IMPACT OF AGRICULTURAL MARKETING COOPERATIVE ON

SALES PROMOTION (A CASE STUDY OF NATIONAL ARCHIEVES

MULTIPURPOSE COOPERATIVE SOCIETY)

ABSTRACT

The impact of agricultural marketing cooperative on sales

promotion cannot be overemphasized. This has prompt the
researcher to carry out a research work on the subject matter, the
research started by introducing the subject matter in chapter one,
background of the study, objectives of the study, research question,
statement of the problem the significance of the study was also
highlighted in this chapter. The researcher reviewed the work of
different authors in the chapter two, the concept of cooperative,
meaning of agricultural cooperative, the impact of agricultural
marketing cooperative on sales promotion, the role of agricultural
cooperative improving the intensive at farming activities. The
researcher discussed the method of gathering data, the data
gathered were analyzed in chapter four. Lastly, the researcher draw
a summary of findings, conclusion in chapter five and made some
recommendations among which the researcher recommended that
dishonest leadership should be discouraged in cooperative
ventures. This should be done by putting in place, adequate checks
and balances in the performances of such members. Their excess
should be properly controlled. Members who show an act of
dishonesty should be properly sanctioned and penalized according
to the stipulations of the cooperative law.
1.0 INTRODUCTION

The need of Agricultural marketing arises with the production of

excess, over and above consumption. This related to the concept of
marketable surplus which is defined as the proportion of the total
output that is available for sale after satisfying the producer.
consumption seed for next seasons planting. There is however, an
exemption in this concept; as certain agricultural commodities are
produced for meeting specific population need, this kolanut is
widely grown in the Southern part of the country, transported and
sold to the people of the Northern part of the country who relish the
commodity. Marketing bridge the gap between production and
consumption; it brings together the impersonal forces of supply and
demand in respective of where the market is located. Therefore, one
is involve in marketing whether one grows yam, sells the tubers or
process to yam flour and sell it to the village or town market in the
Southern part of the country or receives supplies of grains, onions
from the North.

Marketing Cooperative are found in Nigeria to be performing unique

functions towards the development of Nigeria economic activities
cooperative marketing could be a dynamic forces in the process of
economic development takes place, the marketing system is
expected to extend some influence on the social, political and
economic sphere of the society. This fact was supported by the
World Bank report of 1954 that ‘the cooperative movement can
provide a valuable organizational basis for agricultural development’
marketing cooperative also serves as auxiliary cooperative.

Today, marketing has assumed a very special position in

cooperative movements this is because, for any cooperative to
function effectively. All must satisfy the owners who have
established it, the process of doing this by achieving the cooperative
goals then the society is buying the owners want respectively. All
together now brand types of cooperative societies have marketing
function for its major operational guide.

2.0    STATEMENT OF THE PROBLEM

Cooperative Society serves as very strong tool which provides a

favourable atmosphere for the marketing of an agricultural product
on sales promotion. The marketing that cooperative society provides
to their members include searching for a favourable market for the
farm produced of the farmers fixing to enable farmers has optimum
profit. However, the study will look into problem on how to
distribute work among members who consider themselves as equal.
Furthermore, the problem of how to maintain discipline, how to
motivate member to work for the society and how to achieve
efficient management is to be insiders or outsider, the problem
especially is do the society hire outside person or do members who
will most likely not have the required training to manage the society
anyhow.

3.0 OBJECTIVES OF THE STUDY

i.       To examine the impact of agricultural marketing cooperatives

on sales promotion in national archieves multipurpose cooperative
society.

ii.      To determine the role of agricultural cooperative in improving

the intensive at farming activities.

iii.         To find out how capital hinder agricultural cooperative

development in the society national archieves multipurpose
cooperative society.

