Ethiopian Cooperative Movement

Ethiopian Cooperative Movement-An
Explorative Study
Dr.G.Veerakumaran
Associate Professor and Head
Department of Cooperatives
Faculty of Dry Land Agriculture and Natural
Resources
Mekelle University
P.O.# 231
Mekelle, Ethiopia
April 2007
Preface
Toidentify andgrasp thetruth fromwhatever

you hear, fromwherever, isthevirtueof
wisdom.
(kural 423)
2
Dedicatedtomy belovedbrother
Dr.C.Pitchai
3
Table of Content
Case Title of the Case Page
No
1 Cooperatives and Food Security 5
2 University Education to Professionalize the Cooperatives of Ethiopia 20
3 Need for Cooperative Education , Training and Development in 26
Local Languages
4 Cooperative Management of Natural Resources 33
5 Milk Production Enhancement Activities Through Milk Cooperatives 40
of Ethiopia: An Explorative Study
6 Role of Cooperatives in Promoting Democratic Culture in the 46
Tigray Region
7 Export Marketing of Meat Through Cooperatives in Ethiopia 52
8 Problems and Prospects of WUAs in the Tigray Region 57
9 Journalism for the Cooperative Sector in Ethiopia- An Exploratory 92
Analysis
10 Marketing of Cactus and its by-products through the Cooperatives in 98
Tigray
11 Participatory Forest Management-Cooperatives as an Institutional 103
Alternative
4
Case 1
Cooperatives and Food Security
Introduction
A Cooperative is an autonomous association of persons united voluntarily to meet their

common economic, social and cultural needs and aspirations through a jointly owned and
democratically controlled enterprise. The people of Ethiopia have got a very long social
history of working together to fulfill their socio-economic needs. Agriculture, Trade and
Military Operations were carried out through cooperative efforts. Many social events are
still taking place in rural Ethiopia through collective effort. The Federal Government of
Ethiopia has identified Cooperative form of business organizations as an instrument of
socio-economic change particularly to achieve food security. As a result as on 30th June
P P
1998 EC, the country has recorded 6004 Primary Agriculture and Allied Cooperatives to
serve the suppressed and depressed community of Ethiopia. Are they really contributing to
solve the problem of food insecurity? This needs a detailed study. Hence, in this paper the
researcher has identified the potentiality of Cooperatives to attain food self sufficiency.
Objectives of the Study

U
The objectives of the study are:

(i) to study the status of cooperatives and its contribution to the economy,
(ii) to study the contribution of cooperatives for food security, and
(iii) to identify the successful factors that could be replicated in the cooperatively
less developed regions.
Methodology
The study was carried out by using both primary and secondary data. To justify the first
objective the current status of Cooperatives in Ethiopia was taken into consideration. The
second objective was achieved by analyzing the cases prepared by the researcher over a
period of four years. The third objective was emanated from the analysis.
Findings of the study
The findings of the study were made in accordance with the objectives framed viz., Status
of Cooperatives in Ethiopia, Cooperatives for food security and Policy Implications.
Status of Cooperatives in Ethiopia
Traditional Cooperatives in Ethiopia
5
Ethiopia is known as a country with diversified nationalities, ethnic groups, languages, each
has its own unique culture and custom of living in entertaining different social activities
.Our system of living is in cooperation mode of life that means; work in group (plowing,
harvesting, trashing, house construction), habits of eating together (in holidays, festivals),
and living together is the common phenomena of Ethiopians in the nearby village, with
relatives and at workplace. In Ethiopia there are three well known traditional cooperatives
or self-help groups
Edir: - Edir is one of the traditional forms of cooperatives still operating almost in all parts
of Ethiopia, urban and rural. It is similar with burial cooperatives or organization that
mainly stand for performing burial ceremonies, to condolence, and also to offer assist
financially and labor with the deceased family member to overcome difficulties arise due to
occurrence of death in members family. Almost the majority of the people especially heads
of particular family are members’ of Edir and also obliged to be a member in order to be
assisted in case of death .The main objective for the establishment of Edir is to help a
family in case of bereavement. Such a family requires personal, material and financial
support from all of the Edir members based on the rules and regulations stated in the by law
of the traditional society (Edir). If a person is going to get this assistance he has to fulfill the
membership criteria set by the traditional society. Edir gets its legal personality from
ministry of justice or regional justice bureau by paying registration fee. The member’s
participation is very high in Edir because its foundation is based on the willingness of each
and every member.
Ekub: Ekub is other form of traditional cooperative or traditional self-help group in

Ethiopia. Ekub is a financial form of traditional cooperative formed voluntarily. It is a
rotating saving and credit type association whose members make regular contributions to a
revolving loan fund. The formation of “Ekub “is based on classes of people who have
identical (similar) earning or income. Unlike saving and credit cooperatives, it does not
bear interest on the money saved (collected). The person who has got the money on his
turn basis solves his immediate economic and social problem. Unlike saving and credit
cooperatives, it does not bear interest on the money saved (collected). To minimize risk in
an Ekub, personal guarantee should be given by payee to the traditional society when
he/she takes taking the money from the Ekub members. Many people use this form of
traditional cooperative as a means of financial solution to their economic problems. Ekub is
some what is similar to the modern saving and credit cooperatives Therefore, there is a
chance that this traditional form of cooperative could be changed into modern cooperative
societies with some adjustments on their operation and making them to have legal bases.
The amount of money which is now used for immediate problem solving could be
changed into sustainable and continuous problem solving system of modern cooperative by
convincing and promoting the Ekub members. This alleviates the temporary nature of
Ekub.
Debo/ Wenfal/ Lefenty:
This form of traditional cooperative or mutual help group is an important form of

traditional cooperatives in Ethiopia. This is mainly a cooperative formed at the rural area of
6
the different parts of the country where most of the people are farmers. Debo is a system of
farmer’s cooperation during the time of farming, weeding, harvesting, trashing, and house
construction etc. Debo/Wenfale/Lefenty does not have a system of administration like the
other form of associations; it is based on equivalent labour or material contribution (Ox) by
each farmer. It is a mechanism by which all farmers are helping each other on turn basis
.Since each type of work is being done in time, the productivity per farmer can be
increased. Generally, these three traditional forms of associations which are the values and
customs of our society should be brought to modern form of cooperatives so that they can
contribute to the economic and social development of the people of Ethiopia.
Some special features of Traditional Cooperatives in Relation to Modern Cooperative. are
̇ Established on the felt needs of members and voluntary membership

as follows:
• Democratic control and administration

• Fair and equal compensation
• Equal contribution
• Equal participation of each member.
• Serve their members
• Cultural development and other development activities
• Political neutrality
• Equal opportunity to all members
• They can be organized at working place, living area bases.
Therefore, traditional form of cooperatives can be the bases for modern cooperatives. They
can have management committee and serve on honorary base, have by-laws, different
books of accounts, and have accounts in near-by banks, conduct annual meetings, election
and even amend their bylaws. Especially Edirs can have office, store houses and hired
employees
Advantages of traditional cooperatives
•
•
Indigenous way of solving members problems
No need of external experts assistance (to be established, formulate by-laws, keeping of
•
books of accounts, managing employees etc.)
•
Strong and autonomous
•
(No appropriate authority)
•
Serve only members & members’ faith in their organization is high
•
Strong participation of members
•
Management committees of Edir are loyal and corruption is a rare phenomena.
Edirs participate in social and economic activities like assisting orphanage, constructing
roads, schools, cleaning the surroundings, night guard of their localities, etc,
Limitations- Ekub
• Traditional organization like Equb is far from the concept of present value of
money.
7
• It has no continuity for long time & most of them are established for specified
•
period and then dissolved.
•
Mostly hasn’t any legal documents and some times ends with conflict.
Some of the leaders delay the money paid to the member and use the money for
•
usury purpose in the between.
In some Ekub the chairman’s and secretary’s contribution is paid by members
•
and favored to take the first and second chance.
Members forced to drink during the time of gathering together to draw the
chance to create income for the one hosting the meeting.
Limitations of Edir
Most of the Edir are still stick to only for death time assistance, while there is an ample
opportunity to help a member before death. Also, even though the chance to start saving
̇ The chance to bring young leaders on these organizations is small.

and credit and consumer activities is there, only a few of them are practicing it.
̇ Some of its obligations needed to be meeting by its members are becoming

challenging.
Cooperative movement during the Regime of Emperor Haileselassie (1960- 1974)
Modern form of cooperatives started in Ethiopia during the ruling era of Emperor Haile
selassie I. Emperor Haile selassie I was Ethiopian ruler during 1932-1974. In 1960 the first
legislative called “Farm Workers Cooperatives Decree” was declared as Decree
• To accelerate the development of the agricultural economy of the country.

No.44/1960. The objectives needed to enact this decree were:
• The organization of cooperative enterprise was believed to be as it can
• And it was also found necessary that the proper framework be created for the
contribute measurably to this end
establishment of such cooperative enterprises.
Cooperatives Decree No.44/1960
Purposes and objectives of these cooperatives

Cooperatives organized hereunder shall have as their principal purpose and object the
promotion of the economic interest of Ethiopia and of their members through the efficient
cultivation and development of land made available to them and the produced on said land.
• Arrange for the cooperative production, processing, transportation and

Without limiting the generality of the foregoing, the cooperative shall:
marketing of agricultural products and commodities and the taking of other

action calculated to achieve the most profitable production, processing and
marketing of agricultural products and livestock produced or owned by the
• Operate and administer livestock and agricultural and other machinery owned by
cooperative;
• Promote good farming and agricultural practices

the cooperative for the benefit of its members.
8
•
•
Promote cooperation among members of the cooperative
Promote cooperation among cooperatives generally by the pooling of common
resources and the taking of other action appropriate to this end.
Some documents reveled that Ethiopian Air Line Workers Saving and Credit Cooperative
was established in 1956. It was also believed that this SACCO has come to existence with
the experience of foreign workers in that organization. Decree No.44/1960 had no full
version of cooperative proclamation and only limited to agricultural cooperatives that didn’t
incorporate cooperatives that were emerging in the country like SACCOs. Even though the
cooperative activity was started with the implementation of the above mentioned objectives
• Lack of awareness by different government institutions

in legal basis, it had the following short comings:
• The support given by the government was very low and the result is also very
• Since there was no other supportive laws to cooperatives, it was difficult to

low ( performance was only 4 coops out of 20plan)
• The existing land tenure system was the main hindering factor for stunted
solve horizontal problems faced by the cooperatives
cooperatives development ( especially for the poor peasant farmers)

As a result of the above problems, a Cooperative society Proclamation No.241/1966 was to
come to effective with consideration of previous Decree’s short comings.
Cooperative societies Proclamation No.241/1966
The main reason stated for the enactment of this proclamation was “where as our People
have understood the usefulness of cooperative activities it is expedient to provide a proper
basis for the formation of co-operative Societies which shall promote thrift, mutual help and
self-help among persons sharing common needs and desires.
Purposes and Objects of societies
Societies organised under this Proclamation shall have as their principal purposes and
objects the promotion, in accordance with cooperative principles and the requirements of
social justice, of better living, better business and better methods of production by such
• reducing the cost of credit and other expenses;

means as:
• reducing the cost of goods and services for production and consumption;
• minimizing and reducing the individual impact of risks and uncertainties;
• spreading knowledge of practical technical improvements; or
• may otherwise contribute to achieve the above mentioned purposes and object.
By the end of second five year development plan (1963-1967) 14 cooperative societies (of
which 12 in agriculture) were established and registered. Despite these achievements, the
program was hindered by the shortage of trained cooperative personnel and lack of credit
facility. When the third five year development plan was launched (1968-1973) it again is
stressed the creation and expansion of cooperative societies and designed to encourage
community self-reliance. During this plan period at least 300 new cooperative societies
were supposed to be established and registered. Though various efforts were made to
9
expand the cooperative movement in the country, the development was not as much as
• The oppressive land tenure system and the domination of feudal land
anticipated due to the following reasons:
• Inadequate trained manpower to promote the development of cooperative ideas,

relationship in the rural areas.
• Inconvenient collateral policies for bank credit toward farm workers and poor
organization and management.
farmers which, prevented farmers to get credit for farm development. The plan
benefited the rich farmers and the landlords by excluding the majority of the
• Lack of efficient marketing system that is characterized by low price of farm

farming community.
products and high price of inputs coupled with poor transport facilities.
There were 14 workers in the cooperative department. All of them had been trained in
cooperatives of which two of them are abroad. Besides the training of personnel employed
in the cooperative department, training in cooperatives had been imparted to 150
community development workers at the community development training and
demonstration center Awassa. To alleviative the financial problem, a National cooperative
investment fund which would administered by special cooperative credit section in
Development Bank of Ethiopia was to be set up. At the end of the plan year, however the
numbers of agricultural cooperatives established in the country were 50, having a
membership of about 11,000 and a capital amounting of 6 million. The total number of
other type of cooperatives was also 50 (SACCO, Consumer and Handcrafts).The
• Introduction of modern cooperative concepts

government contributed the following for the development of cooperative movement:
• Establishment of independent appropriate authority to promote cooperative
• Establishment of independent regulatory body ( to register, audit and

societies of different type.
• Establishment of training institution (the community development training and

cooperative court)
• Arrangement of National cooperative investment fund which would administer

demonstration center Awassa)
by special cooperative credit section in Development Bank of Ethiopia was to be

set up.
The Post Revolution Cooperative Movement (1974- 1991)
After the over throw of Haile selasse’s monarchal system in Ethiopia, the military Junta
has got the chance to come to the power in 1974. Starting with other leaders, Mengistu
Haylemariam was the leader of the country in socialist principle to the end of his era up to
May 1991 when he was forced to leave the country. The peasant associations were given
legality by proclamation no. 71/1975. In this proclamation, the objectives, powers and
duties of peasant associations, service cooperatives and agricultural producer cooperatives
were clearly stated. It was during this time that a number of “Ye’irsha Mahber” was
unwillingly organized in quota bases in most of the then provinces. The Cooperative
Societies Proclamation No. 138/1978 was issued later in order to include other type of
10
cooperatives like Housing. Thrift and Credit and Handicrafts etc. All the efforts made to
restructure the cooperative movement based on these proclamations were essentially geared
towards direct control of cooperative and turning them into government and political rather
than socio economic development instruments.
Cooperative Societies Proclamation No. 138/1978
Objectives of Cooperatives 138/1978
• to develop self-reliance and to promote the interest of their members

Cooperatives shall be organized for the following objectives:
• to put the means of production under the control of cooperatives and to
• to increase production
transform them gradually to collective properly as be necessary
• to expand industry
• to eliminate reactionary culture and custom
• to participate in the building up of the socialist economy
• to accumulate capital and to mobilize human resources to sustain economic
development
Two or more peasant Associations were deemed to form Service cooperative providing
services to the members such as grain marketing, inputs supply credit, tractors, transport,
services and consumer goods supply. They were considered interim institutions for future
massive socialist rural economic infrastructures and systems. In the process, individual
farmers (3 or more), were therefore encouraged to form production. In the early 1990 there
were already 3,316 producers’ cooperatives and 525 service cooperatives in the country. In
March 1990 the Derg Regime was forced to look into the new economic situation of the
world. The policy of mixed economy was announced. In its 15 years of rein of terror
regime cooperatives were among the victims. From the very beginning full confidence and
willingness were lacking in the cooperative members. Cooperatives were faced with
organizational, operational, leadership as well as production and distribution problems. In a
situation where member’s participation was so passive and leadership appointed by the
political cadres, wastefulness and embezzlement were inevitable. In addition to that
villagization program which lacked proper studies and the willingness of the people created
a devastating effect to the development of cooperatives. In the ten year plan of 1983/94
farmer members of producer cooperatives were expected to make up 52.7 percent of all the
farmers. There was no word mentioned about the democratic rights of individuals to be or
not to be a member of the desired cooperatives, which is the central point of cooperative
principles and values. Consequently, it was only one sentence of the Derg mixed economic
policy which says “Any cooperatives can legally dissolve it self if its general assembly
decides” that contributed to total dismantling of almost all producer cooperatives and some
of the service cooperatives of rural Ethiopia. As a result of this mixed economy option
given for cooperatives, all producers cooperatives are legally dissolved throughout the
country. During the fall of Drug regime (May 1991) most of the multipurpose cooperatives
that survived the mixed economy policy, had been looted and dismantled even by their
members. Since cooperatives were seen as institutions of Derge regime, no body was
interested to rescue their property from looting & dismantling by thieves, dissatisfied
11
members and corrupted management members. Due to this fact some of the properties,
money and documents were taken and destroyed. Even though, Cooperative values and
principles were violated by the cooperative movement of that period, there were some
positive contributions to the cooperative development of Ethiopia. The country witnessed
expansion and promotion of different types of cooperatives. Introduction of distribution of
consumer goods and extending agricultural credits (inputs, oxen, tractors, machinery, etc)
through cooperatives. The establishment of cooperative training center (Ardaita),
government support to investment and infrastructural facilities, provision of domestic and
international training, the agricultural cooperative society’s proclamation no.85/1995 was
the major contribution of the regime. The proclamation was however, meant to serve only
agricultural cooperatives. Other types of cooperatives had no chance (legal ground) to
adjust themselves to the newly created environment.
Cooperative movement in Ethiopia: Post 1991
After the downfall of the Derg regime, there was a gap between 1991- 1995 in the
cooperative movement of Ethiopia. This gap was created due to the fact that the
government’s attention was mainly drawn towards stabilizing, bringing peace and creating
administration organs. Later on due to cooperative experts dedication and devotion and the
government’s commitment towards cooperative development, it became necessary to enact
new cooperative proclamation which suits to the current economic system.
Agricultural Cooperative Societies Proclamation No.85/1994
Objectives of the Society
̇ to improve the living condition of members by increasing production and productivity;

The society to be established under this proclamation shall have the following objectives: -
̇ to promote self-reliance among members;

̇ to solve problems collectively which a peasant cannot personally achieve;
̇ to make members obtain modern technologies products which are capable to increase
agricultural production and materials necessary for their livelihood easily and at fair
̇ to satisfy the needs of a community and increase the income of a peasant by processing
price;
̇ to promote the culture of the members by teaching and training.

agricultural product to industrial products; and
Salient features of Proclamation No.85/1994
“General Meeting” means a meeting of members of the primary cooperative society.

Individuals who are supposed to be voluntarily members must have similar type of work
and interest. Any kind of discrimination or influence based on religion, sex, nationality and
political outlook shall not be made on those who want to be members;
The society shall carryout any of its activities on a democratic basis. One member shall
have only one vote; Formation of Higher Level Society, The benefits of any dismissed
12
member shall be respected in accordance with the by-laws of the society; Concept of
shares holding introduced, Appropriation of net surplus after deduction for reserve, for the
expansion of the work, and for social services .In the history of cooperative movement in
Ethiopia, the government has taken serious measures after 1988 EC (1996). The measures
include, organizing and reorganizing different types of agricultural cooperative societies
and establishing cooperative promotion bureaus/ offices in regions. In the Federal
government the cooperative promotion desk under the Prime Minister office has been also
established. A proclamation No. 147/ 1998 to provide for the establishment of cooperative
societies had been also declared by the Federal Government to bring all types of
cooperative societies under one umbrella. Later on the Federal Cooperative Commission
(the currently Federal Cooperative Agency) based on proclamation no. 274 / 2002 was
established in 2002. More over to correct the short- comings in the proclamation 147/1998
amendment 402/ 2002 and regulation number 106/2002 became important instrumental
documents in the cooperative movement of the country. As a result, some improvements
• distribute inputs,
have been seen in cooperative societies in the country. Cooperative societies started to:
• provide loan to their members,

• Unions (secondary cooperatives) were formed with the assistance of
• market member produces in the domestic and foreign market,

Cooperative Union Project (CUP) funded by VOCA/Ethiopia/USAID),
• Dividend payments were made by primary cooperatives as well as the unions.

