The Development Problems of Agricultural Producers'cooperativesin Ethiopia: Cases From Arsi Region

Abstract

This article is directed at (1) examining the peiformance of
the cooperative sub-sector in Ethiopia both over time and relative to
private peasant farms and state farms and (2) explaining the sub-sector's
peiformance in terms of farm level resource management and macro-level
policy parameters. Evaluating the overall peiformance of the sub-sector
using- data published by Government agencies, the paper then tries to
explain its observed peiformance by examining the pattern of resource
allocation in the cooperative farms using results of empirical linear
programming models based on data collected from 26 Agricultural
Producers' Cooperatives (APCs) in Arsi Region.
Results of the study indicate that the peiformance of the sub-sector has in
general been less than satisfactory -- a peiformance explained by sub
optimal allocation of resources and various problems faced by the
cooperatives. The paper also makes specific policy recommendations