Impact of Cooperatives on Maize Farmers Technical Efficiency in Nigeria

B.Sc. Adeolu Stephen Adedokun, BSc

Master's thesis

Abstract:

In Nigeria, agriculture is a crucial sector that faces several constraints that limit the productivity of farmers. Agricultural cooperatives have emerged as a means of enhancing the well-being of farmers through the provision of inputs, access to resources and information, and improved agricultural practices. These organizations have also the potential to contribute to the technical efficiency of farmers. Therefore, the present study aimed to examine the impact of agricultural cooperatives on the technical efficiency of maize farmers in Nigeria. Specifically, the study aimed to estimate the technical efficiency of maize production among cooperative farmers and compare it with that of non-members, analyse the factors that affect technical efficiency in maize production in cooperatives, and describe the influence of cooperatives in enhancing the technical efficiency of farmers. The study was carried out in Oyo state, located in the southwestern part of Nigeria. A total of 299 farmers, consisting of 157 cooperative members and 142 non-members, were sampled using a multistage sampling method. A structured questionnaire was used to gather information on the socio-economic characteristics, production, cooperative, and agro-ecological factors. The Cobb-Douglas stochastic production frontier was employed to estimate the technical efficiency scores and identify the factors affecting the technical efficiency of both member and non-member farmers. The study controlled for observable biases by matching the members and non-members before estimating the technical efficiency. The results revealed that the mean technical efficiency scores of non-members were significantly higher than those of members. Both gender and household size were significant variables affecting the technical efficiency of both member and non-member farmers. It was found that farmers primarily join agricultural cooperatives to access agricultural loans, which often made them inactive after obtaining the loans. Moreover, non-members also had access to some of the information passed to the cooperatives, and the cooperatives diversified into off-farm enterprises. The study recommends that the state government authorities responsible for granting agricultural cooperative licenses ensure that these groups understand the concept of cooperatives by providing further training on cooperative practices.

Keywords

Productivity, smallholder farmers, collective action, stochastic production frontier, farmer’s group

Language used: English

Date on which the thesis was submitted / produced: 26. 4. 2023

Thesis defence

• Date of defence: 30. 5. 2023
• Supervisor: Ing. Jiří Hejkrlík, Ph.D.
• Reader: Karin Hakelius, externi

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Master programme:
International Development and Agricultural Economics