4.0 REVIEW OF RELATED LITERATURE

The cooperative is capable of serving as a vehicle through which

economic transformation and improved standard of living can be
achieved. These are reflected in its contributions to economic
outcomes globally. In its assertion, DTI (2012, p. 18) affirms that
experiences the world over have shown that majority of countries
whose economies are progressing today have “a vibrant and a
dynamic cooperative sector, contributing substantially to the
growth of their economies.” Cooperatives are vital economic, social
actors and environmental actors (Hertig, 2012) since they focus
directly on the welfare of their members through provision of
affordable services as well as empowering them in different ways
within the economies where they operate. The contribution of
cooperatives to economic transformation as replicated in its
percentage share in nations‟ gross domestic product (GDP) is
significant. Cooperatives are also important drivers of community
development, which translates into development at the national
level. They help in the mobilization of local resources and savings,
particularly those that are formed by a set of people in the same
community for the purpose of meeting their basic needs such as
affordable housing or health care services or for a larger community
development goals (Zeuli & Radel, 2005). Furthermore, cooperatives
are crucial engines for improved standard of living, particularly in
developing world where income gap is wide and the level of poverty
is very high. Considering their role in the area of assisting members
in the procurement of commodities at affordable rates as well as
provision of loan facilities, it is imperative to see how these services
have assisted to improve living standard of members and at the
same time contribute to the growth and development of the
economies in which they operate. For example, asides having access
to consumable items, many members of the enterprise have been
seen to procure vehicles, landed property, buildings, etc. Some have
been able to have access to tertiary education through regular loans
provided by the society. In addition to these, employment generated
by cooperatives has assisted in providing income not only for their
employees but also for the society as well as countries of the world.
In a study carried out by lawal, (2009) to assess how cooperatives
have contributed to increasing selling and marketing agricultural
development in Ojo Local Government Area of Lagos State, Nigeria,
it was discovered among other things that cooperatives assisted in
the provision of basic amenities and social services in this area. For
instance, the study reported that in this locality, 50.9% of market
shades were constructed by cooperatives. Others include: 54.4%
attributed to cooperatives shop; combating social amenities, 74.4%
of markets stores built by them; 47.8% of recreation centres; 53.3%
jobs created; 67.8% of capital equipment acquired by them; 45.6%
of sanitation activities carried out by cooperatives; 71.1% provision
of vocational/skills training; 53.3% of constructed boreholes;
provision of storage/processing facilities, 66.7%; 58.9%;
procurement of agriculture and equipment inputs for farmers and
members, 94.4% while cooperative involvement in community
banking at 61.1%.The above facts underscore the strategic
contribution of modern day cooperatives in the process of economic
prosperity and improved wellbeing, not only of individual
cooperators but also of the overall economy. Some efforts of the
Nigerian government at using cooperatives as one of the tools
through which development could be achieved are quite
commendable. Although, information on the input of the sector in
the country are scarce to come by but few ones that are handy
indicate that the society‟s accomplishments in the economy are
substantial. In 2012, the Minister of State for Agriculture and Rural
Development, Alhaji Bukar Tijani revealed that with the agricultural
sector accounting for about 70% of the nation‟s workforce, the
federal government has put measures in place to use cooperatives
in the agricultural sector to boost “rural savings, bumper harvest
and additional employment for the youth” (Akinsuyi, 2012). In
Nigeria, policies enactments are not major problem, while a good
number of them are available more often than not, implementation
of policies are always fraught with upheavals. For instance, Agbo
(2012a, p. 1) reported that included in the 2007-2009 Medium
Term Sector Strategy (MTSS), which aimed at developing the
Agriculture and Rural Sector, the federal government of Nigeria
assigned the chore of “promoting specialized cooperative societies in
the areas of rural infrastructural development, agro-input supply
and produce marketing, tractor hire service, enterprise development
centres and preservation, processing and storage of fruits, fish,
livestock and dairy products.” He pointed out that a preliminary
assessment of the implementation of the scheme revealed that only
50% (3 out of the 6 schemes) of the scheme has so far been
implemented in the first phase. Government‟s efforts will only be
effective, the sector‟s contribution to nations‟ GDP will be
enhanced and employment generation as well as provision of
income can be replicated in Nigeria

5.0 RESEARCH METHODOLOGY

5.1 Introduction

This study examines the impact of agricultural marketing

cooperative on sales promotion. To this end, this chapter described
and discusses the design and procedure for the study, the
population and the sample used. A description is also made of
instrument for data collection as well as its validity and reliability.
Also discussed in this chapter are the procedures for the
administration of the instrument, statistical analysis as well as the
limitation of the study.

