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Full Project – Ensuring adequate food supply in our society through agricultural cooperative societies

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CHAPTER ONE

1.0 INTRODUCTION

The word “cooperative” has for many decades become a household word in Nigeria, though many users of the word apply it to different situations and circumstances. Generally however, the term “cooperative society” is simply defined as a voluntary association of free and independent minded persons for the betterment of their economic conditions (Okonkwo, 1999).

In the above definition, three key concepts are emphasized and these are, “voluntary”, “free”, and “economic”. These together emphasize the fact that cooperative societies are and should be purely voluntary without any element of compulsion and that members join cooperative associations out of their free will in which case, they may chose not to join. From the above definition also, it is implied that cooperative associations are within the realm of economic associations which exists specifically to improve the economic condition of members. This makes them non-political, non-religious, non-sectional and non-clandestine associations.

In a study on status and role of cooperatives in the light of new economic and social trends, the term cooperative is defined as: 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 (ICA, 1995).

It can be deduced from the above definition that apart from economic needs which are primary in cooperative organizations, there are also social and cultural needs which though not primary, are equally important goals of cooperatives. When put together, it is pertinent that economic, social and cultural needs will sum up to the general welfare of the members. This also implies that cooperative are generally formed to provide services to members and that this encourages cooperative members to have a strong incentive and motivation for efficient operation and continuous innovation in response to changing business environment, which is turn makes cooperative societies to achieve high rate of both initial success an long-term viability (UN 1996).

The United States, agency for international development (USAID) defines cooperatives as “voluntary independent business enterprises formed to meet specific needs of their members through a common venture” (USAID, 1985). This definition emphasizes the independent nature of cooperative societies which implies that cooperative movements have to be permitted to disengage themselves from the state at least for three reasons. First, the cooperative movements cannot become member-governed and member-controlled popular movements unless there is significant withdrawal of state involvement. Second, state disengagement has to involve a withdrawal of state intervention and influence on factors which directly or indirectly may affect the business operations of cooperative organizations. And third, the state should no longer see the cooperative movements as a means or instrument which can be used to implement its general development policies and various rural development programmes (ICA, 1994). This implies that the state should set the statutory and legal frameworks for establishment and functioning of member-controlled cooperatives rather than hijacking their activities for government purposes.

In a study on prospects of cooperatives in central and eastern Europe, it was noted that the whole background for the current development of cooperatives in the region must be understood in the content of the metamorphosis of economic structures changing from a social system based on a planned economy to a market economy. The study further regarded a cooperative as: an association of persons who are as a collective, running an enterprise based on self-help with variable capital assets and a variable total number of members. The cooperative promotes mainly the common economic interests of its members and has to be somehow officially registered (ILO, 2004).

From the above definition, it is evident that cooperatives in the central and eastern Europe region essentially existed within a socialist orientation and at the present however, they find themselves at cross roads between socialist history and capitalist future. This includes an increasing set of possibilities, which could be seen as chances as well as dangers. To ensure the continued existence of cooperatives in post socialist countries, they must have to recognize the demands resulting from the transformation process and they have to learn how to solve the expected myriad of problems.

From the perspective of this work, a cooperative society can therefore be defined as a legal association of persons who have joined resources together based on principles of democracy unity, equity, and liberty for purpose achieving their collective economic and social gains through provision of services to their members.

1.1 BACKGROUND OF THE STUDY

The sense that the food system is in crisis has brought the rules governing the current food industry to the forefront of discussion. “Sustainability transitions” and the emergence of a more sustainable food system have become central concerns for both academics and agricultural practitioners. Both groups argue that a sustainable food system requires deep socio-economic change. New ways of organizing food supply claims that promote small farmers, which apply organic and agro-ecological farming methods, as well as small-scale, locally organized systems of food distribution are needed.

The shared objective is to establish and strengthen local, regional and national food networks that are able to provide healthy, affordable, ecologically sound and culturally diverse foods. These networks should allow for democratic participation, social equity and cultural and natural diversity. They should also engender a more resilient and regenerative natural environment in which renewable energies are used. Such an approach adheres to the 2009 report of the Internal Assessment of Agricultural Knowledge, Science and Technology of Development. This stressed the multifunctional role of agriculture which apply agro-ecological farming methods to the reduction of environmental degradation, global warming, poverty and social inequality.

Such discourses concerning sustainability transitions minor emerging trends in our food system and the agricultural industry. European agricultural for example, continues to face a loss of small, family-run farms and there is no sign that this trend may halt in the near future. For countries traditionally characterized by a high member of diverse, small-scale family-run farms, such as Austria, this implies massive socio-ecological change. This is manifested in altered landscapes and the different pathways farmers feel pressured to embark upon. In order to continue family, many farmers are forced to restructure their farms. A shrinking number of farmers manage to grow and/or intensify production. Many others cannot sustain themselves and have to farm part-time to allow them to gain additional non-agricultural income.