• Conducting cooperatives produce exhibition
• Entered to the banking service
• Prepared to establish federation at national level
The number of primary and secondary cooperatives of different types with significant
increase in number of member beneficiaries could be achieved. Trained man power in the
sector is increasing through universities and colleges, training, exposures visits and
education of members by coordinated effort of the government.
13
Table 1 . Number and Type of Primary Cooperatives In Ethiopia
S. Types of coops No.of Male Female Total Capital

No coops.
1 Multipurpose 5104 3285990 401747 3,687,737 347.36
2 Dairy 112 3048 1087 4135 3.3
3 Incense 14 1257 202 1459 0.129
4 Fishery 36 2267 134 2401 3.42
5 Irrigation 442 26280 4217 30497 11.86
6 Apiary 40 2478 44 2522 0.442
7 Seed production 17 1751 182 1933 2.37
8 Fruits & 60 0 0 1740 0.719

vegetable
marketing
9 Livestock 149 3180 383 3563 3.13
production and
vet. service
10. Slaughtering 8 239 7 246 0.82
house
11 Coffee pulpury 1 16 4 20 0.35
cooperatives
12 Tree growers 12 1430 295 1736 0.203
13 Sugar cane 9 1311 453 1764 1.94

producers
14 SACCOs 4178 69072 33589 102661 1037.62
15 Housing Coops 5869 0 0 424731 18.37
16 Rural Electric 12 2963 774 3737 0.47

Coops.
17 Handicrafts 1514 0 0 31408 21.8
Coops.
18 Mining 355 25335 1044 26379 5.85
19 Consumers 81 0 0 6459 3.07
14
Coops
20 Construction 204 0 0 19431 10.304
21 Others 930 3018 128 3146 1.744
Total 19,147 3,430,435 444,354 4,076,323 1,475.253
Table 2. Number of Unions by Region
No.
No. of Capital
of Male Female Total
S.No Region Affiliated In
Unio members members members
primaries Mil.
n
1 Tigray 20 160 86,514 30,159 116,673 8.8
2 Benshangule 1 8 2,157 273 2,430 0.13

Addis
3 Ababa 3 165 0 0 8,012 1.74
4 Oromia 49 1242 462,807 50,854 513,661 44.99
5 SNNP 20 420 183,163 14,243 197,406 8.65
6 Amhara 29 588 430726 45435 476161 31.52

Total 122 2570 1,165,367 140,964 1,314,343 95.85
The above mentioned two tables (Sources: Federal Cooperative Agency) reveals the present
status of cooperatives in Ethiopia. The number of unions started to import fertilizers in the
production year 2004/05 were three (two from Oromia and one from Amhara region) and
the amount of fertilizer imported was 100, 000.00 Mt. After acquiring significant
experience in this field, the number of unions and the amount of fertilizer imported in the
year 2005/06 has also increased to eight and 253,750.00 Mt respectively. Three unions from
Amhara, SNNP and Tigray region, as well as five unions from Oromia region had
participated in this process. The amount of fertilizer imported by these unions has reached
253, 750.00 Mt. Loan source from commercial bank of Ethiopia through the guarantee of
the regional governments Total value of the fertilizer imported by the Eight cooperative
unions of the year 2005/06 = USD $ 79,678,087.00. National Market share 70% of the total
fertilizer demand of the country. Tigray 100% of the fertilizer distribution is covered this
year by Enderta Cooperative (DAP = 92,195 quintals, Urea = 104,457 quintal, Total=
196,652 quintals)
15
Problems
The cooperative movement in the country faced a number of problems in the different
economic systems of the country. Most of the cooperatives don’t have professional
managers due to two reasons. The viability of the cooperative is not always ensured due to
low organization, technical supports and follow up by the concerned bodies. The ever-
changing structure of the cooperative bodies at federal, regional and woreda level highly
affected the smooth development of cooperative societies in the country. Lack of long term
credit hinders the investment of cooperatives in different projects that would have economic
benefit to members. The members’ economic and /or financial power to strengthen their
cooperative society is very weak. So cooperatives are suffering in shortage of capital .The
infrastructure problem (road, transportation, bank, etc) in the rural Ethiopia hinders the
provision of inputs, consumer goods and marketing of members produce by cooperative
societies to member patrons. Lack of timely, accurate and reliable market information adds
to the problem. To conclude, the government of Ethiopia had already paved the way for
better cooperative development in the country through creating legal basis and expansion of
human resource development at higher institution level .Therefore, it is high time to the
cooperative bureaus, cooperative experts, higher institutions, and cooperative staff to
maximize the existing policy environment to the advantage of cooperative development so
that members will benefit from it and cooperatives can contribute to the social and
economic development of the nation.
Cooperatives for Food Security
Cooperatives are the best institutional intervention for attaining food security in any
country. The developed nations like the United States of America, Canada, Australia,
almost all European countries and Socialist country like China have attained food self
sufficiency mainly through Cooperatives. In Ethiopia currently (2007) the Cooperatives are
Ü The provision of agriculture input and output marketing

playing a crucial role in attaining food security through;
Ü Facilitating irrigation for crop production

Ü Value addition
Ü Creation of employment
Ü The establishment small and micro enterprises
Here in this paper, the author would like to highlight the contributions of some selected
types of cooperatives.
Case I Multipurpose Cooperatives: The Multipurpose Cooperatives otherwise called

agricultural cooperatives carries out the following activities effectively;
1. Marketing of the following agricultural inputs to the members primarily and the
non-members if warrants with the government guarantee;
a. Chemical fertilizers( The Cooperative Union imports from Jordan and
distributes to all the Primaries Cooperatives in the region),
b. Improved hybrid and high yielding varieties of seeds
c. Quality farm implements at a fair price
2. Provision of agricultural credit to the members
16
3. Production and marketing of seeds and seedlings
4. Processing of produces particularly Coffee and oilseeds
5. Provision of storage facilities
6. Marketing of members’ agricultural produces
7. Supply of consumer goods like sugar, coffee, kerosene and other basic necessities.
8. Operating a flourmill for grinding of food grains and other spices for both members
and non members.
9. Mining of sand and stone, manufacturing Hollow blocks. This activity gives
employment to a significant level of people and income to the cooperatives.
The Cooperative is marching towards creating congenial atmosphere, more production and
employment generation so that food security could be achieved.
Case II Dairy Cooperatives: Dairy Cooperatives are procuring milk from dairy farmers and
selling the same for the city consumers. Hitherto unnoticed and highly unorganized milk
marketing received due attention among the suburban farmers. Though the movement has
to go a long way in establishing federal structure for processing and marketing milk and
milk products, 112 Dairy Cooperatives is not a mean number. The result shows that the
Cooperatives are in a position to procure milk at a competitive price and have acquired
reputation among the consumers on quality and price factors. However these Cooperatives
are facing problems during Religious fasting seasons and needs to think of alternatives
such as processing.
Case III Water Users’ Associations and Irrigation Cooperatives:
Water Users’ Associations and Irrigation Cooperatives were started for ensuring
supply of water for irrigation purpose. Farmer members of many Irrigation Cooperatives
are cultivating more than two crops in a year. The Irrigation Cooperatives block and
accumulate the stream water and pump for irrigation as per the pre- planned and accepted
schedule. They share the fuel and motor operator’s expenses. Though on a small scale, the
irrigation cooperatives work perfectly and can be replicated in other regions.
Ground water exploitation has not been explored in any of the irrigation
cooperatives. Implications of blocking of a stream have not been studied. Drip irrigation to
save water and expand the cultivable area has not been introduced. Hence, the farmers are
in need of appropriate help from the development interventionists.
Case IV Fisheries Cooperatives
Fisheries Cooperatives are to provide employment to fishing community through

fishing and marketing of fish. They have the mandate of preserving and developing the
indigenous fish varieties and go for exotic varieties without affecting the ecological
balance. They operate on a small scale and need the support of other development
interventionists to go for large scale production, processing and marketing of fish and fish
products. Wherever we have natural and artificial water reservoirs, we can go for fisheries
cooperatives. Fisheries Cooperatives create employment, ensure food security, and provide
a better way for preservation and use of precious water resources for multiple purposes.
17
Case V Forest and Tree Growers Cooperatives
Forest Cooperatives are for the collection and marketing of minor forest
products/non-timber forests product such as fodder, honey, wax, medicinal plants, wild
fruits, tree bark, resin, gum, roots, and seeds. Tree Growers Cooperatives are for afforest
ation of dry lands by planting fruits and fodder trees with limited water use. Unfortunately
such cooperatives are not found in Ethiopia, although it needs them very badly. Highly
deforested lands were converted into man-made forest lands in India because of Tree
Growers Cooperatives. Forest Cooperatives are the best form of institutions to protect the
forests while using the resources in a sustainable way.
In Ethiopia there were instances of ‘Community Management of Natural
Resources.’ A case study of woodlots in Northern Ethiopia resembles a cooperative. Most
of the woodlots are managed at the village level by the village council, and are used only by
members of that village. The most common use allowed on woodlots is to cut and collect
grass for animal feed, root materials, or other purposes. Collection of fruits and bee-
keeping in woodlots are also commonly allowed. Most other uses, including cutting trees,
shrubs, branches, or roots, and collecting fuel-wood, bark, leaves, or dung, are not allowed
in woodlots. In a few cases, animals are allowed to graze in the woodlot, but only during
the drought.
Woodlots are protected in almost all cases by a guard paid in cash or in kind. In
some cases, the guard is compensated by being allowed to collect grass from the woodlot.
Violations of restrictions are usually punishable by a cash fine set by the community
council, though in many cases fines are decided by the local court. Labor for tree planting,
constructing soil and water conservation structures, weeding and harrowing are the main
collective inputs. The main benefit of a woodlot is not the value of grass collected, but the
value of the trees in the woodlot, a non-liquidated capital gain. The authors observed many
such non-formal cooperative experiments. It’s time to regularize such experiments in order
to cooperativise the management of natural resources.
Successful factors that could be replicated in the cooperatively less developed regions
Subject to further empirical substantiation, the author found the following points for
further consideration and replication
̇ Cooperatives in Ethiopia have been established in all business fields (agriculture,
̇
fisheries, milk, meat, grain marketing and fruits and vegetables co operatives)
Rural Ethiopian farmers have already started tasting the fruits of cooperative
̇
enterprises (input and output marketing)
Through Cooperatives, agricultural production and productivity has increased and
the income level of the farmers too (improved agricultural practices like application
̇
of fertilizers and use of yielding varieties, systematic sale of agricultural produces)
̇
Hither to exploited agricultural marketing is getting regularized and cooperativised.
Proper education on thrift and savings drove the members to save and meet their
̇
emergencies
Extravaganzas have comedown and keeping food grain buffer is order of the day
18
̇ Consumption of milk, fish, vegetables and fruits have increased among all classes
̇
of people
̇
Awareness on family planning is increasing and malnutrition is decreasing
Dependency syndrome is in the declining trend
A regular field visit of the author in rural Ethiopia between 2002 and 2006 made him to
conclude that Ethiopia is not a poor country, rather it is a wealthiest poor country.
Judicious and sustainable use of abundant natural resources would certainly create food self
sufficiency. To ensure equitable distribution of wealth and social justice, cooperative
marketing needs are to be given prime importance. The government and the development
interventionists should keep the momentum of promoting cooperatives.
19
Case 2
University Education to Professionalize the Cooperatives of Ethiopia
Problems of Cooperatives in Ethiopia
The Government of Ethiopia is encouraging and supporting the establishment of

cooperatives in various spheres of the country’s economy. As a result, the cooperative
movement is expanding, diversifying and growing at a rapid pace. But as in other
developing countries, the cooperative sector of Ethiopia also faces the organizational and
structural, resources, political and legal, monitoring and evaluation problems.
Organizational and Structural problems:
Organization of cooperatives basically needs strong cooperative extension team to

propagate the concept, principles and philosophy of cooperatives to the general public,
potential members, youth and women. Members with cooperative awareness are
prerequisite for organizing a cooperative. To elect a committee for management and to
participate in the general body meeting and in the business, members should be motivated
by the cooperative extension officials. The government support in terms of financial,
managerial and technical aids is warranted in any developing country. Many cooperatives
in Ethiopia are multi-purpose cooperatives with limited means. Unfortunately, the
government machinery has very limited personnel and other resources for that purpose.
Resources and Capacity
The significance of cooperatives has been recognized at all relevant levels by one and all.
But, in order to manage and administer cooperatives effectively, there is a dire need of
qualified, trained and competent people. Many members of the cooperatives are rural
agricultural poor having very limited savings. The cooperatives are finding it very difficult
to mobilize financial resource base from among the members. The members themselves are
living in a precarious condition and they can’t contribute considerably to build
infrastructural facilities for the cooperatives. The feudal social and economic system
prevailed for a very long time in Ethiopia and the continuous suppression through forced
cooperative settlements by the military regime, made people lack cooperative leadership
among them.
Political and Legal
The concept of the people to accept cooperatives as an economic alternative was due to the
political interference in the affairs of cooperatives and delay in settlement of disputes. The
Cooperative proclamation gives clear direction and guidelines to run a cooperative as an
autonomous association. But it has not reached the people fully yet.
20
Monitoring and Evaluation
Many cooperative employees are not having adequate training to maintain their accounts
properly. Cooperatives need to be supervised, inspected and audited at regular intervals,
failing which, the members of the board and the employees working in the cooperatives
may ignore accountability to the general body. Moreover, the future plan of action cannot
be framed without the results of earlier attempts, for which, the cooperative bureaus of the
governments need professionals.
Of all problems highlighted above, the problem of lack cooperative professionals to run the
cooperative movement predominates. So as in other developing countries,
Professionalisation of cooperative management has been thought of in Ethiopia.
Professional Management in Cooperatives: Some Issues and Challenges
Professional management is defined as “an act and process of performing various

management functions by a professional manager who has acquired specialized knowledge,
skills and expertise in management through formal training or long work experience whose
expertise is socially recognized as valuable to society at large” (Singh 1996).
Co-operatives like any business enterprises are also needed to be managed efficiently, if
they are to maximize the returns or value for their members. For this, they need managers
who are professionally qualified. Professionalisation is considered as an important solution
to many of the ills of the co-operatives (Shah 1987). There seems to be a growing
realization, among co-operatives, of the need to both attract fresh professionals and also
upgrade the skills of their existing personnel. The unfolding economic scenario
characterized by increased competition has made at least some of the cooperatives to think
in terms of enhancing the professional competence of their human resources to face up to
the emerging scenario (Vyas, B.M. 1999; Vyas, M.N. 1999).
However, the professional abilities of the cooperative managers are found to be awfully
lacking or inadequate. Arul’s study (1999) about the managerial qualities of middle and top
level managers of dairy cooperatives revealed that 74 per cent of the mangers were found to
possess low and inadequate relevant professional knowledge which was found to be
correlated with lack of command over basic facts of one’s own profession. The study
inferred that paucity of competent managers could be having a negative impact on the
performance of the dairy cooperatives and called for augmenting the inventory of
managerial qualities in the dairy sector.
The findings of the above study are further corroborated by Reddy (1999) who made an
attempt to assess the different training needs of professionals in various agri-business
cooperatives. As per Reddy’s study, there exists a very high demand or need for training of
the mangers in areas like finance, marketing, human resource management, and production
and project management. However, despite the need, there are many constraints coming in
the way of meeting these training needs. The cooperatives were found to be fairly low on
the HRD salience and training effectiveness, which indicates a low importance, attached to
21
human resource development (HRD) initiatives in these organizations. The study suggested
appropriate training policy and conscious efforts to nurture and develop HRD culture in
cooperatives. At the same time, cooperatives continue to be dogged by problems not
conducive to strengthening professionalism. As identified by Rao (1989), it is common to
find in cooperatives absence of manpower planning, neglect of training and development,
no clear demarcation between the roles of the board and the chief executive, unsound
personnel policies including determination of promotions based on seniority and confining
direct recruitments to lower posts, and the practice of appointing officials on deputation on
a long term basis.
Added to these internal constraints, the cooperatives also face problems in attracting fresh
professionals. A study by Rangarajan and Rangarajan (1999) revealed that only a small
proportion of students pursuing professional courses are willing to join cooperatives. The
negative image of the sector and the low emoluments are among major reasons identified
for the unwillingness of professionals to join cooperatives.
There are many other challenging dimensions to the process of professionalizing

cooperatives. Though professional management is a crucial factor in the survival and
growth of cooperatives, especially pursuing agribusiness, Singh (1996) argues that
professional management can make a significant difference only when the number of
professional mangers inducted in an organization constitutes a critical minimum threshold
level. In other words, cooperatives have to absorb professional managers in significant
numbers to see a visible impact. Singh (1996) identified several obstacles, which come in
the way of effective professionalisation of the management of cooperatives. These factors
include lack of professional managers having values and ethos congenial to cooperative
management, excessive government control and political interference, lack of good
leadership among cooperatives, small size of business of cooperatives and hence inability to
hire professional managers, lack of performance based reward systems, and internal work
culture and environment not suitable for professionalisation.
One of the counter arguments to a deliberately planned approach to initiate the process of
professionalizing cooperatives is that such a strategy may not succeed unless it reckons
with the factors, which inhibit such a process. Professionalisation of management is a
social process. Unless professionalisation comes to be accepted as a way of life in the wider
society, cooperatives alone may neither be able to initiate nor sustain the process (Taimni
1986). Further, Professionalisation has to reckon with the democratic characteristics and
the values for which the cooperatives stand for (ibid). Cooperative management can
succeed only when the objectives commensurate with the cooperative principles (Shah
1987). A professional manager’s role particularly in a cooperative is thus a challenging
task. To succeed in the role of management of change, a professional has to exhibit
exceptional characteristics: “the ethic of mastering one’s subject; a focus of other’s needs;
an internalization of the exterior world one serves; constructive iconoclasm towards one’s
bureaucracy; and clarity of mind about the many seemingly small elements which make up
great endeavors” (Kurien 1997).
22
Earlier Efforts
Considering the importance of trained manpower at all levels, the government of Ethiopia
had the following strategies:
1. Offering certificate and diploma programs in Cooperatives by the Ardaita
Cooperative Training College
2. Deputing the Cooperative personnel for training to India , Kenya and other
countries
3. On the job training to the personnel who have joined in the cooperative sector with
Degree/ Diploma in agriculture.
But all these efforts were not adequate to meet the growing needs of Cooperatives in
Ethiopia.
University Programmes
The Ethiopian Government has reviewed experiences in cooperatives promotion and

development and drawn a national legislation to promote the development of cooperatives
to foster the social and economic development of the country. A Cooperative Desk has been
formed under the Office of the Prime Minister to oversee the policy, research,
organizational and technical conditions of Regional Bureaus of Cooperative Promotion and
Development. This desk constituted a study team to conduct training needs assessment. The
team collected the necessary information that can support the preparation of the five-year
plan for cooperative development and promotion in the country with specific emphasis on
the required trained manpower. On the basis of the Cooperative Capacity Building
document, the Ministry of Education has assumed the responsibility of producing trained
manpower for cooperative development in the country. To this end, a Cooperatives
Training Task Force was formed by drawing expertise from different organizations to study
the necessary conditions for launching cooperative training programs at Degree level,
whose output is followed on by the Cooperatives Curriculum Development Task Force.
In order to realize the plans of the government and guide volunteers to be productive in
their cooperatives, trained manpower with adequate knowledge, skill and attitude is
required. Hence, a new Degree program in cooperatives was launched in Mekelle
University, Alemaya University, Jimma University and Debub University in the
year1996EC. The program is typically characterized by its practical-oriented training
process that attempts to equip students with the required skills and capacity of promoting
cooperative behavior through practical attachment programs with cooperative societies and
banks.
Objectives of the Program
The overall objective of the program (through out Ethiopia) is to develop expertise in
cooperatives and people-centered organizations with capability to promote self-reliance and
self-governance. The program is aiming at developing values, economic opportunities and
23
ways of controlling own resources to attain transparency, cooperation and involvement of
members. The specific objectives are to:
Ü Produce trained manpower who can work in multifaceted cooperatives, Cooperative

Banks, Cooperative Promotion and Development Bureaus, Cooperative Training
Ü Provide short-term training programs and cooperative education activities through

Institutions, NGOs and Universities;
correspondence and field and radio programs for cooperative leaders and members,
Ü Carryout cooperative research and consultancy services on policies and methodologies

schools and the society at large; and
for institutional and organizational development of cooperatives and other community-

based institutions.
Organizational Structure of the Department of Cooperatives, Mekelle University:
Here the author would like to give a case of the Department of Cooperatives, Faculty of
Dryland agriculture and Natural Resources, Mekelle University to highlight the structure
and functions visualized to professionalize the cooperative management.
Department of Cooperatives
Regular Training Research& Distance

Consultancy Education
degree
The structure of the department envisages regular Degree program with specializations in
Business management and Accounting & Auditing. Further the department will be having
the following sections to accelerate the cooperative movement of Ethiopia.
Short-term Training Section
Education of board members, managers, the general public and young people in particular
is essential in order to generate interest, enthusiasm and effective participation in
cooperatives. This section will be responsible to:
- organize short-term training programs
- prepare training materials and cooperative guidelines
- organize instructional resources
- conduct training needs assessment
- evaluate performance of trainees and graduates
- establish field-training centers
- provide education media services
24
Research and Consultancy Section
Ongoing research and educational effort on cooperatives is necessary to develop

cooperative movement to its full potential in Ethiopia. This section will be responsible to:
- conduct research on the role and history of cooperative movement, cooperative policy,
cooperative organization and management, cooperative process, the nature of decision-
making in cooperatives and food security
- study the perceptions of cooperation and challenges of cooperative societies
- provide information for the preparation of cooperative guidelines and training materials
- provide consultancy, auditing and accountancy services for cooperative societies and
banks
Distance Education Section
Distance education—individual learning—covers those forms of education, which afford

educational opportunities, through technical means, to learners who study individually. The
value of distance education is viewed as a means of allowing almost anyone, almost
anywhere to learn almost anything. The objective of this section is to provide widespread
educational services in cooperatives for participants who cannot afford coming to training
centers. It can serve as a foundation course for in-service training programs. The section is
responsible to develop learning materials, establish tutorial centers and educate participants
of distance education.
Need based post graduate programme in Cooperative Marketing has been launched. Future
Vision of the Department is to upgrade it as a school of Cooperatives and agribusiness.
Conclusion
The four universities have taken initiative to offer Degree program in cooperatives. The
expertise attained by the expected 500 professional graduates every year from all the four
universities will go a long way in fulfilling the growing needs of cooperative professionals.
Further, training to the existing employees of the cooperatives and officials of the
cooperative bureaus will motivate them and bring them out of skill obsolescence.
Professional management of cooperatives in Ethiopia will improve the efficiency and
efficacy of the cooperatives. The Universities will impart professional skill to manage the
varied businesses like agricultural production, processing, marketing; agro based industries;
consumer cooperatives; housing cooperatives; and cooperative banking of the organized
sector/cooperatives. This will provide the much needed base for the development and
expansion of Ethiopian economy. In furthermore of the objectives, the Mekelle University
is in the process of starting a School of Cooperatives and Agribusiness which is expected to
materialize in due course.
25
Case 3
Need for Cooperative Education, Training and Information in Local Languages 1 P

