The Agricultural Cooperative Movement In Ethiopia

The latest estimates of FAO (2014) indicate that global hunger reduction continues: about 805 million people were estimated to be chronically undernourished in 2012–14, down more than 100 million over the last decade. According to this report, hunger reduction requires an integrated approach, and needs to include: public and private investments to raise agricultural productivity; better access to inputs, land, services, technologies and markets.

Despite accelerating globalization, food security in most of the developing world depends upon local food production (Funk & Brown 2009). According to World Bank (2008) and Hazell, Poulton, Wiggins and Dorward (2010) smallholder agriculture is argued to remain important for economic development and

The Agricultural Cooperatives Sector Development Strategy of Ethiopia (2012) identified the following major problems among other: (a) most cooperatives did not acquire business and operational skills required for effective business operations; limited capacity has inhibited them from making full use of the opportunities; (b) the quality and quantity of services provided by many cooperatives fall short of the needs and expectations of their members; (c) the service of agricultural cooperatives focused on input distribution and the cooperatives have limited capacity in promoting technology diffusion and adoption that directly impact agricultural production; (d) involvement of most agricultural cooperatives in the managerial and development of natural resources is insufficient ; (e) the marketing structure and infrastructure in which cooperatives operate, especially in output marketing, limits their effectiveness and efficiency in serving their members; (f) structure, capacity and accountability for government oversight and regulation of the cooperative sector is not sufficiently robust to govern a well-functioning sector; and (g)policy and regulatory framework constrains the development of a well-functioning cooperative

In the past the ESE used to produce most of the newly improved varieties on its own farms, as well as on state farms, with large private farms playing only a minor role in production of new varieties. Despite the presence of several seed companies, the agricultural input sector in Ethiopia is currently not able to satisfy the demand for improved seed in the country. Results of Christine (2015) also showed that the formal Ethiopian seed system is largely controlled by the government and public organizations.

Additionally, the research result of Dawit, Frans Verhees, Hans and van Trijp (2017) revealed that the seed sector in Ethiopia consists of three seed systems: formal, informal, and intermediary seed systems. Each seed system has a specific contribution to the delivery of seed to farmers, but they vary in their approach and respective