COLLEGE OF AGRICUITURE

DEPARTEMENT OF AGRIBUSINESS AND VALUE CHAIN

MANAGEMENT
PRACCTICAL ATTACHEMENT ON THE ROLE OF MULTIPURPOSE
AGRICUITURAL COOPERATIVE PRODUCTION MARKETINGIN
OFFA WOREDA SNNP REGIONAL STATE OF ETHIOPIA

SET BY: SINTAYEHU GEDEFEW

ID NO .AGR 045/10
 ADVISER: METAGESE BELETE (Msc)

October 2019

Wolaita sodo, Ethiopia

ACKNOWLEDGMENT

First of all, I would like to thank GOD for his miraculous time to accomplish everything. I
start, and for his help to go through every event successfully up to this time. I went to confess
that, I never do any things entirely by myself many people contributed their knowledge and
experience to this practical attachment. So, I would like to thank this opportunity to them for
their generous help. I would also like to thank my advisor Metages Belete (Msc)for his
genuine and energetic encouragement and constructive comments throughout the preparation
of this practical attachment.Iam grateful to farmer of Offa who responded to all question with
patience and gave necessary information for this study and for their lovely intraction during
my attachement.
 ABBREVIATIONS AND ACRONYMS

GDP Gross Domestic Production

ICA International Cooperative Alliance

ILO International Labor Organization

SWOT Strength, Weakness, Opportunity, Threat

 Contents
ACKNOWLEDGMENT................................................................................................................. 2

ABBREVIATIONS AND ACRONYMS ....................................................................................... 3

LIST OF TABLES .........................................................................Error! Bookmark not defined.

1. INTRODUCTION ...................................................................................................................... 6

1.1 Background of the Organization ........................................................................................... 6

1.1.1 Vision of the organization .............................................................................................. 6

1.1.2 Mission of the organization ............................................................................................ 2

1.1.3 Values of the organization .............................................................................................. 2

1.1.4 Objectives of the organization ........................................................................................ 2

1.2 Right and duties of cooperative members ............................................................................. 3

1.2.1 Rights .............................................................................................................................. 3

1.2.2 Duties .............................................................................................................................. 3

1.3 Objective of the attachement ................................................................................................. 3

1.3.1 General objective ............................................................................................................ 3

1.3.2 Specific Objectives ......................................................................................................... 3

2. LITERATURE REVIEW .......................................................................................................... 4

 2.1 what is cooperative? ...................................................................................................4

2.2 Basic Concepts of Cooperative...................................................................................4

2.3 Stracture of cooperative society .......................................................................................... 4

2.3 Role of Cooperatives in value chain development ................................................................ 5

2.4 principles of cooperatives...................................................................................................... 6

2.5 Agricultural cooperatives ..................................................................................................... 7

3. METHODOLOGY ..................................................................................................................... 7

3.1 The attachment area .............................................................................................................. 7

3.2 Sampling design...........................................................................................................................6

3.3 source of data collection ...............................................................................................................6

4. DATA PRESENTATION AND DISCATION .......................................................................... 8

4.1Multipurpose Agricultural cooperative production market related works.................7

4.1.1 Collaburative production of marketing ....................................................................7

4.1.2 Collaburative service for marketing .........................................................................7

4.1.3 The importance of marketing collaburative .............................................................7

4.2 SWOT analysis of the organization ...................................................................................... 8

4.3 Strength:-are inherit capacity which an organization can use to gain strategic advantage
............................................................................................................................................... 11

4.4 Weakenes . 11

4..5 Opportunities ...................................................................Error! Bookmark not defined.

4.6Threats .............................................................................................................................. 12

4.7 marketing chain. .........................................................................................................8

5. SUMMARY, CONCLUSION AND RECOMMENDATIONS .............................................. 13

5.1 Summary ............................................................................................................................. 13

 5.2 Conclusion........................................................................................................................... 14

5.3 Recommendations ............................................................................................................... 15

6. REFERENCE ............................................................................................................................ 15

1 INTRODUCTION

1.1 Background of the Organization

The office which I practice multipurpose Agriculture cooperative is production marketing was
established in 1998 Offa woreda in the part of south nation nationality gesuba town wolaita sodo
zone.

The growth of agricultural production in offa wereda has not been able to keep with that of
demand, because of lack of awareness on farmers. The most important obstacles to the
development of Ethiopia ‘s agriculture are limited to access of agricultural credit, inefficient
input delivery system ,low price of agricultural products and poor infrastructural facilities
like road, electricity and water.