T P
T
Research Issue:

democratically controlled enterprise.
The people of Ethiopia have got a very long social history of working together to fulfill
their socio-economic needs. Agriculture, Trade and Military Operations were carried out
though cooperative efforts. Many social events are still taking place in rural Ethiopia
through collective effort. The Federal Government of Ethiopia has identified Cooperative
form of business organizations as an instrument of socio-economic change. Many
Cooperatives have emerged in the recent past to serve the suppressed and depressed
community of Ethiopia. Due to the encouragement given by the present government, there
were 514 Multi Purpose Cooperatives, 41 Irrigation Cooperatives, one Fisheries
Cooperative, one handicrafts Cooperative, 13 Savings and Credit Cooperatives, and one
Housing Cooperative functioning in the Tigray region of Ethiopia as on 30th March 2003.
P P
The basic assumption behind the organization of cooperatives is that the members are
aware of Cooperative Principles and Practices. Cooperatives are to provide education and
training for their members, elected representatives, managers, and employees so that they
can contribute efficiently to the development of their Cooperatives. They should also
inform the general public, particularly young people and opinion leaders, about the nature
and benefit of Cooperation.
This paper tries to emphasize the vital role played by education and training within
cooperatives. Education means more than just distributing information or encouraging
patronage; it means engaging the minds of members, elected leaders, mangers and
employees to comprehend fully the complexities and richness of cooperative thought and
action. Training means making sure that all those who are associated with cooperatives
have the skills they require in order to carry out their responsibilities effectively. Education
and training are also important because they provide excellent opportunities whereby
cooperative leaders can understand the needs of their members. This training and education
should be conducted in such a way that the cooperative leaders are able to suggest ways to
improve or to provide new services. A cooperative that encourages effective two-way
communication between its members and leaders, while operative in an effective manner,
can rarely fail.
1
T
PPresented in the Workshop on Language, Culture and Development in Ethiopia, held at Addis Ababa on 6th
T
P P P
and 7th,june,2003
P P
26
The paper further tries to recognize that cooperatives have a particular responsibility to
inform young people and opinion leaders, politicians, public servants, media representatives
and educators about the nature and benefits of cooperation.
Hence an attempt has been made in this study to explore the education, training and
information process in the Cooperative Sector.
The objectives of the study are:
1. To identify the awareness of members, directors of the boards, youth and employees
regarding the ownership of cooperative,
2. to identify Education, Training and Information needs of the respondents,
3. to identify the content and medium of Education, Training and Information process
Methodology
The study was carried out in the following four cooperative societies selected randomly in
and around Mekelle, Tigray region, Ethiopia:
1. Romanat Multi-purpose Cooperative,
2. Debri Multi-purpose Cooperative,
3. Two Irrigation Cooperatives, Wukro
By administering a checklist, an interview was conducted among the following categories

of respondents during the moth of March 2003,
1. Five Board Directors of each society,
2. Five Farmer Members of each society,
3. Five youth of each society,
4. Two Bookkeepers and two Salesgirls
Analytical Framework
Data so collected were classified into three categories Viz.,

1. Awareness of Members, Board Directors, Youth and Employees regarding the
ownership of cooperatives
2. Education, Training and Information needs of the respondents,
3. Content and Medium of Education, Training and Information process
Description of Sample Respondents
Age group of Board Directors and the Farmer Members were between 50 and 70 years.
The author could find only male respondents. Directors on the board were only literates
and farmers were without any formal education. They mainly depend on agriculture.
Monthly income of the respondents’ family ranges ETB 150 to 300. Respondents’ average
27
family size was around eight. No respondent lives in a comfortable house. Their houses
were not electrified. They take only one or two types of food. Medical facilities were not
accessible to them. The respondents were satisfied with minimum clothes. The
interviewed youths were school going boys. They travel around five to ten kilometers on
foot to schools. They were exposed to developments taking place in the towns. They study
using the kerosene lamps. Employees had schooling and were aged between 20 and 30
years. Out of four employees interviewed three were female.
Description of the Selected Cooperatives
The Multi Purpose Cooperatives were to function with the objectives of: (i) Provision of
agricultural credit, (ii) Provision of agricultural inputs (iii) Facilitating Sale of agricultural
produce, (iv) Operating a consumer store, (v) Optimum utilization of natural resources like
sand and stones, (vi) Inculcation of thrift and savings habit among the members. The study
reveals that in the selected cooperatives, agricultural credit was not given effectively. As
far as agricultural inputs are concerned, only seeds and fertilizers were supplied. The
selected cooperatives never entered into the function of facilitating sale of agricultural
produces. Almost all respondents of the study appreciated the functioning of consumer
store. Optimum utilization of natural resources like sand and stones gives employment to a
small segment of population and increases the non-business revenue of cooperatives. Very
few are involved in the thrift and savings activity. As far as Irrigation Cooperatives are
concerned, they started with the allotment of lands to the farmers. Each cooperative has got
35 members and each member has got a hectare of land. The interesting phenomena here is
that the barren lands were converted into irrigated lands and the farmers take three crops in
a year. They decide, in advance, what should be produced and how the irrigation schedule
be managed. They also decide the transportation and sale of produces in the Mekelle
Market. Unfortunately, the farmers were not provided with adequate credit to develop
cement canals/drip irrigation (that will save the water considerably). They also expect
proper guidance on scientific cultivation and input supply.
Major Findings of the Study
Very interestingly the author found uniformity in the opinion of all respondents. The major
findings of the study were classified into three aspects viz., awareness regarding ownership
of cooperative; education, training and information needs; and the model for education,
training and information processes.
Awareness Regarding Ownership of Cooperatives
The respondents were approached with a clear mission of identifying their awareness
regarding ownership of cooperatives. The interviewers had in their minds the following
points as standard: a cooperative is a registered institution functioning under the
Cooperative Societies Proclamation No 147/1998 of the Federal government of Ethiopia;
the cooperative societies are for the members, by the members and of the members; it is a
democratic business enterprise. For the purpose of this paper, ‘awareness regarding
28
ownership of cooperatives’ denotes the respondents opined or accepted that the cooperative
belonged to them.
The study found that since many board directors were founders of the Cooperatives, they
were aware of the ownership status of a Cooperative (in many developing countries many
feel that a Cooperative is a government organization). Members and the youth had the right
opinion regarding the ownership of a Cooperative. Bookkeepers have got a clear
understanding regarding the role of government as friend, philosopher and guide. The
respondents feel proud to have a cooperative institution in their village.
Education, Training and Information Needs
The respondents were interviewed with an intention of identifying their education, training
and information needs. The interviewers enquired about their operational problems in
dealing with cooperatives and they were asked to explain the steps taken by them to solve
those problems. They were made to realize the importance of education, training and
information process to solve the problems and misunderstanding about cooperatives. The
briefing helped the authors to identify the gap in the education, training and information
process.
The directors of the board felt that they were not aware of the principles, philosophy and
practice of cooperation. They would like to expand the business operation of their
cooperatives. They felt that they lacked confidence in monitoring the business and
maintenance of accounts. They would also like to learn more on business practices and
government regulations.
The farmer members opined that they participated in the general body meetings and in the
business. Still many respondents were not in a position to understand the magnitude of a
cooperative. They would be the possible leaders in the future and they should continuously
contribute to the cooperative. The authors inferred that there must be a permanent
mechanism to impart member education.
The interviewed youth expressed their interest to know what a cooperative is (principles
and philosophy), how it works (practices), who patronizes it (role of government and the
non-governmental agencies), how it will help them and the community (advantages). It
drives the authors to conclude that there must be continuous cooperative education to attract
the youth and the potential members in the cooperative fold.
The Bookkeepers observed that, to run the cooperatives very efficiently and effectively,
they need training on business practices and maintenance of accounts. They have also
expressed their interest in learning the legal aspects of Cooperative Business.
Every one of the respondents wants to be educated, trained and informed only in
Tigrinya, the local language of Tigray region of Ethiopia. The respondents
acknowledged the good work of Tigray Cooperative Promotion Office. But the authors
found that, to develop the movement in the right and needed direction, what has been done
29
is limited (though it is appreciable with their limited resources) and what should be done is
more. There must be an institutional arrangement for the purpose of education, training and
information process. To impart cooperative education to the members, youth and general
public, the nation should have the following institutional structure:
1. National Cooperative Union at the Fedral Government level

2. Regional Cooperative Union at regional level
3. Woreda level Cooperative Union
To conduct training programs for board directors and employees, there must be one national
cooperative training institute and regional cooperative training institutes in all regions (the
authors fully acknowledge the yeomen work of existing training institutes in the nation).
A Model for Education, Training and Information Process
A model has been prepared after taking into consideration the experiences of other
cooperatively developed countries especially India. Here, the authors took five variables
viz., target group, content, mode, medium and duration to build the model for education,
training and information process. For the purpose of this paper, the term ‘target groups’
denotes persons having affiliation with the cooperative, persons who could establish contact
with the cooperatives in future and the opinion leaders who could influence the decision of
others. The term ‘content’ denotes the subject matter to be disseminated to the target
groups. Mode means how we impart knowledge and skill. The preferred language of the
area was considered as medium of instruction. Duration of the program is to fit into the
content and objectives of the process. The following table illustrates the model in detail.
The objectives of the model are as follows:
1. Every citizen of the country should have an understanding about cooperatives

2. Success of cooperatives depends on the participation of members in the decision-
making and business.
3. Employees of cooperatives should understand the unique features of cooperatives
30
Sl. Target group Content Mode Medium Duration
No.
1 Members (enrolled The members, Mass Media like Tigrinya Permanent
and doing business general public and Television, Radio,
with the the youth may be Newspapers and Internet.
cooperative), taught what a All extension tools such
General Public and cooperative is as screening moving
the youth (potential (principles and films, display through
members) philosophy), how permanent posters,
it works distribution of booklets
(practices), who and conduct of
patronizes it (role participatory workshops
of government and may be opted.
the non-
governmental
agencies), how it
will help them and
the community
(advantages).
2 Board Directors Principles and Training Tigrinya One week
practices of
Cooperation,
Cooperative
Societies
Proclamation,
Cooperative
Accounting,
3 Employees Principles and Training Tigrinya One month
practices of
Cooperation,
Cooperative
Societies
Proclamation,
Cooperative
Accounting, and
Business Strategy
Syllabus for the Recommended Courses
1. Principles of Cooperation: Cooperation-definition, economic benefits, social,

cultural and moral benefits. Principles of cooperation. Cooperation and other forms
of economic systems/enterprises. Important experiments and the contributions of
cooperators.
2. Practice of Cooperation: Different types of cooperatives, organization and
management, problems of cooperatives, backward and forward linkages.
Cooperation in the planned economy. Business strategies.
31
3. Cooperative Societies Proclamation: Cooperative Societies proclamation No
147/1998-Objectivs of a society, Formation and Registration of Cooperative
societies, Rights and Duties of Members of a Society, Management Bodies, Special
privileges of Society, Assets and Funds of a society, Audit and Inspection of
societies, Dissolution and Winding up of societies, Settlement of Disputes and
Miscellaneous provisions.
4. Cooperative Accounting: Fundamentals of Cooperatives Accounts- Evolution,
Differences between Cooperative Accounting and double entry system, Single entry
system and Cooperative Accounting, Bookkeeping in Cooperatives-Day Book,
General Ledger and Special Ledgers, Reconciliation of balances-Receipts and
payments Statement. Preparation of Financial Statements-Forms and preparation of
Trading Accounts, Profit and Loss Accounts, and Balance Sheet, Preparation of
Budget.
5. Business Strategy: Materials management, Cost minimization strategies, Wastage
minimization strategies, Risk management.
Study materials need to be prepared by an expert group who knows the subject and the
regional language of Tigrinya. Expert assistance may be sought from the cooperative
extension specialists particularly for member education programs.
Policy Framework
Considering the necessity of continuous education, Training and Information process to

develop the Cooperative Movement in the democratic way and to build a strong
decentralized economy, the authors advise the Tigray Cooperative Promotion Office, the
Department of Cooperatives, Mekelle University and the Non-governmental Organization
(VOCA), to evolve a suitable plan to reach out to the people. A standing committee to look
into that matter may be constituted by the government.
The Power of Knowledge can be realized better if it’s disseminated through mother
tongue.
32
Case 4
Cooperative Management of Natural Resources2 P

T P
T
Introduction
Management of natural resources such as land, water, forests, fish etc. of a nation is an
important factor affecting the level and pace of its development. Many systems of
management of natural resources have been proposed by academics and practitioners. They
include privatization, nationalization or centralized public management, and
cooperative/collective management by local people themselves. There is no single best
system of management that could be recommended for all situations and for all times. The
choice of an appropriate system depends on several factors such as the characteristics of the
resource, attributes of the resource users, the decision-making environment, and the goals
of resource management. The resource management warrants an understanding about the
conditions under which each of the three alternative systems of resource management is
likely to succeed as well as the conditions under which a system is likely to fail. Hence, an
attempt has been made in this paper to explore and critically analyze the suitability of
cooperatives to manage the natural resources in Ethiopia.
The main objectives of the study are:

1. To examine the rationale of cooperative management of natural resources
2. To review the current status of cooperatives engaged in the management of natural
resources
3. To propose a cooperative model to manage the natural resources
Methodology for the Study
The data for the study to justify the objectives were collected mainly from the secondary
sources. Observations during the field visits of the author also form part of the description.
Further, the author had discussion with the officials involved in organization and
supervision of cooperatives in the Tigray region. Though this paper can have the limitations
of significant level of empirical evidences, the author believes that this modest attempt
would facilitate further research.
Findings of the Study
2
T
P Coauthored by Dr.C.Pitchai and Presented in the International Cooperative Conference
T
P
organised by the Mondragon University held at Onate, Spain between 12th and 14th July P P
2006,
33
The findings of the study are presented in the following paragraphs in concurrence with the
objectives.
Rationale for Cooperative Management of Natural Resources
The natural resources are dynamic and subject to management interventions that can
provide sustainable benefit flows in the form of food, fodder, fuel wood, fibre, timber,
manure, etc., clean surface and ground water, air filtration and humidification, and Eco-
tourism. Management of natural resources on sustained yield basis depends upon a careful
orchestration of the policies and management practices. Lack of equitable access to natural
resources and, hence, inequitable distribution of their benefits often leads to clandestine
encroachment, or misappropriation of these resources. There is, therefore, a need for
exploring viable natural resources management strategies for their restoration and
utilization within a development context.
Until recently the role of natural resources in the rural economy was not understood
properly. Therefore, privatization or nationalization of natural resources was suggested as a
solution to arrest their degradation and preserve the environment. Experience with
nationalization of natural resources has not been good in most of the cases all over the
world. Privatization has yielded mixed results: it has been justified on efficiency grounds
and condemned on equity and sustainability grounds.
For the success of any strategy of natural resources management, the involvement of local
people is essential. This is so because the use of natural resources by any user has many
unintended side-effects, or in technical terms, externalities on other co-users. For example,
pumping of ground water in a watershed affects the aquifer that is a natural resource to
which all those who live in the watershed have a legitimate claim. If one of the co-users
pumps more water, to that extent, less water is left for use by the others in the watershed.
Optimum use of ground water in a watershed, therefore, requires the cooperation or
participation of all the people living and using ground water in the watershed. Similarly,
soil and water conservation in a watershed requires the participation of all the land-owners
having land in the watershed in the form of adoption of the recommended soil and water
conservation measures. In a nutshell, all uses of the natural resources, irrespective of
whether they are owned privately or publicly, are interdependent and require the
cooperation of all the resource users for internalizing/minimizing the externalities involved.
This is best achieved when the planning and management of natural resources is done on
watershed basis and the resources managed by their users are organized in the form of an
association preferably a cooperative society. Cooperative management of natural resources
is therefore the most appropriate of all forms of management in most situations. Moreover,
theoretically and ideologically, the cooperative mode of natural resources management
seems to be the best of all. This is so because, with proper rules and regulations, it can
better meet the goals of efficiency, sustainability, equity and resource users’ satisfaction
and is politically and socially more acceptable in most societies and nations than any other
alternatives. Group management of the natural resources will be more efficient in a
watershed when implemented through the cooperative.
34
Current Status of Cooperatives Engaged in the Management of Natural Resources

through cooperative efforts. Many social events are still taking place in rural Ethiopia
were 514 Multi Purpose Cooperatives, 38 Irrigation Cooperatives, 13 Water Resources
Associations, one Fisheries Cooperative, one handicrafts Cooperative, 22 Savings and
Credit Cooperatives, eight Urban Savings and Credit Cooperatives and one Housing
Cooperative functioning in the Tigray region of Ethiopia as on the last day of 1995 EC.
The cooperatives and its members should have social responsibility, which includes
preservation and promotion of natural resources. Irrespective of the nature of business, the
cooperatives are to function with environmental consciousness. Any form of environmental
degradation or pollution is against the cooperative philosophy.
In Ethiopia, the following cooperatives are directly involved in natural resources
• Multipurpose Cooperatives
management.
• Irrigation Cooperatives
• Water Users Associations
• Fisheries Cooperatives
The level of involvement and scope for further expansion of these cooperatives in
management of natural resources is examined below:-
Multipurpose Cooperatives
Multipurpose Cooperatives are considered an institutional intervention to increase

agricultural production and productivity. Multipurpose Cooperatives are functioning with
the following objectives:
1. Provision of agricultural credit
2. Provision of agricultural inputs
3. Facilitating sale of agricultural produces
4. Operating a consumer store
5. Optimum utilization of natural resources like sand and stone
6. Inculcation of thrift and savings habit among members
35
The objective of Optimum utilization of natural resources like sand and stone is operational
with the help of local administration. The members of cooperatives are engaged in the
mining work and get wages for their labor. The cooperative also gets a moderate
commission for every load of supply to the urban consumers/contractors. The amount so
generated forms part of the cooperative’s income.
The Cooperatives engaged in such mining operations need a detailed geological study as to
what extend they could use the resources and where and when it should be stopped (It can’t
be a perpetual operation since land mining has an adverse effect on ecology).
The members of cooperatives should be made aware of the conservation of natural

resources. Since the entire rural community is involved in the cooperative process,
management of natural resources will be very much transparent and more effective. Soil
erosion and land degradation are the other major threats to the farming land which need to
be addressed through cooperatives.
Water Users’ Associations and Irrigation Cooperatives:
Water Users’ Associations and Irrigation Cooperatives were started for ensuring supply of
water for irrigation purpose. Farmer members of many Irrigation Cooperatives are
cultivating more than two crops in a year. The Irrigation Cooperatives block and
irrigation cooperatives work perfectly and can be replicated in other regions.
Ground water exploitation has not been explored in any of the irrigation cooperatives.
Implications of blocking of a stream have not been studied. Drip irrigation to save water
and expand the cultivable area has not been introduced. Hence, the farmers are in need of
appropriate help from the development interventionists.
Fisheries Cooperatives
Fisheries Cooperatives are to provide employment to fishing community through fishing

and marketing of fish. They have the mandate of preserving and developing the indigenous
fish varieties and go for exotic varieties without affecting the ecological balance. They
operate on a small scale and need the support of other development interventionists to go
for large scale production, processing and marketing of fish and fish products. Wherever we
have natural and artificial water reservoirs, we can go for fisheries cooperatives. Fisheries
Cooperatives create employment, ensure food security, and provide a better way for
preservation and use of precious water resources for multiple purposes.
Forest and Tree Growers Cooperatives
Forest Cooperatives are for the collection and marketing of minor forest products/non-
timber forest products such as fodder, honey, wax, medicinal plants, wild fruits, tree bark,
resin, gum, roots, and seeds. Tree Growers Cooperatives are for afforestration of dry lands
36
by planting fruits and fodder trees with limited water use. Unfortunately such cooperatives
are not found in Ethiopia, although it needs them very badly. Highly deforested lands were
converted in to man-made forest lands in India because of Tree Growers Cooperatives.
Forest Cooperatives are the best form of institutions to protect the forests while using the
resources in a sustainable way.
In Ethiopia the author noted various instances of ‘Community Management of Natural

Resources.’ A case study of woodlots in Northern Ethiopia resembles a cooperative. The
most woodlots are managed at the village level by the village council, and are used only by
members of that village. The most common use allowed on woodlots is to cut and collect
grass for animal feed, root materials, or other purposes. Collecting fruits and bee-keeping
in woodlots are also commonly allowed. Most other uses, including cutting trees, shrubs,
branches, or roots, and collecting fuel-wood, bark, leaves, or dung, are not allowed in
woodlots. In a few cases animals are allowed to graze in the woodlot, but only during a
drought.
Woodlots are protected in almost all cases by a guard paid in cash or in kind. In some
cases, the guard is compensated by being allowed to collect grass from the woodlot.
Violations of restrictions are usually punishable by a cash fine set by the community
council, though in many cases fines are decided by the local court. Labor for tree planting,
constructing soil and water conservation structures, weeding and harrowing are the main
collective input. The main benefit of a woodlot is not the value of grass collected, but the
value of the trees in the woodlot, a non-liquidated capital gain. The authors observed many
such non-formal cooperative experiments. It’s time to regularize such experiments in order
to cooperativise the management of natural resources.
Factors Responsible for the Success of Cooperative Management of Natural Resources
The factors responsible for the success of cooperative management of natural resources are:
1. High stakes of resource users in the resources as well as in the cooperative

managing of resources.
2. Good local leadership and social and political entrepreneurship.
3. Existence and strict enforcement of rules for regulating the use of the resources,
preventing free riding, sharing the cost and benefits of cooperative management
equitably (in proportion to the effort put in or contribution made).
4. Willingness of government departments and officials to share power with the
cooperatives and to support them in the forms of funds, technical information,
legitimacy and coordination.
5. Involvement of external agency as a catalyst.
6. Integration of production, processing and marketing.
7. Small and cohesive groups have higher chances of success in management of
natural resources.
8. Social fencing is possible through cooperatives.
37
Based on the above review the authors present the following Model for the Cooperative
Management of Natural Resources in Ethiopia (page 43).
Conclusion
There are three alternative systems or regions under which natural resources are and can be
managed, namely: privatization, nationalization, and Cooperativisation. Experience with
and condemned on equity and sustainability grounds. Cooperativisation or cooperative
management is relatively recent origin. The results of cooperative management of natural
resources have so far been mixed. But this mode of management seems to hold the highest
promise as an instrument of achieving the goals of efficiency, sustainability, equity and
resource users’ satisfaction and is politically and socially more acceptable in most societies
and nations than any other alternatives.
38
Model for the Cooperative Management of Natural Resources in Ethiopia
Actors
Government Development
Members Local Department Interventionists
Leaders
Sustainable National Institutional Intervention

Management
̇
Resources
̇ ̇
Preservation Cooperatives
̇
Land
̇
Promotion
̇
Water 1. Agricultural Cooperatives
̇
Production
Forests
̇
Process 2. Irrigation Cooperatives
̇ Marketing Fish 3. Forests and Tree Growers
Cooperatives
4. Fisheries Cooperatives
Funds Technical Legitimacy Coordination

Information
Strategies
39
Case 5
Milk Production Enhancement Activities through Milk Cooperatives of Ethiopia-An
Explorative Study3T
P T
P
Introduction

were 4039 Agricultural Cooperatives and 3338 Non-agricultural cooperatives in Ethiopia as
on the last day of September 2003.
The Milk and Milk Marketing Cooperatives in Ethiopia are spreading at a significant level.
As on date, we have 42 Milk and Milk Marketing Cooperatives and one Dairy Marketing
Union in the Oromia region. Cattle population in Ethiopia are around 41,527,142 in the
year1994EC. The abundant cattle population in Ethiopia is underutilized both for milk and
for meat. Considering the topography of the country the scope for Cooperative Milk
marketing Network is ample. Hence, in this paper the researcher is trying to identify the
potential of Milk Cooperatives in the milk production enhancement activities.
Objectives of the Research
The major objectives of the study are:

