A study on the Role of Multipurpose Cooperatives in Grain Marketing in Gozamn Woreda, Amhara region, Ethiopia

Abstract

The main purpose of this study was to evaluate the grain marketing role of multipurpose cooperatives in Gozamn woreda. It is widely accepted that multipurpose cooperatives are human associations organized for the benefits of members through collective efforts. Having recognized this, the researcher has conducted this study by focusing on the grain marketing roles and the influencing factors. To this end, data were collected from primary and secondary sources. Four primary cooperatives and 150 individuals were randomly selected in proportion to the membership size of the cooperatives. The data were collected through structured interview and focus group discussion. Both descriptive statistics and econometric analysis were employed for analytical purpose. The result shows that from the total respondents, 58.67% were not involved in marketing of teff and wheat through cooperatives while 22%, 11.33% and 8%, of the respondents sold in the ranges of : 0.5-2.00, 2.01-4.00, 4.01-6.00 quintals of teff and wheat through multipurpose cooperative respectively in 2008/09. The descriptive statistics indicated that the marketing share of cooperatives out of the total marketable surplus was 14%. Some categorical variables like, qualified employees, purchase period, and weather condition showed significant differences between groups at less than at p<0.05 probability level. In the regression analysis, variables like cooperative purchase price, patronage refund, distance of the multipurpose cooperative from the house hold residence, access to market information, farming experience and access to fertilizer were found to have significant relationship to the quantity of teff and wheat sold through cooperatives. Among these significant variables cooperative purchase price, patronage refund, access to market information , farming experience and , access to fertilizer have positive relationship while distance of the multipurpose cooperative from the house hold residence has negative relationship with quantity of teff and wheat sold through multipurpose cooperatives. Based on the result, responsible organizations need to give due attention to overcome strengthen, build their capacities mainly in grain marketing management, internal control, members participation and decision making that ultimately could increase sense of ownership on the part of members and to attain the immense roles and objectives of cooperatives.