1.1 Introduction
Cooperative marketing is both a physical distribution and one economic bridge designed to facilitate the movement and exchange of commodities. A basic purpose of marketing cooperative is to strengthen the bargaining power of formers in the market. And the function of marketing cooperatives is to sell or market products (usually form produce) on behalf of the members. Cooperative marketing helps members in exchanging the productivity of agricultural products thereby increasing the finances of cooperative. Cooperative marketing helps in promoting Nigerian’s image in other world.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
The first documented cooperative settlement in human history was that started by the Essence at Eiricydi on the coast of the Dead Sea (Odey, 2009). All of them were free and owned everything in common. In Britain and France, workers, as a result of the impact of the Industrial Revolution spontaneously organized cooperative societies of all sorts, while intellectuals and philanthropists such as Owen in 1858, and his contemporariesinitiated carefully planned, ideologically motivated corporative communities.
In England, the idea of establishing cooperative organization was mooted and invigorated by Robert Owen in collaboration with his Rochdale pioneers (Obasse, 2012; Ebi, 2014). This organization began in Road Lane, Rochdale in 1844. This particular group of weavers led by Charles Howath met regularly throughout 1844 to discuss on what could be done to improve their working conditions, and of the less privileged workers, artisans, consumers, traders and farmers who were relegated to the background by the capitalist economic system prevalent during this period and arising from the aftermath of the Industrial Revolution.
The Rochdale principles which guided this early cooperative society stipulated the following as its modus operandi: open and voluntary membership; any consumer was free to join, and there were no restrictions to sex, race or social status; democratic control of one man, one vote; political and religious neutrality, limited interest on capital, cash trading at market price, all sales were made at prevailing prices for cash only, patronage dividends proportional to their purchases, and the regular education of their members. Latercooperators added eight more principles which included the first successfully organized cooperative society (Ebi, 2014).
Therefore, in Ogbo-effere Onitsha Co-operative Society Limited where the research was carried out, the activities that was conducted is to know the Co-operative Marketing and Transportation in Anambra State.
1.3 Statement of Problems
The cooperative marketing are facing a lot of problems most of cooperatives are not educated and this has affected the efficient management of their societies. They are ignorant of modern methods and principles of management and do not make use of the marketing concepts in their activities. This has resulted in most societies nor measuring up to expectation and even most cooperative society folding up.
Another problem lies in the supervision of these cooperative societies. The cooperative inspectors from the ministry are not discharging their duties effectively, so most of the inspector complained of lack of transportation.
Finance has also been a major problem where cooperative marketing societies are. Most of them are from low income group and as such cannot raise sufficient capital for the smooth running of the societies. An even finance from external service is very difficult to get and when granted, these societies feel very reluctant to pay back the money. These are also cases of misappropriation of funds by some members and officials of these societies.
1.4 Aim and Objectives of Study
The aim of the study is to scrutinize the Co-operative Marketing and Transportation in Anambra State using Ogbo-effere Onitsha Co-operative Society Limited as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To know the extent to which transportation poses a problem to cooperative marketing.
- To find out the effects of the transport problems in marketing societies.
- To find out the steps token through cooperative marketing to resolve the transportation challenges they face.
- To make useful recommendations on possible ways of further resolving the transport problem of marketing societies.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- To what extent does transportation poses a problem to cooperative marketing?
- What are the effects of the transport problems in marketing societies?
- What is the steps token through cooperative marketing to resolve the transportation challenges they face?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: Cooperative marketing does not resolve the transportation problems by them.
- H1: Cooperative marketing resolves the transportation problems faced by them.
1.7 Significance of Study
This project will provide information about usefulness and importance of Ogbo-Efere Onitsha Cooperative Society. it will make members to appreciate the services of marketing cooperatives. Above all, it will service as a reference for future research in this area. This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The study focuses on the Co-operative Marketing and Transportation in Anambra State using Ogbo-effere Onitsha Co-operative Society Limited as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Cooperative Republic or Common Wealth: This means independent state of group of federation cooperative communities.
Statutory Function: These are functions which impose on an organization as a result of the law establishing it.
Bulk Purchase: This involves buying of thing in large quantities or sizes.
Patronage Rebases: This deals with discounts on the amounts cooperatives members are expected to pay.