(i) to frame a model for milk marketing in Ethiopia
(ii) to suggest the possible milk production enhancement activities
Methodology of the Study
The study was carried out with secondary data only. To justify the first objective, current
status of Milk and Milk Marketing Cooperatives were taken in to consideration. Then the
cattle population was also considered for determining the potential for starting more milk
cooperatives. The second objective was analyzed by taking in to consideration the Indian
3
T
PPresented by the author 18th Conference of the Ethiopian Veterinary Association at Addis
T
P P P
Ababa on 9-10, June 2004.
40
experience. The attempt lacks primary empirical evidences. The authors feels that this
modest attempt can become a basis for further research and development.
The findings of the study was made in accordance with the objectives framed viz.: to frame
a model for Milk Marketing in Ethiopia and to suggest possible Milk Production
Enhancement Activities through Cooperatives.
Model for Milk Marketing in Ethiopia
Cattle play a significant role in the economic life of rural Ethiopia. They have remained as
the keystone of Ethiopian farming since time immemorial. Cattle remain as the sole motive
power of agriculture and without them no cultivation is possible and no produce could be
transported. They provide much needed milk and milk products. The following table
indicates the bovine population of Ethiopia. Regional disparities noticed in the figure need
not be taken seriously since area is limited in those regions where cattle are less. Oromia
and Amahara regions are having high population with 43 and 25 percentages to total
respectively. The Tigray and SNNP also have six and 21 percentages to total respectively.
Table 1
Livestock Number and Location 1994EC
Sl.# Region Cattle Percentage

to total
1 Tigray 2,668,078 6.43
2 Afar 345,635 0.83
3 Amahara 10,512,770 25.31
4 Oromia 18,035,686 43.43
5 Somali 512,320 1.23
6 Behshangul G umuz 309,627 0.75
7 SNNP 8,831,450 21.27
8 Gambela 126,198 0.30
9 Harari 34,008 0.08
10 Addisababa 97,215 0.23
11 Diredawa 54,155 0.13
12 Ethiopia Total 41,527,142 100
Source: CSA-Ethiopian Agricultural Sample Enumeration, 2001/02(1994EC)
In spite of the fact that Ethiopia possesses huge bovine stock, the milk consumption is very
low. The demand for milk is rising rapidly due to urbanization and rise in level of income.
Hence, the author advocates the establishment of Milk Cooperatives. Milk Cooperatives are
41
for improving the economic lot of the large number of small farmers and agricultural
laborers. In a mixed farm, crop production and dairy development mutually contribute and
would result in added income to the subsistence farmer. Widespread unemployment and
underemployment also present a strong case for the adoption of dairy farming and mixed
farming to mitigate this problem.
Despite the potentialities and prevailing opportunities, the progress and performance of
dairy cooperatives is far from satisfactory. The dairy industry in Ethiopia suffers from the
Ü Too many milch animals producing too little milk have been the problem of
following problems:
Ethiopian dairy industry. Unless the lactation yield of Ethiopian bovine animals
is improved there is no hope of developing dairy industry on sound and
Ü Dairy industry is highly unorganized and substantially in the hands of private

economic lines.
Ü Dairy industry in Ethiopia is less modernized and consequently less efficient

traders
with high cost of operation.
Milk Cooperatives in Ethiopia give a better hope to the planners and it will be a strong
movement in the years to come. The following table gives the status of Milk cooperatives in
Ethiopia.
Table 2
Milk Cooperatives in Ethiopia as on 30 September, 2003m
Sl.# Region No. of Coops No. of Members Total asset(ETB)

1 Tigray Nil Nil Nil
2 Afar 2 NA 26160
3 Amahara 5 NA 62387
4 Oromia 23 676 1052218
5 Somali Nil Nil Nil
6 Behshangul G umuz Nil Nil Nil
7 SNNP 3 NA 80870
8 Gambela Nil Nil Nil
9 Harari 2 Nil 87000
10 Addisababa 7 308 440968
11 Diredawa Nil Nil Nil
12 Ethiopia Total 42 NA 1749603
Source: Records of Federal Cooperative Commission, Addis Ababa
The above table indicates the poor status of milk cooperatives. Though Ethiopia has the
potential and opportunities to start milk cooperatives, farmers have not yet risen to the
occasion. The development of milk cooperatives in the Oromia region with one Dairy
Union is worth mentioning. The milk cooperatives are collecting and marketing the milk
42
from farmers. The Cooperatives are trying to supply cattle feed to the farmers. They face
the problem of marketing during the fasting months. They need to go a long way in
procurement of milk on quality and quantity basis, processing of milk in to milk products
like powder, butter, cheese, ghee, standardized and pasteurized milk, and marketing the
same in their own outlets.
Effective functioning of milk cooperatives is possible in Ethiopia if we adopt the structure

of successful Anand Model of India:
Depending upon the development of primary cooperatives and unions, Federation at the
Regional level may be organized.
Milk Production Enhancement Activities
The milk production enhancement programmes mainly covers the following activities:
1. Animal health
2. Artificial insemination
3. Feeds and Fodder Development
4. Extension
All these activities can be controlled by the structure which we discussed earlier viz.,
Federation, Unions and Primary Cooperatives.
Federation Level Input
The Federation can undertake the following activities:

1. Central diagnostic laboratory
2. Frozen semen production and supply
3. Liquid nitrogen production and delivery
4. Centralized publication units
Union Level Input
The Unions can undertake the following activities:

(a) Animal Health:
(i) Organization of veterinary routes for regular and emergency services
(ii) Extension of necessary help to central diagnostic laboratory for
disease diagnosis
(iii) Training of Primary Cooperatives’ workers in Veterinary first aid
(iv) Preventive vaccination/inoculation of the dairy animals in
cooperation with the government departments
(b) Artificial Insemination:
(i) Establishment of semen banks for organizing the artificial
insemination work
43
(ii) Procurement and storage of frozen semen and liquid nitrogen for
regular supply to primary cooperatives
(iii) Regular follow-up on AI program
(iv) Organization of sterility/infertility camps
(v) Training of lay-inseminators
(c) Feeds and Fodder Development:
(i) Organization of feed and fodder development program
(ii) Production/procurement and supply of balanced cattle feed
(iii) Procurement and supply of quality fodder seeds
(iv) Follow-up program
(d) Extension activities:
(vi) Organization of milk yield competition
(vii) Organizing audio visual shows and kabele level meetings
(viii) Helping the publication unit by providing required information and
distribution materials to member cooperatives
(ix) Arranging visits of producer members to union’s milk plant, cattle
feed plant, AI Center, etc.
(x) Establishment of demonstration dairy farms and fodder farms.
Primary Cooperative Level Inputs
The primary milk cooperative at kabele level can extend the following inputs to the dairy
farmers:
(a) Animal Health:
(i) To provide veterinary first aid in the kabele
(ii) To assist the milk union in preventive vaccination and inoculation
(b) Artificial Insemination:
(i) To carry out artificial insemination as and when required
(ii) To help maintain proper recording of artificial insemination
(iii)To extend help to milk producers for identification of animals for ear
tagging
(iv)To follow-up AI activity, pregnancy diagnosis, and its feed back
(c) Feed and Fodder Development
(i) To procure and supply quality balanced cattle feed from the milk union
(ii) To demonstrate improved fodder cultivation
(iii)To procure and supply quality fodder seeds to farmers
Implementation Strategies
After reviewing the strategies adopted by the Indian cooperative dairy industry, the authors
Ü There must be a national level program like Operation Flood program of India.
advocate the following suitable implementation strategies for Ethiopia:
Ü The financial needs can be met from the sale of material assistance received in
the form of milk and milk products, and ploughing back the funds for the
development activities
44
Ü The major factor for the success of cooperative dairy industry is
professionalisation of management. Appointment of veterinarians in all
Ü The movement should be under an independent national body established and

endeavors is recommended
patronized by the Federal Government.
Conclusion
The advent of dairying has been a boon for dairy farmers, but it has been of particular
importance to those segments of the society that have been traditionally weak. These are the
small landholders, the landless laborers, and women. It has provided people, who could
only depend on payments from small seasonal crops or from occasional labor, with a year-
round source of income. The package of Milk Production Enhancement Activities through
Cooperatives presented above, on effective implementation, would certainly make a
significant change in the socio-economic life of rural mass of Ethiopia. At the same time,
the urban consumers will also get good milk and milk products at a fair price.
45
Case 6
Role of Cooperatives in Promoting Democratic Culture in the Tigray Region4 P
T P
T
Research Issue:
The Federal Democratic Republic of Ethiopia, in its Proclamation No 147/1998 to prove for
the establishment of Cooperative Societies, declared that the “Cooperative societies are
democratic organizations controlled by their members who actively participate in setting
their policies and making decisions. Every member has equal voting rights and accordingly
one member shall have one vote (Section 5(2))”. Within cooperatives, ‘democracy’
includes considerations of rights and responsibilities. It means fostering the spirit of
democracy within cooperatives. ‘Controlled by their members’ mean members
participating in setting the policies and making decisions. It implies that members
ultimately control their cooperatives and they do so in democratic manner. Elected
representatives hold their office in trust of the immediate and long-term benefits of
members. Cooperatives belong to the members and not to elected officials. They are
trustees on behalf of members. Member control also prohibits a non-member becoming
office bearer through nomination to the committee by the government or through the
process of cooperation.
The democracy is the corner stone of cooperative management. The cooperative

democracy is essentially an economic democracy. The principles of freedom of
association, equality within the organization and participation in the organization process
are the foundations of cooperative democracy.
The Government of Ethiopia is encouraging and supporting the establishment of

cooperatives in various spheres for the development of the country’s economy. As a result,
the cooperative movement is expanding, diversifying and growing at rapid pace. Due to
this as on 30th March 2004, there were 4039 Agricultural Cooperatives, 3338 Non-
P P
Agricultural Cooperatives such as Handicrafts Cooperatives, Savings and Credit

Cooperatives, Housing Cooperatives and Construction Cooperatives functioning in
Ethiopia. Moreover 35 Unions have been started at the woreda level to market the product
of the primary cooperatives.
In the years to come, every family is expected to associate with the local cooperative.
Every citizen is expected to believe and lead a civilized democratic life. As a minor
democratic institution, cooperatives are to build a strong democratic culture among their
4
T
PCo-authored by Ato Mengistu Hailu and presented in the National conference organised
T
P
by the OSSREA and held on 3&4th December 2004 at Addis Ababa.

P P
46
members. Are our cooperatives in Ethiopia adopting the principles of cooperative
democracy in all its endeavors? This question needs to be explored scientifically. Hence,
an attempt has been made in this paper to study the Role of Cooperatives in promoting
Democratic Culture in the Tigray Region.
The major objective of the study is to understand the extent of democratic management in
the cooperatives of Tigray region.
The specific objectives of the study are:

1. To know the level of members’ participation in the General Assembly and in the
election
2. To Know the practice of democratic management by the committee members
3. To explore the linkage between the cooperatives and the local administration.
Methodology
The data for the study to justify the objectives have been collected mainly from the primary
sources. As on 30th, November 2003, there were 556 cooperatives in 35 woredas of Tigray
P P
region. Due to the cost and time constrains, the study randomly identified 24 woredas and
from each Woreda one responsible official was selected as respondent for the preliminary
survey. A questionnaire was administered among them to collect the required data. The
variables studies were: (i) Members participation (ii) Democratic management (iii) Local
administration. The second stage was to study the opinion of members and committee
members of cooperatives. This paper is the outcome of preliminary survey conducted
during September 2004.
Data so collected were classified into three categories Viz.,

1. Members participation in the election, General assembly and in the business,
2. Democratic Management by the Committee members,
3. Local administration and Cooperatives.
Description of the Sample Respondents
The study randomly covered 24 woredas of 35 in the Tigray region. The total Cooperatives
of all types come to about 493. The woreda have got Multi Purpose Cooperatives, Housing
Cooperatives, Irrigation Cooperatives, Savings and Credit Cooperatives, Construction
Cooperatives, Handicrafts Cooperatives, Fisheries Cooperatives and unions. Each woreda
has its own Cooperative Promotion Office with five to ten officials. Cooperative Bureaus
were the official development interventionists for promotion of Cooperative sector in their
respective woredas.
47
The study collected data from 24 officials of the Cooperative Promotion Bureaus at the
woreda level. Out of 24 officials 20 were male and only four were female. It’s evident that
there was gender inequality in staff pattern. Age group of the employees showed an
interesting revelation that all the respondents were below 40, and that too only four were
above 30. All the respondents had a diploma in the related field and were serving for more
than five years in the department.
Member’s Participation
The concept of Members’ participation in cooperatives denotes (i) members participation in

the General assembly, (ii) members participation in the election and (iii) members
participation in the business. The following paragraphs deal with the concepts and results
of the study.
Members Participation in the General Assembly
General assembly means a meeting of members of the primary cooperatives or

representatives of societies above primary level. The supreme organ of any society shall be
the general assembly (Section 20 of Proclamation No 147/1998). The general assembly of
a society shall pass decisions after evaluating the general activities of the society; approve
and amend the by-laws and internal regulations of the society; elect and dismiss the
members of the management committee, control committee and when necessary the
members of other sub-committee; determine the amount of shares of the society; decide on
how the annual net profit of the society is distributed; make decision on the audit report;
hear work reports and take proper decision; decide whether a society either be amalgamated
with another society or be divided in pursuance of this proclamation; approve the annual
work plan and budget; decide any issue submitted by the management committee and other
committees. Absenteeism of members in the general assembly may lead to the loss of
democratic character that may result in the dominance of the vested interest. The ultimate
mission of the cooperatives may also get diluted to the whims and fancies of the caucus
group.
Seventy nine percent of the respondents of the study opined that only moderate members’
participation (50 to 80 percent of the total membership) was there in the general assembly.
Around 17 percent of the respondents perceived less than 50 percent participation by the
members in the general assembly. The attendance in the general assembly depended on
factors, viz., convenience, place and willingness to attend.
Members’ Participation in the Election
Democratic election of the management committee is vital to democratic member control.

This involves three steps: Legal framework; informed member electorate and the election
process. Articles of incorporation and bylaws usually define who may serve, number of
committee members and length of term, method of selection, who may vote, and the duties
and responsibilities of those elected. Members must have a background of general
information on the cooperative before they can make intelligent evaluation of the
qualifications of candidates for management committee. The next step is nominating
48
qualified members to serve on the management committee and voting in the election
process. Members choose a few of the leading persons from the membership to serve as
committee members. The committee is representative of the general assembly and is
responsible and accountable to it for its acts of commission and omission. Hence, the
general assembly has to take an intelligent decision for electing the members of the
committee, for which the presence of all members is essential. Seventy one percent of the
respondents of the study opined that at the time of election for management committee, the
members participated in the process moderately (50-80 percent). Moreover, 12 percent of
the total respondents opined that the members participated fully in the election process.
Members’ Participation in the Business
Members contribute equitably to, and democratically control, the capital of their
cooperative. At least part of the capital is usually the common property of the cooperative.
Members usually receive limited compensation, if any, on capital subscribed as a condition
of membership. Members allocate surplus for any or all of the following purposes:
developing their cooperative, possibly by setting up reserves, part of which at least would
be indivisible; benefiting members in proportion to their transactions with the cooperative;
and supporting other activities approved by the membership. The surplus is generated by
the cooperatives by the active involvement of the members in the business of the
cooperatives. Mere investment in the form of share capital will not pave way for the
business development of the cooperatives. Around 75 percent of the respondents opined
that moderate participation of members was seen in the business of the cooperatives. At the
same time, 17 percent of the respondents said that the members’ participation was very less
i.e. less than 50 percent. The trend is not good for any cooperatives in the long run.
Democratic Management by the Committee Members
Cooperatives have user-owners and for all of them to involve in the decision making
process is difficult. So the members elect a few members as members of the management
committee who can make most decisions for them. The committee, most importantly,
function to direct the business affairs of the cooperative and it is the cooperative’s central
decision centre. In carrying out this responsibility, the committee performs several
important supporting roles. It is a communication hub, imparting information between
members and management. It is an advisory body to members and management, providing
recommendations and guidance. But in every role and action, the committee is accountable
to members.
In this respect, the researchers felt it that was pertinent to obtain the opinion of the
cooperative officials. Sixty seven percent of the respondents viewed that moderate
participation (50 to 80 percent) was there in the management committee meetings. One
positive note is that 21 percent of the respondents said that there was full participation of
the members in the committee meetings. It could be inferred from the results that the
committee members showed interest in the development of their cooperatives.
49
Democratic Governance
The uniqueness of the cooperatives is the role of the user, which is different from any other
form of business. With the rapid proliferation, diversified activities and extensive coverage
cooperatives have emerged as the relevant institutions in the contemporary context. The
fundamental concept of the democratic governance in a cooperative is that those who need
and use the services provided by the cooperative mange it. Hence, a cooperative is
organized, owned and controlled by those who need and use the services of the
cooperatives. By keeping this in mind, the researchers got the opinion of the respondents
on the democratic governance. Except one, everybody said that they have belief in the
concept of democracy. And everybody was of the opinion that the elections for the
cooperatives were conducted in accordance with the cooperative proclamation.
It is interesting to note that in three woredas, the elections or few cooperatives were not
conducted. Only those cooperatives started during the earlier regime and not functioning
(dormant) were not brought under the election process.
Democratic Management is a Base for Democratic Governance in the Local

Administration
The experienced members get from the cooperatives helps the people to become members
in the local administration. For many local leaders, cooperatives are the stepping stone for
their long run political career. All the respondents are of the opinion that the Democratic
management is a base for Democratic Governance in the Local Administration. This will
help the people of the local administration to identify the problems, needs of the locals and
surmount it in a democratic way.
Policy Implications
It must be impressed upon the members that the satisfactory functioning of their
cooperatives depends primarily upon their active participation in democratic management.
To secure satisfactory services from the cooperative, it would be in their own interest to
participate in the general assembly meetings. It is an obligation to themselves for
protecting and promoting their own interests.
Member contact, member information and member education are extremely important for
democratic management in cooperatives because with out enlightening members, it is
impossible to secure members’ participation in management which is the essence of
democratic management.
There are members who do participate in the business of the cooperative but neglect their
right to participate in the management. Such members get undue opportunities to shape the
policies in a manner which may not be conductive to the interests of the former. It is
important that the members of the cooperatives participate not merely in the capital, but in
the business and management as well.
50
The democratic management of cooperatives is a base for Democratic Governance in the
Local Administration; hence, it is imperative for the government to promote cooperatives in
a big way. This will result in electing the right person for local administrations to identify
and fulfill the social, economical, cultural and political needs of the people. It will pave the
way for a clean, perfect and efficient political administration.
Table 1
Respondents’ Opinion on Democratic Culture of the Cooperatives from Tigray Region
Sl. Name of the No. of Members Participation in Members Participation in Members Participation in Members Participation
No Woredas Coops Election GA Committee Meetings in Business
1 Enderta 25 √ √ √ √
2 Ofla 26 √ √ √ √
3 Alamata 17 √ √ √ √
4 Raya Azebo 12 √ √ √ √
5 Hindalo Wajiat 31 √ √ √ √
6 Endamohony 16 √ √ √ √
7 S/S/Emba 19 √ √ √ √
8 Kite Awlalo 23 √ √ √ √
9 Ganta Afeshum 32 √ √ √ √
10 Europe 5 √ √ √ √
11 Kola Tembien 28 √ √ √ √
12 A/Wonberta 17 √ √ √ √
13 Tahtay 18 √ √ √ √
Maychew
14 Adwa 24 √ √ √ √
15 Degua Tembien 21 √ √ √ √
16 Werea Leke 28 √ √ √ √
17 Naeder Adet 16 √ √ √ √
18 Mereb Leke 29 √ √ √ √
19 Medebay Zana 13 √ √ √ √
20 Tahtay Adyabo 16 √ √ √ √
21 Tselemt 17 √ √ √ √
22 Wolkayet 11 √ √ √ √
23 Tsegede 21 √ √ √ √
24 Mekelle 28 √ √ √ √
Total 493 3 17 4 1 19 4 5 16 3 2 18 4
(12%) (71%) (17%) (4%) (79%) (17%) (21%) (66.5%) (12.5%) (8%) (75%) (17%)
Percentage
Source: Primary Data Collected from the Woreda Level Officials of the Tigray Region
Note: Percentages in Parenthesis Denotes Percentages to Total Respondents
51
Case 7
Export Marketing of Meat through Cooperatives in Ethiopia5 P
T P
T
Introduction

The people of Ethiopia have got a very long social history of working together to fulfil their
socio-economic needs. Agriculture, Trade and Military Operations were carried out
community of Ethiopia. The abundant cattle population in Ethiopia is under-utilised both
for milk and meat. Considering the wide pastoral lands in the country the scope for
cooperative export marketing Network is ample. Hence, in this paper the researcher has
identified the potentiality of Cooperatives in marketing meat.
Objectives of the Research

1. To frame a cooperative model for meat marketing in Ethiopia,
2. To suggest possible export marketing strategies through cooperatives.
Methodology of the Study
The study was carried out with secondary data only. To justify the first objective current
status of Cooperatives in Ethiopia were taken in to consideration. The second objective was
analysed by taking into consideration the cooperative experiences in other countries. The
attempt lacks primary empirical evidences. The author feels that this modest attempt can be
a basis for further research and development.
The findings of the study was made in accordance with the objectives framed viz.: to frame
a model for meat marketing in Ethiopia and to suggest export marketing strategies through
cooperatives.
5
T
PCoauthiored by Dr.C.Pitchai and presented in the 19th Annual Conference of EVA on 8th
T
P P P P P
and 9th June 2005 at Addis Ababa.

