COLLEGE OF AGRICULTURE AND ENVIROMENTAL SCIENCE

SCHOOL OF AGRICULTURAL ECONOMICS AND AGRIBUSINESS

DEPARTMENT OF AGRIBUSINESS AND VALUE CHAIN MANAGEMENT
PRACTICAL ATTACHMENTREPORT SUBMITTED TO DEPARTEMENT OF AGRIBUSINESS AND VALUE
CHAIN MANAGEMENT
TITLE:BEHAVIOUR AND FUNCTION OF MULTIPURPOSE FARMER COOPERATIVE
PREPARED BY:SHAMBEL AMHA
ID NO:2683/09
ADVISOR:FUAD K(MSC)

NOVEMBER,2018

HARAMAYA, ETHIOPIA
 CHAPTER ONE

• 1. INTRODUCTION
• 1.1 BACK GROUND OF THE ORGANIZATION
•
• According to the Ethiopian cooperative society proclamation number 147
Gojjamber multipurpose farmers cooperative established in 1994 E.C based
on community interest and registered in may 15/2002 based on rules and
regulation.Gojjamber multipurpose farmers cooperative is found in South
Wollo in Denssaworeda specific area with GojjamberKebele.The distance of
this organization from woreda is 6km,from zone 94km and from region
200km.The total population of this kebele has 11400.From this population
5000 are male and the rest are females.GojjamBer multipurpose farmers
cooperative established by 1000 population. From this population 800are
male and the rest 200 are female.GojjamBerfarmers cooperative is one
branch of primary cooperative form of saint multipurpose farmers
cooperative.
•
 1.1.1Concepts and Definitions of
cooperative and multipurpose cooperative

•
• A cooperative is ademocratic organization that working together
withoutgenderdiscrimination.Cooperative defined as an autonomous association of
persons united voluntarily to meet their common economic, socialand cultural
needs and aspirations through ajointly owned and democratically controlled
enterprise (ICA, 1995).Barton (1989) defined as a cooperative as aprivate business
organized and joined by member to fulfill their mutual economic needs as apatrons
of the business with the key control ownership income distribution decision based
on patronage proportion (source from cooperative management hand
out).Multipurpose cooperative is agroup of people acting together to meet the
common needs and separation of its member having ownership and making
decision democratically multilateral farmers cooperative that the same values and
principles whether it’s the environmental, animal right fair trade or genetically
modified food the farmer want to make sure they can do business with their
without worrying about where their many is going.
• According to calvin (1989), multipurpose cooperative are based on the values of
self help, self responsibilities, democracy, equality,equity and solidarity.
 1.1.2 Principles of cooperative
 Voluntary and open membership
 Democratic members control
 Concern for community
 Autonomous and Independent
1.1.3 Values of cooperative
 Equity.
 Honesty
 Equality
1.2 GOALS, VISSIONS, MISSIONS, VALUES,PRINCIPLES
AND OBJECTIVES OF THE ORGANIZATION
 Conti…
• 1.2.1 GOALS OF THE ORGANIZATION
• The expansion modern agriculture production and
marketing method
• Introducing farmer training center in the woreda as
well as in the kebele.
• Realizing modern marketing of input supply system in
the woreda.
• 1.2.2 Vissions of the organization
• To develop economic and social welfare for the society.
• Establishing strong and continues cooperative to
increase member of farmers cooperative.
• To see farmer are producing standardize and
competent productive at global.
 1.2.3Missions of the organization

• To distribution modern technology for the member

• To advocate the social and economic well beings.
• Improving farm system.
• Training thr farmer directly.
• Increase farmer economy through production and
productivity,natural resource management.
• Improve physical infrastructure by applying
different modern technology.
1.2.4 Values of the organization
 Conti…
• SELF-HELP: it means helping each other to solvetheir problems with their
own effert and available resources.
• SELF- RESPONSIBILITY: every office bearermembers and members of
management must be take responsibility for his personal actions for the
activity as whole and for its impact on society.
• DEMOCRACY: cooperative members hasdemocratic manner on the basis of
one man can vote,aand conscious decision means without external
influence.
• EQUALITY: all cooperative members have equalright and opportunity
without any kind of discrimination of gender, religion race and poletical
affiliation.
• EQUITY:it refers to how members are treated with in the cooperative it
means that members should be treated based on participation and need to
giverewards.
• HONESTY: all cooperative members are expectedto be real or true also
income pass maintenance of account ande balance sheet,correct
information for members and objectivity in personal matter.
 1.2.5 Principles of the organization

