BULE HORA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF ECONOMICS
THE IMPACT OF FARMERS COOPERATIVE ON THE LIVELIHOOD OF
HOUSEHOLDS (IN CASE OF BULE HORA WOREDA)

RESEARCH PAPER SUBMITTED TO DEPARTEMENT OF ECONOMICS IN

PARTIAL FULLFILLMENT THE REQUIREMENT FOR THE BACHELOR OF ART (BA)
DEGREE OF ECONOMICS.

BY: LELISA TIRFESSA………………0913/10

BIKILA SHIBIRU………………….0889/10
Advisor; Defaru A(MSc)

JUNE, 2020

BULE HORA ,ETHIOPIA

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 ACKNOWLEDGMENT
First of all, I am short of word to express my deepest thank to the Almighty GOD who are the
“garden maker” of my life. Next to that I would like to thank my advisor, Defaru A (MSc)
whose contribute to the work by giving necessary advice and sharing knowledge have a great
value.

Next, I am happy to acknowledge my beloved family who has supported me morally and
financially.

At last but not least my appreciate goes to my friends for their support with different
materials to accomplish my study.

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ABSTRACT
This paper attempts to assess the impact of farmers’ cooperative on livelihood of households
in case of Bule Hora woreda. The study would focus on the role of farmer’s cooperative in
improving agricultural productivity. however, there has been a challenge in the administrative
operation is sustainability of most agrarian cooperative societies that have diversity in terms
of membership. The study aims at identifying the various type of farm activities that members
of cooperative by members of cooperative societies in Bule Hora Woreda and ascertain of the
effect of cooperative societies on the livelihood of house hold in Bule Hora Woreda. The study
employed descriptive survey research design the primary and secondary data would
collected. the targeted 229 member of cooperative societies from Bule Hora Woreda a
sample of 60 respondents would select. from the target population using stratified random
sampling technique. The result of this study would maintain that benefit that the members of
farmer’s agricultural cooperative obtained and should be properly guided and organized
merges and strengthened by donors for meeting the need of the poor rural area.

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LIST OF ACRONYMS
EEA. - Ethiopia Economic Association

ACE. - Agricultural cooperative in Ethiopia

ICA. - International cooperative Alliance

ILO. - International labor organization

NCBE. - National cooperative business association

ICA. - International cooperative agency

FCA. - Federal cooperative agency

FCC Federal cooperative commission

USAID. - United State aid

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Table Contents
page
ACKNOWLEDGMENT ii
ABSTRACT iii
LIST OF ACRONYMS iv
LIST OF TABLES viii
CHAPTER ONE 1
1. INTRODUCTION 1
1.1. Background of the study 1
1.2 Statement of the Problem 2
1.3 Objective of the study 3
1.3.1 General objective 3
1.3.2 Specific objective of the study 3
1.4 Significance of the Study 4
1.5. Scope of the Study 4
1.6 . Limitations of the Study 4
1.7. Organization of the Study 4
CHAPTER TWO 5
2. REVIEW OF RELATED LITERATURE 5
2.1. Theoretical Review 5
2.1.1. Definition of Agricultural Cooperative 5
2.1.3 Economic Benefit of Agricultural Cooperative 6
2.1.4. Agricultural Cooperative Development 7
2.1.5 The Reason for Agricultural Cooperative 7
2.1.5. Future of Agricultural Cooperative 8
2.2. Empirical Review of the Literature 10
CHAPTER THREE 12
3. METHODOLOGY 12
3.1. DESCRIPTION OF THE STUDY AREA 12
. 3.2 Data Type And The Source 13
3.3 Method Of Data Collection 13
3.4 Sampling Technique 14
3.5 Method of Data Analysis 15
CHAPTER FOUR 16

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4. DATA ANALYSIS AND INTERPRETATION 16
4.1. Demographic Characteristics 16
4.1.1.Sex 16
4.1.2.Age 17
4.1.3. Educational level 17
4.1.4. Marital Status 19
4.1.5.Number of households with their family size 19
4.2. Income Level of Sampled respondents 20
4.3. Production Method of Farmers’ Cooperative 21
4.4. Crop Rotation 21
4.5. Irrigation Activities of the Sample Household 22
4.5. Fertilizer Users the Amount of Fertilizer 22
4.6. Improved seed used and amount of improved seed used 23
4.7. Fertility of land of the farmers’ Cooperative 24
4.8. Mechanism extension services from agricultural cooperative office to farmers 25
4.9. The Access to Credit 26
4.10. Cultivation Period 26
4.11. Livestock Owned 28
4.12. The effect of agricultural cooperative in improving income of the farmers 29
4.13. The role of farmer’s agricultural cooperative in food security 29
4.14. The improvement of agricultural activities of farmer’s cooperative 31
4.15. The main factor affecting agricultural output of farmers’ cooperative 31
CHAPTER FIVE 33
5. CONCLUSION AND RECOMMENDATION 33
5.1. Conclusion 33
5.2. Recommendation 34
6. REFERENCE 2
7. APPENDIX 3

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 LIST OF TABLES PAGE
Pie chart 1. Sex distribution of respondents......................................................................................15
Table 1.age of sampled respondents................................................................................................16
Table 2.educational level of respondents.........................................................................................17
Table 3.marital status of respondents..............................................................................................18
Table 4.famiy size of respondents....................................................................................................18
Table 5.income level of sampled respondents.................................................................................19
Table 6.prododuction method used................................................................................................20
Table.7.crop rotation.......................................................................................................................20
Table 8.irrigation activities..............................................................................................................21
Table 9.fertilizer users.....................................................................................................................21
Table 10.improved seed used.........................................................................................................22
Table 11.fertility of land..................................................................................................................23
Table 12.mechanismm extension services.....................................................................................24
Table 13..access to credit................................................................................................................25
Table 14..cultivation period.............................................................................................................26
Table 15.livestock owned................................................................................................................27
Table 16.effect of agricultural cooperative......................................................................................28
Table 17.response of food security..................................................................................................29
Table 18.improvement in farming activities....................................................................................30
Table 19..main factors affecting agricultural cooperative..............................................................31

CHAPTER ONE
1. INTRODUCTION

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1.1. Background of the study
Except Africa, all developing regions of the world have achieved the Millennium Development Goal of
reducing poverty by half between 1990 and 2015 (UN 2015). As most of Africa’s poor depend largely
on agriculture for their livelihoods (IFAD 2011), improving the productivity, profitability, and
sustainability of the agricultural sector is argued to be the main pathway out of poverty in the
continent (Christiaensen et al. 2011; Asfaw et al. 2012; Dawson et al. 2016). In spite of this fact,
agricultural sector growth in Africa has been lagging . Particularly the agricultural productivity in Sub
Saharan Africa (SSA) remains stagnant (Tittonell and Giller 2013). Over the past four decades,
agricultural productivity growth in SSA averaged only 2.4% while the productivity of the rest of the
developing world improved by 4% (Dzanku et al. 2015). Ethiopia is among the countries in this region
where agriculture plays a vital role in the economy. In the country, agriculture accounts for 40.2% of
GDP, 80% of employment, and 70% of export earnings (UNDP 2015). About 85% of its population live in
rural areas and depend on agriculture for necessities and as a source of employment (Negatu et al.
2016). Therefore, the performance of this sector determines the fate of the economy of the country.
Nonetheless, smallholder farmers who are illiterate, living on the threshold between subsistence and
poverty, dominate the sector

Agricultural cooperative is an association with individual voluntary organized to provide them

self and other with good and service via organized to provide domestic control and for
mutually shared benefit. The interdependence and mutual help among human being have
been the basis of the social life. The sprint of association is essential to human progress.
Since the beginning of the human society individual have found advantage in working together
and helping one another in all over the country. In Ethiopia it is common for people to
interdependent in mutual help and self-activity in their day to day socioeconomic condition
(Birchll 1997). agricultural cooperative whose farmers pool their resource in certain areas
activities (wilikipedia 2005).