5.2 Research Design

A survey method was used for this study. This method involves
gathering data about the target population from a selected sample
and generalizing the findings obtained from the analysis of the
sample to the entire population (Afolabi 1993). This method was
adopted because it enable the researcher to discover relative
incidences and distribution on the characteristics of the population.
Besides, it facilitates the researcher to find out the impact of
agricultural marketing cooperative on sales promotion.

5.3 Population of the Study

The population for this study consisted of all the members of
National archives multipurpose cooperative society Ltd, Kaduna.
They totaled 300 (Archives multipurpose cooperative society Ltd
2011). The rationale behind restricting the population for these
members of National archives multipurpose cooperative society Ltd
was because the members are directly involved in the activities of
the society and know the impact of their multipurpose cooperative
marketing on sales promotion either individually or collectively.

5.3 Sample and Sampling Procedures

Out of the total population of members of National archives

multipurpose cooperative society Ltd, 200 members were involved
in the study. To determine the sample size for the study. Afolaby,
(1993) was used. Simple random sampling method in form of the
Hat dawn from method was also used to select the respondents in
order to give every member of the population an equal chance of
being selected. Pieces of paper were numbered and dropped in a
can. Those who picked the odd numbers were selected for the
study. This was done until the required number was obtained the
process ensured adequate randomization in the selection which was
necessary in the conduct of the research.

5.5 Research Instrumentation

The instrument used for this study was the questionnaire. The
questionnaire was developed by the researcher. Questionnaire was
appropriate because the members of the cooperative society under
study were literate. Besides, the questionnaire method facilitated
easy converge and is more appropriate in survey studies of this
nature (Nwana, 1982) marketing cooperative on sales promotion
questionnaire (AMCSPQ).

The instrument was designed on 5-point Likert scale of Strongly

Agree, Agree, Undecided, Disagree and Strongly Disagree. The items
in the questionnaire were generated through a view of previous
studies. In scoring the items related to the 5-point Likert scale type,
respondents had a possible total score ranging from 5 to 1 which
represented a respondent’s opinion. The higher the score the more
influenced the respondent was by the scale. The design of the
questionnaire was clustered around five sections. Section A consists
of items related to the personal data if the respondents. Such as
section B to D contained information dealing with the subject
matter of the investigation.

5.5.1 Validity

According to Kerlinger (1973), in Ogbu (2011) validation of research

instrument by others is an effective method for content validation
consecutively, the questionnaire was validated by three expert in
the department of cooperative economics and management, Kaduna
polytechnic. They were requested to judge the appropriateness,
comprehensiveness and clarity of items in the questionnaire. Their
contributions in form of suggestions and constructive criticisms
were used in the final draft.

5.5.2 Reliability

To obtain reliability for factual questions Oppenheim (1966) in

Uzoagulu (2008) suggests that “internal checks in from of logical
test in the questionnaire should be included”. In line with this, a
number of questions were build into the questionnaire to give a clue
to the respondents’ questionnaire of responses.

A pilot study was also carried out with 20 respondents in National

archive multipurpose cooperative society to pre-test the efficiency of
the questionnaire. The choice of a small sample for the pilot study
is in agreement with the view held by Nworgu (1991) who opines
that pilot testing is usually done on a smaller scale than main study
but under similar conditions. The 20 respondents were requested to
indicate their responses to each statement by ticking one of the
responses build on the likert type 5-point scale. This was to ensure
that individual opinion about the impact of agricultural cooperative
marketing on sales promotion was adequately expressed. A
standardized cronback apha of 0.943 was obtained which indicated
that the questionnaire was reliable.

