The impact of agricultural marketing cooperative on sales promotion cannot be overemphasized. This has prompt the researcher to carry out a research work on the subject matter, the research started by introducing the subject matter in chapter one, background of the study, objectives of the study, research question, statement of the problem the significance of the study was also highlighted in this chapter. The researcher reviewed the work of different authors in the chapter two, the concept of cooperative, meaning of agricultural cooperative, the impact of agricultural marketing cooperative on sales promotion, the role of agricultural cooperative improving the intensive at farming activities. The researcher discussed the method of gathering data, the data gathered were analyzed in chapter four. Lastly, the researcher draw a summary of findings, conclusion in chapter five and made some recommendations among which the researcher recommended that dishonest leadership should be discouraged in cooperative ventures. This should be done by putting in place, adequate checks and balances in the performances of such members. Their excess should be properly controlled. Members who show an act of dishonesty should be properly sanctioned and penalized according to the stipulations of the cooperative law.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Question
1.5 Significance of the Study
1.6 Scope of the Study
1.7 Definition of Terms
CHAPTER TWO: LITREATURE REVIEW
2.1 Conceptual framework
2.1.1 Description and production of palm oil
2.1.2 Palm oil market and products in Nigeria
2.1.3 Concept and origin of marketing
184.108.40.206 Origin of marketing
2.1.4 Function of marketing
2.1.5 Origin of cooperatives
2.1.6 Different types of cooperative society
2.1.7 Formulation of marketing cooperative society marketing
2.2 Review of related empirical literature
2.2.1 Historical development of agricultural marketing cooperatives in developing countries with special reference to Nigeria
2.3 Relationship between marketing and production
2.5 The place of consumers in marketing
3.1 Research design
3.2 Area of the study
3.2 Source of data collection
3.3 Sampling Procedures
3.4 Method of data collection
3.5 Method of data Analysis
3.6 Reliability of Instrumentation
3.8 Limitation of the study
3.9 Sampling procedure
CHAPTER FOUR: DATAANALYSIS, FINDINGS AND DISCUSSION
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
1.1 Background of the Study
Agriculture is a significant sector in Nigeria’s economy and the economic mainstay of the majority of households in Nigeria. It has a strategic importance in the fight against poverty and famine and ensuring food self-sufficiency (Biam, 2012). It contributes about 45% of the Gross Domestic Product (GDP), employs two third of total labour force and provides livelihood for over 90% of the rural population (Ademosun, 2000). In recent years, agricultural productivity in Nigeria has declined due to various decisive constraints and limitations. This decline in agricultural production coincides with the nation’s oil boom. Onuk (2015) reported that some of the factors responsible for Nigeria’s food insufficiency are low crop yields, use of traditional low yielding crop varieties, inconsistent macro-economic policies, pests and disease outbreak, wrong choice of enterprise combination and cropping systems. The food demand-supply gap that has been created resulted in increased rate of importations and high rate of food prices due to supply despite food importation.
World production of palm oil had increased tremendously during the last 30 years as a result of rapid expansion of oil palm planting in South East Asian countries spearheaded by Malaysia and Indonesia. Significant amounts of palm oil continue to be produced by the traditional producer countries in West Africa but the growth was much slower. Nevertheless, toward the end of the 1980s, Cote d’Ivoire has emerged as a leading palm oil producer and exporter in Africa Nwauwa (2010). Olagunju (2011) puts the worldwide palm oil production during the 2005-2006 growing season at 39.8 million metric tons, of which 4.3 million tons was in the form of palm kernel oil. It is thus by far the most widely produced tropical oil, and constitutes thirty percent of total edible production worldwide. However Nigeria has not been able to compete favorably in the race of any increased output in the palm oil production, this is in connection with the fact in Nigeria 80% of production comes from dispersed small holders who harvest semi wild plants and use manual processing techniques. Several million smallholders are spread over an estimated area of 1.65 million hectares in the southern part of Nigeria. In addition to the agro climatic and structural factors (size and scale of production and processing sectors) there are other constraints like little use of modern inputs and extension service; low provisions of market information, standards and quality control (Carere, 2015). The estimate for oil palm plantations in Nigeria ranges from 169,000 hectares to 360,000 hectares of plantations (Carere, 2015). This has resulted to a serious gap between demand and supply of palm oil.
The term agricultural marketing cooperative involves those cooperatives that are engaged in marketing of agricultural products mainly for the interest of the members which are in line with cooperative principles. Such societies apply marketing techniques to suit to cooperative ideologies (Babangida,2011). Marketing cooperative are not limited only to agriculture. Some marketing cooperatives may engage in services, general goods and other products. The need for Agricultural marketing cooperative arises with the production of excess farm produce, over and above consumption. Usman (2011) observed that the main objective for the establishment of marketing cooperative centers at assisting member- producers in their efforts to dispose of their products or produce. This is related to the concept of marketable surplus which is defined as the proportion of the total output that is available for sale after satisfying the producer. There is however, an exemption in this concept; as certain agricultural commodities are produced for meeting specific population need. Marketing bridges the gap between production and consumption. It brings together the impersonal forces of supply and demand irrespective of where the market is located.