Agricultural have played an important role in rural community where they are encouraging
democratic decision making and leadership development education. Cooperative provide
economic benefit to farm familiar though increasing stability of the Farmer sector, also
improve market access for their productivity and strengthening Farmer position in agricultural
food chain improving farmers living condition, support's rural development and preserve the
variability of rural community in Ethiopia about 85% of its population live in rural areas and

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depend on agricultural for necessities and as source of employment (Negatu et al.2016)

Agricultural cooperative is the part of dynamic environment for the nature production.
Agricultural choose manly chooses occur outside the cooperative system which has little
ability to influence them (USDA 2012). Generally agricultural cooperative play crucial role in
supporting the rural economy and local administration live emphasis to improve agricultural
production and productivity through their influence on the adoption of productivity enhancing
technologies (Spielman et al.2010).

1.2 Statement of the Problem

In sub-Saharan African countries like Ethiopia, where the small scale farming dominates, the
overall national economy, agricultural production and productivity is very poor. The agriculture
of the economy is characterized by limited use of improved input and back ward agricultural
sector has been declining at the rate of 1.2% per annual, (CSA, 2005). For the last 42 years in
Ethiopia majority of people live in rural areas we need no further evidence than the over
worsening poverty situation of the rural population realizing on poor agricultural productivity.
Even worse as size of countries population increase per capital income gained from the
agricultural sector has been declining consequently the level of income is low and failed to
meet the food demand of the over growing population (CSA, 2005).

The Farmer adoption rate and preference of prompted technology has been very law. One of
the reasons enticed by farmers will be the poor performance of the package. In Ethiopia
agricultural farmers’ cooperative have significant role in creating agricultural employment and
increase house hold income. In specific area Bule Hora woreda also Farmer cooperative
played has role in increasing Farmer productivity. But it may face problem like, shortage
skilled man power, lake of access chose of improved seed choice in whether condition rain
fall variability, Land fragmentation, lack of accessible credit, lack of business information and
absence of advocate way of basic services. In other hand Bule Hora woreda were follow
traditional faming system. Additions to this natural condition weather Bule Hora woreda soil
are not hilly facilities for farmers. So based on this problem the study motivated to conduct on
the impact of farmer cooperative in the major 3 purpose. First, we provide insights into the
determinants of agricultural cooperative membership. Therefore, the this study allows us to

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draw implications on cooperative inclusiveness. Second, we evaluate the impact of
agricultural cooperatives on the welfare of small holder farmers quantitatively. Third, the
study would be motivating to conduct the study in order to fill gap left by the study conducted
by Fikadu Tamiru (2009) on the study impact of farmer cooperative on the level of household
of Bule Hora Woreda. In study would be not included about the role cooperative in poverty
reduction and improving the livelihood of smallholder farmer. However, there are also cases
were collective action did not improve farmer situation. Hence this paper aims to identify
factor that influence farmer decision to join agricultural cooperative and impact of farmer
cooperative membership on the welfare of small holder farmer of Bule Hora Woreda.

Therefore, the study would be answered the following questions:

 Does the farmer's cooperative increase the form levels productivity?

 Does the farmers’ cooperative improve the productive capacity households?

 Whether farmer cooperative increase or not outputs of households?

1.3 OBJECTIVE OF THE STUDY

1.3.1 General objective

The purpose of the study is to examine the impact of farmer cooperative on livelihood of
households in Bule Hora woreda, West Guji Zone.

1.3.2 Specific objective of the study

 To identify the role of farmer’s cooperative in improving farms productivity.

 To explore the various service modalities which cooperative offer to their member.

 To identify how farmers’ cooperative increase outputs of member’s households.

1.4 Significance of the Study

This study would be investigated on the effect of agricultural cooperative on farmer
productivity. the study would be focused on narrowed to the farmer supply agricultural

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cooperative. cooperative economics is impact which purchase in volume, distribution farmer
supply and impact to member of cooperative in Bule Hora Woreda. The target cooperatives
society would be those that are agriculture in nature. The target population will be 229
respondents from Bule Hora Woreda.the study also focused on the period 2013 because this
would the years when new constitution would be effective after its promulgation in this year.

1.5. Scope of the Study

The study would be focused on race of agricultural cooperative on farmer productivity. The
study would emphasize only on farmers supply agricultural cooperative. Cooperative
economics is impact which purchase in volume, distribution Farmer supply and impact to
members of cooperative in Bule Hora woreda.

1.6 . Limitations of the Study

The researcher depended more on response provided from the respondent that were
practiced in the woreda as agricultural activities. The researcher faced different limitations
including time constraints, financial constraints, lack of documents and other raw materials.
But the researcher despite the mentioned limitations, tried to resist them.

1.7. Organization of the Study

The study was being organized in to five chapters. The first chapter described the
introduction that includes; background of the study, statement of the problem, and objectives
of the study, Significance of the study, Scope of the study, limitations of the study and
organization of the study. While the second chapter includes literature review, the third
chapter methodology, the fourth charter describes the data analysis and interpretation. Then
the fifth chapter focuses on conclusions and recommendations

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 CHAPTER TWO
2. REVIEW OF RELATED LITERATURE
2.1. Theoretical Review
2.1.1. Definition of Agricultural Cooperative
Agricultural cooperative is defined according to different scholars in different ways.
Agricultural cooperative in the form of producer organization (POs) can be further developed
as tools for producer to improve their competiveness and strengthen their bargaining position
towards retailers (kaditi and natsi,2010). Through POs improvement in the quality of the fresh
produce is expected to be seen by adopting international quality certification, improved
packing and labeling, adoption of new management techniques and by highlighting the and
the recognition of the food products. Market institution development and collective marketing
generally improve the marketing system (Lupien 2008; Kader, 2010).

