THE IMPACT OF AGRICULTURAL MARKETING CO-OPERATIVE ON PALM OIL SALES PROMOTION IN AWKA NORTH LOCAL GOVERNMENT AREA OF ANAMBRA STATE.
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ABSTRACT
The impact of agricultural marketing cooperative on sales promotion cannot be overemphasized. This has prompt the researcher to carryout a research work on the subject matter, the research started by introducing the subject matter in chapter one, background of the study, objectives of the study, research question, statement of the problem the significance of the study was also highlighted in this chapter. The researcher reviewed the work of different authors in the chapter two, the concept of cooperative, meaning of agricultural cooperative, the impact of agricultural marketing cooperative on sales promotion, the role of agricultural cooperative improving the intensive at farming activities. The researcher discussed the method of gathering data, the data gathered were analyzed in chapter four. Lastly, the researcher draw a summary of findings, conclusion in chapter five and made some recommendations among which the researcher recommended that dishonest leadership should be discouraged in cooperative ventures. This should be done by putting in place, adequate checks and balances in the performances of such members. Their excess should be properly controlled. Members who show an act of dishonesty should be properly sanctioned and penalized according to the stipulations of the cooperative law.
Background of the Study
Agriculture is a significant sector in Nigeria’s economy and the economic mainstay of the majority of households in Nigeria. It has a strategic importance in the fight against poverty and famine and ensuring food self-sufficiency (Biam, 2012). It contributes about 45% of the Gross Domestic Product (GDP), employs two third of total labour force and provides livelihood for over 90% of the rural population (Ademosun, 2000). In recent years, agricultural productivity in Nigeria has declined due to various decisive constraints and limitations. This decline in agricultural production coincides with the nation’s oil boom. Onuk (2015) reported that some of the factors responsible for Nigeria’s food insufficiency are low crop yields, use of traditional low yielding crop varieties, inconsistent macro-economic policies, pests and disease outbreak, wrong choice of enterprise combination and cropping systems. The food demand-supply gap that has been created resulted in increased rate of importations and high rate of food prices due to supply despite food importation.
World production of palm oil had increased tremendously during the last 30 years as a result of rapid expansion of oil palm planting in South East Asian countries spearheaded by Malaysia and Indonesia. Significant amounts of palm oil continue to be produced by the traditional producer countries in West Africa but the growth was much slower. Nevertheless, toward the end of the 1980s, Cote d’Ivoire has emerged as a leading palm oil producer and exporter in Africa Nwauwa (2010). Olagunju (2011) puts the worldwide palm oil production during the 2005-2006 growing season at 39.8 million metric tons, of which 4.3 million tons was in the form of palm kernel oil. It is thus by far the most widely produced tropical oil, and constitutes thirty percent of total edible production worldwide. However Nigeria has not been able to compete favorably in the race of any increased output in the palm oil production, this is in connection with the fact in Nigeria 80% of production comes from dispersed small holders who harvest semi wild plants and use manual processing techniques. Several million smallholders are spread over an estimated area of 1.65 million hectares in the southern part of Nigeria. In addition to the agro climatic and structural factors (size and scale of production and processing sectors) there are other constraints like little use of modern inputs and extension service; low provisions of market information, standards and quality control (Carere, 2015). The estimate for oil palm plantations in Nigeria ranges from 169,000 hectares to 360,000 hectares of plantations (Carere, 2015). This has resulted to a serious gap between demand and supply of palm oil.
The term agricultural marketing cooperative involves those cooperatives that are engaged in marketing of agricultural products mainly for the interest of the members which are in line with cooperative principles. Such societies apply marketing techniques to suit to cooperative ideologies (Babangida,2011). Marketing cooperative are not limited only to agriculture. Some marketing cooperatives may engage in services, general goods and other products. The need for Agricultural marketing cooperative arises with the production of excess farm produce, over and above consumption. Usman (2011) observed that the main objective for the establishment of marketing cooperative centers at assisting member- producers in their efforts to dispose of their products or produce. This is related to the concept of marketable surplus which is defined as the proportion of the total output that is available for sale after satisfying the producer. There is however, an exemption in this concept; as certain agricultural commodities are produced for meeting specific population need. Marketing bridges the gap between production and consumption. It brings together the impersonal forces of supply and demand irrespective of where the market is located.
Marketing cooperative is found in Nigeria to be performing unique functions towards the development of Nigeria economic activities. It could be a dynamic force in the process of economic development. The marketing system is expected to extend some influence on the social, political and economic sphere of the society. This fact was supported by the World Bank report of (2008) that ‘the cooperative movement can provide a valuable organizational basis for agricultural development’ marketing cooperative which also serves as auxiliary cooperative. Today, marketing has assumed a very special position in cooperative movements. This is because, for any cooperative to function effectively, all must satisfy the owners who have established it. The process of achieving the cooperative goals in the society involves buying the owners want and performance of business activities which are in line with cooperative principles respectively. All together new brand types of cooperative societies have marketing function for its major operational guide. It is based on the above background information that this study examines impact of agricultural marketing co-operative on palm oil sales promotion in Awka North Local Government Area of Anambra State.
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