Determinants of Multipurpose Cooperative Member Participation in Agricultural Output Marketing: Kersa District, Jimma Zone, Oromia Region, Ethiopia

Abstract

This study assessed determinants of multipurpose cooperatives members’ participation in agricultural output marketing at kersa district of Jimma zone, Oromia Regional State, Ethiopia. A two-stage sampling procedummre was used and 4 multipurpose cooperatives were selected to obtain a sample size of 196 cooperative members. Quantitative and Qualitative data were collected through household survey, key informant interview, focus group discussions and personal observations. Data were analyzed using descriptive statistics like mean, chi-square, standard deviation, frequency, percentage and binary logit model. The result showed that 66.36% of cooperative members were participants in agricultural output marketing where as 33.64% were non-participants. The binary logit model result showed that age, education, landholding, change in standard of living due to joining of cooperative, membership in other cooperatives other than Multipurpose Cooperatives, determined participation decision of members in agricultural output marketing positively and significantly while the other four variables determined negatively and significantly. In general, the agricultural output marketing of multipurpose cooperative members in the study area has been affected by different demographic, socio-economics and institutional factors. Therefore, the study suggested that as Woreda cooperatives promotion agency should also help these cooperatives to increase members’ participation in agricultural inputs as well as outputs and create linkages with financial institutions to solve their shortage of capital. participation in agricultural output marketing. The descriptive statistics and econometric model were also used for analyzing the data. T-test was used to compare the mean values of the continuous explanatory variables and examine the existence of statistically significant differences between participants and non-participants of MPCs members in agricultural output marketing. The T-test showed significant difference in the age, educational level of members, total live stocks hold, land hold and distance of HH members from MPCs office. Discrete variables were also compared using Chi-square test to see if there is statistically significant difference between the two groups. The Chi-square test also revealed that the discrete variables: Change in standard of living due to joining cooperative, membership in other cooperative Other than MPCs, fertilizer price and seed price are found to influence farmer members decision in agricultural output marketing activity at the different levels of significance. The result of binary Model shows that age, educational level of members, total livestock hold, distance, change in standard of living due to joining cooperative, membership in other cooperative than MPCs, fertilizer price and seed price perception are found to influence MPCs members’ decision in inputand output marketing activity at the different levels of significance. However, family size, share hold, on-farm income, expenditure in inputs, and output price perception were not affecting their participation.