The Determinants of Cooperative level Performance Variability among Agricultural Cooperatives in Gamo Zone, South Ethiopia Region

Abstract

This study was to explore the performance of agricultural cooperatives in South Ethiopia Region. To achieve these objectives the data were collected from sample cooperatives (46) in Gamo Zone through interview schedules, key informant interviews and reviewing audit reports. Descriptive and inferential statistical data analysis methods were employed including Tobit model regression. The result shows that 41.3% of sampled cooperatives had not marketed grain crop and had no profit report last year. Eight variables found to affect financial and grain marketing performance. Age of the chairperson, distance to the cooperative Office, and total assets negatively affect financial performance at less than 5%, 5% and 10% significance levels respectively while the leadership experience of a chairperson, serving only members, union membership, availability of storage, and frequency of audit positively and significantly affect at less than 5% significance level except for union membership which affects at less than 10% significance level. Leadership experience of the chairperson, serving only members, union membership and capital asset positively and significantly affect grain marketing performance. This research is limited to agricultural cooperatives and may lack strength for generalizing to other cooperatives and researchers need to research further. Encouraging primary cooperatives to join unions, frequent audits, serving members with diverse service portfolios and developing storage facility will improve performance. This paper fulfils an identified need to study performance of agricultural cooperatives and ways of improving their performance.