P P
52
Model for meat marketing in Ethiopia
Cattle play a significant role in the economic life of rural Ethiopia. They have remained as
the keystone of Ethiopian farming since time immemorial. Cattle remain as the sole motive
power of agriculture and without them no cultivation is possible and no produce could be
transported. They provide much needed milk and milk products. Cattle such as oxen, cow,
sheep and goat are being used for meat and meat products. The domestic production and
marketing of meat is not highly organised and beneficial to the farming community. Faced
with the increasing concentration of today's conventional market, in which livestock
producers have less and less control over the prices they receive, producers need to take
advantage of every opportunity for innovative marketing and adding of value. Handful of
private institutions operating in the country have not fully utilised the potential and they are
profit oriented and ignore the welfare of farmers. Producers who want to cut out middleman
do earn a large share of the end price by performing a wide range of functions. By
eliminating middlemen, producers could avoid payment of high margins for different
functions such as processing, packaging and labelling, storage, transportation, and
marketing. Marketing includes research, targeting markets, advertising, and going out and
making the sale. This can be one of the most difficult aspects for producers to master.
While it is relatively simple for a good producer to learn how to produce something
different, marketing is an entirely different occupation. To succeed, producers will need to
learn the management of business and how to feel comfortable and confident when
drumming up new business. Moreover, individual producers often experience difficulties in
profitably achieving either the level of marketing services or the volume necessary for
sustainable marketing. Therefore, a cooperative where several producers pool their animals
and share fixed costs is often more appropriate. Marketing through a cooperative can shift
many of the time-consuming marketing activities away from the producer. The cooperative
can engage in bargaining, transportation, grading, processing, distribution, and research and
development for its members. Cooperatives allow producers to get into the value-added
sector of the marketplace while pooling knowledge, risks, and profits.
Currently in Ethiopia, we have Agricultural Cooperatives in almost all woredas of all

regions. At district level we have started organising Agricultural Cooperative Unions. The
major objective of the cooperatives is to market the produces of the farming community. So
far, only a modest attempt has been made by the primary cooperatives to market the
livestock of our farming community. Observations of the researchers reveal that there is
high scope for meat marketing through cooperatives. Marketing of meat through
cooperation is the most appropriate of all forms of organizations in most situations.
Moreover, theoretically and ideologically, the cooperative mode seems to be the best of all.
This is so because, with proper rules and regulations, it can better meet the goals of
efficiency, sustainability, equity and users’ satisfaction and is politically and socially more
acceptable in most societies of the nation than any other alternatives.
53
The primary cooperatives are not having adequate capital base, cattle base and other
resources to establish full-fledged export marketing system. The primaries can act as agents
of the Unions to pool the livestock and transport them to the slaughtering houses managed
by the Unions. The Federation at the National level can undertake the export marketing
activities such as identification of potential buyers, branding, packaging, transportation and
fulfilling all other export marketing functions. Until the federal level cooperative
organisations are being organised, the Cooperative Unions can avail the services of the
present Ethiopian Meat Exporters. The following diagram shows the pictorial
organisational structure for meat marketing in Ethiopia through Cooperatives.
Export Marketing
Slaughtering,
Packaging, Branding,
Quality Control
Pooling, Weighing and

Forwarding
Rearing as per
schedule
54
Meat Export Marketing Strategies through Cooperatives
Based on the experiences of the countries exporting agricultural produces including meat,
the authors advocate the following strategies for marketing meat through cooperatives.
(A) Establishing Organisational Network

(i) Reorganising the Existing Cooperatives
In Ethiopia we have around 5000 agricultural cooperatives at the primary
level. The objectives of the cooperatives are to provide agricultural inputs
and agricultural marketing facilities. Unfortunately our primary agricultural
cooperatives have not fulfilled the marketing requirements of the farming
community particularly the pastoralists. Since our economy is mostly
pastoral economy, existing cooperatives should undertake the marketing of
livestock as a core activity. The promoters of the cooperatives viz., the
Government and NGOs should take initiative in creating awareness among
the cooperative members and educate the committee members to carry out
the livestock marketing.
(ii) Establishing New Cooperatives
The promoters of the cooperatives can take initiative to establish new
agricultural multi-purpose cooperatives. One of the main objectives of such
cooperatives should be to carry out the livestock marketing. The major
functions of such cooperatives are to pool and transport the livestock to the
slaughtering houses of the cooperative union. The primary cooperatives will
pay to the farming community based on the weight of the livestock as per the
price fixed by the union.
(iii) Promoting Federal Organisation
The existing cooperative unions at woreda level should establish meat-
processing units. New unions with such facilities should also be started
wherever required. The meat processing units will carry out the activities of
slaughtering of livestock, quality check, packing, branding and transporting.
Federal organisations are to be established either at the regional level or /
and at national level which may take care of export marketing functions. The
federation should identify the potential export market, establish business
relationship with the importers, shipment, and adhere international trade
norms. The federation will schedule the livestock pooling and slaughtering
based on demand and supply. The federation will also carry out
dissemination of market information to the farming community through the
union.
(B) Ensuring Product Quality

o Producing a quality animal is only the first step in producing quality meat
products. The ability to offer a safe and attractively packaged product is a
basic requirement for successful marketing. Farmers are to be well advised
to learn as much as they can about slaughtering, cutting, aging, packaging,
and so on. Learning about cuts, dressing percentages, and weights is crucial,
55
for which the author advocates cooperative extension with the help of
veterinarians.
o Developing a sales base depends on being able to deliver a consistent
product. While there may be more tolerance for slight inconsistencies among
consumers who have developed a relationship with the producer, consistency
is cited as a key factor in export marketing. The cooperatives should have
regular quality check with the help of Quality Controllers who may be hired
on full time basis by the unions.
o All packaging should be done with airtight, high quality freezer paper. Each
package should be marked with the name of the cut and the date packaged. It
may be possible to provide the slaughterhouse with a stamp containing the
necessary farm information. The international norms on food products need
to be adhered by the cooperatives. Professionals with international
marketing expertise need to be employed by the cooperatives.
Conclusion
In the export of the country, meat forms a significant portion. Export of agricultural
produces through cooperatives is not a new venture. We have in Ethiopia established a
strong export network for organic coffee. The experiences can be used for meat marketing
too. This will ensure better price for the livestock of the pastoralists and other people. It
will also help our farming community to involve in fattening of livestock as a sustainable
livelihood operation.
*******
56
Case 8
Problems and Prospects of Water Users’ Association in the Tigray

Region6 T
P T
P
Importance of Irrigation
Agriculture plays a pivotal role in Ethiopian economy. Eighty five percent of the people are
living in rural Ethiopia and 45 percent of the GDP is generated through agriculture. Eighty
five percent of export earning is through agricultural produces. Cereals, pulses and oilseeds
are the three major crops that accounted for 85 percent of the total temporary and
permanent crops. There is a significant improvement in the production of food grains, still
the country has to go a long way to attain food security. The major impediments in attaining
food security are attributed to many internal and external causes.
Among the internal factors, soil fertility continued to decline at a higher rate than the effort
carried out to improve soil fertility through the application of inorganic fertilizers. The
inclusion of more and more of marginal and degraded lands into cultivation, contributed
both for low yield and high soil erosion.
The second indicator of the sluggish performance of Ethiopian agriculture is the low level
of per capita food production.
The third point that demonstrates the continued poor performance of Ethiopian agriculture
is the stagnant agricultural income. This is due to low price for agricultural commodities
and declining terms of trade between agricultural produces and non-agricultural produces
and services.
The fourth important point to be noted is inadequate attention to water harvesting and
inadequate irrigation facilities. While the present growing emphasis for water harvesting
and pond development is important and encouraging, medium and large irrigation
development deserve sufficient attention and commitment from the government. Especially
from long-term perspective, they are more important to create a sustainable, dependable and
dynamic agricultural sector that can fully play its expected role in the national economy.
Irrigation is linked to food security in most regions of the world: irrigated agriculture
produces about 2/3 of the world’s food on 1/3 of the arable land. Irrigators need to become
better stewards of the environment. Irrigation consumes about two thirds of the world’s
6
T
P T
P Coauthored by Ato Mengistu Hailu & Dr.C.Pitchai and presented to the Canadian NGO,WHIST.
57
fresh water, and is the largest of non-point source polluter. Over the last 25 years, irrigation
has been invaluable in raising the standard of living of the poor, especially in rural areas.
Almost all the regional states of the country face similar problems and Tigray is one of the
states, located in the northern part of the country between 12015’N and 14050’N and
P P P P
36027’E and 39059’E. The region has approximate area coverage of 80,000 km2. In the year
P P P P P P
2005 Tigray had an estimated population of 4.2 million and an annual population growth
rate of 3.3%.
The climate is generally characterized as tropical semi-arid with an annual rainfall ranging
from 450 mm in the north, east and central zones to 980 mm in the southern and western
pats of the region. Most of the rainfall occurs in July, August and September. The
topography of the region mainly consists of highland plateaus up to 3900 m a.s.l. which are
dissected by gorges. However, the north west of the region is characterized by lowlands
with elevations as low as 500 m a.s.l. The highlands support a high population density, 40-
70 persons Km2, (FAO, 2004), and are seriously affected by land degradation due to their
P P
long cultivation history, steep topography and erosive rains. In contrast, the lowlands are
sparsely populated and have soils that are less eroded and exploited.
Cooperative Management of Natural Resources
provide sustainable benefit flows in the form of food, fodder, fuel wood, fiber, timber,
Until recently, the role of natural resources in the rural economy was not understood
properly. Privatization or nationalization of natural resources was suggested as a solution
to arrest their degradation and preserve the environment. Experience with nationalization of
natural resources has not been good in most of the cases all over the world. Privatization
has yielded mixed results: it has been justified on efficiency grounds and condemned on
equity and sustainability grounds.
For the success of any strategy of natural resources management, the involvement of local
people is essential. This is so because the use of natural resources by any user has many
unintended side effects, or in technical terms, externalities on other co-users. For example,
pumping of ground water in a watershed affects the aquifer that is a natural resource to
which all those who live in the watershed have a legitimate claim. If one of the co-users
58
pumps more water, to that extent, less water is left for use by the others in the watershed.
Optimum use of ground water in a watershed, therefore, requires the cooperation or
participation of all the people living and using ground water in the watershed. Similarly,
soil and water conservation in a watershed requires the participation of all the landowners
having land in the watershed in the form of adoption of the recommended soil and water
conservation measures. In a nutshell, all users of the natural resources, irrespective of
cooperation of all the resource users for internalizing/minimizing the externalities involved.
This is best achieved when the planning and management of natural resources is done on
watershed basis and the resources managed by their users are organized in the form of an
association preferably a Water Users Association or a cooperative society. The
management of natural resources by these institutions is therefore the most appropriate of
all forms of management in most situations. Moreover, theoretically and ideologically, the
WUA or cooperative mode of natural resources management seems to be the best of all.
This is so because, with proper rules and regulations, it can better meet the goals of
efficiency, sustainability, equity and resource users’ satisfaction and is politically and
socially more acceptable in most societies and nations than any other alternatives.
Water Users Associations/Irrigation Cooperatives are being established through out Tigray.
The existing Water Users Associations/Irrigation Cooperatives need to be studied and
strengthened. This paper tries to study the functioning of WUAs and irrigation cooperatives
in the region and find out the reasons for success and failures. This ultimately will help to
perfect the existing WUAs and irrigation cooperatives and come out with strategies for
establishing WUAs and irrigation cooperatives of people’s choice which will last for long
and serve them in a better manner.
Review of Literature
There are innumerable studies carried out in many countries on the functioning of the Water
Users’ Associations. Here in this paper some core experiences in other countries are
presented for replicable value. Moreover the attempts made in Ethiopia on different
irrigation schemes with special reference to Water Users Associations would be presented
separately.
Water Users Associations in Irrigation Management: Case of Andhra Pradesh, India
The Participatory Irrigation Management Program (PIM) in Andra Pradesh (AP), India,
widely known as the AP Model of Irrigation Reforms was initiated with the enactment of
the Andhra Pradesh Farmers Managed Irrigation System Act (APFMIS Act) in 1997. The
Act enables the transfer of rights over the canal water and its assets to the newly constituted
Water Users’ Associations (WUAs). In the state, 10,292 WUAs have been established. The
State aims to build the capacity of the newly formed local level institutions in land and
59
water management and transfer the management to these institutions for better. Traditional
local institutions responsible for water distribution and management under canal and tank
irrigation lost their presence and relevance with the formation of WUAs. As new
institutions are crafted by the State and empowered by a legislative Act, these new WUAs
started functioning at local level with an assured funding from the State in the initial years
of formation. The common property resources like canal water and structures are being
managed in the past and present, and the new local institutions are able to address collective
action by acknowledging the equity and livelihood concerns of the resource poor users. The
primary knowledge about these institutional functioning, rules and practices has influenced
in the thinking process and policymaking in the state.
Crop Profitability and WUA Success in Gujarat, India
The successful Mohini Water Distribution Cooperative in Gujarat, India, would not show a
profit if it maintained the planned cropping pattern. At the present prevailing prices, the
society makes a profit only if the major area is put under sugarcane. If the major area were
under food grains, the society would make losses. The Mohini Society became a financial
success because more than 85% of the area was put under sugarcane, single crop, instead of
the prescribed 18% by the state.
Legal Framework for WUAs, Pakistan
The WUA ordinance in Pakistan's Punjab province provides an example of a legal

framework that does little to empower or encourage WUA members. The only objectives of
the organizations are the government's objectives, rather than the farmers'. WUAs adopted a
standard set of by-laws in order to be registered, and WUAs have no right to appeal if
government officers refuse to grant them registration. Little information is available about
the ordinance in the local language, nor is the content of the law widely known. It is thus
not surprising that most WUAs have little farmer participation, that they ceased to be active
once initial watercourse lining was completed.
Successful Use of Contracts, Bangladesh
The Barind Integrated Area Development Project (BIADP) in Bangladesh used a deed of
agreement between BIADP and the Barind Deep Tubewell Water Users' Association. Under
this, farmers pay an irrigation charge and the management of the project guarantees water
supply. The farmers are also responsible for the usual maintenance costs and the fuel, oil,
and electricity for the pump. The project bears the servicing cost and owns the pump. The
BIADP calculated the water charge in such a way that it would cover the cost of the
equipment by the end of its expected lifetime, and charges were related to the extra income
(made possible by using the equipment) earned by the farmer. The good performance of
60
this project could be seen in the increase in the irrigated area per cusec of discharge and the
percentage of costs recouped.
Cases of Total Cost Reductions under WUA Management, New Zealand & Chile
In New Zealand, reports state that water charges on privatized systems (averaging 50
farmers, or 2,400 hectares) were two to four times lower than on similar government-
managed systems, even though government systems operated at a loss and private systems
met full costs. This was because where irrigators owned their own systems, they were able
to cut costs by nearly two-thirds because of increased efficiency of operation, lower
overhead costs than government systems, reduction in over elaborate engineering design
and specifications, and the greater personal responsibility irrigators take for maintaining the
systems they themselves own.
In Chile, the state management of a 60,000 hectares irrigated area on Rio Digullin involved
five engineers, eight to ten technicians, 15 to 20 trucks, and five bulldozers, compared to
one engineer, two technicians, one secretary, and two trucks under farmer management of
the same area. Because farmers work collaboratively with engineers and technicians, they
are fully aware of the "true" costs of running the irrigation systems, and for this reason
perceive that the water fee charges they pay, even if they are high, are "believable" costs to
the association.
Changes in Costs under WUA Management, Senegal
Senegal provides an example of both efficiency gains and cost increases to farmers when
WUAs take over operations and management. Under agency management, irrigation fees
and service quality were both low. The agency provided maintenance and paid for
electricity on an irregular basis, leading to highly unreliable irrigation services. Agency
field staffs were poorly supervised, and would therefore turn on pumps and leave. This
resulted in over pumping and system breakdowns. By contrast, WUAs provided more
careful supervision of staff, reducing over pumping and thereby cutting electricity costs by
up to 50 percent. Other cost savings came from WUAs paying staff less than full civil
service rates. Nevertheless, because WUAs had to pay for full electricity consumption
along with maintenance and a fund for pump replacement, farmers' fees increased by two to
four times.
61
Water Users Association, Nepal
The National Federation of Irrigation Water Users' Association, Nepal (NFIWUAN) is

formed by the representatives of the Water Users' Associations (WUAs) throughout the
country for their welfare and betterment in the preservation of water rights of the farmers
and for voicing their woes.
NFIWUAN was institutionalized with a grant of US$50,000 from the Ford Foundation. As
a first step, a Coordination Committee was set up with representatives from NFIWUAN,
other NGOs in Nepal, namely MRMG, WATCH, and FECOFUN, and the Ford Foundation
and Winrock India.
A NFIWUAN office was established and appropriately equipped with most modern
communication tools. The organization was extended to form 10 District Committees and
Ad-hoc committees in 28 districts. NFIWUAN was strengthened and expanded by
increasing membership and the number of WUAs increased to 436. The groups were
formed in three unregistered WUAs. Participation of women and unorganized water users
in irrigation management was promoted.
Training and interaction programs were conducted on setting Vision; developing a 10-year
guideline; developing tools and techniques for group formation and how to apply these
tools; building awareness among the water users concerning water policy, program and
local issues conducted in three districts namely, Kathmandu, Makawanpur and
Nawalparasi; identifying problems and issues.
A number of site observation visits were organized and needs, problems and issues were
identified. These were of flood area of (Rapati Duban) Rapti River, Mohana and Kamala
Irrigation project to review irrigation infrastructure; and a recommendation letter was
provided to the Ministry of Environment and Population on the issues of West Seti River
EIA.
A number of Central Committee,National Council and Secretariat meetings were organized.
Case Study of WUA, Zimbabwe
In a recent study of irrigation system performance in Zimbabwe, more than 70 percent of

farmers on sample systems managed by either Agritex (the government agency responsible
for smallholder irrigation development) or community groups reported that they would
prefer to have Agritex to manage the systems, even if it meant paying twice the existing
irrigation service charges. Indeed, the community-managed system petitioned Agritex to
take it over, because problems with the system's infrastructure and divisions within the
irrigation association became too great for the system to continue functioning.
Several factors contributed to farmers' reluctance to assume full management control, even
of the small systems. First, farmers' cash costs of managing the systems exceeded even
twice the prevailing irrigation service fees, especially on systems with pumped water
62
supplies. Second, Agritex does a relatively good job of managing systems and providing
extension services and advice smallholders on the schemes. Third, WUAs had difficulty in
obtaining repair services in the remote areas in which many smallholder schemes are
located. Finally, many farmers reported that they did not feel their WUAs were capable of
carrying out many of the management functions or did not wish to deal with conflicts
among themselves. The latter consideration provides an indicator of farmers' perceptions of
transaction costs for assuming WUA management of the systems.
WUA Case Study, UZBEKISTAN
Formerly, the state farms were responsible for the maintenance of the farmers’ canals and
of on-farm irrigation networks, the drainage systems and measures against the rising level
of salinity. During the last decade, the maintenance of the irrigation system declined. The
government assumed that further privatisation would deepen the gap in fulfilling the
required service and ordered by decree the establishment of WUAs. The intention was that
WUAs would take over the former state and collective farm’s role as a service provider for
the irrigation system.
The government originally intended to rehabilitate the old on-farm irrigation system fully
and to hand over a completely restored and perfectly working system to the WUAs.
The formation of WUAs on privatized farms was ordered by presidential decree in the
beginning of the year 2000. Therefore, the farmers had no other choice but to respond
positively to the formation of the WUA. If they had refused then it is doubtful that they
could maintain as independent farmers.
Every water user, household or farmer has to pay a water tax. The WUA collects the tax
from the farmers. The tax was so low that the payment did not lead to disputes among the
water users. Farmers calculated tax that was only about one per cent of the total farming
cost.
The experts opined that the election procedures in the established WUAs were open and
fair. Farmers nominated their own candidates. However, this does not imply that the
farmers knew about the principles of the WUA or that they were informed about the
responsibilities of the elected representatives or about the financial consequences. The
groups were dominated and controlled by the chairman of the WUA.
Farmers worked together in terms of sharing water. They distributed the water accordingly
with a time schedule of delivery. Furthermore, farmers traded their water rights. If the
farmers did not need the water on the day, which was allocated to them, they exchanged the
water allocation day with other farmers of the WUA.
WUAs claimed that initial training sessions for the farmers had taken place. There was no
training given to farmers who joined the WUA at a later date. This indicates that their
knowledge on water management and how to operate and manage a farm economically is
limited.
63
The system of state order is still in place for certain agricultural products, such as cotton,
grain and rice. At the time when the WUA was formed, farmers had to allocate 60 per cent
of their land to cotton and 30 per cent to grain. The remaining 10 per cent was left to their
individual choice.
Farmers can take bank loans and can apply for an advance payment from the state that
would cover 80 per cent of their production costs. If the crop fails the farmer takes full
responsibility of the loan. Considering the high maintenance cost, lack of machinery, lack
of spare parts, high quotas for state orders and low prices for state ordered goods, the risk
factor is too high. Hence, farmers are not willing to take the risk to take bank loans. It is
possible to take a mortgage on the land owned. But as farmers and households just hold the
land in lease they would not be able to take a mortgage for a long-term investment.
WUA Case Study, KYRGYZSTAN
In 1995 water users formed the first WUAs within the borders of the former state and
collective farms. Individuals on decision of the founders, physical or juridical persons,
established these WUAs. In 1996 the Asian Development Bank upon special request of the
government carried out work in on-farm irrigation improvement. This included workshops,
which promoted the importance to form WUA. This action resulted in an increase in
WUAs. In the time period 1996-98 about 50 WUAs were established with a command area
of 91,800 ha. By November 1999 about 132,000 ha were covered by 77 WUA, all of them
formally established and registered. Besides these, additional 130 WUAs were functioning
informally on a command area of 125,000 ha. The average size of a WUA is 1,800 ha.
At present some international projects concerning WUAs in Kyrgyzstan are ongoing or