2.1.2 Principles of Cooperative

The seven internationally recognized cooperative principles are:
1. Voluntary and open membership; Cooperatives are voluntary organizations, open to all
Persons able to use their services and willing to accept the responsibilities of membership, social,
racial, political, or religious discrimination,
2. Democratic member control; Cooperatives are democratic organizations controlled by them
members, who actively participate in setting their policies and making decisions. Men and women
serving as elected representatives are accountable to the membership. In primary cooperatives
members have equal voting rights (one member, one vote) and cooperatives at other levels are
organized in a democratic manner,
3. Member economic participation; Members contribute equitably to, and democratically control, the
capital of their cooperative. At least part of that capital is usually the common property of the
cooperative. They usually receive limited compensation, if any, on capital subscribed as a condition of
membership. Members allocate surpluses for any or all of the following purposes: developing the
cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefitting
members in proportion to their transactions with the cooperative; and supporting other activities
approved by the membership,
4. Autonomy and independence; Cooperatives are autonomous, self-help organizations controlled by

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their members. If they enter into agreements with other organizations, including governments, or raise
capital from external sources, they do so on terms that ensure democratic control by their members
and maintain their cooperative autonomy,
5. Provision of education, training and information; Cooperatives provide education and training for
their members, elected representatives, managers, and employees so they can contribute effectively
to the development of their cooperatives. They inform the general public, particularly young people and
opinion leaders about the nature and benefits of cooperation,
6. Cooperation among cooperatives; Cooperatives serve their members most effectively and
strengthen the cooperative movement by working together through local, national, regional, and
international structures,
7. Concern for the community; while focusing on member needs, cooperatives work for the
sustainable
Development of their communities through policies accepted by their members (Ortmann & King,
2010:41; ICA (2006) cited in Baarda, 2009:11).
Adherence to the cooperative principles distinguishes cooperatives from other forms of enterprise or
community groups (Ferguson, 2012:6). The principles are universal and are adhered to by independent
cooperatives throughout the word, enabling common language and basic perspective among
co‐operative organizations worldwide. The very mandate of these principles also places cooperatives
in a unique position to ensure and promote gender equality (ILO, 2012:1). Cooperatives are
democratically owned and governed enterprises guided by the values of self-responsibility,
democracy, equality, equity and solidarity. They put people at the heart of their activities and
allow members to participate in the decision-making (Kimberly & Robert, 2004, cited in Aregawi
and Hailesellasie , 2013:2). These natures of cooperative make them safety nets for economically
weak and vulnerable rural women.
Agricultural cooperative has documented potential role on agricultural commodities through
agricultural cooperative. Although agricultural cooperative creates the ability for the supply of
required agricultural input's that production of commodity done timely to enhance production.
They also provide the insured for commodity's produced by isolated small farmers to the rural
area.

2.1.3 Economic Benefit of Agricultural Cooperative

As Barton (1998) puts its agricultural cooperative is user controlled business that distributes
benefit on the basis use which indicate the distributing concept and principle use, principle

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that person who owned and finance agricultural cooperative is by those who use cooperative.
Their control principle that controlled agricultural cooperative is those who use cooperative.
The user benefits principle, benefit that agricultural cooperative distributed user on the basic.
Theirs service member receive benefit of economic social value because other association
with agricultural business. benefit of economic value to stock holder are numerous including
the product, service and Price variable person who by from or sell to the business. The
distribution of income to participating the farmer of patron ages they also include is lasted
capital paid to owner water paid to employee according to profit sharing plan since members
are those who organized and controlled agricultural cooperative benefit are primary intended.
Other may share in the benefit also share the risk to the cooperative. Although there are
motivation force agricultural cooperative activities it's accepted that the primary motivation in
agricultural cooperative to improve their economic benefits.

2.1.4. Agricultural Cooperative Development

Diner to need to engage statically with cooperative as play's in a broader market
system. They need to be clear how their engagement will improve the
performance and profitable of agricultural cooperative and how this will lead to
poverty reduction. They recognized agricultural cooperative as part of private
sector and looked are carefully at their support has ended and its benefit to the
poor are sustained through market form action. It is important that work on
sector such rural and urban. They support access to quality education and
life-long learning opportunities by providing the means

for financing education; supporting schools; establishing their own schools to

provide quality education to both the youth and adults; and by serving as centers
for lifelong learning (ILO & ICA: 2014).

2.1.5 The Reason for Agricultural Cooperative

There are many reasons for agricultural cooperative. According to (ICA) the following are
reasons of agricultural cooperative a community enterprise, keep economic benefit with
community. Agricultural cooperative exists still a need community that is not being meet by
other business. That is agricultural cooperative satisfy the need for supply, processing and

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marketing good and service required of prettied guilty of cooperative price. Works productive
agricultural cooperative are formed to create or to maintain employment in community.

Agricultural Cooperative Promote Democracy

Agricultural members own the business they provide share capital, elected boarder, and
receive the benefit of ownership through better service and pathogens refund based on use.
Agricultural cooperative brings people outside the main stream in to the national economy
and political life it also teaches people how to resolve problem democratically.
Agricultural Cooperative Building Open Market
A more and more government divests state owned enterprise. There is doper that the
monopoly may be moved it to private hands. Agricultural cooperative helps to avoid this fall
by ensuring wide participation by user or Farmer state service, cooperative speed economy
power and encourage completion. The provide market to small victimized by powerful sole
source companies. They under the middle mean and money lenders whole charge are other
exorbitant.
Agricultural Cooperative Create Human Dignity
Agricultural help scope poverty and achieve dream. Such as owing a home or having their
children to educate success, literary to business operation, cooperative power individual by
having the change to participate in decision to social and economic need. Agricultural
cooperative provides an organized own for who people for related to some distance
government and economic power structure.

Agricultural Cooperative System for Development

Agricultural cooperative drown community business in to regional and national network. Local
agricultural cooperative is benefit from larger business value, operating efficiencies and
professional management. The economy programs are profit from value added processing
and consumer sales.

2.1.5. Future of Agricultural Cooperative

Agricultural cooperative is special type set corporation that is owned and controlled by those
who in use its service. It is state character business or organized and operated under its law
to further their mutual benefit member may finance and operate business. Cooperatives are

15
an ideal training ground in the development of governance and leadership skill, contributing to
the development of human capital (Ferguson, 2012:5).

However, in significance way cooperative is purpose of ownership control and distribution of

benefit. Cooperative interest is providing service to the members at lower possible constant
together. The high possible return to meet continuing needs for found most corporates
controlled democratically on one member one basic. However, some cooperative a limited
proportional vote based on member use of the cooperative service. Agricultural cooperatives
are believed to play a key role in bringing rural development and insuring food security for the
poor households. For instance, Chambo (2009) argues that the existence of cooperatives has
had an impact in the generality of rural development defined in terms of availability and
access to amenities that improve the basic conditions of life for the rural people

2.1.6. The Brief History of Cooperative in Ethiopia

Traditional forms of associations such as iqub, a rotating savings and credit association;
work groups such as wonfel and debo; andidir, which raise funds that will be used during
emergencies, have a long history in Ethiopia (Abebaw and Haile 2013). However, the first
formal cooperative organization was established in Ethiopia around the 1950s (Kodama
2007). Since then, three distinct periods of cooperative movement were observed in the
country: cooperative movement during the Emperor period, the Socialist period, and the
EPRDF.3 The modern cooperative movement was started in the Emperor period under Farm
Workers’ Cooperatives Decree (Cooperatives Decree No. 44/1960) primarily to solve
unemployment problems of retired workers (Emana 2009). However, the voluntary and open
membership principle of the cooperatives were not fully practiced in this era. As a person was
required to have land to be a member of cooperatives, the feudal land tenure system excluded
the peasant farmers from joining cooperatives. Lack of credit facilities and trained manpower
were also among the most important constraints which cooperative movement faced at that
time. It was during this time that agricultural cooperatives were also started to produce
commercial and industrial crops (Abate et al. 2014). Few cooperatives were also engaged in
producing industrial crops for export markets, and their members were mostly large
landholders (Lemma 2008). After the overthrow of the Emperor regime in 1974, the Socialist

