CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA

Background of the research: Agricultural cooperatives are established for the sake of improving the livelihood of smallholder farm households through improving their profitability. However, due to several challenges facing the cooperatives, their establishment may not guarantee such an achievement....

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Autores principales:	Yonas Abera MAMO, Jema HAJI, Belaineh LEGESSE, Maria SASSI
Formato:	article
Lenguaje:	EN
Publicado:	Slovak University of Agriculture 2021
Materias:	agricultural cooperatives profitability impact psm potato Agriculture S Agriculture (General) S1-972
Acceso en línea:	https://doaj.org/article/8c3d7458a45c4e3ba28cdd24ca046d9d
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spelling	oai:doaj.org-article:8c3d7458a45c4e3ba28cdd24ca046d9d2021-11-10T21:23:34ZCHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA1336-926110.15414/raae.2021.24.02.62-77https://doaj.org/article/8c3d7458a45c4e3ba28cdd24ca046d9d2021-10-01T00:00:00Zhttps://roaae.org/wp-content/uploads/RAAE_2_2021_Mamo_et_al.pdfhttps://doaj.org/toc/1336-9261Background of the research: Agricultural cooperatives are established for the sake of improving the livelihood of smallholder farm households through improving their profitability. However, due to several challenges facing the cooperatives, their establishment may not guarantee such an achievement. Hence, it is essential to empirically verify their impact on profitability of the smallholder farm households. Purpose of the article: The purpose of this study is to measure the impact of agricultural cooperatives on profitability of small holder potato farmers in Eastern Ethiopia. Methods: The study was conducted making use of survey data on members and non-members of agricultural cooperatives in Eastern Hararghe based on multi-stage sampling method. Simple inferential and econometric methods of data analyses were carried out. The simple inferential analysis involves mean comparison tests whereas the econometric analysis is related to PSM method along with simulation-based sensitivity analysis. Findings and value added: The inferential analysis indicates that there is no significant difference in per unit profit between members and non-members. This result also holds true with disintegration of components of the profitability into per unit price, per unit cost of production and per unit cost of marketing. The PSM result also shows that, except the slightly significance for per unit cost of production in favour of non-members, there is no significant difference in terms of per unit profit, per unit price, and per unit cost of marketing. The result implies that membership to cooperatives does not guarantee positive impact on profitability of its members. Recommendation: Therefore, it is recommended that strict follow-up is crucial on the cooperatives’ performance; agricultural cooperatives better be functional in all aspects attached to profitability of farmers; active participation of member farmers is inevitable; frequent and regular trainings are also necessitated in order to build the managerial capacity of the leaders; and there should be clear framework of coordination in production and marketing activities. The other mentioned challenges should also be considered.Yonas Abera MAMOJema HAJIBelaineh LEGESSEMaria SASSISlovak University of Agriculturearticleagricultural cooperativesprofitabilityimpactpsmpotatoAgricultureSAgriculture (General)S1-972ENReview of Agricultural and Applied Economics, Vol 24, Iss 2, Pp 62-77 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	agricultural cooperatives profitability impact psm potato Agriculture S Agriculture (General) S1-972
spellingShingle	agricultural cooperatives profitability impact psm potato Agriculture S Agriculture (General) S1-972 Yonas Abera MAMO Jema HAJI Belaineh LEGESSE Maria SASSI CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
description	Background of the research: Agricultural cooperatives are established for the sake of improving the livelihood of smallholder farm households through improving their profitability. However, due to several challenges facing the cooperatives, their establishment may not guarantee such an achievement. Hence, it is essential to empirically verify their impact on profitability of the smallholder farm households. Purpose of the article: The purpose of this study is to measure the impact of agricultural cooperatives on profitability of small holder potato farmers in Eastern Ethiopia. Methods: The study was conducted making use of survey data on members and non-members of agricultural cooperatives in Eastern Hararghe based on multi-stage sampling method. Simple inferential and econometric methods of data analyses were carried out. The simple inferential analysis involves mean comparison tests whereas the econometric analysis is related to PSM method along with simulation-based sensitivity analysis. Findings and value added: The inferential analysis indicates that there is no significant difference in per unit profit between members and non-members. This result also holds true with disintegration of components of the profitability into per unit price, per unit cost of production and per unit cost of marketing. The PSM result also shows that, except the slightly significance for per unit cost of production in favour of non-members, there is no significant difference in terms of per unit profit, per unit price, and per unit cost of marketing. The result implies that membership to cooperatives does not guarantee positive impact on profitability of its members. Recommendation: Therefore, it is recommended that strict follow-up is crucial on the cooperatives’ performance; agricultural cooperatives better be functional in all aspects attached to profitability of farmers; active participation of member farmers is inevitable; frequent and regular trainings are also necessitated in order to build the managerial capacity of the leaders; and there should be clear framework of coordination in production and marketing activities. The other mentioned challenges should also be considered.
format	article
author	Yonas Abera MAMO Jema HAJI Belaineh LEGESSE Maria SASSI
author_facet	Yonas Abera MAMO Jema HAJI Belaineh LEGESSE Maria SASSI
author_sort	Yonas Abera MAMO
title	CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
title_short	CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
title_full	CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
title_fullStr	CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
title_full_unstemmed	CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA
title_sort	challenges of agricultural cooperatives and their impact on profitability of potato growers in eastern ethiopia
publisher	Slovak University of Agriculture
publishDate	2021
url	https://doaj.org/article/8c3d7458a45c4e3ba28cdd24ca046d9d
work_keys_str_mv	AT yonasaberamamo challengesofagriculturalcooperativesandtheirimpactonprofitabilityofpotatogrowersineasternethiopia AT jemahaji challengesofagriculturalcooperativesandtheirimpactonprofitabilityofpotatogrowersineasternethiopia AT belainehlegesse challengesofagriculturalcooperativesandtheirimpactonprofitabilityofpotatogrowersineasternethiopia AT mariasassi challengesofagriculturalcooperativesandtheirimpactonprofitabilityofpotatogrowersineasternethiopia
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CHALLENGES OF AGRICULTURAL COOPERATIVES AND THEIR IMPACT ON PROFITABILITY OF POTATO GROWERS IN EASTERN ETHIOPIA

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