In environment like this, economic collective action is one strategy used by small farmers to
meet direct economic need and it is called agricultural cooperative. They are based on the
values of self-help, self-responsibility, equality, equity and solidarity. The objectives of
agricultural cooperatives will be increasing production thrown equation of modern means of
production and raising their income. Vision, Mission and value of the Organization
.multipurpose Agricultural cooperative has total of to 70 member.
 1.1.1 Vision of the Organization

To see excercise of cooperative society to sustainable strength economic level and to
create self confidence community.
To see sustainably and economically developed and self-confidentialpeopleinOffaworeda

1.1.2 Mission of the organization

To increase economic opportunity and benefit for peopel in the Ethiopia by fast ring the
growth and success all types of cooperative .
Create cooperation among different societal groups voluntarily and democratically.
Develop modern accounting system by giving education and training for members.
Develop sustainable marketing ,saving and credit service
Increase number of agro industries and improve standards of the members as well as
increase the development of the region.

1.1.3 Values of the organization

 self-help
 self-responsibility
 democratic
 equity
 equality and
 solidarity

1.1.4 Objectives of the organization

To solve problems in group, which are difficult to solve individually

To get better result using member’s knowledge, capital and energy
To increase production and productivity of members by using modern means.
To give service at discount and members produce at better price.
 To reduce loss of income of individual members by working together.
To develop members social, economic, cultural wellbeing by giving education and
training.

1.2. Right and duties of cooperative members

All cooperative members have both rights and duties.

1.2.1. Rights

 Use services of the cooperative.

 The right to vote and to be selected
 Participate on the cooperative meeting.
 A right to be informed
 A right to be involved in the decision making

1.2.2. Duties

 paid lottery and applicant payment

 Protect the cooperative from damage and secure it’s secrete.
 Be participant in the jobs of the cooperative.

1.3. Objective of the attachment

1.3.1. General objective

The general objective of the attachment is to assess the role of multipurpose agricultural
cooperatives in production marketing improving the households in case of multipurpose
cooperative in Offa woreda.

1.3.2. Specific Objectives

The specific objectives of the practical attachment are:
 1. To identify factors limiting the development of agricultural cooperatives in the
attachment area.
2. To know the behavior, structure, operation and integration of different functional areas
of the organization both in the internal and external environment.
3. To know the SWOT of the organization in case of cooperative.

2.LITRATURE REVIEW
2.1 what is cooperative ?

cooperative society means society established by individual an voluntary basis to collectively

solve their economic and social problem to democratically mange some .

2.2 Basic Concepts of Cooperatieve

The traditional organizations like idir, iqub, debo, wonfel and traditional
formsofassociations, which should be basis to modern form of cooperatives in Ethiopia,
(cooperative management module

2.3stracture of cooperative society

 General

Assembly
executive
Control
committee
committee

Employer
committee Sale/purchase
committee Educational
Loan
committee
committee

2.4 Role of Cooperatives in value chain development

Currently, cooperatives are recognized as an imported instrument for socioeconomic

improvement of the community. It is important for:

 Agricultural marketing
 production and productivity enhancement
  infrastructure development
 investment opportunity
 human resource development
 cost effective ways of managing both large and small farms
 promote labor efficiency
 rural development
 promote social enterprises in rural areas

2.5Principles of cooperatives

Principles are the ideas inherent in cooperation, which determine and used as a mode of action.
Those principles are listed below

A. Voluntary and open membership: which means that cooperative is open to all persons who
need and are able to use the service of cooperatives and willing to accept the responsibilities
of membership without any discrimination.
B. Democratic control: cooperatives are democratic organizations controlled by their members
who actively participate in setting their policies and making decisions. All members have
equal right to vote and to be elected. Cooperatives have “one member one vote” rule.
C. Member economic participation: members contribute equitably and democratically control
the capital of their cooperative.
D. Autonomy and Independence: cooperatives are autonomous, self-help organizations
controlled by their members. They are organized without any foreign influence.
E. Education, Training and Information: cooperatives provide education and training for their
members, elected representatives, managers and employees. They also provide market
information and whether for casting information’s for their members.
F. Cooperation among Cooperatives: cooperatives should cooperate among them serves rather
than compete with their own constituent members.
G. Concern for Community: cooperatives work for the sustainable development of their
communities through policies approved by their members.
2.6 Agricultural cooperatives

Agricultural cooperatives carry out what all other cooperatives carry out. But perform in a way
that is specific to farmers. This may include pooling of resources to buy seed, sell grain store or
even help with marketing efforts. To achieve this; securing higher price of their product,
lowering input cost, achieve higher production level and have large profit margins, employing
their members, introducing their innovations are the most important.