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government (1974–1991) that viewed cooperatives as a key instrument to build a socialist
economy pursued the cooperative agenda more aggressively to ensure equitable resource
mobilization and distribution in the country (Emana 2009). The regime also issued a new
cooperative proclamation (Proclamation No. 138/1978). The roles of cooperatives during this
period were completely different from those of Western-type cooperatives as they were based
on the socialist principles. Compared with the Emperor Regime, the types and numbers of
cooperatives increased (Dorsey and Assefa 2005). Mandatory membership and production
quotas were among the features of the cooperatives (Spielman 2008). The regime had made
cooperatives a platform for conducting political agitation by Ahmed and Mesfin Agricultural
and Food Economics (2017) 5:6 Page 3of 20 ignoring their basic principle. With the downfall
of the socialist regime in May 1991, some of these cooperatives were looted and vandalized
for their assets (Rahmato 1994) and dissolved in such a disorderly manner that twisted an
eternal suspicion and mistrust of cooperatives, the stigma of which is haunting cooperatives
until today (Emana 2009). Cooperatives did not get any policy attention by EPRDF, the
incumbent government, between 1991 and 1993 who came to power in 1991. Since 1994, the
government has made efforts to promote a new generation of cooperatives that differ from
their predecessors and issued a new cooperative proclamation in 1994 (Proclamation No.
85/1994) which incorporated universally accepted principles of cooperatives. According to
this proclamation, cooperatives are independent entities organized to promote common
socioeconomic interests of their members (FDRE 1994). The Federal Cooperative
Commission (FCC), later named as the Federal Cooperatives Agency (FCA), was established
to manage the proper implementation of cooperatives’ legislation and to devise policies and
legal measures consistent with international conventions on cooperatives (Bernard et al.
2010). The efforts of FCA have resulted in considerable growth in both the number of
agricultural cooperatives and the services they provide to their members (Abate et al. 2014).
In 2012, there were 43,256 registered primary cooperatives (agricultural cooperatives
accounts for 26.5% of them) with 6.5 million members (of which 21.5% are female) (Bernard
et al. 2013). According to FCA, the number of primary agricultural cooperatives increased
from 6825 in 2008 to 15,568 in 2014 (FCA 2015).

2.2. Empirical Review of the Literature

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In (2002), World Bank estimate that food demand will double by 2036 as the world population
by another 2 billion on people. There is an agree need for development and agricultural
development has shown on solution to courage farmers to mobilize collection in production
processing and marketing of agricultural product and give them to assess to market.

Many researches on food security have carried out in depth. According to caver (2003) food
security is achieved they will people all time have physical and economic access to sufficient
on the other mean avoiding hunger for all from the research. It is evidence that recorded law
figures of food in security. In 2000 Uganda and Tanzania recorded 36.9% of food security. In
1997 Kenya had owned ratio of 43.9% from either conclude that there is a close correlation
between food security or the country with their long history and large size of agricultural
cooperative. However, the mass made possible account that small farmer on account that
small farmer disposal cash income earned from activity.

In recent early time agricultural cooperative one of different cooperative which can help
farmers to let bitter better deal of various stages production on distribution in many country.
Agricultural farmer cooperative have significant role in great employment. It also the farm of
agricultural cooperative has role to increase the productivity.

According to (Harris ,2002) it has been responsible for introducing the exchange economic
remote rural area. The agricultural cooperative provides ready market for farmer production
and crops. But also absorbs transaction cost would other way hinder smaller farmer for
market and production integration. There is farmer producer cooperative which supply input s
and market processing of product for farmer. Freshman and workers, they include same of
the business, same are agricultural cooperative of farmer struggling to service. Although
market where policy by support being cut. (Merited walzar 2007) analyzed the new generation
cooperative is us where member contribution capital in production to the produce the
intended to supply to processing cooperative. The resulting share center at the market value
and in returns have aureate from the cooperative that all value from processing Bank to the
farmer in 2002 the federal agricultural farmer cooperative at national level.

As today, they ambitious five year development plan aims at providing farmers’ cooperative
service to many percent on the population by 2010 increasing share in farmer cooperative

18
output market ( FCA 2006). According USAID (2015) Ethiopia evaluation of agricultural
cooperative in Ethiopia (ACE) programming activity farmer’s society supported in the same
reports. It has mentioned that fertilizer sales have increased domestically 14% from 86.638
million to in 2003 to that this growth is attributable in part to increase membership, be more
importantly to sale members who sought more fertilizer to talk advantage of the improved
market opportunities made available to them by more over. The generalized definition which
is acceptable by all nations and creates garment on the society is given by the international
cooperative alliances (2005), defined agricultural cooperative person united voluntary to meet
their common economic, social and environmental need. Agricultural cooperative rate support
the rural economic and local people like emphasis to improve productivity through
cooperative.

Agricultural cooperative also provide market for commodity they represent model of
economic that agricultural cooperative high record agricultural for democratic human value
(Barraket 2002). Generally agricultural cooperative maintain which level of income marketing
small farming able to contract decent house send their children to school and provide health
insurance to sustainable rural live hood.

CHAPTER THREE
3. METHODOLOGY

3.1. DESCRIPTION OF THE STUDY AREA

Bule Hora is one of the woreda in the Oromia region of Ethiopia part of western Guji Zone.
Bule Hora woreda found at 467 km South western of Addis Abeba. Bule Hora woreda is the
administrative center of the Bule Hora town. It is bordered on the South by Dugda Dawa, on
the west Surro Bargudda, on the north by Galana and Gadab, on the north east Kercha , on the
east by Melka Sodda, on south eastern by Melka Sodda and Dugda Dawa. Bule Hora town
bounded by Bule Kegna from South, Chari Gololcha from north, Danbala Harra from western,
Dubisa Ogga from east Kebeles. The main cereal crops of this woreda are: Teff, Maize, Wheat,
Sourghum and etc. Bule Hora woreda climate is Dega about 25% north, Woina Dega about

19
60% Centeral part and Berha about 5% north west. The Latitude of this woreda is found 5*35N
and 38*15E Longitude, with elevation of 1716M above sea level and located in Southern part
of Oromia. The average annual temperature is minimum 750 and maximum 22.5*c and main
endowed with Nitsoil, Loamy soil and red soil which are more suitable for Teff production.
There are 5 Urban Kebele and 31 Rular kebele in Bule Hora woreda. Among those: Muri
Turkuma, Chari Saphaliso and Kuya Kebele are some of rural Kebele in this Woreda, which
incorporate total house holds of 2400 farmers,(Bule Hora woreda Agricultural Office,2010)

Total population Bule Hora Woreda is 262659 of them male 132405 and female 130254
(CSA2011). This Woreda has tropical climate. The main cash crops of this woreda are honey,
chat and coffee. Coffee is the most cash crops of in this woreda and it covered 19899.22
Hectare. Bule Hora Woreda has a tropical climate and one of the most nourished soils which
are more suitable for coffee production is loamy soil.

