Analysis of Cooperative Member Participation in Agricultural Input and Output Marketing: The Case of Damote Gale District of Wolaita Zone in Ethiopia

Abstract

This study was conducted to identify determinants of cooperative member participation in agricultural input and output marketing at Damote Gale district of Wolaita Zone in Ethiopia. A multi-stage sampling technique was used to obtain a sample size of 120 cooperative members. Quantitative data from primary sources were collected through household survey while qualitative data were collected through key informant interview, focus group discussions and personal observations. Data were analyzed using liquidity ratio, debit ratio, profitability ratio and binary logit model. The result showed that 42% of cooperative members were participants in agricultural input and out marketing whereas 58% were non-participants. With regard to debt ratio and profitability ratio, Buge, Gacheno and Ade Charake cooperatives performed below the desirable rate. For example, the profitability ratio of Buge and Gacheno marketing cooperative was negative that couldn’t satisfy bank interest rate of financial institutions from which they borrowed money. The binary logit model result showed that participation decision of cooperative members in agricultural input and output marketing was significantly determined by household size, landholding, credit access, input and output marketing outlets, distance to cooperative marketing center from member home, perceived satisfaction of members due to joining of cooperative, distance from member home to extension office and off farming activities. Out of 8 significant explanatory variables, perceived satisfaction of members due to joining cooperative, distance from member home to extension office, distance from member home to cooperative marketing center and household size determined participation decision of members in agricultural input and output marketing negatively and significantly while the other four variables determined positively and significantly. Limiting the increasing population pressure, promoting income-generating activities, enhancing share capital contribution, enhancing micro-financing efficiency, infrastructural facilities and information dissemination, educating and training of members in cooperative marketing were recommended to enhance member participation in agricultural input and output marketing.