3 METHODOLOGY

3.1 The Attachment Area

This practical attachment was given by wolaita sodo University which is found in Offa Woreda
that located in south national natinality region wolaita zone and the practical attachment is
done in multipurpose agricultural cooperative production market inOffa Woreda.

3.2 Sampling Design

As the attachment focused on management of multipurpose agricultural cooperatives production

marketing in case of multipurpose agricultural cooperative in Enzit by using simple random
sampling by taking five persons from the total members.

3.3 Source of Data and Methods of Data Collection

To achieve the objectives of the attachment, combination of suitable qualitative and quantitative
data were collected. For this attachment both primary and secondary sources of data has been
used. Data were collected from members and nonmembers of the cooperative, from the
community directly, using interviews. On the other hand, secondary sources of data were
collected from annual reports and by viewing different documents of the method of data
collection.
 CHAPUTER FOUR
4 DATA PRESENTATION AND DISCATION

4.1multipurpose Agriculturalcooperative production marketing related workes

-monitoring the distribution of the soil fertilizer supply .

- preparation of credit service .

- developing a business plan .

-monitoring of union infrastructure .

-establishement of agricultural productio.

- Tracking the debt consolidation of soil fertilizer supply debt .

4.1.1collaburative production of cooperative

- marketing of Agricultural and other type

- marketing of inventory products produced by cooperative

- industrial inputs and products offereds product

- value added product

4.1.2Collaburative service for marketing

- Transport and mechanization service

-Thechnology

- warehouse marketing
- industrial goods product marketing

- Agricultural production and marketing

4.1.3The importance of marketing cooperative

° It ensures the ownership and use of their products to the end users .

° It allows members product to be securely priced in time and volume .

° To find out what the producers want to do with the consumers .

° It reduce unnecessary actors on the market .

DATA PRESENTATION

After the required data is gathered as well as processed the data is presented by using tables .

Table 1: Sexual structure of the members in 2011 E.C

S e x N u m b e r

M 4 5
F 2 5
T o t a l 7 0

Source: Own computation from survey result, 2019

From the above table1 45 are male 25 are female cooperative members. This indicates male
members are more than female members in the organization based on their participation.

Table 2: sales during 2011

sale in quintal 2 0 1 0 2 0 1 1 T o t a l
m u l t i p u r p o s e 1 1 8 5 0 8 0 0 6 0 9 1 9 1 0
s o y a b e a n 1 4 0 0 1 4 3 6 2 8 3 6

Source: Own computation from survey result, 2019

The above table 2 indicates that the demand of agricultural products on the market and its
productivity vary from time to time and year to year.

Factors that limit the development of cooperatives in the attachment area

Lack of government initiation

From the data collected, the respondents said that government sectors have lack of initiation for
implementation of members and nonmember's ideas.

Lack of capital

Capital is the back bone for any business activities. Members of cooperative activities are
suffered by lack of capital. Because it is organization of poor people, Sothey cannot afford to
expand the size of their business.

Lack of cooperation and information sharing

In the organization there is lack of cooperation and information sharing among members of the
cooperative.

Land shortage

It is clear that land is the main resource for different activities. So, land is the main determinant
the promotion and development of agriculture. From the data collected, there is shortage of
access of land especially for younger groups of the members.
Lack of suitable road

Especially in summer season there is problem of road for supplying inputs like improved seed,
fertilizer, goods and soon for members and nonmembers.

4.2 SWOT analysis of the organization

4.3 Strength
Are inherit capacity which an organization can use to gain strategic advantage.

 He has the idea that Icanwork on my own .

 comittee are informed by knowledge .
 Increasing women participation
 Increasing member’s satisfaction
 Delivering dividend to members
 Buying (purchase) and selling members produce
 Giving stack service

2.4 Weakens

Are inherent limitations which are strategic disadvantage

 Not using itin the building it self

 Not all members are required todo the marketing of the product they produce
 failure to perform tasks as requred
 Problem in controlling and monitoring
 Lack of members’ awareness
 Lack of financial resource
 Poor product quality
 Existence of un honest members that leads to loss
 Limited experience and practice on value chain
2.5 Opportunities:

Are favorable conditions in the organization which enables its consolidation and strengthen its
position

 Economic growth
 Giving service at discount for members
 Existence of good weather condition
 Large numbers of members and users
 Existence of good transportation facility
2.6 Threats:
 are unfavorable condition in the organization’s environment which cause damage to the
organization
 Lack of quality
 Lack of market condition
 Its geographical location is not suitable
 Late delivery of fertilizers
 Lack of fair treatment among users
 Lack of input supplies like oil and sugar
 Lack of government initiation
 Lack of cooperation and information sharing
 Land shortage especially for younger groups of members

Products addressed four members the many products achieved for members. These products are
purchased from super market and there is located in others. The cooperative also buys her sodo
branch from individual farmers who products with profitable an average price than
merchant and retailers even though cooperative have product it cannot produced and add
variables it .