Marketing cooperative is found in Nigeria to be performing unique functions towards the development of Nigeria economic activities. It could be a dynamic force in the process of economic development. The marketing system is expected to extend some influence on the social, political and economic sphere of the society. This fact was supported by the World Bank report of (2008) that ‘the cooperative movement can provide a valuable organizational basis for agricultural development’ marketing cooperative which also serves as auxiliary cooperative. Today, marketing has assumed a very special position in cooperative movements. This is because, for any cooperative to function effectively, all must satisfy the owners who have established it. The process of achieving the cooperative goals in the society involves buying the owners want and performance of business activities which are in line with cooperative principles respectively. All together new brand types of cooperative societies have marketing function for its major operational guide. It is based on the above background information that this study examines impact of agricultural marketing co-operative on palm oil sales promotion in Awka North Local Government Area of Anambra State.
1.2 Statement of the Problem
Agricultural marketing co-operative society serves as a very strong tool which provides a favourable atmosphere for the marketing of agricultural products. Okafor (2012), observed that marketing cooperative society provides to their members an enabling environment for marketing of farm products and fixing prices to enable farmers have optimum profit. The nature of agricultural produce demands efficient marketing to avoid wastage or spoilage and palm oil is no exception to this requirement. The fact that they are produced majorly in the rural areas, where there are problems of low social infrastructure like good road network is a problem. Their bulky nature as well as high perishability also constitutes a problem to their marketing. However there is a critical problem that stands in the course of formulating appropriate policies and procedures for the purpose of increasing marketing efficiency. According to Carrere (2010), low provision of market information standard and quality control constitute constraint to palm oil marketing.
The estimate for oil palm plantations in Nigeria ranges from 169,000 hectares to 360,000 hectares of plantations (Carere, 2015). This has resulted to a serious gap between demand and supply of palm oil as 80% of production comes from dispersed small holders who harvest semi wild plants and use manual processing techniques. Several million smallholders are spread over an estimated area of 1.65 million hectares in the Southern part of Nigeria. Olagunju (2011) reported that because of the increased demand for palm oil resulting from an increase in population and income growth, relative to the low productivity of the oil palm sector, Nigeria has become a net importer of palm oil. At the same time, the rapid devaluation of the Naira combined with high transportation costs from ports to internal markets put imported oil in a competitively disadvantaged position. These issues have posed problems and necessitated the need to address the following research questions:
i. What are the socio economic characteristics of the cooperative marketers?
ii. What are the marketing channels used by these cooperative marketers?
iii. What are the gross margins of these cooperative marketers?
iv. What are the constraints facing cooperative marketers in the study area?
1.3 Objectives of the study
The broad objective of this study was to determine the impact of agricultural marketing co-operative on palm oil sales promotion in Awka North Local Government Area of Anambra State. The specific objectives were to;
i. describe the socio-economic characteristics of the cooperative marketers in the area,
ii. identify the marketing channels used by these cooperative marketers in the study area,
iii. ascertain the profitability of the marketing channels; and
iv. ascertain the constraints facing cooperative marketers in the study area
1.4 Significance of the Study
Palm oil appears as one of the most promising productive alternatives for the Nigerian agricultural sector and long term industrialization. But given the present output level of oil palm products, it is clear that Nigeria is supplying below the quantity demanded and it necessitates the importation of the products. This study will help marketers to understand the costs and returns accrued to them and how the returns can be improved leading to a better standard of living thereby alleviating poverty.
The findings from this study, if well disseminated through seminars, publication and advocacy will help policy makers to formulate policies that would enhance the resource use efficiency and productivity of palm oil marketers. This will be used to determine the direction of resource adjustments that could lead to increased production of palm oil that will meet the demand for the country’s ever increasing population and the world at large.
It is also aimed at encouraging private sector investment by revealing the returns or profitability accruable from palm oil. It is expected that at the end of this research, solutions to the existing problems mitigating the growth and development of palm oil production be proffered as feedback to the palm oil marketers in Awka North Local Government of Anambra State, Nigeria. Finally, this study will also stand to benefit the country in her drive to ensure self-sufficiency in palm oil industry and also to improve on her palm oil production.
1.5 Definition of Terms
- Cooperative Society: Is defined as an autonomous association of persons untied voluntarily to meet their common economic social and cultural needs and aspiration through a jointly owned and democratic control enterprises (Authority, 2016).
- Member: This is the registered name of the person belonging to a particular cooperative society.
- Organization: This is a group of person with a specific purpose who plan themselves to work together and benefit from their effort.
- Producer: This refers to the members that produce the farm produce.
- Agricultural Cooperative: Those cooperatives that are engaged in agricultural activities ranging from production, processing to marketing of agricultural produce.