3.2 Sampling Technique and sample size determination

Since, it is difficult to observe the entire target population. The respondents of questioner and
interview would be selected by taking the small proportion of the population. Stratified
random sampling procedure would be adopted for the selection of the sample respondents
from the agricultural cooperative of the woreda. Since there 7 groups which use the farmer's
agricultural cooperative in Bule Hora woreda. The study would select 3 groups, which be
select are; Qillenso Mokonisa , Baada Magada , and Muri Turkuma . The populations of those
groups of house hold are, 65, 80, and 84 respectively. Consequently, a total of 60 sample
respondents would select. By using stratified sampling formula (Agrestic, A and finally B 2009
statically option for social sciences, 4 the edition) the sampled household can be collected for
each group by strata.

Sample size =n * pi/ N. Where n: total sample size

N: total population of selected groups.

Pi: proportion of population in the groups

20
PROPORTIONAL DISTRIBUTION OF SAMPLE SIZE

No Name of groups Total no of house Total sample size

hold

1 Qillenso Mokonisa 65 17

2 Bada Magada 80 21

3 Muri Turkuma 84 22

Total 3 229 60

Finally,the researcher would address 60 respondents to conduct the study.

3.3 Data Source and Method of Data Collection

In this study, both primary and secondary data would be collected, using a mixed methods
approach. Quantitative primary data was collected using a structured questionnaire with both
opened and closed ended questions. Information on respondents’ characteristics such as age
(year), sex, education level (years of formal education), household size (number of persons),
marital status etc., information on livelihood activities of respondents and their various
income sources would be also collected; on-farm and off farm activities. Others are
information on membership of cooperative societies, benefits derived from membership of
cooperative society, reasons for not participating in agriculture cooperative associations will
be collected.
Secondary data was collected from relevant sources such as the internet, journal papers and
books in Bule Hora woreda office.

3.4 Method of Data Analysis

21
Data was collected by both qualitative and quantitative methods. The qualitative method
underwent the process of editing, cleaning, coding and classifying. The data would be
analyzed using SPSS software version 20. Both inferential and descriptive statistics;
percentage and frequency would be employed to present quantitative data in the table, pie
chart, frequency and percentage in the data presentation.

CHAPTER FOUR

4. DATA ANALYSIS AND INTERPRETATION

This chapter deals with data analysis and interpretations based on the data gathered from the
respondents. In order to see the role of farmers’ cooperative in improving agricultural output
in Bule Hora woreda, questionnaire was randomly distributed to 60 respondents. Analysis is
made using tables and percentages.

4.1. Demographic Characteristics

4.1.1.Sex
The surveyed groups were Qillenso Mokonisa , Baada Magada, and Murii Turkuma, according
to their population size, 17 respondents were taken as sample respondents from Qillenso
Mokonisa, 21 respondents were taken from Baada Magada and the remaining 22 respondents
were taken from Murii Turkuma.

Pi-chart 1 Sex distribution of the sample respondents

22
Source: own survey, 2019

From the above pi-chart, 75% of the sample respondents were males and the remaining 25%
of the sample respondents were females. This implied that female participation in agriculture
Cooperative production is very low. In the study area men and women have a separate role to
play a greater contribution to agriculture Cooperative production. There is backward attitude
behind the culture of the society in the study area. This make women to work long hours in
home and spend less time in agricultural cooperative production. From this point of view,
what the researcher is observing is that the majority of the society in the study area have back
ward attitude for women regarding to agriculture Cooperative. Therefore, gender
discrimination in the study area in terms of agricultural activity by the societies.

23
4.1.2.Age
Table 1 Age distribution of respondents

Age Respondents Percentages

18-30 10 17

31-45 30 50

46-65 20 33

Above, 65 0s 0

Total 60 100

Source; own survey, 2019

The above table shows 10% of the respondents age range from 18_30 years, 50% of
respondents age ranges from 31-45 years and 20% and 0% of the respondents are age is
between 46_65 and above 65 years old, respectively.

This implies that the majority of the respondents’ age is between 31-45 years old. The age
groups are mostly productive. So, this indicate that agricultural farmers’ cooperative of the
study area have productive labor participation in agricultural production to improve its farm
level productivity. But the age of 46-65 and above 65 years old people are not more
participated day to day in their agricultural activities.

4.1.3. Educational level

Education increase the ability to use modern inputs, such as fertilizers, improved seeds,
pesticides, improved tools (tractor) and implements agricultural equipment and it increases
the ability of farmers to obtain and analysis the information related to agriculture. It is known
that agriculture in Ethiopia is the backbone the economy, but it is mostly practiced traditional
methods and back ward

24
Table 2 Distribution of the sample respondents with respect to education level.

Education level Number of respondents Percentages

Illiterate 28 47

Primary 20 36

Secondary 7 12

Tertiary 3 5

Total 60 100

Source: own survey, 2019

According to this survey, 47% of the respondents are under illiterate, 36% of under primary
grouped, the remaining 12% and 5% of the respondents are grouped under secondary and
tertiary education respectively. This information implies that most respondents are illiterate.
Because in the early time there was no such expand educational infrastructure in rural area.
So this implies that the more illiterate, has an impact on agricultural farmers’ cooperative
production to use modern inputs, such as fertilizer, improve seeds, pesticides, improved tools
(tractor) and have no to listen current of market and taking of other necessary things

25
4.1.4. Marital Status
Table 3 marital status of the respondents

Marital status Member of respondents Percentage

Single 2 3

Married 49 82

Divorced 7 12

Windowed 2 3

Total 60 100

Source: own survey, 2019

From the above table we can understand that the majority of the sample respondents are
married which accounts 82%, 3% single, 12% divorced and the remaining3% widowed. The
researcher concludes that marriage has positive contribution on the agricultural production.
This indicates that two persons having different ability and property have greater advantage
over the single, divorced and widowed farmers.

4.1.5.Number of households with their family size

Table 4 family size of respondents

Family size Respondents Percentages

-2 5 8

3-4 13 22

5-6 12 20

7-8 30 50

Total 60 100

Source; own survey, 2019

The above table shows 50% of the respondents have family size of 7-8, 20% of the

26
respondents have family size of 5-6, and 22% of 3-4 and 8% of the respondents have family
size of 1-2. This implies that the majority of the sample respondents have family size of 7-8.
This implies the higher family size leads increasing population in the study area which exerts
high pressure in the environment and the land size very small and constant. But the large
family size has more labor human resource to increase the agricultural farmer’s production. If
more productive human resource is invested in agriculture the more output can produced

4.2. Income Level of Sampled respondents

Table 5 shows income level of respondents

Income No of Percentag
interval respondent e
s
<3500 6 11
3501-5000 30 50
5001-7500 11 18
7501-1000 9 13
0
>10000 4 8

Source: own survey, 2019

The above table shows the majority of respondents earn income between 3501-5000 birr per
year from agricultural product which accounts 50%, 18% of the respondents have income
earned between 5001-_7500, 13% have earned income between 7501-10,000, 8% of the
respondents earned >10,00birr per year and the remaining 8% of the respondents have earned
less than 3500 birr per year from agricultural product. So the majority income of the sample
respondents of the cooperative production is improved. But the others income of the
respondents are influenced by shortage of rainfall, small sof land, improperly used of the
modern inputs.