proposed such as a World Bank (WB) project for implementation of on-farm irrigation.
The objectives for forming WUAs were diverse. In one case the formation of a WUA was
not necessarily in response to immediate irrigation problems, but under the objective to
obtain infrastructural improvements and equipment. In another case WUAs were founded in
response to severe irrigation problems, such as rule breaching, water stealing and water
shortages.
Even though, water for irrigation is not perceived as the main problem, cases of farmers
breaching rules and stealing water have been reported. This would indicate that water
availability is important. However, in most cases, farmers received their water allocation in
time and the quantity of water was sufficient. Nevertheless, two of three villages
established WUAs, because of severe irrigation problems and the need of farmers to deal
with the arising problems on a local and communal basis.
The farmers expected that the government would rehabilitate the irrigation system but the
government anticipated that the farmers should be responsible for 100 per cent of the
rehabilitation cost.
64
It is argued that the election procedures were open and fair. However, it could also be
argued that the Soviet legacy has left a feeling that elections do not really matter and that
they will not change the influence of institutions.
If farmers felt that they had been treated unfairly and that there was inequity in the
delivered supplies, they brought this to the attention of the WUA. This could be interpreted
as participation, because farmers were working within the structures of the WUAs.
During the process of land reform, employees of the former state farms became farmers or
owners of household plots. These employees even though working on a state farm did not
necessarily had the capability to manage a farm by themselves.
The WUA tried to resolve the disputes among farmers. In case no agreement was reached,
the case was referred to the local court. The implementation of fines influenced the
situation positively and contributed to a decrease in water thefts.
The farmers had the feeling that the formation of the WUA raised a sense of ownership
within the system. It is possible to interpret the sense of ownership and the feeling of
responsibility as empowerment of the farmers.
The above cases reflect the following observations as the successful factors for WUAs.
Users work together through associations only where they can benefit significantly.
Without offering benefits, associations cannot be sustained regardless of the effort put into
capacity building.
The extent of decentralization is an important factor. Two key aspects of decentralization

are granting of rights to specific quantities of water and freedom to set charges. WUAs that
benefit from greater levels of decentralization develop a sense of ownership, which makes
them invest in repair and maintenance of irrigation infrastructure.
External agents are critical to initiate and in many cases to ensure that WUAs continue to
function. The need for external agents is likely to reduce as clear models of WUAs become
available for potential groups to emulate. Much of the support received by WUAs from
external agents has gone into strengthening the position of WUAs vis-à-vis the irrigation
agencies. Where the agencies are willing participants in joint management, the need for
external agents is also likely to be low.
WUAs benefit from the participation of individuals who were socio-economically powerful
in their communities. Rule enforcement tends to be weak in WUAs without such powerful
individuals in management positions.
In the Tigray region, Water Users’ Associations and Irrigation Cooperatives were started
for ensuring supply of water for irrigation purpose. Farmer members of many Irrigation
Cooperatives are cultivating two crops in a year. The Irrigation Cooperatives block and
irrigation cooperatives work moderately well but needs to be strengthened further. To
65
advance the functioning of Water Users’ Associations in Tigray a study was carried out
with the following objectives:
Goals and Objectives of the Study:
The major goal of the study was to identify the problems of WUAs and Irrigation
Cooperatives in Tigray region and suggest suitable recommendations.
The specific objectives of the study are as follows:
1. Evaluation of the existing WUAs, Irrigation Cooperatives in the Tigray Region on the
following dimensions
a. Issues related to organization of WUAs, Irrigation Cooperatives
b. Issues related to Management and finance of WUAs, Irrigation Cooperatives
c. Issues related to water resources
d. Issues related to monitoring and Evaluation
e. Issues related to critical Linkages with other development interventionists
2. Evolving an appropriate WUAs Model to replicate in the other potential areas. The
consultant groups have identified and organized a WUA based on the findings of this
study.
Methodology for the Study
The consultants used both secondary and primary data, but primarily based on empirical
analysis. Hence, field survey method was adopted for the study. Since the paper covers
selected Water Users Association and Irrigation Cooperatives of Tigray Region, a Multi
stage stratified Random sampling procedure was employed.
Selection of the Area for the Study:
There are 34 rural woredas in the Tigray region. Based on the agro climatic and
topographical condition of the woredas the following woredas were selected for the purpose
of survey.
1. Ofla Woreda: Falla Irrigation Cooperatives (River Diversion) and Zata Irrigation
Cooperative (River Diversion)
2. Kleteawlaelo Woreda: Laelay Wukro Irrigation Cooperative (Earth Dam)
3. Kola Tembian Woreda: Tsalet WUA (River Diversion)
4. Laelay Maichew Woreda: Mainiguse WUA (Earth Dam)
5. Saesie Tsaeda Emba Woreda: Firehangoda Irrigation Coops. (Water Pump) and
Shewit lemlem Irrigation Coops. (Water Pump)
6. Hintalo Waegerat Woreda: Ayene bizu WUA (River Diversion) and Shelanat
WUA (Earth Dam)
7. Emba Alage Woreda: Mereduba WUA (River Diversion)
66
In total ten institutions viz., five WUAs and five Irrigation Cooperatives were studied. Well
performing, showing poor performance and medium performance institutions were
identified and studied. The selection of WUAs and irrigation cooperatives are deliberate
because they have similar functions and because the consultant group wanted to investigate
the basic difference between the two on ground.
Selection of the Respondents
In each woreda one to two Water Users Associations, Irrigation Cooperatives were
identified based on their performance as evaluated by the Cooperative Promotion Office.
In each institution, three management committee members were interviewed. Moreover
seven farmer members were interviewed. In total 100 respondents were interviewed for the
study.
Tools and Techniques for the Study
Predominantly the qualitative data collection methods have been employed to collect data.
A pre tested interview schedule was used for interviewing the management committee
members and the farmer members. The consultants adopted the methods of using key
informants, and also focus group discussions. Data has been synthesized through
interpretation and using simple percentages.
The data collection was made possible by the consultants with the support of the woreda
level cooperative experts. The data for the study was collected during the month of
December 2005.
For more clarity and to understand the overall situation of the irrigation system in the
selected woreda, the officials of the Cooperative Promotion Office were also interviewed
with a checklist.
List of Variables
The Interviews were conducted to know the problems and prospects of the WUAs. Hence,
the variables studied were closely related to the objectives. The following issues were
addressed in depth-interviews.
I. Policy and Legal Aspects
II. Resources
III. Infrastructural Facilities
IV. Members Awareness
V. Vested Interest
VI. Capacity Building
VII. Conflict and Settlement of Disputes
VIII. Monitoring and Evaluation
IX. Catchment Treatment
X. Farmers’ Involvement in the Construction of irrigation structures
67
Result and Discussion
I. Policy and Legal Aspects
Legal Recognition:
Members and management committees in all the interviewed WUAs mentioned that their
associations don’t have any legal recognition. They were all organized following the
construction of the irrigation structures (diversion or earth dams) in the areas by the
organizations that construct them. Only a few of the interviewed have reported that they
have applied to social courts in the Tabia. But all the interviewed respondents have reported
that they have legal personality issued by Tigray Cooperative Promotion Office.
The issue of ‘no legal recognition constraints’ the WUAs from taking credit and other
benefits they could reap out of their legal personality. The fact that they are not legally
recognized seems to be a bottleneck for them to get professional and technical assistance
from many organizations at institution level. For instance, they don’t get extension and
credit services in an organized manner. In one of the WUAs there is a serious problem in
this regard. The municipality denied the WUA members to have a market place where they
can sell their products thereby exposing them to delivering their products to merciless
private retailers. The members of this WUA, believe that this is a result of the lack of legal
recognition by the government. Shelanat WUA collects penalty from the erring members
and the same is paid to the local administration as they have no legal status.
The consultant group found all of the WUAs less organized in many ways when compared
with the coops. This includes the fact that most WUAs consider their association related to
the utility of water only. There is less sense of organizational feeling that goes beyond using
water. But this has not been the case in the cooperatives. The cooperatives have a better
sense of belonging and organization. They have issues like marketing, input distribution
and credit that they discuss beyond water use.
68
Figure 1: Legal Support Received from Government/ NGOs:
Legal Support
No.of Institutions
6
4 Coop
2 WUA
0
Promotio
Advocac
Advisory
Registrati
on.
y
n
Type of Support
Out of the WUAs only 40% mentioned that they received advisory support from the
government, and only 20% mentioned that they got service in promotion, and 40% received
registration services. These WUAs consider their application to the social courts as
registration, because they don’t receive any legal registration from any other organization.
This registration service is related to the above-discussed legal recognition and associated
benefits. On the other hand only 20% of the coops received advisory support, 40%
advocacy service, 60% promotion and 60% registration services.
Figure 2: Opinion on Ownership of Irrigation Schemes
Ownership of Irrigation Schemes

9
No.of Institutions
8
7
6
5
4 Coop
3 WUA
2
1
0
NGO
NGO
Govt.
Govt.
Beneficiary
Beneficiary
Others
Others
Who Owns Who Should Own

Status
Half of the interviewed WUAs believe that the government owns the schemes, while half of
them believe that they own the schemes themselves. There is an interesting parallelism of
thought on the coops as well; half believe that the government owns the schemes and half
believe that they own them. Ferehagoda and shewit lemlem mentioned that the irrigation
structure is owned by the local administration.
This indicates that there is less work done on the awareness creation on the ownership
aspect. The members of the WUAs and coops need to be educated and trained to the level
that they think and practice as owners.
69
The other side of this opinion is that there is interference from the wereda and Tabia
administrations on the management of the water. A case in point is the scheme at Laelay
maichew woreda, Mai Nigus. The interviewees mentioned unanimously that they don’t own
the water because the woreda administration orders them when to water and what for to
water. In the case of Ayne bizu, the development agents impose the farmers to raise the
crop suggested by them, otherwise they can’t use the water. Laelay maichew woreda
farmers complained that they were not allowed by the woreda administration to water for
tillage. The reason given by the officials is that of economics the water use.
Asked who should own the schemes, all the WUAs responded that the beneficiaries should
own them. On the cooperative side 60 % believe that the beneficiaries should own the
scheme, while 40 % of prefer that the government should own it.
In some of the WUAs, it was found that the ownership issue is one of the factors for
conflict and having a very week organizational strength.
Figure 3: Transfer of Ownership

Transfer of Ownership
4
No.Of
Institution
2
0
Organising Irrig.Coops No
WUA 5 0 0
Coop 0 5 0
Type of Institution
Most of the schemes the consultants visited, except Falla, have not been transferred
officially to the WUAs and/or irrigation cooperatives; instead it was transferred to the local
administration. In the case of Ferehengoda and Shewit lemlem the irrigation cooperatives
own not only the water pumps but also exclusive right has been given to use the water. The
agreements between the local administration and the water resource development bureau
declare that the responsibility of the beneficiaries is to maintain the canals and other small-
scale damages of the irrigation structure, while big maintenance works that require big sum
of money and complicated technical matters will be maintained by the organization that
made the structures.
This agreement has not been observed on the part of the signatory organizations like REST
& WRDB, that made the structures. In almost all of the schemes, there is complaint by
beneficiaries that these schemes were not maintained since they have been constructed. The
70
beneficiaries applied repeatedly to these organizations but there was no response so far,
mentioning that the organizations don’t have budget to maintain these structures.
As a result, most schemes suffer from water loss and water logging in the canals causing a
minor conflict on the members because of competition for water.
Interviewees were asked of the fact that they are organized has effect on the functioning of
the un-organized farmers. Eighty percent opined that there wouldn’t be any implications,
unless these non-members are abided by the rules and regulations of the water users. But
20% have mentioned that there will be implications. These respondents mentioned that
there is denial of water use for non-members.
Respondents were asked if there are policy (like water policy) or procedural bottlenecks
that deter their agricultural and/or marketing practices as an institution. Almost all the
respondents mentioned that they are not aware and unheard of the water policy as such by
the government. But some implicated that the lack of market strategy to sell their products
in a sustainable way is a stumbling block in advancing their market oriented irrigation
practices.
II. Resource Related Problems
Figure 4: Members’ Contribution
Members Contribution
5
4
No.Of 3
Institutions 2 WUA
1 Coop
0
Below 10 10 to 20 20 Above No
Contribution
In Birr
Most of the WUAs don’t have any contribution scheme that can be used to maintain the
irrigation structures or to advance any other business. Only one of the WUAs has
established this scheme, but the contribution is insignificant, which is below 10 birr per
annum. In the others there were irregular contributions for repair and at times of need. On
the other hand all the cooperatives have money contribution schemes for various purposes.
But most of the contributions in the coops are insignificant that it is barely used for any
thing.
71
Most of the money, which is less than 20 birr per annum, is deposited in the banks so that
they collect enough to make use of it. The coops feel that they will use this money later to
rent vehicles to transport their products to market, and buy agricultural inputs. But they
don’t know when they will be able to do that, since it will take a long time to collect enough
money to do these activities .If they continue to deposit such a small amount of money, they
will not be using this money for long time.
The WUA that contributes money regularly uses it for maintaining the structures of small-
scale damage. In addition to that in the Shewit lelem, money has been lent to the needy
members at nominal rate of interest.
Asked if they would consider it important to have a separate saving for the maintenance of
the structures, 70% of the respondents (30% WUAs and 40% from Irrigation coops) were
of the opinion that they have to have a separate payment for the maintenance of the
structures. 20% WUAs and 10% Irrigation cooperatives expected support from the
government / donor agencies for the cause. 50% of the respondents mentioned that they
were raising funds for new projects, maintenance, rent a car, salary for guards etc, while the
remaining are not collecting funds for the above purposes.
Hence there is a need to raise awareness on this respect so that the members raise some
more money either in the form of saving and credit coops or in a direct contribution to their
shares so that they have the amount of money they aspire to have and/or there should be a
financial intervention on the part of the government and/or NGOs to raise their financial
capacity so that they begin doing what they plan to do.
All respondents in the schemes mentioned that they were not paying for the water they used
for the irrigation purpose. When the question was put before them about the introduction of
payment for the water they use, 70% of the respondents mentioned that it was not important
to pay for the water they used for the irrigation purpose. Remaining 30% were interested to
pay if it was introduced. It was found that the promoter has not given much emphasis while
providing the training and articulating the bylaw.
72
Figure 5. Organisation Access to Credit & Input
Access to Credit & Input

4
3.5
3
2.5
No.Of
2
Institutions
1.5
1
0.5 WUA
0 Coop
NGO
Govt.
Yes
Bank
Yes
No
Coop
No
Collateral
Personal
Acces s Sources of Security Acces s
to credit Credit to Agri.
Inputs
Particulars
Most WUAs and coops i.e., 80 % and 60 % respectively reacted that they didn’t have
access to credit in an organized manner. All schemes had not taken any credit so far in the
name of their organizations. All they had taken is on individual bases like the other un-
organized farmers, i.e. through the existing credit schemes of the bank (Dedabit Micro-
finance Saving and Credit Institution). Most members opined that they needed credit using
their organization as a collateral.
The type of credit they received was both in kind and cash. Some of the institutions that
responded the credit they received from the NGOs were a type of credit that was given in
kind like seeds and seedlings. This credit is given in a form of a revolving fund for the
institutions but it will be a credit for the individual members. For instance, the Action Aid,
an NGO, gave potato seeds to the Falla and zata irrigation coops. These seeds had been
given to the members on credit basis. But the money would be for the coop society itself.
The coops considered this as a credit. One cooperative had received money for warehouse
construction as aid.
Receiving establishments Fund
No group respondents under study have received any establishment fund. This has reduced
their ability to exercise transactions. But, 70% of the interviewed institutions reported that
they had received assistance in one or other form. This assistance includes technical,
financial, legal, administrative, training and maintenance works. But this doesn’t mean that
all of the organizations received all the above-mentioned assistances. The following table
summarises the type of assistance these organizations received.
73
Figure 6. Other Assistance
Other Assistance
6
No. of Institutions 5
4
3 WUA
2 Coop
1
0
e
O
t.
-1
rg
n.
ca
ia
ga
fro No
es
ur
ov
G
dm
-T
nc
ni
ct
Y
Le
N
o
ch
na
tru
A
N
m
o-
m
o-
Te
Fi
S
N
fro
N
o-
o-
n.
e
nt
N
nc
nc
ai
ta
ta
M
is
is
o-
ss
ss
N
A
Assistance
III. Infrastructure Problem
Communication
Three WUAs and two irrigation cooperatives are having access to communication facilities
particularly telephone. Other five schemes are not having the access to this facility. There
is a government scheme to connect all Tabias of the region through telephone network.
Some of the institutions are already beneficiaries of this network, while the remaining ones
will benefit in the near future. The members mentioned that the presence of this telephone
service would enhance their market information and boost their income.
Road Access and Availability of Commercial Vehicles
All the ten schemes have road access. In seven out of the ten institutions, there are
commercial vehicles that go to the areas on a daily basis. These commercial vehicles are
important to transport the products to the market and to access market information. Most of
the members in these institutions get market information by themselves, asking passengers
and drivers who come to the area. But they also mentioned that they get information from
the CPO experts. One institution mentioned that they get this information from the
development agents. The following table summarises the sources of market information in
these institutions.
74
Figure 7: Opinion on Source of Marketing Information
Sources of Inform ation for WUA Sources of Inform ation for Coop
25%
CPO 29% CPO
BoA BoA
Mktg Agency 0% Mktg Agency
62% 13%
Themselves 71% Themselves
0%
Existing Infrastructures and Extension Problems
All the WUAs and irrigation cooperatives are not satisfied with the existing infrastructure
facilities like road, storage, processing unit, communication facilities etc. For example even
though Ferehangoda and shewit lelem have the road access, it is not up to the market and
due to that they are paying triple the cost for transportation.
Figure 8: Collective Marketing and Extension Services
Marketing & Extension Services
6
No.of Institutions
5
4
WUA
3
Coop
2
1
0
Yes No Yes No
Interest on collective Availability of Extension

marketing Services
75
Asked if the members want to market their products collectively, all the members in the
WUAs responded no, while 60 percent of the coops replied yes to the question. They also
mentioned that collective marketing is risky in many ways and that some members bring
less quality products, and that there are some management problems in collective decision,
which can spoil the product itself. This implies that the members have not enjoyed the fruits
of collective marketing and economics of scale. There is a need to train members and
leaders alike to have a clear understanding of the benefits of collective marketing, and the
management of collective marketing in order to increase their bargaining power and get rid
of the exploitation from the middlemen. There is a grain of truth in the concerns of the
members that collective marketing is a challenge. They have some failure experiences. For
instance, the members of the Falla irrigation cooperative tried to market their products to
Mekelle, in a collective manner. But this had been aborted by the aggressive move of the
private sector that raised the market price of the products artificially.
There is extension service in all the Tabias where these institutions are located. But the
degree of service they receive varied significantly. Seventy percent of the schemes have
extension service, while the remaining do not have. There are “best” services and “worst”
services as explained by the farmers. For instance in Falla the farmers complain that they
almost don’t receive any significant extension support in the recent past. The CPO wereda
experts also share these complaints that they have discussed the issue at wereda level. The
consultant group have personally observed that there is less agricultural development
intervention in the areas: there are no fodder trees, no perennial fruits and less conservation
works made despite the availability of ample water. The farmers mentioned that they were
made to plant an unsuitable variety of tomato that easily perishes and exposed to loss. They
also needed technical support from the BoA to get seeds that are appropriate to the micro
climate of their area so that they can go for two to three crops in a year. But they described
that the service was very poor that did not even support on how to sow, what and when.
They mentioned that the services were being given by the CPO experts of the wereda,
despite the fact that they were not the experts in the area, but they want the right service
from the proper experts. They also complained that there was no nursery that would provide
them with seedlings. To curb this, members have established their own nursery in
collaboration with the Wereda CPO. They mentioned that they would appreciate if they
received proper advice on how to run this nursery from BoA.
Table: Product Market
Sl. Mode of Product Market Mode of Transport Storage