* product market are listed below :-

 Sugar
 Sesame
  Oil
 Sonebeen
 Agricultural extension service

4.7 Marketing chain

The cooperative has many channels of interaction including in worked (district) and zonal level
through purchase and service purchase and selling of different cooperative product.

 How product purchased

As cooperative managers told and as have examined from whose products are purchase from
marked and there union these producer

Purchase trainers’ persons.

Cooperative Union ECX

Farmer

Figure 1: Chain of product purcased by cooperative

5 SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents the overall view of the practical attachment by summarizing and
conclusion to forward constrictive recommendation for basic problems of the attachment area.

5.1. Summary

 The general objective of the attachment is to assess the management system and role of
multipurpose agricultural cooperatives in improving the production marketing of in case of
cooperative .
 The most important obstacles to the development of Ethiopia´s agricultural cooperatives are
limited to access of agricultural credit, inefficient input delivery system, low price of
agricultural products and poor infrastructural facilities like road, electricity, water and soon.
 The attachment is used to assess the role of multipurpose agricultural cooperatives
production marketing on the lmprove that enables to develop understanding of the
objectives, to know the role of cooperatives for economic development in reducing
unemployment, income generating and poverty reduction in order to improve the living
standard of the members and communities in that Woreda.
 Cooperatives are recognized as an important instrument for socio economic improvement of
the community. Those are agricultural marketing, production and productivity enhancement,
infrastructure development, investment opportunity, human resource development promote
labor efficiency, rural development and promote social enterprises in rural areas.
 The principles and values of cooperatives adopted by :-
 voluntary and open member ship, democratic control, member economic participation,
education, training and information, cooperation among cooperatives, autonomy and
independency, concern for community self-help, self-responsibility, democracy, equality,
equity and solidarity.
 For this attachment both primary and secondary sources of data have been used. The primary
data were collected from members and none of the cooperative, from the community directly
using interview, and key informal interviews. On the other hand, secondary sources of data
were collected from annual reports and by viewing different documents of the cooperative.
 The cooperative has a total of 70 members .

5.2. Conclusion
In countries like Ethiopia, farmers are characterized by small fragment land and subsistence.
Therefore, the creation of effective and viable multipurpose agricultural cooperative production
marketing is necessary in order to improve the living standard of the society. Most part of the
people has no access land. The problem of land becomes a critical issue especially for those
younger groups of farmers in the attachment area.

Generally, the performance of a given multipurpose agricultural cooperative depends on the

extent of participation by the members and communities. But the participation of the
communities in cooperatives is low .Because of awareness problem, Lack of credit facilitation
and lack of capital that provides sufficient information about the nature and purpose of
cooperatives.

Even if the multipurpose agricultural cooperative of the attachment area plays an important role
in improving the living standard of members, it`s development is limited by different factors like
late delivery of fertilizers, super oil and other goods, fair treatment of members, it's geographical
location, poor product quality and un honest members.

5.3. Recommendations
Based on the observation and data collected, the following points are recommended as key
recommendation.

 From the data as identified there is difficult to have access credit facility of members’
cooperative. So, the government should provide access of credit facility in order to increase
the efficiency of the marketing system, to promote cooperatives development in the rural
sector of the country's economy and induce the profitability of current economic activities.
 From survey data, there is a problem of controlling and monitoring the cooperatives
activities, in order to overcome the problems, cooperative office have to provide equal
services to all cooperatives in terms of monitoring their activities, evaluating their
performance, in giving up to date market information and in the provision of technical
support with respect to cooperative and manage.
 The members and non-members should supply a quality product to the cooperative.
 The cooperative members should be honest each other in order to attract the non-members
and members of the cooperative.
 The government should initiate the members and non-members in order to motivate their
participation to cooperatives.

REFERENCE
- connect directly interview ,
- other cooperative /mannual
- study aera