EFFECT OF FARMER COOPERATIVES ON SMALLHOLDER RICE PRODUCTION IN EDO STATE, NIGERIA
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Abstract
This study was carried out to examine the effect of farmers’ cooperatives on smallholder rice production in Edo State, Nigeria. Specifically, the study sought to: describe the socio- economic characteristics of rice farmers in the study area; profile the rice farmers’ cooperatives; examine the roles performed and services rendered by the cooperatives; compare the costs and returns of cooperative and non-cooperative rice farmers production; determine the effect of cooperative membership on rice yield; and examine the constraints facing cooperatives in promoting rice production. A multi-stage sampling procedure was used to select 260 rice farmers comprising 130 cooperative and 130 non-cooperative rice farmers. Data were analyzed using descriptive statistics, Relative Importance Index, cost and return analysis, t-test, and regression analysis. The findings revealed that the average age of cooperators was 45 years, while the average age of non-cooperators was 47 years. Additionally, the study revealed that majority of the cooperators (68.5%) and non-cooperators (75.4%) were males. Most rice farmers, cooperators (92.3%) and non-cooperators (80.0%) were married, with an average household size of seven persons for both cooperators and non-cooperators. Additionally, cooperators agreed to a high extent that cooperatives assisted members with farm implements (RII = 0.908), facilitated access to land (RII = 0.898), provided access to farm inputs (RII = 0.878), and supplied market information (RII = 0.863), among other services. Profitability analysis revealed that cooperative farmers recorded higher gross margins and net incomes of ₦519.68 and ₦499.23 per kg rice, respectively compared to ₦415.48 and ₦376.10 per kg rice for non-cooperative farmers, with a statistically significant difference (t = 4.8672) between both groups. Furthermore, regression analysis showed that cooperative membership, educational status, and farm size were positive and statistically significant at the 1% level, while age was negative and farming experience positive and were significant at the 10% level, indicating these variables as major determinants of rice yield. The major constraints affecting cooperatives included unfavourable government policies, inadequate support, and poor funding. The study concluded that cooperatives positively influenced rice farmers’ production and income. And recommended that Non-member farmers should be encouraged to voluntarily join or form cooperatives to access shared resources, economies of scale, and collective bargaining, thereby improving productivity and income and also strengthening institutional support to enhance the effectiveness of farmers’ cooperatives.This study was carried out to examine the effect of farmers’ cooperatives on smallholder rice production in Edo State, Nigeria. Specifically, the study sought to: describe the socio- economic characteristics of rice farmers in the study area; profile the rice farmers’ cooperatives; examine the roles performed and services rendered by the cooperatives; compare the costs and returns of cooperative and non-cooperative rice farmers production; determine the effect of cooperative membership on rice yield; and examine the constraints facing cooperatives in promoting rice production. A multi-stage sampling procedure was used to select 260 rice farmers comprising 130 cooperative and 130 non-cooperative rice farmers. Data were analyzed using descriptive statistics, Relative Importance Index, cost and return analysis, t-test, and regression analysis. The findings revealed that the average age of cooperators was 45 years, while the average age of non-cooperators was 47 years. Additionally, the study revealed that majority of the cooperators (68.5%) and non-cooperators (75.4%) were males. Most rice farmers, cooperators (92.3%) and non-cooperators (80.0%) were married, with an average household size of seven persons for both cooperators and non-cooperators. Additionally, cooperators agreed to a high extent that cooperatives assisted members with farm implements (RII = 0.908), facilitated access to land (RII = 0.898), provided access to farm inputs (RII = 0.878), and supplied market information (RII = 0.863), among other services. Profitability analysis revealed that cooperative farmers recorded higher gross margins and net incomes of ₦519.68 and ₦499.23 per kg rice, respectively compared to ₦415.48 and ₦376.10 per kg rice for non-cooperative farmers, with a statistically significant difference (t = 4.8672) between both groups. Furthermore, regression analysis showed that cooperative membership, educational status, and farm size were positive and statistically significant at the 1% level, while age was negative and farming experience positive and were significant at the 10% level, indicating these variables as major determinants of rice yield. The major constraints affecting cooperatives included unfavourable government policies, inadequate support, and poor funding. The study concluded that cooperatives positively influenced rice farmers’ production and income. And recommended that Non-member farmers should be encouraged to voluntarily join or form cooperatives to access shared resources, economies of scale, and collective bargaining, thereby improving productivity and income and also strengthening institutional support to enhance the effectiveness of farmers’ cooperatives.
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