Assessment of the potential for Cooperative Development in selected Agriculture sectors in Ethiopia
This assessment intends to identify and understand the current situation of cooperatives and other self-help organizations in the project-targeted regions (Amhara and Sidama), particularly their capacities, strengths, weaknesses and needs. Furthermore, the study analysed the potential role of cooperative enterprises in strengthening the ability of their members to engage profitably in commercially viable value chain partnerships, including with other aggregators (traders, agro- processors), service providers, input suppliers and rural financial institutions in the selected regions.
The assessment found that cooperatives and self-help groups were key actors in regard to input and output marketing for Ethiopian smallholder farmers, but still operate with major constraints that hinder their performance and competitiveness compared to other businesses. Among others, some of the key challenges identified in regard to agricultural cooperatives in the Amhara and Sidama include: lack of working capital, lack of market linkages, lack of training for cooperative leaders and members, poor access to updated market information, limited technical and management capacity, limited physical resources, and self-help groups that lack business management skills and struggle from a shortage of working capital.
The key recommendations from the assessment were cooperative member education; training programmes for elected committee members and employees of cooperatives; dissemination of timely market information; technical capacity-building for cooperative support organizations; business development services for cooperatives; cooperative entrepreneurship skills training; creating access to finance for cooperatives and self-help groups; facilitating market linkages for cooperatives with self-help groups, processors and other buyers; and supporting cooperative management and leadership development programmes.
The assessment found that cooperatives and self-help groups were key actors in regard to input and output marketing for Ethiopian smallholder farmers, but still operate with major constraints that hinder their performance and competitiveness compared to other businesses. Among others, some of the key challenges identified in regard to agricultural cooperatives in the Amhara and Sidama include: lack of working capital, lack of market linkages, lack of training for cooperative leaders and members, poor access to updated market information, limited technical and management capacity, limited physical resources, and self-help groups that lack business management skills and struggle from a shortage of working capital.
The key recommendations from the assessment were cooperative member education; training programmes for elected committee members and employees of cooperatives; dissemination of timely market information; technical capacity-building for cooperative support organizations; business development services for cooperatives; cooperative entrepreneurship skills training; creating access to finance for cooperatives and self-help groups; facilitating market linkages for cooperatives with self-help groups, processors and other buyers; and supporting cooperative management and leadership development programmes.