Studies on the Opportunities and Challenges of Multi-Purpose Cooperative and Their Role on Poverty Reduction at Dangila District, (Awi Research proposal

Abstract

18 Abstract The study was conducted to the main objective of assessing the opportunities and challenges of multi-purpose cooperatives and their role in poverty reduction. The study was conducted in Northern Ethiopia Amhara regional state in Dangila district. Using random sampling three primary multi-purpose farmer’s cooperatives were selected. The three cooperatives that the researchers selected were Affessa, Gumedri and Zeguda primary multi-purpose cooperatives. From the three samples 156 questionnaires have been administered and key informants interviewed and focus group discussion was conducted. These means 52 respondents from each sample cooperatives members were taken from the survey. In the study in general an attempt was made to see their performance in providing input, Output market, in diversification activities, provision of credit and loan, capital accumulation, employment creation, and governance of cooperatives. The result from the study indicate that, multi-purpose cooperatives were played a central role in providing agricultural input (fertilizers improved seeds, pesticides, etc). The economic and political situation was also supportive for the cooperatives development in the study area. However all cooperatives in study area cannot utilize these opportunities properly. Besides cooperative were failing structural, operational, managerial problems, low members participation due to inadequately addressing of their needs and problems by their organization, lack of capital, poor performance regarding employment creation 19 and marketing output, limited access to technology and infrastructure were also other challenges faced. All this limitations were mainly caused due to lack of qualified, visionary and committed leadership and low participation of members in various affairs of cooperative .where as in order to strengthen the cooperative to play significant role in poverty reduction, coordination and strong support from government and any considered body is essential.