5.6 Procedure for the Administration of the Instrument

The instrument was aimed at gathering information on the impact

of agricultural marketing cooperative on sales promotion. The
instrument was carefully designed in simple language to help the
respondents to easily interpret and tick appropriately.

One letter was prepared to accompany the instrument and

addressed to the members of National Archive Multipurpose
Cooperative Society. This was meant to introduce the researcher to
the respondents and state the purpose and significance of the
study. Besides, the letter carried the cooperation members of the
cooperative society to till the questionnaire.

In the administration of the instrument the researcher, with the

help of secretary of the cooperative society and the assistance
president administered and collected the filled out questionnaire.
The five days enabled the respondents to reflect on the instrument
and fill them properly.

5.7 Method of Data Presentation and Statistical Analysis

Available data was presented using tables simply constructed in

row and columns to facilitate the presentation of the data obtained
with the use of the 5-point likert scale questionnaire. The study
made use of a number of statistical techniques to help the
organization, analysis and interpretation of the data. The statistical
techniques are summarized as follows:

- Frequency counts and simple percentages were used to

determine the responses asked, Tables were used to
summarize the frequencies.
 - The frequencies and mean were used to analyze the data
based on the research questions.

5.8 Limitations of the Study

This study finds out the impact of agricultural marketing

cooperative on sales promotion. The study is limited to National
Archive Multipurpose Cooperative Society in Kaduna. For the test
that the study is restricted to the National achieve multipurpose
cooperative society, it will be difficult to generalize the findings to
other cooperative societies.

For the fact that a survey method was used as the research design
as well as questionnaire as a research instruments, it is not really
certain if the same result could be achieved if other designs and
instruments like ex-post fact design, interview schedule respectively
could yield the same result. Besides, another limitation is that the
respondents could have either over exaggerated or understated their
responses while scoring the items in the questionnaires.

Also the nonchalant attitude of some of the respondents could affect

the validity of their responses to the questionnaire. These
limitations should be taken cognizance of by other researchers
conducting similar studies.

6.0 DATA PRESENTATION AND SYATSITICAL ANALYSIS

6.1 Introduction

This chapter presents the data on the Impact of Agricultural

Marketing Cooperative on Sales Promotion. The data generated is
presented using tables. The demographic variables of the
respondents involved in the study are presented in tables of
frequencies and percentages. The responses to the individual items
in the questionnaire were scored in mean and standard deviations
and are presented along the research question in the study.

6.2 Respondents’ Bio – Data

 Table 6.1: Sex Distribution of the Respondents

Sex Frequency Percentage (%)

Male 85 42.5
Female 115 57.5
Total 200 100
Source: Field Work (2017).

Table 6.1 shows that the sex distribution of the respondents sued
for the study, 85 (42.5%) of the respondents were male while 115
(57.5%) were female. This brings the total number of respondents to
200 (100%). The data indicates that there were more female
participants in the study (57.5%) than the male participants
(42.5%). This could be as a result of the fact that in the area under
study; females are been given greater chance of employment than
the males and as a result would get more involved in the
cooperative society.

Table 6.2: Age Distribution of the Respondents

Sex Frequency Percentage (%)

20 – 30 65 32.5
31 – 40 85 42.5
41 above 50 25
Total 200 100
Source: Field Work (2017).

Table 6.2 shows the age distribution of the respondents. The data
shows that respondent whose age fall between 20 – 30 are 65
representing 32.5% also 85 of the respondent’s representing 42.5%
fall between the age of 31 – 40 while 50 (25%) of the respondent
take the least of those between 41 and above the implies that there
are more youths than the grown of the society.

6.3 Answering the Research Question

The first research question for this study is: What are the impacts
of agricultural marketing cooperatives on sales promotion? For this
question, five item were used to elicit responses from the
respondents. The frequencies and percentage of their responses are
presented in table 4.3.

