1.0 Introduction
1.1 Background of the Study
The term cooperative can be used in its generic term to cover a wide area of activities which two or more people join together either formally on adhoc or permanent basis, for legal or illegal or socially accepted or unaccepted actions to fulfill certain aims. Such action may be selfish in nature or may be in the interest of those performing the action without it being detrimental to anyone else.
However, cooperation is often used in the positive sense. It is also used in a much narrower sense to mean activities undertaken by cooperative organizations. The study of cooperation in this later sense therefore means the scientific or academic study of cooperative organizations.
Cooperative has been defined for different purpose and in slightly different ways by economists, lawyers, philosophers and others.
Precisely, cooperative is an association of persons, usually of limited means, who have voluntarily joined together their resources to achieve a common economic end and through the formation of a democratically controlled business enterprise, making equitable contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking.
Cooperative started in Great Britain in 1760. And different cooperative societies exist since then. There are types of cooperative, thrift and credit cooperative, thrift and loan, agricultural cooperative and etc.
Agricultural cooperative can be defined as cooperative societies that engage in the production, processing, marketing and distribution of agricultural products. Types of agricultural cooperative are group-farming society. Member of the society engage in the production of a variety of crops while they also arrange for the marketing of such crops. Some other agricultural cooperative is marketing cooperative.
These societies are involved in the marketing of member's products. This is done at low cost and efficiently for members benefits.
Agricultural cooperative thrift and credit these societies are concerned with the mobilization of credit and making the available to members at a low cost for either prosecution, marketing or consumption purpose. Agricultural consumer cooperative societies engages in the sale of manufactured/consumer products to members at reasonable prices they are also similar to other consumer cooperative but for the fact that they are mainly found in the rural areas while the members are mostly farmers.
Agricultural multi-purpose farmer's cooperative societies combine many of these functions as their main criteria's like production, processing of agricultural produce, marketing of the processed agricultural produce, credit facilities to members etc. The can also be known as service centers for the benefit of their members.
1.2 Statement of Problem
Most often, business activities are faced with numerous problems, which hinder achievement of their objectives. Some of these problems are posed by the vagaries in the economy such as inflation while some area high and expensive. This situation is neither of interest to the consumer nor the producers. In effect, marketing cooperative was introduced to arrest the situation especially in the rural areas, so as to bring society into the distribution sector and increase its efficiency.
Consumers cooperative are societies made up of consumers, found basically by consumer who in a bid to take advantage of mutual efforts, ensuring that the quality of goods, they buy is of high standard and at a reasonable price. The idea of consumer cooperative sprang up in Britain during the middle of the nineteenth century as a reaction to the growing exploitation of the workers by the capitalist. Goods were not only expensive, but were adulterated with in correct weights and measures.
Farmers' Multi-purpose Cooperative Society in indicating from its name, it ingrates into itself from problems farmers. As presently constituted, Farmers' Multi-purpose Cooperative Society represents about 70 percent of all cooperative found in south-east, Nigeria.
The idea of a Farmers' Multi-purpose Cooperative Society stems from the understanding that the chief occupation of rural dwellers is agriculture. So in order to accelerate significant rural resource productivity, an organization has to be found that will champion this course.
With effective financing, Farmers' Multi-purpose Cooperative Societies can undertake all the functions we have discussed. It can ever go further to provide other services, which we have not discussed like agricultural insurance and the rest. Below are ways and means through which agriculture can be better the well-being of their members they include:
- To acquire agricultural inputs
- To take advantage of the economic of scale in production, processing and buying and selling.
- To obtain credit from financial institution.
- To by-pass exploitative middlemen (money lenders, traders, miller and industrialists)
- To educate farmers and spread useful information.
1.3 Objectives of the Study
This write up focuses on the numerous problems of Farmers' Multi-purpose Cooperative Society and threats which these problems pose for the cooperative enterprise.
The study also looks are the opportunities and tries to relate them as factors necessary for social and economic development.
In addition to this, it also thrown more light on activities of cooperative societies as unique form of business organization.
Finally, this write up is also aimed in improving the general knowledge of cooperative societies for which the lack of proper knowledge on the part of the general public has contributed immensely in the set back which the cooperative societies have witness for so long leading to its delineation.
1.4 Research Questions
The research questions for the study were made up of the following:
- What are the roles of Farmers' Multi-purpose Cooperative Society in accelerating of food production?
- What are the roles of Farmers' Multi-purpose Cooperative Society towards the provision of infrastructural facilities?
- What are the various sources of finance for the cooperative in Obowo Local Government Area?
- What are the major benefits derivable from Farmers' Multi-purpose Cooperative Society in Obowo Local Government?
1.5 Significance of the Study
The important of this work cannot be over emphasize. This work will enlighten the reader and bring out the hidden problems which the cooperative societies are faced with at the same time put up some suggestions and would help in solving the problems.
This will ensure proper and well-articulated programme aimed at withstanding the problems posed against farmers' Multi-purpose Cooperative Society. The present day is a point time when bad business practices has became the order of the day, this can be attributed to people's drive to maximum profit. This brought about serious competition in the economy.
In the wake of this, this work will relate the efforts of cooperative societies in trying to curb these bad business practices with the aim of bringing a relief to the poor masses by forming Farmers' Multi-purpose Cooperative Society in ten rural areas. This believed would usher in a new socio-economic world where the suffering populace will enjoy some form of economic freedom.
1.6 Scope of the Study
The scope of this study is of the type that relate and deals on the role of Farmers' Multi-purpose Cooperative Society and how they help in the acceleration of food production in Obowo Local Government Area in Imo state. Due to the limited resources and time available for this research work, the time given for the study was too short.
Secondly, this study helps farmers to pull themselves together and their resources on a mutual or self-help basis to form a business enterprise which seek to solve economic problems of its members.
1.7 Limitations of the Study
In carrying out this study within the given scope. Some of the limiting factors that is in existence which causes the major constraints while carrying out this research work as follows:
- There is in existence scarcity of cooperative establishment with Obowo L.G.A.
- Also, the constrains face during the conduct of this research work is lack of finance or financial constraints, which if finance was provided enough, this research work would have given a more vivid study of the scope.
- Another major constraint to this research work is the unwillingness of the cooperative staff in the area of the study Obowo L.G.A to release certain document which contains vital data or information needed for this research work.
- Finally, the limitation of this study is also base on research work in order to find out the problems and give solution to them.
1.8 Definition of Terms
Farmers:
This implies individuals that are engage in cultivating and rearing of animals.
Agriculture:
This implies the engagement of people in the production, processing, marketing, storage and in the distribution of agricultural products.
Cooperative:
This means an association of people united voluntarily to meet their common economic, social, cultural needs and their respective aspirations through a jointly owned and democratically controlled enterprise.
Multi-Purpose:
This means a term or something of economical worth that engage on many different activities or purpose. On this project context, Farmers' Multi-purpose Cooperative Society engages in various functions of agricultural products.
Information:
This simply means processed data
Data:
This simply means raw facts that are not yet processed.
