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Agriculture

Cooperatives and Agricultural Organisations

Topic 7: Cooperatives and Agricultural Organisations

1. Cooperative Societies

A cooperative society is a voluntary association of people with a common need who pool resources to run a business for mutual benefit.

Principles of Cooperatives

  1. Voluntary and open membership.
  2. Democratic control: one member, one vote.
  3. Limited interest on share capital.
  4. Surplus distributed according to members' patronage.
  5. Education and training of members.
  6. Cooperation among cooperatives.

2. Types of Cooperatives

Type Function
Marketing cooperatives Collect, process and sell members' produce (coffee, dairy)
SACCOs Savings and credit services
Consumer cooperatives Supply goods to members at fair prices
Dairy cooperatives Collect, cool and market milk
Multipurpose cooperatives Offer several services
Housing and other cooperatives Specialised services

3. Benefits of Cooperatives

  1. Provide a ready market.
  2. Provide credit and savings.
  3. Supply inputs and equipment.
  4. Offer storage, processing and transport.
  5. Give bargaining power.
  6. Offer training and extension.
  7. Create employment.

Problems

  • Mismanagement and corruption.
  • Delayed payments to members.
  • Limited capital.
  • Low member participation.
  • Political interference.

4. Other Agricultural Organisations

Organisation Role
KALRO Agricultural and livestock research
KEPHIS Plant health and seed inspection
NCPB Buys and stores cereals
KTDA Tea marketing for smallholders
Agricultural Society of Kenya (ASK) Shows, exhibitions and education
Farmers' groups and associations Training, bargaining and advocacy
Agricultural Finance Corporation (AFC) Farm credit
Ministry of Agriculture and extension services Advice and training

4-K Clubs and Young Farmers' Clubs (YFCs)

  • Train youth in farming skills and leadership.
  • Run projects and competitions.
  • Promote positive attitudes towards farming.

5. Importance of Agricultural Organisations

  • Improve production through research and training.
  • Provide markets, inputs and credit.
  • Promote standards and quality.
  • Represent farmers' interests.
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Quick Quiz

1. Which principle means each member of a cooperative has one vote regardless of shares held?
  1. Open membership
  2. Democratic control
  3. Limited interest on capital
  4. Cooperation among societies
Answer: Option 2
2. A cooperative that provides loans and savings facilities to its members is called a?
  1. Marketing cooperative
  2. SACCO
  3. Consumer cooperative
  4. Dairy cooperative
Answer: Option 2
3. Which of the following is an agricultural research institution in Kenya?
  1. KALRO
  2. KTDA
  3. NCPB
  4. KRA
Answer: Option 1

Flashcards

Front
Define a cooperative society.
Back
A voluntary association of people with a common need who pool resources and run a business democratically for their mutual benefit.
Front
State four principles of cooperatives.
Back
1. Voluntary and open membership. 2. Democratic control (one member, one vote). 3. Limited interest on share capital. 4. Surplus shared by patronage. 5. Education of members. 6. Cooperation among cooperatives.
Front
Name four types of cooperative societies.
Back
Marketing, SACCO (savings and credit), consumer, dairy and multipurpose cooperatives.
Front
What do 4-K Clubs and Young Farmers' Clubs do?
Back
They train young people in farming skills, leadership and community service through practical projects.

Practice Problems

KCSE Section A: Cooperatives
intermediate

State four benefits of cooperative societies to farmers. (4 Marks)

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