Participation of cooperatives in Zambia’s rice value chains

Samuel Mwanza

Bachelor's thesis

Abstract:

Cooperatives have been considered as fundamental building blocks for agricultural and rural development because of their potential to reduce farmers’ transaction costs, providing economies of scale and building up of social capital. However, the benefits of cooperative membership in Zambia still remain a theory. Based on the given theoretical framework, this study analyzes and links key factors that influence the active participation of farmers in rice value chains. Simple descriptives and Framework Deductive content analysis was used on quantitative and qualitative data respectively from a total of 215 passive and active rice cooperative members from Mongu and Limulunga districts of western Zambia. Results show higher mean years of education, more number of gadgets and larger total land holding for active members than passive members. Further, active members have higher share capital value, selling price, sell less via middlemen, better access to extension services, and higher perceived cooperative benefit. Results from content analysis revealed the validity of transaction cost theory, social capital theory and economies of scale theories as benefits, hence, motivation for activeness. Further, governance and decision making problems, investment related problems, and cooperative asset related problems were found to be relevant among the passive members and therefore contribute to their passivity. Other reasons for passivity included different levels of commitment, dormancy of cooperatives, low production quantities of rice and failure to benefit from subsidised inputs.

Keywords

Smallholder Farmers, Producer Groups, Commitment, Rural Institutions

Language used: English

Date on which the thesis was submitted / produced: 15. 5. 2020

Thesis defence

• Supervisor: Ing. Jiří Hejkrlík, Ph.D.

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Bachelor programme / field:
Tropical Agriculture / International Cooperation in Agriculture and Rural Development