Finally, niche-production, diversification, multi-functionality, para-agriculture (i.e. activities which are not directly related to agriculture, such as renting out rooms and hosting workshops and banquets) and local food supply are ways in which small-scale farmers might survive. All of these pathways benefits from cooperation, but it is particularly important for farmers endeavouring to set up local food supply systems. Cooperation is a practice historically well known to farmers. It occurs in a variety of situation, ranging from informal collaboration with relatives and neighbors at times of high workload (e.g. hay harvesting) to formal production, distribution and marketing cooperatives. As well as collaborating amongst themselves, farmers also cooperate with consumers and institutions.

Informal cooperation is of continued importance, especially for small-scale family-run farms. It involves farmers sharing machinery and agricultural knowhow, and helping one another at times of high workload. Such cooperation is similar to the reciprocal aid that often occurs between relatives and neighbors. It is based on trust and the continual nurturing of personal relationships. In countries with a high number of small-scale family-run farms, such cooperation is very common. One may also find informed farmer cooperatives that are often rudimentary arrangements where one farmer takes the products of other farmers to the market and sells them without a surcharge. The incentive for such cooperatives is that each farmer’s products become more attractive through being marketed next to a wider range of other high quality products. Very often, the central criterion of cooperation is transport-logistics. Farmers have to decide who delivers to whom and at what time. How are transport costs and other expense shared? Who pays for the labour related to transport? How are products delivered (what packaging is used)? Most after transport arrangement are unstructured and informal with collaborations being based on trust rather than formal contracts. However, with the up scaling of local food supply systems farmers are facing the need to formalize their collaborations.

The so-called “modern” agricultural cooperatives present the most prominent example of formal cooperation. Such cooperatives emerged in the nineteenth century and are most often associated with Wilheln Raiffeisen who aimed to (financially) support small farmers in or way that would allow them to become self-sufficiently. Agricultural cooperatives, like other cooperatives, may be defined as essentially user-owned and user-controlled businesses that distribute benefits equitably on the basis of use or patronage. Such cooperatives are formalized and legally enshrined institutions based on membership. The so-called “Maschinenring” (machinery ring), which enables farmers to share machinery and labour-power, is a well-established farmer’s cooperative.

What appear to be of emerging importance are other types of formal cooperation, which we call “vertical” cooperation (also called vertical integration) this cooperation may be described as “critical” in the sense that it arises out of increasing differentiation within production, processing-structures and food-supply chains. Very few farmers, for example, produce and process and distribute the cereals they grow.

Accordingly, few farmers rear pigs, sell the meat directly and produce the required feed themselves. Thus, farmers might, for example, cooperate in producing feed for a neighboring farm, or in processing the creals of another farm. In such cases, farmers do not formally join a common enterprise or cooperative. They do not necessarily share infrastructure, profits, risks or decision-making processes, histead, each farmer runs his/her own business, ti-laterally interacting with other farmers according to his/her entrepreneurial needs.

Apart from agricultural differentiation in relation to production, processing and distribution, the so-called “pluriactivity” of farms increasingly requires bilateral forms of cooperation. For instance, in order to gain income some farmers cooperate with social and educational institutions. They collaborate, for example, with schools in hosting classes in order to make pupils familiar with farming and food production. More recently, European farmers have been subsidized to set up so-called “Green care projects” which aims to place social institutions on farms, e.g. for the purpose of integrating handicapped people in the labour market. Another example of formal cooperation is the use of a shard trademark to make it easier for consumers to recognize local farmers and their quality standards. Those involved frequently share logistics and supply chains to reduce marketing costs. Furthmore, such cooperation can help to secure marketing rights for the farmers which would usually be owned by the retailers.

Finally, emerging local food networks require various forms of cooperation.

Farmers have increasingly started to join and shape so-called local, civic or alternative food networks. Most often, these networks have been initiated by consumers, who want to establish a close relationship between themselves and producers. Some have taken the form of food cooperatives or solidarity purchasing groups, collectively purchasing directly from the farmers themselves. Other initiatives such as community support agriculture (CSA), are characterized by a strong and enduring economic partnership between consumers and farmers. in Austria, for example, the first producer-consumer cooperative, BERSTA, was founded in 1980. Consumers and products collectively organized the sale in viema of produce (initially mainly potatoes) grown in disadvantaged regions of Austria. This “grass-roots’ initiative developed into a small wholesale company that continues to collaborate (though not exclusively) with small-scale farmers from disadvantaged regions. Civic local good networks, such as CSAs or solidarity purchasing groups, found their way into Austria many years after they had been established in the USA, Japan and in several European countries such as Italy, France and Germany. However, the number of these initiatives in Austria is growing, albeit at a slower rate than elsewhere.