Table 6.3: The Impact of Agricultural Marketing Cooperative

on Sales Promotion

SA A U D SD

S/ STATEMENT F % F % F % F % F %
N
3. I have best 11 58 7 4 0 0 6 2 0 0
advantage of 5 9 0
marketing my
produces
4. I can easily 12 62. 6 3 0 0 15 7. 0 0
acquire inputs 5 5 0 0 5
for my farm
promotion
5. I have an 12 62. 5 2 0 0 0 0 25 12.
efficient way of 5 5 0 5 5
production
through my
society
6. I am saved from 11 59 6 3 0 0 15 7. 5 2.5
the threat of 8 2 1 5
middlemen on
disposing my
 produce
Source: Field Work (2017).

The data on table 4.3 above shows the respondents’ responses as

regards the impact of agricultural marketing cooperative on sales
promotion. The result indicated that a larger number of
respondents (N = 200, % = 98) agreed that they have vest advantage
of marketing my produce. However, a fewer number (N = 200, % =
2) disagree that they have vest advantage of marketing my produce.
In item 4, a large number of the respondents (N = 200, % = 92.5)
agree that they can easily acquire inputs for farm promotion; while
an insignificant number of the respondent (N = 200, % = 7.5)
disagree that they can easily acquire inputs for their farm
promotion.

In item 5, a large number of the respondents (N = 200, % = 87.5)

agree that they have efficient ways of production through society, a
fewer number disagree that they have an efficient way of production
through society; also in item 6, a large number of the respondents
(N = 200, % = 90) agree that they are saved from the treat of
middlemen on disposing produce, a fewer number of then
respondent (N = 200, % = 10) disagree that they are saved from the
treat of middlemen on disposing produce.

This therefore, signifies that with the aid of cooperative society,

there will be a mass tool for socio-economic transformation. Thus
be interpreted as being agreed.
Table 6.4: The Role of Agricultural Cooperative in Improving
the Intensive at farming activities

SA A U D SD

S/ STATEMENT F % F % F % F % F %
N
7. My produce are 16 8 24 12 0 0 12 6 0 0
graded for 4 2
marketing with
official prestige
8. I am satisfied 13 6 35 17. 0 0 18 9 17 8.5
because of my 0 5 5
present situation
9. I am able to cater 11 5 79 40 0 0 6 2 0 0
for my essential 5 8
household and
still have access
to market
10. I can make 32 1 96 48 0 0 53 26 19 9.5
better yielding 6 .5
now compared to
when I was non
member
Source: Field Work (2017).

Table 6.4 provides response to them that fall under research

question 2. In item 7, a large number of the respondent (N = 200, %
= 94) agree that their produce are granted for marketing with official
prestige; a fewer number of the respondents (N = 200, % = 82.5)
agree that they satisfied because of their present situation, while a
fewer number of the respondents (N = 200, % = 17.5) disagree that
they satisfied because of their present situation. In item 9, a large
number of the respondents (N = 200, % = 98) agreed that they are
able to cater for their essential household and still have access to
market, however, a fewer number of the respondents (N = 200, % =
2) disagree. Finally in item 10, also a large number of the
respondents (N = 200, % = 64) agree that they can make better
yielding now compared to when they was non members; a fewer
number of the respondents (N = 200, % = 36) disagree that they can
make better yielding now compared to when they are not members.

This shows that the result agreed. Available data shows that the
role of agricultural cooperative in improving the intensive at farming
activities since all the items have positive answer from the
respondents.

Table 6.5: Does low capital hinder agricultural cooperative

development in the society?

SA A U D SD

S/ STATEMENT F % F % F % F % F %
N
11. I am protected 10 5 6 3 0 0 10 51 84 4.1
from the 2
practices of
money lenders in
my cooperative
society
12. I have easy 10 5 0 0 0 0 14 70 50 25
access to funds 0
from my society
in case of
emergency
13. I do have prompt 15 7. 5 2.5 0 0 15 75 30 15
 loan from the 5 0
financial
institution
14. The interest rate 10 5 6 3 0 0 10 51 84 41
of the loan is 2
meaningful and
considerate
Source: Field Work (2017).