27
4.3. Production Method of Farmers’ Cooperative
Table .6 Indicates production method in agricultural production by the sample respondents

Producing method Number of Percentages

respondents

Tractor 0 0

Oxen 35 58

Hand dug 11 18

Both hand dug and 14 24

oxen

Total 60 100

Source: own survey, 2019

The above table indicates 58% of the respondents produced by using only oxen, 24% of the
respondents plough by using both oxen and hand dug and 18% of the respondents produced
by using hand dug and there are not uses mechanized (Tractor) tools. This implies that the
majority of the sample household uses oxen to plough the land and traditional hand dug
method. So, using mechanized farming tools to produce higher product with less effort time
and labor are not applicable in the study area.

4.4. Crop Rotation

Table 7 shows uses of crop rotation by the sample respondents their agricultural activities.

Do you use crop Number of Percentages

rotation respondents

Yes 13 22

No 47 78

28
 Total 60 100

Source: own survey, 2019

The above table’s shows 22% of the respondents used crop rotation and 78% of respondent
not uses crop rotation. The majority of the sample population of the farmers’ cooperative is
not uses crop rotation. Due to the lack of awareness, lack of land that cannot is suitable for
crop rotation and so on.

4.5. Irrigation Activities of the Sample Household

Table 8 Shows irrigation activities of the sample respondents

Irrigation No of Percentage
activities respondents
Irrigation user 12 20
Non irrigation 48 80
user

Source: own survey, 2019

The above table that 80% of the responded have non user of irrigation and 20% of the
respondents have irrigation user. Irrigation is the most important to increase agriculture
output during shortage of rain fall. But some respondents are use irrigation and most of
respondents are not use irrigation because of lack of awareness, lack of land that cannot
suitable for irrigation lack of suitable river available for irrigation and so on. Therefore,
agricultural farmers’ cooperative productivity is not improved through irrigation.

4.5. Fertilizer Users the Amount of Fertilizer

Table 9 shows fertilizer and amount by to sample respondents

No Fertilizer Number of Percentage

respondents s

1 Yes 46 77

29
 No 14 23

Total 60 100

Amount of quintal - -

2 0.5 – 1 12 26

2_3 31 67

Above 3 3 7

Total 46 100

Source: own survey, 2019

According to the respondent answer 77% use fertilizer and 23% of the respond not used
fertilizer from the sample respondents. As the above table shows the amount of fertilizer
users are; 26% of the respondent used 0.5 -1 quintal of fertilizer per year, 67% of the
respondents use 2_3 quintal, 7% of respondent uses above 3 quintal.

This implies that the majority of the respondent has used fertilizer and others used little
fertilizer because of high price of the modern fertilizer and they mostly use traditional fertilizer
as well as lack of awareness about the use of modern fertilizer on the farmers.

Therefore, the fertilizer become improves agricultural farm level productivity on the study area
of households.

4.6. Improved seed used and amount of improved seed used

Improved inputs a critically important technological required for higher yield and productivity
of formers. But the majority of the farmers use local seeds FAO/WFP (2009) reports show
that in the 2008 Maher seasoning at Least 95% of all improved input where local inputs
carried over from the previous harvest either farmers themselves following the traditional on
farm. Selection process whereby the form identifies the next year improved input stocked
while it is still maturing in the field and gives specially protection and buying from performed
input stock kept by other farmers in same locally (EEA,. 2009).

Table 10 shows improved seed used and amount of using by sample respondents.

No Improved seed Number of Percentage

30
 respondents s

1 Yes 37 62

No 23 38

Total 60 100

2 Amount in kilogram - -

5_15 27 73

16_25 10 27

Total 37 100

Source: own survey, 2019

The above table indicated 63% of the respondents used improved seeds and 38% of the
sample respondents none used improved seeds. But the amount of used in Kilogram has very
low ,73% of the sample respondents used 5_15 kilogram improved seed per year, 27% of uses
16_25 kilogram of improved seed. The majority of respondents use improved seeds to
improve agricultural productivity and the others use local seeds and little use of modern
improved seeds due to lack of experience sharing, lack of farmer training and them to use
improved seeds.

4.7. Fertility of land of the farmers’ Cooperative

Table 11 show the fertility of land the sample respondents

Land fertility Number of respondents Percentage

Low 42 70

Good 13 22

Very good 5 8

Total 60 100

Source: own survey 2019

The above tables show the fertility land of the sample respondent. According to the

31
respondent 70% of the land fertility is low 22% is good and 8% is very good. It implies that
fertility of land for the study area is low. So due to low fertility of land farmers uses traditional
fertilizer and modern fertilizer to improve agricultural output.

4.8. Mechanism extension services from agricultural cooperative office to

farmers
Table 12 show extension service of the sample respondents

Type of extension service Number of respondents Percentage

Input supply 26 43

Seeds supply 18 30

Technical support 10 17

Marketing 6 10

Total 60 100

Source: own survey 2019

From the above table indicated 43% of the sample respondent’s accessed input supply, 30%
of the sample respondents accessed seeds supply, 17% of the sample respondents accessed

32
technical support and 10% of the sample respondents accessed marketing. Input supply
service is very essential for farmer’s agricultural cooperative to produce high product. So the
use of extension service from agricultural cooperative office to the farmers is essential in
order to improve production of agriculture and use modern factors of inputs.

4.9. The Access to Credit

Table 13 the access to credit and the amount of credit to the sample house hold.

No farmers access to credit Number of Percentage

respondents

1 Yes 38 63

No 22 37

Total 60 100

2 Amount in Birr - -

Less than 5000 31 81

5000-10000 6 16

More than 10000 1 3

Total 38 100

33
Source: own survey 2019

Based on the above table 63% of the respondents have access to micro finance institutions
and 37% of the sample respondents did not have a similar access. Credit system is one of the
important factors to improve agricultural output to small scale farmers.

When farmers get the access of this credit, they get a chance to use agricultural in put like
fertilizer, improved seeds and other essential agricultural implement. But the amount of
access to this credit is inadequate. As it can be seen in table 81% of the respondents have
access only less than 5000 birr, 16% of the sample respondents have access 5000-10,000 birr
from finance institutions and 3% of the sample household get more than 10,000 birr. The
majority of the household in the study area have less often use of credit, improved seed,
fertilizer and modern input. This implies that low use of credit is because of higher interest
rate as the respondents answered and the shortage of awareness and unable to use properly

4.10. Cultivation Period

It is the fact that Ethiopia agriculture is highly dependent up on unreliable rainfall which may
produce surplus only in the year of favorable weather. This is make it has not always been
timely. Sometimes it comes early or later. Other times it short of the required amount or
overly this result in under production and hence too in security.

Table 14 shows the cultivation period in year by the sample respondent

Amount of Cultivation Number of respondents Percentage

period

Once a year 15 20

Twice a year 45 80

Three times a year 0 0

Total 60 100

Source: own survey 2019

In the study area, agricultural production is seasonable which mean that they depend on rain

34
fall. As indicated in the above table 20% of the sample respondents cultivated once a year and
80% of the sample respondents cultivated twice in a year. From the total number of
respondents 80% of the respondents are cultivated twice a year and other cultivated once a
year they are Influenced by shortage of rainfall, climate, fertility of land and other factors in
order to produce agricultural output twice a year and inadequate them to produce once a year.

4.11. Livestock Owned

Table 15 show types and number of livestock owned by the sample household.

