ASSESSING THE CONTRIBUTION OF BANANA PRODUCERS’ COOPERATIVES IN ENHANCING VALUE CHAIN DEVELOPMENT IN CASE OF ARBA-MINCH ZURIYA WOREDA, GAMO ZONE, ETHIOPIA

Abstract

This study aims to assess the contribution of banana producer cooperatives in enhancing value chain development. Two-stage sampling procedures were used for the selection of 113 sample household heads. Both primary and secondary data were used for this study. Both descriptive and econometric analyses method were used. The result of the Likret scale indicates that the majority of members of banana-producing cooperatives have a positive perception towards the socioeconomic impact of cooperative in value chain development. Banana producers received higher returns when they sold their banana directly to rural retailers. The result of the econometric analysis by the probit regression model the variables were age, educational level, farm size, income, access to information, and awareness about cooperatives was found to significantly determine banana producers’ decision to join banana primary cooperatives. Major challenges of primary banana producer’s cooperatives in the study area were lack of capital, illegal traders, little awareness about cooperatives, cheating in weight balance, and fluctuation of the domestic banana price. In addition, opportunities in the study area were the availability of suitable agro-ecology and the existence of cooperative experts at the Kebele level. From the finding, it is therefore recommended that the locale government and other concerned bodies give special attention to encouraging and attracting rural producers to cooperatives because cooperatives are the basis for value chain development.