15 min read
Mathew Wahome
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
- Voluntary and open membership.
- Democratic control: one member, one vote.
- Limited interest on share capital.
- Surplus distributed according to members' patronage.
- Education and training of members.
- 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
- Provide a ready market.
- Provide credit and savings.
- Supply inputs and equipment.
- Offer storage, processing and transport.
- Give bargaining power.
- Offer training and extension.
- 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.