Agricultural Cooperatives in Sub-Saharan Africa: Key to Collective Success

A co-operative is an independent private business association of individuals who are at once the members and the consumers of the goods they produce and/or the services they provide. Small Agribusinesses can achieve economies of scale this way, competing with large corporations in the market. Farmers in agricultural coops can get access to supply and markets that are otherwise beyond their reach. Profit is not the primary goal but can still be allocated to the members proportionate to their use of or contribution to a cooperative.

Agricultural cooperatives exist to help farmers get access to cheaper services and equipment by pooling their resources and needs. Instead of purchasing an expensive piece of equipment to use seasonally, you can work with the three other farms in the area to share and pay less as a result. Do you need a truck to make deliveries? What if the same three neighboring farms also need access to a delivery vehicle? What if you could fit all four loads in one truck and you can, again, decrease the cost to all three by pooling together? This is the idea of a cooperative.

Why Join Agricultural Cooperatives

A single modest agricultural producer may struggle with access to supplies and to the competitive markets, especially where major food production corporations are already involved. Meanwhile, the risks connected with growing crops or dealing with those big corporations can be too unbearable, while the loss of profit can put an end to the business altogether.

In other words, there are plenty of reasons why farmers join cooperatives.

  • Better access to markets and supplies;
  • Lower overall production cost;
  • Risk mitigation;
  • Democratic management system.

These are among the key benefits members of agricultural coops are looking for. The only potentially off-putting thing about cooperative ownership is the shared economic responsibility. It is required that each member actively participates in a farming co-op. Profit is paid on the basis of participation, as a share proportional to use. Furthermore, profit may fluctuate from year to year depending on how well the cooperative is doing on the whole.

This is just the beginning. We can’t wait to show you what’s next.

AgroDomain Agro Coop

The Agro Coop is designed to support various tiers agro-cooperatives and groups in enlisting new membership as well as organizing and managing such members. It provides the capabilities for Agricultural cooperatives to aggregate product demands or supplies at different levels for eventual fulfilment in a most cost efficient and transparent manner while enabling the consolidation/ integration of production and marketing entities in agriculture to achieve economies of scale and stronger presence in markets.  

Agro Coop facilitates farm data collections, maintenance of central registry, improved training, support for business planning, market analysis as well as the monitoring of geo-referenced service delivery. It also enhances access to suitable financial services to farm groups – particularly smallholders – and agricultural Small and Medium Enterprises (SMEs) as a way to increase agricultural productivity and income.

If you’re in the agriculture industry and want to be part of the AgroDomain Platform, We would love to hear from you. Reach out at: conatct@agrodomain.com.

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