essentials of co-operative societies by osoba - enekali c. o. (chapter twelve)

                                                    CHAPTER TWELVE

ENSURING A SUSTAINABLE AGRICULTURE THROUGH CO-OPERATIVE

 

 

Chapter’s Objective

After reading through this chapter, you would be able to:

i.                    Identify the basic requirements for sustainable agricultural development;

ii.                  Understand the contributions of co-operatives to methods of farming;

iii.                Appreciate the transformation attributes of co-operatives in rural development.

 

The basic Requirements for Sustainable Agriculture through Co-operatives

Agriculture depends to a large extent, on natural resources. This makes it an immediate source of livelihood and long-term survival of farming as an economic activity to the farmer. Co-operatives are able to make fundamental contributions to sustainable agricultural development because its board and members are farmers. As owners, they control the activities and orientation of the enterprise.

 

In 1944, the International Federation of Agricultural Producers (IFAP) in Paris identified three basic requirements for sustainable agricultural development. These are:

 

i.                    Agriculture should be seen as an economic activity involved in adequate supply of food, feed and renewable raw materials.

ii.                  Agriculture must be based on environmentally sound production methods carried out without possible damage to future.

iii.                It must create a vibrant and dynamic rural economic.

The success of any sustainable agriculture depends on its ability to strengthen the rural communities, provide economic opportunities and ensuring a balanced development between rural and urban areas.

 

It is however important to point out at this juncture that as a result of the total integrity of co-operative activities throughout the length of the food chain starting from the provision of agricultural inputs to processing, marketing and retailing     makes it difficult to isolate the specific  contribution  of co-operatives in meeting the above criteria.

 

Co-operatives Contributions to Sustainable Methods of Farming

  

Many co-operatives are actively involved in specifically targeted programs to reduce the use input especially pesticides as well as in the recycling of aggro-chemical container and save disposal of expired chemicals. This makes the co-operatives better placed in ensuring the provision of environmentally friendly aggro-chemicals at affordable price for their members as well as information and training on their safe use.  They can also promote the use of techniques such as integrated pest management which enhances greater reliance on biological methods for plant protection.

 

Co-operative could also expose farmers to new technologies such as site-specific or precision machinery for targeted application of herbicides, pesticides and fertilizers that would minimize the environmental impact of farming to a minimum.

 

Many large co-operative enterprises influenced the drawing up of voluntary codes of practices for specialized areas of crop or livestock production. Also, are codes of pest management, which provide standards and guide linkages for farmers to achieve more sustainable agricultural practice? For example, farmers’ organizations and co-operatives in Canada were behind the development of standards for animal care. In 1991, the beef cattle code was established. It specified designs for cattle shelters and housing which enhances the health, well-being and good performance of animals at all stages of their lives. It lays out guidelines for calving conditions and care, nutrition requirements; herd health management, and identification. Also are clear instructions for loading, transporting, unloading and slaughter of beef cattle.

 

Co-operatives use education and training as tools for enhancing farmer’s capacity to understand innovations that lead to more sustainable agricultural practices. It also enables farmers to adopt new and more sophisticated production technologies that have less impact on the environment. Co-operatives also play a major role in changing the attitudes of farmers thereby making them to be more receptive to new ideas, advice, and making best use of extension services.

Developing Sustainable Agriculture though Co-operatives in Developing Countries

 Many developing countries have become a dumping ground for poor quality or substandard fertilizers and severely restricted aggro-chemicals. This could be attributed to weak regulatory framework.

 

Whatever the case may be, the co-operatives at national level owe it as a duty to control the quality of input they supply their farmer member’s at grassroots level. Again, co-operatives involved in the exportation of aggro-chemicals, should ensure that they are of the same standard in quality as the ones they use in their home countries. Through technical co-operative, agreement between agricultural co-operatives in industrialized and developing countries, the standard of agriculture could be greatly enhanced.

 

In order to achieve sustainable agricultural development, some social factors such as poverty and absence of employment opportunities, should be properly addressed. Poverty could hinder farmer’s ability to conserve the natural resources. In this regard, agricultural cooperatives could actively support farmer’s economic development by improving incomes and alleviating poverty. By its integration into the rural communities, co-operatives are able to encourage community based knowledge in the production of indigenous crops using traditional techniques and processes.

 

The absence of job opportunities is responsible for the migration of youths from the rural areas to urban areas. The co-operatives that are farmer owned could generate rural employment for the youths to make them remain in the rural community and contribute to its development.

Towards the Development of a Virile National Co-operative Movement in Nigeria

 

The co-operative enterprise has been recognized for its integration and transformation attributes in promoting rural development through the upliftment of their social and economic condition. The co-operative is able to organize the rural dwellers and generate funds through individual contribution, which constitutes the capital it invests for the benefits of its members. It is able to educate and train members as well as non-members on how to make life worth living. It was in appreciation of this laudable role of the co-operatives that the co-operative policy, which came into effect from August 2002, assigned some functions to the co-operative movement. The functions are as follows:

 

To sensitize and mobilize the public to actively participate in co-operative activities through well articulated campaign strategies and programs.