Owner of livestock Number of Percentage

respondents

Donkey 0 0

Cattle 20 33

Goat 13 22

Sheep 5 8

Both sheep, goats and cattle 22 37

Camel and cattle 0 0

Total 60 100

35
Source: own survey 2019
As shows in the above table 33% of the sample respondents owned cattle, 22% of owned
goat, 8% of owned sheep and 37% of the respondent owned both cattle, goat and sheep and
the reaming 0% owned both camel and cattle. But as use knows reaming animals or owned
livestock’s is the major economic activity in agricultural production. Therefore, the agricultural
output is improved because the types of livestock owned by the respondents are very
important to improve farmer’s productivity in the study area.

4.12. The effect of agricultural cooperative in improving income of the farmers

Table 16 shows the effect of agricultural cooperative productivity income of the farmers by
the sample respondents.

Agricultural production Number of respondents Percentage

Increase 40 67

Decrease 12 20

Constant 8 13

Total 60 100

Source: own survey 2019

As the above table respondent that 67% of the sample respondents increase their agricultural
product, 20% of respondents decrease agricultural production output through a year and 13%
of the sample respondents are Constant.

This implies that the minorities of the respondents is not improving their agricultural output
through a year. Due to the absence of adequate rainfall, lack of modern fertilizer and so on.

36
But majority of 67% of the respondents improve their agricultural output due to use properly
use modern fertilizer, improved seeds, irrigation and so on.

4.13. The role of farmer’s agricultural cooperative in food security

Food security refers to the ability of household to meet the consumption level on a year to
year. In order to increase food production, while at the same time insuring sustainable
relationship with the natural environment and sustainable rural society forming acting through
the own organization need to take at central role.

Hence agricultural cooperative provides appropriate food staff's as well as the household
equipment and ensure their consumption at maximum nutritional value to members and their
families. Such food can be supplied through household respectively. The agricultural
cooperative has a major role in food production in Bule Hora woreda.

According to the respondents total agricultural production for which farmers’ cooperative
provide inputs. This thank as greater influence to set enough food for household consumption
of this that have reserved the service.

Table.17 Response of food security

Item Response No of Percentage

response share

Effect on Yes 54 90 %
food
No 6 10 %
security
Total 60 100 %

Source own survey: 2019

Depending on the above facts the farmer were requested whether they are food secured or
not after become the member of agricultural cooperative.

As table three show that 90% of the respondents replaced that the agricultural cooperative
have helped them able to be food secured while the rest of them that means 10% of the

37
respondents replaced that give they have been food measure for those official of the farmers’
cooperative argued that , their access to resource peasants combine input manners which
yielded high production to attain food security and also official agreed that 10% is not food
secured because the proportion of female headed in small with respective to Male in the
study area and access problem related mainly with low income diversification capacity poor
infrastructure with marketing and transport are made them of food secure, you seen the
reality agricultural cooperative are effective of food security and also increasing productivity
of farm level.

Agricultural is the process of development, increasing food supply and rural income to
enlarge market for urban output as well as provide resources to expand output. However,
agricultural productivity is low and there by low output because of traditional way of farming.

4.14. The improvement of agricultural activities of farmer’s cooperative

Table.18 Improvements in farming activities after joins cooperative

Description Member of respondents Percentage

Improvements in technology 4 7

Improvements in saving credit 16 27

Improvements in living standards of family 40 66

Total 60 100

Source: own survey 2019

The above table indicates 66%of the total sample of respondents can improve their living
standards of their family after joining the farmer’s agricultural cooperative. 27% of
respondents are improving saving credit habits and 7% improve in technology. Generally in the
study area majority of respondents can improve in living standards of their family and the

38
 cooperative of farmers has fewer improvements in technology, so the farmers’ cooperative is
not available in modern technological tools to produce high level of agricultural output

4.15. The main factor affecting agricultural output of farmers’ cooperative

Agricultural output in the developing countries is decrease due to different factors like,
climate change, the degradation of land, low soil fertility, illiteracy, lack of quality seeds, lack
of entrepreneurship in agricultural zone, weak at agricultural structure internal and
international migration and draught, most farmers in developing countries are characterized
by dependency of traditional instrument and farming practice. In addition to this, proper
production practice are not utilized and farmers systems are traditional and backward, land
preparation, planting methods, seeding rate, crop production cultivation and harvesting are
not performed properly. According to the surveyed sample there are many factors that affect
low agricultural output in the study area and analyzed in the following table.

Table 19 shows main factors affecting agricultural output of farmers’ cooperative on the
sample respondents

Factors Number of respondents Percentag

e

Rain fall variation, traditional method, land 30 50

fragmentation and climate change

Lack of technological in puts like, fertilizer, 14 23

improved seed, pesticides, herbicides

Soil erosion, deforestation 4 6

Lack of extension service, like, experience 4 6

sharing, farers training agricultural credit.

Lack of oxen, lack of awareness, natural 9 15

39
hazards, low fertility of land, high price of
fertilizer

Total 60 100

Source: own survey 2019

As we can see in the above table most respondents 50% of the sample respondents respond
there is high variation of rainfall, land fragmentation or small land producing by traditional
method in the areas. If there is high variation of rainfall, there will be risk and uncertainty on
the rural people when they start their activities (or to plough) because are depend on rain fall
so as to produce their agricultural products. And as the respondents said there is shortage of
land (land fragmentation), And 23% of the sample respondents have problem on lack of
technologies inputs like, fertilizer, improved seed, pesticides, herbicides, 6% of the sample
respondents affected their lands by soil erosion and deforestation are the main problems of
agricultural output, this increase from time to time due to higher population. 6% of the sample
respondents have problem on lack of extension service. 15% of the sample respondent have
problem on lack of oxen, lack of awareness, natural hazards, low fertility of land and high
price of fertilizer. By this and other factors the agriculture output of the household are
affected and influenced farmer’s production of agriculture

CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1. Conclusion
The study examined the role of agricultural farmers’ cooperative in improving agricultural
productivity of households in insuring their food security improving members income, price
input supply and supply accessibility.

Female participation in agricultural cooperative activities is very low and leads to low
agricultural output. The majority of the respondents that participated in the agricultural

40
cooperative activities are between the ages of 31_45.Most of farmers of agricultural
cooperative of Bule Hora “woreda” are illiterate and have no awareness about modern farming
system and their level of income is somewhat sufficient to improve farm level productivity,
since most of them earn medium annually from farming.

In Bule Hora woreda the farmers’ cooperative owned and cultivated land is medium size. It is
the main causes to improve agricultural output of farmer’s agricultural cooperative of the
woreda.

Most households of the farmer’s agricultural cooperative of the woreda have access to micro
finance institutions credit system, extension service, farmer training, and sharing experience
and use modern inputs like fertilizers, improved seeds and tools of agricultural. This leads to
improve agricultural farm level productivity of outputs.

Most households in the woreda have less fertile land. But by using modern fertilizer usage
leads to improve agricultural outputs. Most farmers have enough Oxen and most of the
societies use traditional production method, and traditional fertilizers, majority of the farmers
practiced ploughing by oxen, both oxen and dug.

Cultivation period of production in the Woreda is twice a year and because of rainfall
variability; soil erosion and desertification are expanding agricultural lands and increasing of
the number of population from time to time.

