The role of agricultural cooperatives in agricultural input and output marketing: in the case of Bale zone, Oromia region, Ethiopia

Volume 2, Issue 1 (Feb-May)

Authors: Belayihun Shewangzaw , Amana Omer, Selomon Eshetu, Yeshitla Gebre and Aliy Gemeda

DOI: https://doi.org/10.64848/WMJ.2.1.2026.24-56

Page No: 24-56

Keywords: Agricultural cooperatives, Agricultural input marketing, Agricultural output, Marketing, Member participation, Market performance

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Abstract

Agricultural cooperatives play a significant role in improving farmers’ access to agricultural inputs and markets. In Ethiopia, they are considered important institutions for enhancing rural livelihoods, increasing income and addressing market challenges faced by smallholder farmers. The general objective of this study was to investigate the role of agricultural cooperatives in agricultural input–output marketing in Bale zone. Specifically, the study examined members’ participation in cooperative marketing activities, assessed members’ perceptions of cooperative performance and identified factors affecting the effectiveness of cooperatives in delivering input–output marketing services. The study employed descriptive and explanatory research designs. Both primary and secondary data were used. A purposive sampling technique was applied and 340 valid questionnaires were analysed. Structural equation modelling (SEM) using AMOS 23 and SPSS version 26 was employed for data analysis. The results revealed that members’ perception of cooperative performance, satisfaction with cooperative services, infrastructure and organisational factors had a positive and significant effect on input–output marketing. However, members’ participation in cooperative affairs, perceptions of transparency and accountability and external factors showed a negative effect on input–output marketing performance. The study recommends that agricultural cooperatives should provide timely and adequate agricultural inputs, improve service quality and ensure fair and timely distribution of benefits. The government and cooperatives should also strengthen members’ awareness and participation and invest in infrastructure such as roads, communication systems, electricity and market facilities to improve the effectiveness of agricultural input–output marketing.