• VOLUNTERY AND OPEN MEMBERSHIP:cooperatives are voluntary

organization open to all person who needs able to use the service
ofcooperative and willing to accept the responsibility of membership
without any gender, social, poletical and religious discrimination.
• MEMBER OF ECONOMIC PARTICIPATION: memberscontribute equitable
democratically control the capital of their cooperative .All cooperatives have
equal right to control cooperative capital and equal responsibility and
participation to delivering the economic power.
• DEMOCRATIC MEMBERS CONTROL: all members havethe right to vote and
tobevoted.Coopetratives are democratic organization controlled by their
members who actively participate in setting their policies and making
decision.
• AUTONOMY AND INDEPENDENT: cooperatives are autonomous means
with out any government and foreign influence and should be free from
any external force.
• CONCERN FOR COMMUNITY: cooperative works for the sustainable
developments of their community through policy approved by their
members.
1.2.6 OBJECTIVES OF THE ORGANIZATION

• To increase the net income of the farmer through

more efficient production and productivity.
• To promote economic and social wellbeings of rural
people.
• To promote farm labour.
• To improve access timely
• Accurate production and market information.
1.3 Objectives of the practical attachement
1.3.1 General objectives
 Conti…
• To access the establishement behavior, activity and
function input supply organization
1.3.2 Specific objectives
• To understand social and economic problems.
• To analysis the participation of females in the
organization.
• To analysis the SWOT analysis ana duty and
responsibility of the cooperative members in the
organization.
 CHAPTER TWO
2. ORGANIZATION STRUCTURE
2.1Structure (size, department, number of employees) of the Organization
Denssaworeda cooperative promotion Office or Agricultural input dealer
organization is one of the large organization in our woreda which work
under Agricultural sector of input supply and it’s credit service .The
organization is under the control of Agricultural and Rural development
Office that means, it is the sub-sector Agricultural Office. The Organization
has 10 Department and 40 Employee .Out of this employee 25 of them are
men and 15 of them those Department Generally Assembly Department,
Agro-cooperative or farm input supply and credit service Monetary
Department, Early warning desk, Readiness Desk ,MarketingDesk ,natural
resource management department , extension communication Desk ,plant
production and protection and crop production and protection .Out of all
those Department I conduct practical Attachment on Agro cooperative
office, because this Department works on increasing Agricultural
production of the farmer to develop the economy of the Woreda, the
kebele, as well as the country So, these activities are related to my
theoretical knowledge that I acquired from university course This
Department is responsible for increasing Agricultural Productivities
 Conti…
2.2 ROLE OF EMPLOYERS IN THE ORGANIZATION
 Role of Controlling Committee
• Check the property of the organization properly
utilized
• Perform other duties given by the general assembly
 Role of Management Committee
Maintaining the documents and book of accounts
of the members
Prepare budget of members
Collect report to the general assembly on activities
done
 2.3 Function of Each Department

 Function of Planning, Monitoring and evaluation

department
• Maintaining the documents and book of accounts
of the members
• Prepare budget of members
• Collect report to the general assembly on activities
• Plan daily, weekly, monthly, quarterly and yearly
programs of organization
• Monitoring and evaluating activities of organization
 2. Agricultural Input Supply and
Distribution Department
• This departments are supply agricultural inputs for
its members
• They provide new technologies for farmer
cooperative
Audit and Inspection Department
Auditing ongoing capital weekly
• Auditing outgoing capital(cost or expense)
• Controlling material of organization
• Reporting capital of organization once in two month
on boards meeting day.
 Conti…
Role of Accountant
• Check all the income and expense of the organization
• Responsible or presenting periodic financial report

Function of Personal Department

• Handling employers in a good manner
• Prepare an employee files
• These departments have the following bodies
Guards: - Keeps the material of organization
• To help the organization to operate their function in
disciplinemanner
• Secretary: -Arranging the file of members
• Keeps a complete record of all meeting
• Keeps document of members properly
Cleaners:-To clean the office and compound of the organization to
clean the toilet of theOrganization.
 CHAPTER THREE

3. METHODOLOGY
3.1 Location of the attachemment areas
• GojjamBer is one of kebeles of Denssaworeda in Amahara region
of Ethiopia part of South WolloGojjamber is border on the south
by Derraw,on the north berro, on the west Yegoma and on the east
by Addis amba.
3.2 Types and source of data
There are two types of source of data.
3.2.1 Primary source of data
• The primary data is obtained from the interview from manager
employees of the organization visual observation from the
practical attachement.
3.2.2 Secondary source of data
• Data collected from documents and published and unpublished
written materials.
 3.3 Sampling design

• The sampling method was used to obtained

probability sampling techniques of simple random
sampling survey methods the necessary or securing
information get from two cooperative employees
and five members because they are leading
employees with long year of experience and
adequate information about the organization.
3.4 Methods of data collection
• From employees and managers by using questioner
and interviews in the input suuply.
 CHAPTER FOUR

