The effect of participation in agricultural cooperatives on marketing efficiency of cocoa farmers in Bubukwanga Sub-County, Bundibugyo District.

Abstract

The research study focused on the effect of participation in agricultural cooperatives on marketing efficiency of cocoa farmers in Bubukwanga sub-country Bundibugyo district. The study was guided by the following objectives; to characterize cocoa farmers participating in agricultural cooperatives, to determine the factors that influence farmers to form/join agricultural cooperatives, to determine the hindering factors for joining the agricultural cooperatives by farmers and to assess the effect of participation of cocoa farmers in agricultural cooperative on market efficiency in Bundibugyo district. Both case cross section study and description designs were employed to collect primary and secondary data. Data was collected using focus group discussion and observation whereas descriptive was used to collect primary data using interviews and questionnaires. These designs enabled the researcher to describe the topic as well as giving the description of a unit sample in depth. The study used both cross section and a descriptive survey method. By use of simple random sampling, 50 respondents from the local population, the LC1 chairman, village farmers and others were selected from the area of study. From each department respective officers took part in the study. A semi-structured questionnaire was used to collect household survey data during the 2019 farming season. In all a total of 50 respondents took part in this research study. The study used closed ended questionnaires to collect data.. From the findings, it was evident that The results indicated that farmer characteristics (such as age, gender, education, household size); private assets variables (such as farm size, output, experience); public assets variables (such as credit, extension contact, price); and transaction cost variables (such as market information and point of sale) significantly influenced the market efficiency of cocoa farmers in the region. With respect to the constraints to farmers participation on joining agric co-operative, unfavourable market prices was the most pressing constraint faced by farmers while lack of government policy on marketing was the least constraint. Based on the findings, the study recommends that government through MAAIF should institute productivity enhancing measures to increase the productivity of Cocoa, as this would subsequently increase marketable surplus of farm households. It is also recommended that MAAIF and MTIC should establish rural finance schemes to address the credit needs of smallholders. The Statistics, Research and Information Directorate (SRID) of MAAIF and MTIC should create a department responsible for the delivery of agricultural market information to make market information more effectively.