Role of Agricultural Cooperatives in Agricultural Development – The Case of Menoufiya Governorate, Egypt

Abstract

he main objectives of the study are to identify the current status of agricultural cooperatives in Menoufiya Governorate in Egypt and determine the following items as well as the variables affecting them: (1) Agricultural cooperatives ability to mobilize resources for achieving its activities. (2) Agricultural cooperatives ability to employ the available resources. (3) Contribution of the agricultural cooperatives in agricultural development, (4) Organizational effectiveness of the agricultural cooperatives in agricultural development, (5) Benefit extent for farmers from the agricultural cooperatives activities, and thus (6) Farmers’ attitudes towards agricultural cooperatives. For realizing the research objectives, two questionnaires were designed and data were collected through personal interviews with 66 managers and 291 members of agricultural cooperatives. The research was carried out in two districts in Menoufiya Governorate. The Pearson simple correlation coefficient and step-wise multiple correlation and regression analysis were used to analyze the collected data. Results show, that 73 % of agricultural cooperatives were found to have insufficient budgets for achieving their activities, 71,2% of them have a low capability of mobilizing resources, 48,5% of them have a low capability of employing resources and 87,9% of them have only limited contribution to agricultural development. In general, 69,7% of the agricultural cooperatives show a low organizational effectiveness in agricultural development. Additionally, the results of the study refer to a low benefit degree for farmers from agricultural cooperatives activities, a low farmers’ satisfaction degree related to the agricultural cooperatives activities, and a low percentage of farmers, who have positive attitudes towards the agricultural cooperatives. The step-wise multiple regression analysis reveals that: ¾ Only two independent variables were found to have a significant and a positive effect on the agricultural cooperatives ability to mobilize the resources. These independent variables are the population number in the village with an agricultural cooperative and cultivated area in the villages, which are benefiting from agricultural cooperative activities. These variables could explain about 58% of the variance in the agricultural cooperatives ability to mobilize resources. ¾ The cultivated area in the villages, which are benefiting from the agricultural cooperatives activities and the extent of agricultural cooperative building’s suitability for achieving their activities and functions could explain 14 % of variance in the agricultural cooperatives ability to employ the available resources. ¾ There is a positive and a significant effect of cooperation level between agricultural cooperatives and governmental organizations, and the number of governmental organizations in the village on the level of agricultural cooperatives contribution in the agricultural development. The percentage of participation of these variables in explaining the total variance in the level of agricultural cooperatives contribution in the agricultural development reaches 39 %. ¾ There are two independent variables that affect the organizational effectiveness of the agricultural cooperatives in the agricultural development. These variables are the number of population in the villages with an agricultural cooperatives and the total number of N.G.Os membership of managers. Both independent variables could explain together about 57% of the variance in the organizational effectiveness of the agricultural cooperatives.

iv ¾ The most independent variables affecting the benefit for farmers from agricultural cooperatives activities are the farmers’ attitudes towards agricultural cooperative, the informal social participation level of farmers, the total number of N.G.Os membership of the farmer, the type of voluntary participation of the farmer in developmental projects, and the main profession of the farmer. These independent variables could explain 78.3% of the variance in the extent of benefit for farmers from agricultural cooperatives activities. ¾ There are four independent variables that affect the farmers’ attitudes towards agricultural cooperatives. These variables are the extent of benefit for farmers from agricultural cooperatives activities, the distance between farmers’ residence and agricultural cooperatives’ location, the type of voluntary participation of the farmers in developmental projects and type of N.G.Os-membership of the farmer. These variables could explain 65.3 % of the variance in farmers’ attitudes towards agricultural cooperatives. In conclusion, the study reveals, that most of the agricultural cooperatives in Menoufiya Governorate –Egypt are not playing their role in the agricultural development in the desired effectiveness. This fact makes it necessary, that these small cooperatives need to be modified in order to form more efficient, self-dependent economical bodies, which are capable to run themselves administrationally and financially. It is recommended also, that these cooperatives be given more economical and organizational freedoms to make them less dependent on the central cooperatives, especially in obtaining and distributing the production inputs. During planning of agricultural development, the government should activate the coordination and cooperation among the roles of both agricultural cooperatives and other organizations in the villages, in order to enhance their abilities and the organizational effectiveness in the agricultural and rural development. The agricultural cooperatives should be developed in order to provide activities and services which are adapted to farmers’ needs.