5.2. Recommendation
In order to improve the farm level productivity of agricultural farmers’ cooperative
output and to improve the productive capacity of farmers, the following policy
measures have to be undertaken:

 The farmers should enhance the land quality through improving soil structure, organic
matter and controlling land degrading, cropping and pasturing practice contribution to
production intensification and sustainable land use.

41
 Women’s affairs office and other educated people should work in order to change the
backward social attitudes that undermine women and increases the productive
capacity of women in agricultural cooperative production and the government should
create awareness for female and avoid bad culture influencing towards agriculture.

 woreda agricultural bureau should reduce traditional farming system by training

farmers and experience sharing in the agricultural techniques through distributing of
new technologies, expanding integrated agricultural extension services, intensive
farming and developing working habit by motivating farmers to reduce negative side of
bad working culture of farmers’ cooperative.

 Government and other credit associations found in Bule Hora woreda should go
through the provision of agricultural extension, motivation and promoting the
expansion of credit institution to the farmers’ cooperative advisory service on
continuous basis in addition proving advanced technologies.

 Modern agricultural inputs are beyond the capacity of farmer to purchase because of
their expensiveness as depicted in table 4.5.above. So government should distribute
these inputs with low price by subsidizing and providing access to credit with low
interest rate to bring desired economic development. The demand of modern fertilizers
is very low in the woreda because of high price. So the government should distribute at
low price and to increase the demand of these inputs.

 To increase agricultural output, the government should provide the infrastructure ,such
as; roads, adult education school and other related facilities to make the market
nearest to the farmers’ association.

 To increase agricultural output the government should provide the extension service to
the farmers and agricultural cooperative office managers should give training to small
scale farmers, giving advice and awareness for the illiterate farmers about importance
of modern technology, improved seeds and other mechanisms of that improving the
agricultural output.

 The farmers should use different mechanisms to control the factors affecting

42
 agricultural output like using irrigation for uncertainty of rainfall distribution, by
reforestation for conservation of forests, using crop rotation and other mechanisms
should be taken carefully.

 Research must be done on the agricultural farmers’ cooperative production or activities

so as to improve the output of the agricultural farm level productivity.

 The government should encourage farmer’s participation in cooperative by using it as a

medium to reach the farmers in giving out incentive to farmer’s father than targeting
individuals who would divert such incentive to unintended purposes.

 Extension agents should utilize cooperative farm to reach the farmers on information
to increased productivity.

 Government should empower farmers’ cooperative so as to be able to grant more

loans to farmers, as loans administered under this condition will be managed and
supervised with high resultant effect.

43
1
6. REFERENCE
 Barraket (2002) Sustainable Communities Cooperative Solution for rural renewal accora report.

 Barton. D (1998) what is agricultural cooperative in agricultural cooperative ed.o.cobial 1-20

New Jersey USA, prenficehallince.

 Bershah 2003; ETV Bule Hora documentary August 2009.

 CAD Fijian LIU HULIN .G.HOA (2010) performance evaluation on spread cooperative
organization of farmer.

 Chang Ken fun .C Menegilie (2011) performance evaluation indexes system construction on
farmer specialized cooperative.

 Clover .J. Food security in sub-Saharan, Africa Security review voles 12, 213 cooperative review
2008:

 Holloves .J Michislon co, egadoic agro industrialization cost cooperative international food
research Washington DC 1999.

 ICA (2005) http// www.ICO.coop/ accessed. September (2005).

 ICA 2008; international cooperative agency, international labor organization: 2004.

 ICA Geneva (2007) international cooperative agency volume (2004).

 Jonat 2003; agricultural development in Ethiopia Economy

 Jonat Bhutan kary (2000) Ethiopia rural development options.

 LCBA (2005) http// www.Nab.accvedion on Apr 29 2005.

 M.P. Todaro - Economic development 2nd / orgmen .London, 1994.

 Ministry of agricultural and rural development (Aug. 24, 2004), productive save net program
implementation manual.

 N.Gregaru Manliw (2000) Macroeconomics 4th edition.

 NCFC (2005) http// www.Act.ones/ accretion on output Sep 2005.

2
  USAID Coffee cooperative help small farmers let affair trade price through fair trade other
specifically coffee market Washington DC 2003.

 Volume (2 ,2004) report of Ethiopia Economic association.

7. APPENDIX
I am third year economics student in Bule Hora university, conducting a research for the
fulfilled of bachelor of art in economics under a topic (the impact of farmers’ cooperative in
improving income of households, in case of Bule Hora Woreda). I kindly request you give an
information important for the research that confidential and use only for academic purpose.
So give your answer by making (✔) in the box provided for given questions.

General information

 Demographic questions

1. Sex. Male female

2. Age. ---------------------

3. Marital status. A. Married B. Single C. Divorced

4. Family size. --------------------

5. Educational background. A. Primary B. Secondary

C. Tertiary D. Others

 Income related questions

6. Do you have another occupation in addition to farming? A. Yes B. No

. If "yes" what is your additional occupation? A. Gov.t employee B. Trading

C. Hand craft D. Others

8. Livestock holdings

No Type of Numbers of

3
 livestock livestock

1 Goats

2 Oxen

3 Sheep

4 Cows

5 Donkeys

9. What type of crop do you produce?

A. Maize B. Teff C. Sorghum D. Barley

10. For what purpose do you produce?

A. For home consumption

B. for commercialization

11. What is the annual amount of crop production /quintal? ----------------------

12. Which service do you receive from agricultural cooperative?

A. Input supply B. Seed supply

C. Technical support D. market E. others

 Questions related production methods used

13. What type of tools used to plough the farm land?

A. Tractor B. Oxen C. Traditional hand tools D. Others

14. Do you use improved seed to increase agricultural productivity?

A. Yes B. No

15. If "yes" how much the amount of improved seed used /kg? -----------------

16. The price for inputs provided by farmers is----------

4
 High Law Medium constant

17. If your answer no" 16" is high, what is your reason?

A. exist of competition for other cooperative

B. Farmers high willingness to pay

C. Lack of accessibility of inputs supply to farmers in time

18. Are you able to produce sufficient amount to feed your family?

A. Yes B. No

19. If your answer no19 is "No” what is the reason? A. Climate change

B. Absence of agreement between farmers

C. Lack of rainfall D. Geological location of farm land

20. Do you save in bank from your income? A. Yes B. No

21. If yes how much do you save per year? ---------------------------

22. Do you receive fertilizer usually? A. Yes B. No

23. If your answer is "No” what is reason?

A. Lack of awareness B. Lack of accessibility E. others

C. High cost of fertilizer D. Ability of farmers

24. What amount of fertilizer is used in each hectare per Kg. -------------------?

25. What contribution of cooperative to the society in your opinion?

A. Opportunity of employment B. Job creation to the society

C. Market contribution of output D. Others

26. Is there an improvement in your farming activists after you join cooperative?
Yes No

27. If your answer is “YES" in above questions what kind of improvement

A. Improvement in technology B. Improvement in saving credit

C. Improvement in living standard of family D. Others

27. How many times do you cultivate in a year? A. Once a year

B. Twice a year C. Three times a year

5
28. Are you familiar with crop rotation?

A. Yes B. No

29. Would you get access to credit? A. Yes B. No

How much you borrowed_______________
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