Academic research is increasingly focus on alternative food networks. It is recognized that cooperation and networking” are essential to upscaling transaction pathways. However, very little is known about how and where cooperation works, nor concerning the specific challenges that farmers face when they cooperate. Furthermore, more knowledge is needed to better foster effective farmer cooperation.

This project work sheds light on farmer cooperation is relation to the establishment of local food supply systems and illustrates the specific forms of cooperation engaged in.

1.2 STATEMENT OF PROBLEMS

Although, much has been said and written on the evolution of ensuring adequate food supply in Nigeria (especially in Imo State), little is known concerning adequate food supply in Imo State. It is on the basis of the above that this research seeks to fill the vacuum which is yet to receive the attention of scholars in the field of adequate food supply in our society and the role of cooperative towards achieving this.

Some of those problems encountered in ensuring adequate food supply in our society today include:

The loss of agricultural land to erosion.
Dormant research facilities.
Lack of education and modernization.
Poor infrastructure such as motorable roads and electricity in the rural areas.
Unserviceable machinery.
Food processing issues.
Unfavourable government policies that hinders the important of hybrid seedlings and access to fertilizers.

1.3 OBJECTIVES OF THE STUDY

The purpose of this research work is:

To find out the impact of agricultural cooperatives towards ensuring adequate food supply in our society.
To find out the problems and strategies of agricultural cooperatives towards the enhancement of food security in our society.
To determine the ways that these agricultural cooperatives have helped in ensuring adequate food supply.
To analyze the agricultural policies of the Imo State government.
To identify the agricultural facilities and infrastructure owned by agricultural cooperatives.
To make recommendations based on the findings.
To ensure adequate food supply in our society.

1.4 RESEARCH QUESTIONS

The research questions for the study re;

What are the impacts of agricultural cooperatives towards ensuring adequate food supply in our society?
What are the problems and strategies of agricultural cooperatives towards the enhancement of food security in our society?
What are the ways that these agricultural cooperatives have helped in ensuring adequate food supply?
What are the agricultural policies of the Imo State government?
What are the agricultural facilities and infrastructure owed by agricultural cooperatives?
What are the recommendations made based on the findings?
How do we ensure adequate food supply in our society?

1.5 STAEMENT OF HYPOTHESIS

In the cause of this research, it is necessary to test the hypothesis of this research. Test of hypothesis shows the negative and positive aspect of the report and illustrates the extent at which the report has gone.

In testing the hypothesis, there are two aspects which are Ho which is the null hypothesis and the Hi which is the alternative aspect of the report while the Hi tells about the positive side of it.

Ho: The activities of agricultural cooperatives do not significantly ensure adequate food supply in our society.

Hi: The activities of agricultural cooperatives significantly ensure adequate food supply in our society.

1.6 SCOPE OF THE STUDY

This study touches on the concepts of food security and the role of agricultural cooperatives towards ensuring adequate food supply in our society. It also examined the success of agricultural cooperatives in Ideato North L.G.A. in Imo State. It was discovered that the local government area however had numerous of skilled and unskilled labours that had been contributing immensely towards the smooth running of agricultural cooperative societies, which therefore facilitates food security in the society.

1.7 SIGNIFICANCE OF THE STUDY

The significance of this research work are enormous. First, the wok addresses one of the key issues of contemporary Nigeria. It touches the area that affects the well-being of every Nigerian and the world at large which is food security. Hence, the study is of key benefit to;

Students of cooperative economics and management.
Agricultural cooperative societies.
Farmers at large.
The general public.
The government.
Agricultural and food experts.

More so, this study will also contribute to the growing body of knowledge in food security as it looks at the concept from a different angle.

Lastly, it is envisaged that this research work will also be of important to other researchers who might want to carry out research in related areas.

1.8 LIMITATIONS OF THE STUDY

There are lots of setbacks and obstacles that tried to hinder the success of this research work, among them are: finance, time, unwillingness of members to respond.

Finance: There was insufficient fund in the course of running this project such as printing of questionnaires, transporting to different locations together facts, etc.
Time: The researcher found it very difficult to combine the research work with his students. Also the respondents found it very difficult to listen because they were very busy with their various works and occupational duties amongst others.

Unwillingness of Members to Respond: Some of the respondents were unwilling to respond to both the interview and questionnaires given to them for the reasons best known to them.

1.9 DEFINITION OF TERMS

Cooperative Society: 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.

Agricultural Cooperative Societies: These are those cooperative societies whose activities are majority centered on agriculture and food production.

Adequate Food Supply/Food Security: This is the state of having reliable access to a sufficient quantity of affordable, nutritious foods.

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