Table 6.5 shows that view of the respondents on the fact that low
capital hindered agricultural cooperative development in the
society, 186 (92%) of the respondents disagree that they are
protected from the practices of money lenders in their cooperative
society while 14 (8%) of the respondent agreed that they are
protected from the practices of money lenders in their cooperative
society.

In item 12, 140 (95%) of the respondents strongly disagreed that

they have easy access to funds from my society in case of
emergency, a fewer number agreed.

Also 180 (90%) of the respondents strongly disagree that they have
prompt loan from the financial institution while a fewer number
agreed that they have prompt loan from the financial institution.

Lastly 186 (92%) disagree that the interest rate of the loan is
meaningful and considerate however a fewer numbers of this
respondent agreed.

Therefore, it can thus be concluded from these society in question

faces all these problems. On a general note however, the problem
mentioned are sees to be applicable to all multipurpose cooperative
societies since they are in the same line of operation. Therefore, he
need to address these problems can never be over emphasized.
6.6 Summary of Findings

Based on the responses of the respondent to the research questions

as contained in the tables, the following are the findings of the
study:

1. Agricultural marketing cooperative society serves as an

indispensable tool for members on sales promotion and the
general improvement of the welfare of members.

2. The role of agricultural cooperative in improving the

intensives of farming activities are numerous and are
carefully designed and also executed to cater for improving
farming activities of members. This includes granting of
loan facilities, saving of members’ income, and provision of
cooperative education to members etc.

3. Problem that hinder the effectiveness of agricultural

cooperative development include credit sales, falsification of
receipts, embezzlement, dishonest practices and members
apathy etc.

6.7 Discussion of Findings

This study examines the impact of agricultural marketing

cooperative on sales promotion. This result is based on the view of
members of the cooperative society under study.

Result shows that the impact of agricultural marketing cooperative

on sales promotion in National archives multi-purpose cooperative
society is greatly affected positively.

This is in agreement with the thought of Buden (1998) who

observes that modern agricultural cooperative movement began in
Germany in 1869 an agricultural credit movement under the
powering leadership of William Raiffeissen some 13 years after the
birth of the consumer cooperative movement in England by
Rochdale Equitable Pioneer 1844.

Finally, the fact that different problem affect agricultural

cooperative development in the society is in agreement with the
findings of Amahdu (1998) who expressed that inconsistent
government policy, lack of education and administrative guidance,
lack of infrastructure etc.

7.0 Conclusion

Based on this research finding, it is concluded that auditing

processes, if well conducted, contribute to efficient cooperative

business. Besides, auditing process in cooperative is distinct from

auditing processes in other business based on the fact that

cooperative business emphasizes members’ satisfaction and not

profit maximization as such, even though they may not afford to sell

at loss.

8.0 Recommendations

The following recommendations are made based on the research

findings so as to facilitate the possibility of agricultural marketing

cooperatives:

1) Cooperative societies should ensure that the

management of their cooperative is effectively done. This

 can be achieved by strictly observing the stipulations of

the bylaws as well as the objectives of the cooperative

society.

2) Dishonest leadership should be discouraged in

cooperative ventures. This should be done by putting in

place, adequate checks and balances in the performances

of such members. Their excess should be properly

controlled. Members who show an act of dishonesty

should be properly sanctioned and penalized according to

the stipulations of the cooperative law.

3) Adequate and regular cooperative education should be

provided to cooperative members especially in the area of

marketing so that all of them will be aware of their

obligations as members of the cooperative.

4) Government should also make provision of fertilizers and

other farming equipment for use to the cooperative

society so as to improve their activities.

5) Cooperatives should also educate its members, trained

its staff and informing the general public on the real

meaning and objectives of the cooperative, these would

be done through mess media in form of drama

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