Abstract:
ABSTRACT
In Ethiopia, cooperatives give more emphasis on supplying of agricultural inputs than selling of agricultural outputs which is more problematic. This study was undertaken to analyze the role of cooperatives in promoting linkages and to examine factors influencing the level of participation of cooperative members in agricultural output/input marketing through cooperatives in Fogera Woreda, Amhara National Regional State. Both primary and secondary data were used by the study. A random sampling procedure was used to select ten agricultural cooperatives and 163 sample respondents. Primary data were collected from selected respondents using structured questionnaire. In addition, secondary data collected from relevant sources were also used to explain the agricultural output/input marketing activities through cooperatives in the study area. Ratios were analyzed taking the three years financial data (from 2015/16 to 2017/18). The liquidity analysis, financial leverage and profitability ratio showed that the overall performance of cooperatives under study were weak or below the desirable level. The econometric model was also used for analyzing the data in addition to the ratio analysis. The quantitative data were analyzed using Tobit Regression model was used to identify factors influencing the level of participation of cooperative members in agricultural output/input marketing through cooperatives. The result of Tobit regression revealed that intensity of participation appear to be significantly and positively influenced by education status, number of paid up share capital, access to credit, Perceived cooperative role of performance and perception of members on transparency and accountability, perceived agricultural input/output price, and members’ satisfaction. Therefore, it is recommended that, the existing members’ increase intensity participation in output/input marketing through cooperatives should be strengthened in a way that working in harmony with relevant actors to bring about development in cooperatives. Moreover, special attention has to be given in improving the financial as well as management capacity of cooperatives, and creating new and strengthening the existing linkages with relevant organizations.
Keywords: Multipurpose Cooperative Society, Liquidity Ratio, Debt Ratio, Profitability Ratio, level of Participation