Name
No Transport- Transport- Transport-
Coop. Individual Collectively Pvt. Donkey Car personal House Coop Field
1 WUA 0 4 0 3 5 3 5 2 0 3
2 Coop 1 3 0 1 5 3 2 1 0 4
Total 1 7 0 4 10 6 7 3 0 7
76
Most members of both WUAs and Coops (about 70%) market their products individually.
Very insignificant percent of them market through cooperatives and some sell it directly to
private retailers. Hundred percent of the respondents mentioned that they used donkeys to
transport their products from the field to the transport center or nearby markets, while some
of them also take their products using human labour and vehicles.
Thirty percent of the interviewees stored their products at home and about 70% in the
fields. There is no storage facility in all the interviewed institutions. Two under the
assistance of the ‘Action Aid’ are under construction. This absence of storage facilities has
caused product loss. Most farmers complained that the post harvest loss, due to lack of
market was significant, and un-bearable. For instance the farmers mentioned that they could
have dried and stored tomatoes when the market price of tomatoes is very low. But what
usually happens is that they dump the tomatoes in the field when they can’t sell them in the
market, or when they feel that there is no market for the tomatoes. Particularly the farmers
of Falla experienced it last year.
Processing Units
In the selected sample area, no processing unit exists, not even owned by government
and/or NGOs.
IV. Members’ Awareness
Memberships, Observance of Duties and Rights
Out of the ten schemes, interviewees in nine schemes reported that they joined the
institutions voluntarily, while members in one WUA scheme mentioned that they don’t
want to comment. Members in this WUA mentioned that there was no much benefit they
could articulate by joining the WUA. They seemed to be nostalgic of their previous
traditional irrigation. But most of the members in the nine remaining institutions mentioned
that they had faith in the current arrangement of the WUAs and irrigation coops and were
more appealing to them.
They mentioned that in the current arrangement there is a relative peace, since the water has
been managed based on agreed conditions of the association or cooperative. In the
traditional irrigation, they had problems, because powerful families used most water.
Secondly these members stated that the current arrangement reduced labor loss. In most of
the schemes interviewees mentioned that they used to spend earlier not less than 20 days to
prepare the scheme for irrigation, and since the labor was not organized as it is now, they
used to spend much time. But currently they use their labor for irrigating their own lands.
77
Hence they appreciated their membership of these institutions. This sprit is more visible in
the irrigation cooperatives than the WUAs. In the WUAs members articulate the fact that
water management has improved from the earlier practice, but there is less articulation in
terms of the benefit of the water, when compared to the cooperatives.
Member Participation and Membership Abuse
Respondents were asked to describe the participation of members in the overall activities of
the organizations, 50% of them responded that the participation of members was good, and
20% WUAs mentioned that they were satisfied with the participation, while 10% of them
were not satisfied with the members’ participation. Members’ of these schemes expressed
this participation of members in terms of members participation during clearing and
maintenance of irrigation structures, attendance of regular meetings, accuracy of payments
and contribution and adhering to the schedules of watering, and oral participation of
members in generating ideas during discussions. Most of the interviewees in the schemes
(90%), opined that members and leaders did not abuse their membership and leadership. In
one scheme i.e., Ferehangoda, however, members complained that the leaders had abused
the money of the cooperative and used it for personal gains. They also complained that
water was distributed based on subjective judgments of the committee members. They
accused the leaders for favoritism.
All the five irrigation cooperatives and one WUA have the record of the number of
members participated in the last election of the management committee. Four WUAs do not
have any record of member’s participation. In general, however, all respondents agree that
there were significant numbers in all the elections, and all members of all schemes ascertain
that the elections were free, fair and done in a democratic manner. Leaders were elected
taking their management skills, education, patience, and influence on the society into
consideration.
Members underlined that they can recall members of the management committee at any
time; when ever they think that they are weak or abusing their rights. This is interesting
because it shows a strong empowerment on the part of the members. But contrary to this,
the consultant group has come across only two schemes that changed their leadership since
its establishment. They are Tsalet and Shewit lemlem due to the expiry of the period and
mismanagement & illness respectively. Most leaders are the ones who were elected during
the establishment of the schemes. This poses a question if the opinion about the right of the
farmers to recall their leaders are exercised properly. The consultant group’s is dominant
opinion is that most farmers are a bit negligent on the leadership as long as they don’t come
across a serious right violation.
All organizations have women members, except in Ayne Bizu and Mainiguse WUAs. And
in each of the eight organizations, they have one woman member in the management
78
committee. There is a sound awareness on the part of the institutions that they need to
encourage women both as members and leaders. But in practice, there is a limitation. The
most dominant reason they provide is that they are fully occupied at home, and don’t have
time and the energy to spend in the leadership. In Mereduba and Tselat, though the land is
owned by the women members, it has been given for share cropping, since they could not
manage themselves. This happens when they don’t have male member in their family.
But the consultant group’s opinion goes that cultural impositions have also contributed for
the limited participation of women in such schemes. For instance there are women led
households, which desperately need to participate in the irrigation schemes. Though these
women are allowed to participate in principle, the group observed a limited participation.
Hence it is recommended that there is a need for external intervention both in the
cooperatives and WUAs that aim to empower women, both psychologically and financially.
Like wise, there is a need to redress the awareness of members and leaders of these
institutions to support women so that they participate at a full scale.
Participation in Drafting and Endorsing the Byelaw
Members in all the interviewed WUAs and irrigation cooperatives reported that they have
participated in the endorsing process of the byelaw except at Mereduba and shelanat which
don’t have written byelaw of their own. They are managed by an oral agreement. The
bylaws were all initiated /drafted by other organizations like CPO, NGOs and/or
government. Most schemes mentioned that they endorsed the bylaws voluntarily. Members
in all the coops reported that the CPO has prepared the draft and they were asked to endorse
it after discussion. Sixty percent of the respondents feel that they own the bylaws, while the
remaining two reported poor sense of ownership. Sixty percent of the respondents
mentioned that they amended the bylaws in one or another form to suit their circumstances,
while the remaining reported that they endorsed the bylaws as they were.
This shows that the people did not initiate most of the schemes, and this must have
influenced the sense of ownership of the members, since about 40% of the respondents in
the schemes don’t think they own the schemes.
79
Table: Managing Water, Enough Water
Manage Water Watering Day & Time Water Controller Problem

Sl. Time
Name Water Time Contro Time Time
No
- Control l- control- Control- Probl
Sched Water- Water anyti -Water Comm Woreda Individua ems- Problems-
ule others Night -Day me master ittee Admn. ls. Yes No
5 0 1 1 3 5 0 0 2 3
1 WUA
5 0 1 0 4 3 2 0 0 1 4
2 Coop
10 0 2 1 7 8 2 0 0 3 7
4 Total
Hundred percent of the schemes confirmed that they managed water as per the schedule.
The water masters mainly regulated watering time, while there were some instances where
a water committee controlled it. About 70% of the schemes reported that they watered at
any time of the day, while 20% reported that they watered during the night while 10%
watered during the day.
Seventy percent of the schemes reported that they did not have problems associated with
water distribution and management, while 30% reported that they had some problems.
These problems included favoritism in water distribution, and problems related to poor
construction of canals. Members repeatedly informed that since their canals were not
cemented, water percolated and this exposed them to water logging that was spoiling their
plots. This canal problem also caused shortage of water for farmers who were in the lower
command areas, i.e. in the far end.
There seems a good understanding and practice of water management in most of the
schemes. Members have a sound understanding of sharing and utilizing the water. In fact in
some of the schemes the farmers don’t complain about the non-availability of water. This
is because they are not making the maximum use of the water. So far most of them use the
irrigation for one crop in a year, despite their aspiration of producing crop twice a year
through irrigation.
But in the earth dams, members have mentioned that the water in the reservoir is not
sufficient for all members. The reasons provided were: reduction of water content in the
reservoir due to evaporation, less rain water, water seepage in the reservoir and all across
the canals, and wrong water content estimation, delay in measurement of water and failure
during the design of the scheme. Example sites are Zata, Ayene-bizu, mainiguse and
shenalat.
80
But it is unpleasant to learn that there is an apprehension on the members of some schemes
such as Mainiguse, and Ayene-bizu, which need some kind of intervention. The problem in
these institutions can degenerate into a serious conflict if it is not addressed pro-actively in
time.
Scheme maintenance:
In all the schemes, that the members maintain their irrigation structures, wherever needed.
Most of them reported that they maintain through campaigns, though some mentioned that
they make money contribution for the maintenance of the structures. In most cases they use
member’s labour to maintain the structures, but when there is a damage,it incurs more
money and they expect an external help. Maintenance work is organized and coordinated
by committee members, and at times by water masters.
Crop Rotation:
Seventy percent of the total schemes revealed that they practiced crop rotation. Seventy two
percent of, those who practiced crop rotation, respondents received advise regarding crop
rotation from the BoA, while 14% received from NGOs.In the remaining 14 %, they
practiced crop rotation just using their own wisdom.
V. Vested Interest
Leaders Link with Government
All members of the interviewed schemes responded that their leaders (management
committee members) did not have any special link with the government. But, shelanat was
not having a elected leader. And all schemes unanimously expressed that the Woreda
administrators never involved in the process of election of the leaders of WUAs and Coops.
The members considered this detachment of their leaders from the political leadership as a
positive development, since the leaders would have time to run the institutions properly.
Some interviewees mentioned that the government itself favored this kind of detachment.
This, they say, reduced interference from the government on minor issues allowed these
institutions to make decisions. A few interviewees, however, mentioned that the fact that
the leaders are detached reduces the execution capacity of the leaders since they don’t have
a political power. These interviewees stated that, if the leaders had a political power, they
could have synchronized those activities of the institutions well using their power and they
would also solicit enough support from the government.
81
Asked if the leaders take serious decisions without the consultation and consent of the
members, all except Ferehangoda coop, responded that the leaders don’t take decisions with
out consulting the members.
The consultant group learned that the government and /or other NGOs did not have any
negative interference on the operation of the WUAs and Irrigation cooperatives. This is
good enough by itself letting these institutions to make independent decisions and makes
them feel these institutions are their own. But since these institutions are at their infant
stage, there is a lot that they can be supported through positive interference: a reference can
be made to the Indian experience of funding the WUAs at the establishment phase. If left
alone, however, there is a capacity gap that they can not fillout just by themselves. Hence
there is a dire need for a positive intervention from the government and NGOs. The
consultants learned that there is an encouraging policy environment from the government
side that promotes cooperatives, it is important to implement these policies to the WUAs as
well. At technical and financial support level, both the WUAs and Coops deserve more
attention so that they stand on their own feet.
VI. Capacity Problems
All schemes except two WUAs (Shelanat and Mereduba) have received some kind of
training from other organizations. These trainings have been of various nature: record
keeping, vegetable production and marketing under irrigation farming, organization of
coops and WUAs, and even orientations and briefings. These ‘’trainings’’ have been
imparted at various capacities that range from the Wereda to regional level. They ranged
from one –day to five days. Most members appreciated the impact of these trainings but
also underlined that they were far from enough to make them effective leaders. All except
two coops expressed that their leaders did not have adequate skills to manage the
organizations. Members of the management committee described their capacity as
deficient, to the extent that it affected the running of the institutions. They were very open
in making these comments, especially their ability related to conflict resolution and seeking
market for their members’ produce. Moreover, 90 percent of the interviewees mentioned
that all of their water masters and members did not have adequate knowledge on the crop-
water requirements. Hence they expressed their aspiration for a consolidated and well-
organized training in all aspects of running these institutions. Asked what their priority
would be, they mentioned training in management and marketing strategies of their
products were their top priorities.
Management Committee and Promoter’s Skill and Support:
Asked if the CPO promoters have adequate knowledge to organize and consult them in
running the institutions, all except three viz., Ayene bizu, Shelanat and Mereduba,
expressed that the promoters had skill to organise, and to make follow up. Members of
these interviewed institutions made a varied opinion about the support they got from the
CPO experts. In some they appreciated their contribution very much and hailed their
82
dedication. They attributed the success of the institutions to the support of these experts. A
case in point is the Wereda Ofla experts. In others, however, the reaction of the
beneficiaries was to the contrary. Some mentioned that the experts visited them only twice
since their establishment.
Asked if the management committee members had full understanding of the bylaws and act
accordingly, all except in two WUAs (Shelanat and Mereduba), mentioned that they
believed that their leaders have full understanding of the bylaws and acted according to the
byelaws. Interviewees of all schemes, except Ferehangoda cooperative and Shelanat
WUAs, expressed that they maintained confidence between the committee members and the
members. The reason for this confidence is that there is a regular meeting between
management committee and members on monthly bases where they discuss problems and
developments. Sixty percent of the respondents reported that they had regular meetings, but
40% of respondents, of which 30% were from WUAs, reported that they did not have
regular meetings. Interestingly these WUAs where the 30% respondents came reported less
frequency of expert visit. It is in these institutions that the consultant group observed less
organization and less sense of ownership.
Table : VII Conflict and Settlement of Dispute
Water No Water Land No Land

Sl.
Name No use use use/own use/own
No
Conflict Conflict conflict conflict conflict conflict
1 WUA 3 2 3 2 1 4
2 Coop 3 2 3 2 1 4
Total 6 4 6 4 2 8
Conflict
Coop
No.Of
Institution
WUA
Conflict
No Conflict
Land use/own
No Land
use/own
Water use
No Water use
conflict
conflict
conflict
conflict
Sixty percent of the respondents reported that they had conflict in the institutions related to
water use. This conflict had been more pronounced at the two WUAs namely, Ayne-bizu
83
and Mai-Nigus. At Aine-bizu the up stream and down stream farmers had such water use
conflict due to shortage of water, basically during the dry season, and the problem was
acute during the late months of February to May. The farmers had of the opinion that the
water was available in plenty before the construction of the diversion and all these problems
emerged after that only.
Settlement of Disputes
Fifty percent of the respondents replied that they settle their disputes locally. Local dispute
resolution includes the self management of conflict with in the institutions and an
arbitration process that involves a third party but with in the locality. These respondents
mentioned that they never had been to courts for dispute resolution. On the other hand 50%
of the respondents mentioned that they have cases that are not yet resolved. These
institutions that have unsettled conflict include: Shelanat, Ayena bizu, & Mainiguse and
Zeta & Ferehangoda.
Thirty percent of the respondents mentioned that local experts (like DAs and CPO experts)
participated in dispute resolution. On the other hand, 40% of the respondents mentioned
that there was no expert involvement in their attempt to solve the disputes.
VIII Monitoring and Evaluation
Institutional Support
The respondents were asked if they were aware of the agencies that provide them technical
and/or financial, or legal support. Seventy percent of the respondents responded that they
knew the agencies and mentioned the following: CPO, IFAD, REST, Action Aid, WRB and
BoA. These respondents mentioned that they were getting support from the listed
institutions. The remaining respondents mentioned that they were not aware of the
supporting agencies, and declined the confirmation of receipt of support.
84
Figure : Record Keeping
Record Keeping
3
No.of
2
Institutions
1
0
A/c half- No Rec Rec Rec Rec Rec
Syst coo reco ordk ordk ordk ordk ordk
WUA 0 1 4 2 0 0 1 2
Coop 0 4 1 3 0 1 1 0
Among the respondents, no institution was keeping a proper record. In the case of irrigation
cooperatives, 80 percent of them were having the vouchers, receipts etc. All these four
irrigation cooperatives were trained by the officials of the CPO. But only one WUA was
having at least some accounts. There was no proper record of the accounts by four WUAs.
Ten percent of the respondents mentioned they got training from NGO on record keeping,
and another 10% mentioned that they were given training by the Water Resource
Development Bureau apart from CPO on record keeping. Twenty percent mentioned that
they learned themselves, while the remaining reported that they were trained by different
organizations.
Planning
Sixty percent of irrigation cooperatives and 40 percent of the respondents were of the
opinion that they had a plan of action. In the case of irrigation cooperatives only 40 percent
opined that the planning was done by the CPO, ten percent mentioned that it was done by
themselves and the remaining opted not to respond to this planning question.
Table 13:Regular Monitoring/ Evaluation
Monitoring Responsibility
Sl. No Name
Yes No CPO BoA NGO WRB Themselves
1 WUA 2 3 1 1 1 0 2
2 Coop 4 1 5 0 0 0 0
Total 6 4 6 1 1 0 2
85
Monitoring & Evaluation
No.of 3
WUA
Institutions
2 Coop
0
Monitoring Responsibility
All the irrigation cooperatives had been monitored by the Cooperative Promotion Office
except the Laelay Wukro that opted not to respond for the question. Likewise only two
WUAs were monitored by CPO and the remaining three were not monitored due to the
same reason. Asked whose responsibility was to monitor the schemes, 80% mentioned the
following: the CPO, BoA,, WRB and NGOs. While 20% mentioned that they themselves
were responsible to monitor their scheme.
IX. Catchment Treatment
Figure : Catchment treatment
Catchment T reatment
5
No.ofInstitution
WUA
3
Coop
2
0
Yes No Yes No Yes No Yes No Yes No Yes No
Treated Existence PrevalenceReduction Members’ Contribution
of of soil in involvement of labour
siltation erosion reservoir in site…
water
Out of the ten schemes four WUAs and three irrigation cooperatives stated that the
catchment area was treated. The community as a whole had done the treatment as they had
the food for work programme from the government. Remaining schemes mentioned that it
86
had not been treated. The type of treatments include: check dams, stone and soil bunds, and
reforestation. Both in Ayene bizu and Tsalet it was mentioned that the catchment area was
treated at the time of construction or river diversion, but the same was washed away by the
flood later. The respondents could not re-treat the same due to paucity of funds, low
technical skill and coordination since it covered two three kebeles particularly in Ayene
bizu.
Three WUAs and four irrigation cooperatives reported that there was siltation in the
reservoir. The cause of the siltation is due to the heavy flooding from the upper catchment
of the river diversion and poor catchment treatment done earlier. This resulted in damage of
weir, and ultimately affected the water flow and seepage. This also affected the riverbank
through the land sliding.
Sixty percent of the WUAs and 80 percent of the irrigation cooperatives expressed that soil
erosion was prevalent in their area. The cause of the soil erosion is inadequate catchment
treatment and flood due to torrential rain. This resulted in deterioration of arable land,
widening of the gullies and siltation of irrigation structures . Remaining two WUAs and
one-irrigation cooperatives do not face this problem.
Two WUAs and four irrigation cooperatives were of the opinion that there was a reduction
of water in the reservoir due to shortage of rainfall, seepage, improper location of weirs,
reservoir etc. Reaming respondents did not complaint such problem.
X Farmers’ Involvement in the Construction of Irrigation Structures
Almost 80 percent of the respondents mentioned that they were not involved in the
selection of site for reservoir, designing of the dams and diversion and planning of the
same. The respondents were disappointed that they were not consulted and when they
offered their help voluntarily it was not heard by the experts in carrying out the above
process. This was strongly mentioned by the respondents of the Zata, Ayene bizu and
Shelanat.
All the respondents had contributed their labour in the construction of the irrigation
structures.
87
Conclusion and Recommendation
Conclusion:
An attempt made to study the problems and prospects of WUAs leads to conclude as
follows: All the selected Water Users Associations are financially and organizationally in a
weak position. All the WUAs don’t have legal recognition. They are not registered by any
organization like the irrigation cooperatives are. This lack of legal recognition is prohibiting
them from getting technical and financial support from different organizations. This lack of
technical support has made the WUAs less organized when compared to the irrigation
cooperatives. They have also manifested less sense of ownership to the institution. The
WUAs and their members have felt this issue and have manifested their worries about it.
Significant percentage of both WUAs (60%) and irrigation cooperatives (40%), believed
that the government owned the schemes. This is a matter of serious concern; since the view
of the government is that the schemes are owned and run by the beneficiaries. Lack of
proper extension work; coupled with some unwarranted interventions from wereda experts
in some schemes might have contributed to this feeling.
There is an encouraging level of assertiveness of members in electing and re-calling their

management committee members. The confidence and awareness of members that they
have right to choose and step down their leaders is phenomenal. But there has been very
little change of leadership in most of the schemes. It seems that members are less interested
in changing the leaders as long as they don’t make serious violations. Most of the
management committee members were in the same position since the establishment of the
schemes. Change in leadership would enhance the dynamism of the schemes.
All schemes revealed that they got some kind of training and/or orientation from the
government or NGOs. The schemes appreciated the impact of these trainings, but they
underlined that the trainings were far from enough to make them efficient leaders,
expressing the need for a well-structured training.
There is an encouraging understanding of water management among members in all

schemes. Except in some, there is little conflict of serious nature due to water use. This is a
positive development. But this can also be seen from a different angle: since the schemes
are producing a single crop using irrigation, there is no serious water shortage encountered.
But if they start to irrigate during the dry months (like February – May) water shortage will
be eminent. This water shortage can be accompanied by serious conflict.
88
On the other hand there do already exist conflicts in some of the schemes that deserve due
attention by all concerned bodies.
Most of the reasons for potential water shortages opened by the members of these schemes
were: lack of maintenance of the structures, water seepage in the canals, less rain, and at
times design failures, that stifled the water sources.
Members and leaders alike, had good awareness about the participation of women in the
schemes. In practice, however, the participation of women both in the schemes and at
leadership level was limited.
All schemes reveal that they have a serious concern about marketing their products. In
some instances, lack of market access is a cause for a conflict between the management
committee and the members. This lack of market is also a major disincentive for the
farmers for producing vegetables. They complained that the income from the sale of these
products was not even equivalent with the production cost. These schemes have also
revealed a serious concern about the aggressive behaviour of the private sector, and asked
for some kind of market protection from the government.
All, except few, mentioned that there was no serious interference from external agencies
like NGOs and local administration, in their internal affairs. This is a very positive
achievement by itself. On the other hand, there is a need for positive intervention in many
aspects like training, and marketing, from the government side, that should facilitate the
process of self-reliance of these infant institutions. Left alone, these institutions may not
stand by themselves in the near future.
Ignoring the debate on demarcating the boundary between WUAs and irrigation
cooperatives, the consultant group investigated the difference between WUAs and irrigation
cooperatives in operation. There are some points that are worth high lighting: first, the
WUAs don’t have legal recognition since they are not registered by any formal
organization. The only legality they claim is their application and registration by the social
courts of their Tabiyas. The second difference is the lack of technical and financial support
from organizations. Since they are not legally recognized, they receive less technical,
financial and legal support. Thirdly, WUAs don’t have share contribution, and even
maintenance money, except in some. But this is a common practice in the irrigation
cooperatives. Fourthly, there is less organization on the part of the WUAs as compared to
the irrigation cooperatives. The cooperatives have a lot of issues to discuss and practice
like, collective marketing, input distribution, dividend distribution and others beyond water
management and distribution. But we found that the WUAs are united by a single factor; i.e
water management.
89
The famous Rural Credit Survey committee of India said after studying the cooperative
movement in India that ‘cooperation failed but it must succeed’. Here we would like to
conclude that ‘WUAs in Tigray are functioning but they must succeed’.
It is understood that the people of Tigray region are known for their sense of gratitude and
loyalty to the affiliations. The prevalence of democratic culture in their daily endeavors and
assertiveness in their beliefs needs special appreciation. The resource poor farmers with
moderate support of development interventionists organizing WUAs, producing what they
know and marketing what way they could need special attention from the side of
government. Though they are ignorant of the reasons for their poverty, the interventionists
should not ignore their indigenous knowledge (IK), which has proved worthy to keep the
socio economic web from time immemorial. Efficiency and efficacy of managing WUAs
depend on sustainable development interventions of all stakeholders.
Recommendations
The study reveals that there is high potential to work on this line. What was done so far is
appreciable and what should be done further is gargantuan. Based on the review of
literature on international experiences, examination of historical development in the Tigray
region and the empirical study, the consultant group study team proposes the following for
the consideration and necessary action of all the stakeholders of Water Users’ Associations
and Irrigation cooperatives.
1. The government machinery with the support of donor agencies should launch
different irrigation schemes: The unfortunate part of some schemes was that the
beneficiaries had not been consulted before construction of the earth dam or any
other minor irrigation projects. Hence, the team strongly suggests to consider the
opinion of the beneficiaries.
2. Sense of ownership brings success in all endeavors: Upon completion of the
projects, it is expected to handover the rights to the beneficiaries, but unfortunately
it doesn’t takes place. The proposed WUAs or the Irrigation Cooperatives should be
given collective rights and obligations.
3. Agricultural development in the developing countries is based on the intervention of
government, non-governmental organizations and other agencies. They found that
these organizations were working in a significant level to improve the agricultural
production and productivity of the region, so that the living condition of the people
improves. Still with regard to WUAs, the consultant group proposes the following
steps to strengthen the irrigation system of the region in order to develop the farmers
socially and economically.
a. The WUAs should be given legal recognition by the Ministry of Agriculture
and Cooperation.
b. The members of WUAs should be given Training on Management of
WUAs, use of water and structure and watershed management.
90
c. The members of the WUAs should have access to credit and agricultural
input services on collective basis.
d. During the initial stage of the project, the government should meet the fuel
cost of the motor pumps or provide subsidized electricity.
e. When the adverse natural calamities affect the irrigation structure and
warrants huge money for repair and reconstruction, the government with the
assistance of the donor agencies should come forward to recoup the
irrigation schemes.
f. The concerned agency, which has registered, should supervise, inspect and
audit the WUAs.
g. Agricultural extension should be taken up rigorously to help the WUAs on a
regular basis so as to motivate the member farmers to produce cash crops
since, the farmers spend more money on it than for dryland farming.
h. The government should come up with a crop insurance scheme for the
farmers.
i. The team strongly suggests to have a Water Policy to see that the natural
resources is equitably distributed to all the needy of the nation in an
organised way.
j. The development interventionists have not effectively addressed the
problems of post harvesting. Hence, the consultant group suggest that there
must be an institutional mechanism to
i. Establish market centers for the produces of the farmers
ii. Disseminate market information
iii. Establish processing plants storage facilities
k. The government should take initiative to establish a Federal Organization for
all WUAs operating in the region. This would coordinate the activities of all
primary WUAs for effective functioning financially, technically and
managerially.
91
Case 9
Journalism for the Cooperative Sector in Ethiopia- An Exploratory Analysis
Background and Justification
were 12364 cooperatives in the country and 1215 cooperatives in the Tigray region were
functioning as on the last day of December 2005.
The International Cooperative Alliance’s one of the seven principles, the Cooperative
Education and Training emphasizes the vital importance played by education and training
within cooperatives. Education means more than just distributing information or
encouraging patronage; it means engaging the minds of members, elected leaders, managers
and employees to comprehend fully the complexities and richness of cooperative thought
and action. Training means making sure that all those who are associated with cooperatives
have the skills they require in order to carry out their responsibilities effectively. Education
and Training are also important, because they provide excellent opportunities whereby
cooperative leaders can understand the needs of their membership. They should be
conducted in such a way that they continuously access the activities of the cooperatives and
suggest ways to improve or to provide new services. A cooperative that encourages
effective two-way communication between its members and leaders, while operative in an
effective manner, can rarely fail. The principle ends by recognizing that cooperatives have
a particular responsibility to inform young people and opinion leaders, politicians, public
servants, media representatives and educators, about the nature and benefits of cooperation.
There is a growing need to revise and rethink the scope of interdisciplinary ventures to
strengthen various areas of study especially cooperative education. Hence, an attempt is
hereby made to interwoven the cooperative education and journalism.
The Mass Media
Mass media communication constitutes a powerful force in our society. We learn many
things today through some media of mass communication viz. radio, television, magazines,
news papers, books and films. All these technologically produced channels have become
92
nearly all pervasive so that the person-to-person contacts have diminished in significance as
means of effecting social change or maintaining social stability.
Mass media communication is a communication system in which identical message is

