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Van Hall Larenstein University of Applied Sciences (2011)

The contribution of cooperative in food security of small scale farm households : the case of SACCO, Ethiopia

Eshetu Tigest

Titre : The contribution of cooperative in food security of small scale farm households : the case of SACCO, Ethiopia

Auteur : Eshetu Tigest

Université de soutenance : Van Hall Larenstein University of Applied Sciences

Grade : Master of Development, Specialization Rural Development and Food security 2011

Small scale farmers in developing countries are in continuous struggle to ensure their food security. However, their operation is constrained by many bottlenecks such as recurrent drought, land degradation, shortage of skill and finance to state few of them. Hence, in this thesis case study is used to analyze the contribution of SACCO in food security of small scale farmers in Arsi negele district, West Arsi Zone, Oromia, Ethiopia. In line with this broad objective, it tried to answer four specific research questions : the major services that SACCO provides for the community, whether SACCO has improved food availability and food accessibility for its member households, whether there is difference in food security between member and non-member households, the main challenges and opportunities of SACCO for further development. Both primary and secondary sources has been used to generate information during data collection. The primary information was collected from 8 members and 8 non-members of SACCO in hadha boso village in the Arsi negele district. Furthermore, 6 key informant interviews, 2 from members of SACCO, 2 from non-members, representative of SACCO, and head of food security department of the district has been included. Stratified random sampling and purposive non-random sampling was used to select area of the study, members and non-member respondents, and key informants respectively. Observation was also part of primary data collection. The results showed that the main services provided by SACCO includes awareness creation about saving and credit, providing loans, promoting savings and saving money for their members, giving continuous short term trainings on loan utilization and small business management. SACCO has been giving extra services such as providing food crops at lower prices than local markets, and grind mill services for the community. SACCO has also been enhancing the food security of its members through enabling households to purchase farm inputs such as fertilizer and seeds to improve their crop production and invest in other off-farm business activities. Furthermore, the result showed that there is difference between members and non-members of SACCO in terms of food security, member households are more food secured than non-members. Though SACCO has contributed to food security of households in general and member households in particular, it has different challenges. Factors such as absence of skilled man power, low financial resource, less capacity to invest their deposit and absence of other professionals to give advice are among the main challenges for SACCO. There are also considerable opportunities for SACCO’s further development : the positive policy support, existence of NGOs that share the same vision with SACCO and help SACCO in giving trainings and other minor advisory services are some of the opportunities of SACCO. From the finding it can be concluded that SACCO has considerably contributed to food security of the community despite of its challenges. For SACCO to use its full potential and enhance its contribution to food security, it is suggested if all responsible bodies participate in enhancing the capacity of the leaders of SACCO and work on net working SACCO with other financial institutions.


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