society.
Agricultural producer cooperative society.

1.6 RESEARCH QUESTIONS

Does insufficient credit facilities affect the marketing of agricultural products by cooperatives in Isiala Ngwa multi-purpose cooperative society Ltd Aba?
What is the relationship between cooperative and marketing of agricultural product in Isiala Ngwa multi-purpose cooperative society Ltd Aba?
Does nearness of cooperative shops and warehouse influence consumers purchasing of agricultural products?

1.7 LIMITATIONS OF THE STUDY

There are some constraints towards this study among them are explained below;

Respondents Attitude: Poor attitude, coupled with literacy was one the greatest hindrance. Some of the cooperatives were not willing to give out relevant information and good answers to my questions.
Time Factor: The time allowed for this study was quite short especially when the researcher had to combine lectures period with the research work.

1.8 DEFINITION OF TERMS

Apexes: It is the peak in the cooperative structure and it is the highest level in which a cooperative can achieve their objectives.

Cooperator: A cooperator is a member of cooperative society who has agreed to work together for a common a goal.

Bulk Purchase: This involves buying of items in a large quantity or size.

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