Perceived Effectiveness of Agricultural Cooperatives by Smallholder Farmers: Evidence from a Micro-Level Survey in North-Eastern South Africa

Abstract

The importance of agricultural cooperatives and other community-based organizations in facilitating sustainable agricultural development in South Africa cannot be downplayed. The aim of the study was to analyse smallholder farmers’ perception of the effectiveness of agricultural cooperatives in rendering support services to their enterprise in Mpumalanga Province of South Africa. A multistage sampling procedure was employed to elicit data from a sample of 120 smallholder farmers drawn from 150 farmers—members who were currently active members of agricultural cooperatives. A structured questionnaire was used to collect data that were analysed using descriptive statistics. Multiple linear regression was used to determine the socio-economic and institutional factors influencing the member farmers’ perception of cooperative effectiveness. The findings revealed that although agricultural cooperatives in the area rendered some level of support services to their members, the majority of the respondents perceived their cooperative as ineffective in rendering some key support services to them that could potentially improve their livelihoods. The results of inferential analysis indicate that factors such as farm size, level of education, household size, farming experience, major crop grown/animal reared, number of cooperative members, support services received index, and satisfaction of leadership processes were significant socioeconomic and institutional factors that influence respondent’s perception. The study recommended increased government public recognition and support for agricultural cooperatives development, increased resource base through more access to grant and donations, and improved linkages between cooperatives and extension agencies as a means of improving the effectiveness of agricultural cooperatives in the area.