4. DATA PRESENTATION AND DISCUSSION

4.1 SWOT ANALYSIS OF THE ORGANIZATION
4.1.1 Strength of the Organization
• The Denssaworeda input dealer organization or cooperative
promotion has much strength in theworeda
• The organization gives training services with in the interval of thee
months.
• The organization uses as well formed long term and short term
plan.
• Good relationship among the staff member and with other
governmental and nongovernmentalorganization
• Introduce the new improved or modern agricultural technology to
farmers
• The leader committees are responsible for the member
• To improve the customer satisfication
 1.4.2 Weakness of the Organization
• Lack of input supply.
• ü Lack of technology, knowledge and industrialization.
• ü Lack of skilled human power
• ü Absence of discussion stage collaboration with other organization
• ü Lack of research center.
• ü Lack awareness and low self motivation.
• ü Work in limited numbers member.
•
4.1.3 Opportunities of the Organization
• Existence of peace and democratic administration in the woreda as well as in
theorganization
• Government concern to ward agriculture is a day very attractive.
• Availability of improve seed that produce high production from land
• Good environmental condition in the kebeles.
• Existence of free market and high demand for agricultural product in the country.
• Enough water resource for crop production.
• The existence of rural micro financial institution.
 4.1.4 Threats of the Organization

• Low market demand of the product because the have low quality.
• Climate change and market fluctuation.
• Increment of price of the agricultural inputs.
• Lack of adoption of new technology of the farmers.
• The presence of contraband which affect the number in the
organizations.
• Low fertility of soil because of the erosion.
•
4.2 Initiation of the organization
• Gojjamber multipurpose farmers organization was established in
1994E.C based on their society initiatives.They used the starting
capital of 20,000 birr and the number of members of the
cooperative contains 800 male and 200 females totally 1000.
 4.3 The major activities of the
organization
• Income generation.
• Supply of consumable goods like sugar, oil.
• Credit service.
• Supply of agricultural input.
• Selling and supply.
4.4 Source of funds
• The source of funds for Gojjamber multipurpose farmer cooperative are
• Direct contribution through amembership free or purchase of stock.
• By anagreementwith holdaportion of net earnings or profit.
• By assessments based on units of product sold or purchase.
• All cooperative members are to be beneficiaries from the cooperative.The
members to be beneficiaries should be:
• Members of the cooperative.
• Pay share and registered.
 4.5 Right and duties of members

4.5.1 Rights of the members

• The right to vote and to be voted.
• They evaluate general activity.
• The right to ask question and suggestion for
cooperative members to get answer.
• All members have to get dividend.
4.5.2 Duties of the members
• Based on need of cooperative the members must buy
additional share.
• Based on organization rules and regulation the member
should work different activities.
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 SUMMARY
• Multipurpose farmer cooperative in DenssaworedaparticularyGojjamberkebele have agreat
role for cooperative members as well as rural farmers to distribute fertilizer, pesticides and
other farmer material need.It consists operational for better customer or member
satisfication with coordinate structure into organization and support unions.The farmer
cooperatives have their own objective,limitiation, right and duties and also cooperative
principle and value.In this organization each person identified the major problem in agiven
possible solution as they can.From the total member of cooperative 90% of members in the
organization is male and the rest 10% is female.The organization performs many activities
those are used to increase farmers product and solve economic and social problems.
5.2 CONCLUSION
• Theory without practical is valueless. The educational training policy of our country creates
an
• opportunities for students to be experience with real working environment through practica
• attachment. Starting from the beginning of July I was conducting practical attachment at
Denssaworeda cooperative promotion office or Agricultural input dealer Organization
especially on agricultural input supply and credit service department.The office is structured
with a ten department.
• In general Denssaworedaparticulary in Gojjamber multipurpose farmer cooperative work in
the rural farmers are many activity initial of the local society and each kebeles.The
organization improve
 Conti…
• strength farmers capacity in agribusiness and marketing skills.The aims of Gojjamber
multipurpose farmer cooperative is to maximize and to generate benefits for cooperate ve
members.
• The presence of supporting union is more advantageous for farmers and members.The
organization has its own strength, weakness, opportunities and threats. It has the
weaknessof low linkage with research center and NGOs and lack new technology adoptions.

5.3 RECOMMENDATION
• I recommeneded for this organization is that the organization will increase the number of
cooperative members , the organization should increase number of business activities,
number of members and members of business activity.Denssaworeda cooperative
promotion office is making extension effort to raise Agriculturalproduction and solving the
problem of the society as the whole in the woreda. However, there is some challenge that
the office need to think about and to beimproved. To function smoothly inorder to meet the
intended goal the organization should have to
• Raise managerial skill of office and to improve effective leader ship which afford transparent
and accelerate implementation of good governance.
• The organization should increase the members of staff workers in order to reduce their
work load.
• The organization should introduce new technology for members.
• Raise both technical and academicals of its human resource.
THE END