 

To adopt modern management technique in managing the affairs of the co-operatives in line with modern business practices.

 

To ensure effective supervision and management of all registered co-operatives operating in line with the principles of the international Co-operatives Alliance (ICA).

To ensure that duly registered co-operatives obey the ethics and norms, which include probity, accountability, transparency and democracy in its management.

 

To ensure proper guidance of the co-operatives Unions and Apexes in making prudent and profitable investment decisions through the establishment of Co-operatives Investment Advisory Committee (CIAC).

 

To ensure proper, regular, and adequate auditing of all co-operatives to ensure prudent financial management that would maintain and sustain its continuous existence.

 

To ensure that all the national apexes are operating in consonance with the tenets and principles of co-operatives under sound management practices.

 

 To ensure that co-operatives build up savings by making annual contributions to the proposed Co-operative Development Fund (CDF).

 

In actualizing the above assignments as entrenched in the co-operative policy, a lot of money is required to finance them. The absence of adequate financial based gave rise to under capitalization, which has constituted a cog in the growth and sustenance of the co-operatives. This situation is most predominant in the Co-operatives Federation of Nigeria (FCN), which is overseer of all the Co-operative Organizations in Nigeria. As rightly observed by the International Labor Organization ((ILO), the World Bank and other agencies, capital formation is a major challenge to co-operatives as a movement. Though the government gave a condition in the co-operative movement, policy to give grants it is becoming obvious that donor funding for co-operative development is likely to diminish with time.

Strategies for Raising Funds to Sustain the Co-operative Movement

As a panacea to the dearth of adequate financial base for the management, and sustainability of the co-operative movement, the need for proper examination of some strategies becomes a necessity.

 

1.     Membership Subscriptions and Fees

At the primary co-operative union level, a non refundable entry fee should be charged by the state federation. From the charged fee, a certain percentage should be paid into the coffer of the co-operative federation of Nigeria (CFN) which is the highest body in the co-operative movement.

 

2.     Investment Capital

The contributions of members of a co-operative form its share capital. Through their respective state co-operative federation, a mandatory amount of money from the co-operatives and unions should be paid into the coffers of Co-operative Federation of Nigeria (CFN).

 

3.     Grants and Donation

Governments as a major initiator of co-operatives advance capital to them in the form of grant s and loans.

Grants could to tie to a specific project or made available in a lump sum for the development of co-operatives. Grants usually do not attract interest and are non-payable. Governments also advance loans to the co-operatives. Loans, unlike grants, attract interest. In order to avoid abuse of loans from the government, the co-operative should opt for grants. Other well-meaning Nigerians who appreciate the socioeconomic upliftment of the poor and their welfare and living standard, could make grants and donations available to the co-operatives in their activities.

 

4.     International Assistance

International organizations such as the International Labor Organization (ILO); World Health Organization (WHO); UNDP and FAD could provide assistance to the cooperatives in their areas of need from time to time to enhance its sustainable existence.

Benefits of National Co-operative Development Fund (NCDF)

 

1.     The existence of the National Co-operative Development Fund will enable co-operatives or unions to secure loans from bank or finance houses using the fund (NCDF) as a guarantor.

 

2.     Ordinary people are able to get goods and services for their daily need at better quality and lower price.

 

3.     Since the mission of the co-operatives is to enhance the welfare of members they (member) are able to get loans at more affordable interest rates.

 

4.     The NCDF will enable co-operators to create jobs for themselves, their members, and others. This will go a long way to alleviating poverty level of the people.

 

5.     The co-operatives need to invest in cost effective technology and use it to improve the productivity and competence of their human resources.

 

6.     As a way of improving its quality of service and operating cost, co-operatives need to put into use, modern management techniques and modern technology.

 

7.     Where funds are available, the Co-operatives Federation of Nigeria (CFN) would be able to provide produce storage and handling deports at strategic locations within the states throughout Nigeria for farmers.

 

8.     It would also be able to set up training and consultancy department that will organize continuous training for co-operative practitioner.

 

9.     It would also be able to organize induction courses for officials and newly appointed co-operative workers in both local and state levels. 

 

10.             It could also provide managers the rudiments of modern management techniques.

 

Going by the pivotal role of co-operatives in the socioeconomic life of the people, the Co-operative Federation of Nigeria should be restructured, re-engineered and re-empowered to actualize all the activities assigned to it in the new co-operative policy.

SELF EVALUATION QUESTIONS

 

1.     In appreciation of the laudable role co-operatives in the socioeconomic development of rural dwellers, the co-operative policy assigned some functions to it. What are these functions?

 

2.     Of what benefits is the establishment of a National Co-operative Societies in Nigeria?