originated by an organization and sent to large number of receivers through public
channels. Mass media communication is public communication transmitted electronically
or mechanically. We are delivering information, ideas and attitude to a sizeable and
diversified audience through the use of media selected for that purpose. The audience in
mass communication is relatively large, heterogeneous and anonymous to the source. The
experience is public, rapid and fleeting.
The mass media are systems that combine human talents and mechanical devices that have
as one of their central purpose, the supply of information. Journalism is the means of mass-
communication. We may identify four areas of journalism as Newspaper journalism (print
media), TV journalism, Radio journalism and film journalism. The four media important in
journalism are Newspaper, TV, Radio and film.
The mass media audience come from all groups of society. They cannot interact with one
another in the communication process. The communication by mass media is mostly one-
way. Feedback exists, but it is indirect and delayed. Feedback is mostly in the form of
letters to the editor or the programme producer and increased sales for an advertised
product.
Ü Surveillance of environment
The functions of the mass media and journalism
Ü Interpretation of information and prescription for conduct in relation to these
Ü Transmission of social heritage from one generation to next generation

events
Ü Entertainment
Functions of each media
1. Radio, Television
News, opinion, entertainments,
and News paper messages advertised
2. Films Informing, persuading, entertaining
3. Magazine Entertainment, opinion, background

information
93
4. Books
Deeper and most detailed examination
of the subject and entertainment
5. Pamphlets Bring the view of commercial and civic

organization
Mass media not only gives news, but also provides information on different aspects of life
and its problems. They also provide cultural fare and entertainment. They can provide
motivation for social change; create the climate for development and influence of attitudes.
They help in imparting various types of education and training to the farmers in the field, to
the small and medium entrepreneurs in agriculture and small scale industries and the
extension personnel on various subjects. They can help community-decision making by
feeding a discussion. The electronic media can reach millions at home, overcoming the
barriers of illiteracy. They do not depend on physical facilities of roads for reaching their
target. Radio has speed which no other mass medium has. Radio can put across hot news in
the homes of people instantly.
The newspaper has to wait for hours. The press can present news in a manner in which the
news is read from headlines downwards, according to the interest of the reader, but radio
has to be brief. Even a 15-minutes bulletin does not contain more than 2000 words, which
would barely fill up two columns in an average size newspaper. A newspaper, on the other
hand can give 20 to 30 times the space.
Cooperative Journalism and the Scope
The spirit, philosophy and principles of cooperatives have not fully diffused into the social
system. The cooperatives are the best way to wipe out rural poverty and unemployment so
that Ethiopia is moving in that direction. It could be made faster by promoting cooperative
journalism as one of the means. Cooperative journalism encompasses the fields of
newspaper journalism, radio journalism, TV journalism and film journalism. The spread of
innovations needed by our farmers and members of cooperatives can be accelerated by
effective cooperative journalism.
We have at present a dearth of programmes suited to the farmers in the field of journalism.
As the media has become so powerful, our attention needs to be focused on exploiting the
mass media to promote efforts in the field of cooperatives. Weekly farm feature pages in
94
the local newspapers, providing more coverage for features on cooperatives through radio
and TV journalism, producing more documentary films on the success of cooperatives and
water users’ associations etc., come under the purview of cooperative journalism.
Journalists on the cooperative sector of Ethiopia should know about the techniques of
motivation in Cooperative Extension. Apart from providing news, the treatment should be
to convince the people and advance the cooperative and rural development programmes.
The news story in the print media has only factual contents. It tells what is happening and
has to be recent. The purpose of news story is to provide information about an event, which
is mostly written in the inverted pyramid pattern.
The rural people of Ethiopia can be effectively persuaded and convinced about the needs
and utility of cooperatives if the journalists use the feature style of writing. Feature stories
are written to add depth and colour to the news, to instruct or entertain. The feature is more
narrative, which has a long term implication. The feature is much descriptive in nature,
narrative and interesting to the average reader. The feature story holds the readers from
beginning to end. The feature goes further from presentation of facts. It may explain the
background, growth of the event etc. A feature need not be recent, but has to be
seasonable. “Why” and “how” aspects are more covered in the features. By and large, a
feature story is a personal chat with the reader.
• News features
The different types of features to be used in cooperative journalism are:
• Process features
• Experience features
• Personality features
• Interview features
• Human interest features
• Information features
• Seasonal features
• Understand what the readers want. Look at it from the readers’ angle and
Important considerations in cooperative journalism:
• Choose the subjects related to cooperatives, such as: agricultural marketing

also think of what the newspaper /magazine/ radio/ television wants.
through cooperatives, user associations, integrated rural development,

women’s empowerment through cooperatives, watershed management
• Decide your objectives, what for and why.

through community and group effort etc.
• Decide “when” you want to reach and “how” you want to reach the people.
Select the media or combination of media. You may use more than one
media such as TV and magazine to reach the people. The subject you have
• Collect relevant materials about the cooperatives and success stories.

chosen should have seasonableness.
Newspaper clippings, government reports, magazine articles, research

papers, books etc. will be useful to bring in more clarity and credibility to
95
the news and features. Talk to persons and clarify your mind.
•
Generalizations and vague suggestions do not help any one.
Decide the specific aspect of the subject you want to emphasize. Do not try
•
to cover too many aspects.
•
Fix the persons you want to interview.
•
Draw a blue print for the feature which may serve you as a guide.
Decide the tentative or working title for the feature. Title should sell your
•
ideas. Titles can be provocative to arouse interest.
Lead paragraph in the print medium need not be in summary form, but it
should arouse interest. Central idea should be indicated in the lead and
•
present it in an interesting forms.
Style and length depend on the magazine. Don’t add too many facts and
figures. Arrange the facts in a logical order. Use the active voice rather than
•
the passive voice. Conclusion should give a lasting impression.
Observe the principles of journalistic writing. Avoid jargons. Have high
regard for truth and accuracy. Avoid incorrect statements and the habit of
•
preaching and sermonizing on the subject.
Photographs and illustrations can tell many things which the written word
cannot tell. Subject matter can be made interesting by adding pictures.
•
Pictures help to cut out the length.
•
Use simple, informal way of writing the script.
Follow the ABC of journalism i.e., accuracy, brevity and clarity.
Journalism is also processing news: it is a process by which professionals involve in

newsgathering and news presentation for dissemination. Journalism previously referred to
print media encompasses now electronic media and even online dissemination also.
Components of Cooperative Journalism
Newsgathering depends on sociopolitical structure of the society. There is a difference in

the process of news selection and processing based on the set up of the institutions. A
libertarian society has accorded more freedom to its media organizations than an
authoritarian society. A totalitarian system has its won parameters to determine what news
is and what is not. The process of newsgathering is also dependent on the professional
levels of the journalists and the extent of freedom even within the structure. Some of the
media in some countries are government owned or controlled and hence towing the party or
the ruling government line is the norm. Newsgathering follows certain set values of what
constitute news in different countries and societies. A newborn trend of following the
meteorology department for weather forecast is illustrative of changing values and
preferences to follow news.
The techniques of news gathering can be put to use by people involved in the cooperative
movement for collecting information about the success of cooperative marketing so that it
can be appealing to a wider audience for better adoption. The information collection can be
96
purposeful and meaningful and can aid in the process of successful cooperative movement.
• Salient features of interviewing

The components can include
• Understanding news values like proximity and prominence etc

• Importance of news sources
• Note making
• Recording the interview
News writing: The techniques of news writing would cover topics like the structure of
• Interview story writing

news writing along with other kinds of writing techniques like
• Feature writing
• Editorial writing
• Report writing etc
The writing techniques will expose the participants to different kinds of writing and would
enable them to write with a purpose.
News Editing: News editing will enable them to understand the techniques of making the
news of information they have gathered to publish in a manner they require. It could be a
news report, a project report, a proposal, a newsletter or a in house journal for circulation
• Basics of sub editing

among its members. Topics covered in this would include
• Grammar, style and punctuation

• Headline strategies
News Publication: The publication basics will cover topics that would enable them to
acquaint themselves with the publication basics for a news letter or a project report and
• Basics of layout and designing

typography etc. The topics would cover
• Introduction to page make up, typography etc
Conclusion
The journalist, whether he is a TV journalist, newspaper journalist, radio journalist or free
lancer should develop certain traits. Reading habit is a must. He has to regularly read the
feature magazines. The writer has to be curious and interested in the things around him.
Observing the things with the attention they deserve, keeping in mind that accuracy, brevity
and clarity are essential, will be very much a necessity.
The journalist in the cooperative sector should have faith in the philosophy and principles
of cooperation and skill in selecting the suitable media as well skill in treatment of the
message. Language compatibility is a must for the journalist. He should also realize that
newspaper journalism is useful only for the literates so that TV and Radio journalism are to
be employed in parallel to make more impact in the growing cooperative sector of Ethiopia.
97
Case 10
Marketing of Cactus and its By-products through the Cooperatives in Tigray
Research Issue:
The cooperative is an autonomous association of persons united voluntarily to meet their

common economic social, and cultural needs and aspirations through a jointly owned and
The uniqueness of the cooperatives is the role of the user, which is different from any other
form of business. With the rapid proliferation, diversified activities and extensive
coverage, cooperatives have emerged as the relevant institutions in the contemporary
context. Ethiopia is no way different from this phenomenon.
The people of Ethiopia have got a very long social history of working together to fulfil their
socio-economic needs. Agriculture, Trade and Military Operations were carried out through
cooperative efforts. Many social events are still taking place in rural Ethiopia through
collective effort. The Federal Government of Ethiopia has identified Cooperative form of
business organizations as an instrument of socio-economic change. Many Cooperatives
have emerged in the recent past to serve the suppressed and depressed community of
Ethiopia. Due to this as on 30th March 2004, there were 4039 Agricultural Cooperatives,
3338 Non- Agricultural Cooperatives such as Handicrafts Cooperatives, Savings and Credit
Cooperatives, Housing Cooperatives and Construction Cooperatives functioning in
Ethiopia. Moreover 35 Unions have been started at the woreda level to market the products
of the primary cooperatives.
Due to the encouragement given by the present regional government, there were 514 Multi
Purpose Cooperatives, 38 Irrigation Cooperatives, 13 Water Resources Associations, one
Fisheries Cooperative, one handicrafts Cooperative, 22 Savings and Credit Cooperatives,
eight Urban Savings and Credit Cooperatives and one Housing Cooperative functioning in
the Tigray region of Ethiopia as on the last day of 1995 EC.
In this region, many crops are grown under dryland farming. Cactus is one of the plants that
is grown throughout the region. The preliminary review reveals that cactus and its by-
products are having adequate market surplus. Procurement, processing, storage and
marketing of cactus and its by-products would increase the income of ordinary faming
community. Hence, a modest attempt has been made in this paper to explore the possible
extent to which the agricultural cooperatives can play a role.
98
Objective of the Study:

1. To understand the marketing problems the cactus farming community
2. To build a model for procurement, processing, storage and marketing of
cactus and its by-products through the agricultural cooperatives of Tigray
region.
Methodology
The data for the study to justify the objectives have been collected both from the primary
and secondary sources. The Faculty of Dryland Agriculture and Natural Resources, Mekelle
University has generated data on ‘cactus’ and that forms part of the study. The primary data
for the study were collected from 50 farmers of five villages in and around Mekelle by
adopting Participatory Rural Appraisal (PRA) Method. That is a method which enables
rural people to share, enhance and analyse their knowledge of life and conditions, to plan
and to act.
Data so collected were classified into two categories viz.,

1. Problems in Marketing of cactus by the farming community and suggestions to
overcome the problems.
2. Model for procurement, processing, storage and marketing of cactus and its by-
products through the agricultural cooperatives of Tigray region.
Problems in Marketing of cactus by the farming community and suggestions to overcome

the problems
Cactus, common name for the family comprising a peculiar group of spiny, fleshy plants is
native to America. The family contains about 1650 species, most of which are adapted to
arid climates. The fruits of cacti are important sources of food and drink in many areas to
which they are native. Because cacti require little care and exhibit bizarre forms, they are
popular for home cultivation and are coming under increasing pressure as a result. Cactus
plants usually consist of spiny stems and roots. Leaves are greatly reduced or entirely
absent. Only in two genera are fully formed leaves present. The stems of cacti are usually
swollen and fleshy, adapted to water storage, and many are shaped in ways that cause rain
to flow directly to the root system for absorption. The roots form extensive systems near the
soil surface, assuring that a given plant will absorb the maximum amount of water from a
wide area; plants in deserts are usually widely spaced.
The flowers of cacti are often large and showy and occur singly rather than in clusters of
several flowers. The perianth (floral tube) does not consist of sharply differentiated sepals
and petals, but rather of a series of bracts (modified leaves), which gradually grade into
99
sepals and finally into showy petals. The flowers have many stamens; the ovary is inferior
and fused to the perianth. The fruits are often brightly coloured and fleshy.
Cochineal breeds in Cactus plant and it is a red dye derived from the dried bodies of female
scale insects, Dactylopius coccus. The insects were used as a dye source by the Aztecs.
Cochineal is still employed in pigments, inks, cosmetics, and food colourings, although it
has been replaced by synthetic dyes in other uses.
Cactus could be found abundant in the African Region particularly in Ethiopia. Tigray
region of Ethiopia produces Cactus in large quantity. It is grown for three months from
May. The most valuable insects from cactus can be collected through out the year. But the
produced cactus products are not fetching a good price due to the marketing problem. The
major problems found in marketing the Cactus are:
1) Fruits were sold at a cheaper price by the producers and also by the local small
vendors.
2) No significant market intervention mechanism has been introduced so far.
3) The commercialisation of cochineal is still in the infant stage.
4) Even though number of bye-products have been identified by the home
scientists / food scientists, no formal food processing industries have come up
in the region.
5) The fruits are perishable in nature and available only for three months but no
steps have been taken to preserve and store it so that it will be sold through out
the year.
6) The indigenous knowledge in this regard has not also been explored fully to
ensure food security.
By having the above problems in mind, the authors consolidated the following alternative
solutions, which emerged through the PRA method.
1) Involvement of Private Traders.
2) Participation of Government
3) Involvement of Cooperative Sector
If we look into pros and cons of the alternative solutions, privatisation has yielded mixed
results. It has been justified on efficiency grounds and condemned on equity and
sustainability grounds. Experience with government business has not been good in most of
the cases all over the world. Theoretically and ideologically, the cooperative mode of
business seems to be the best of all. This is so because, with proper rules and regulations, it
can better meet the goals of efficiency, sustainability, equity and resource, users’
satisfaction and is politically and socially more acceptable in most societies and nations
than any other alternatives.
Model for Procurement, Marketing of Cactus and its Bye-Products through Cooperatives
After considering the strengths of the cooperative movement in the Tigray region the
authors advocates the following model for the purpose.
100
Regional Multipurpose Cooperative Federation
Multipurpose Cooperative Union
Primary Multipurpose Cooperatives
The 521 Primary Multi Purpose Cooperatives in the Tigray region are to be the collection
centres for the fruits and cochineal. They will in turn supply to the Woreda level Unions
(currently six unions are in operation) for processing, storage and sale of products. The
regional level federation (subject to formation like the one we have for coffee in the Oromia
region) will undertake the national and international marketing.
Multipurpose Cooperatives are considered as an institutional intervention to increase

agricultural production and productivity. Multi Purpose Cooperatives are functioning with
the following objectives:
1. Provision of agricultural credit
2. Provision of agricultural inputs
3. Facilitating sale of agricultural produces
4. Operating a consumer store
5. Optimum utilization of natural resources like sand stones,
6. Inculcation of thrift and savings habit among the members
The objectives clearly spell out that it can take up the procurement and marketing of
agricultural products. Since, almost all the families of the village are the members of the
cooperatives or has come across any one of the cooperatives, it can be an effective tool for
the procurement and marketing of Cactus.
The Woredas level unions can collect Cactus from the member cooperatives and process
the same. The technological guidance may be obtained from the universities and the
research bodies that carry work the cactus.
The Regional level federation should formulate strategies for marketing the products
produced by the Woredas level unions both at the national and international levels.
101
Policy Implications:
The cooperative model suggested above may be implemented by adopting the following
strategies.
1) The government should take initiative to declare that cooperatives are the
organisations to procure and market the cactus products.
2) The government should also patronage the cooperatives in the form of loans and
advances, grants and aids, tax exemption etc.
3) The Universities and other research bodies should be encouraged to proceed with
further research and also support the cooperatives in sparing their knowledge,
findings and experiences.
4) The Non-governmental organisations should take initiative for forming more
number of cooperatives and also support the existing cooperatives for this cause.
5) Apart from the above, the agricultural cooperatives should take self-interest in
accomplishing this task in a systematic way.
6) Since, it is an issue related to food security, the international agencies’ intervention
may also be sought.
7) Techniques for effective preservation and processing of cactus fruits may be
considered.
*********
102
Case 11
Participatory Forest Management-Cooperatives as an Institutional

Alternative7 T
P P
T
Introduction
A healthy economy depends on a healthy environment. Forest is a natural resource of a

country which needs to be preserved and developed. Indiscriminate exploitation of the
tropical forests for fuel wood and timbers creates more drylands in Ethiopia. An extensive
area of forestland was converted into agricultural land for cultivation of food grains.
Continuation of this phenomenon will adversely affect the existing ecosystem of the
country. Hence, the environmentalists are making hues and cries throughout the world to
adopt scientific forest management.
Management of forests consists of rehabilitation of degraded forest, development of new

forests, and preservation of existing forests. Moreover it also denotes agro forestry which
involves the growing of trees and crops and raising of livestock and trees in the same
place.
Forest management practices are based on the participation of forest dependent

communities. The forest villagers are normally the ethnic minorities having no voice in
political decision making, very often ignored at all levels of policy decision and
implementation but blamed for desertification. Hence, an attempt has been made in this
paper to explore the possibility of an appropriate institutional framework for forest
management by the forest villagers.
Institutional Intervention
The Federal Government of Ethiopia through the Department of Forest took several steps to
protect the flora and fauna of the country. Many non-governmental agencies both domestic
and foreign, are continuously striving to sensitize the importance of forest management
among the people. There are some community based agroforestry efforts proved worthy of
replicating its model. But a perpetual institutional mechanism of people for the people and
by the people has not been evolved significantly so far. Whereas many developed and
developing countries are successfully engaged in forest management through cooperative
societies? Why can not we the Ethiopians know about community life and think about the
socio-economic conditions for the forest villagers, while maintaining and improving the
bio-diversity of our land?
7
T
PCoauthored by Ato Aklilu and presented in the International PFM Conference at
T
P
AddisAbaba between 19th and 21st March 2006.

P P P P
103
Unique Features of Cooperatives
A cooperative is an autonomous association of persons united voluntarily to meet their

democratically controlled enterprise. Cooperatives are based on the values of self-help, self-
responsibility, democracy, equality, equity and solidarity. Cooperatives believe in the
ethical values of honesty, openness, social responsibility and caring for others.
Inculcations of virtues i.e. , wisdom ( prudence, vigilance, foresight, clear thinking,
rationality), courage ( fortitude, resolution, confidence, self reliance), temperance ( self-
restraint, self-control, self-denial or self-sacrifice, forbearance) and justice ( righteous,
honesty, fairness, fair play , impartiality, lawfulness) in individual cooperators promotes
qualitative changes in the working of cooperatives, minimizes chance of development of
aberrations in cooperatives, builds a virtuous environment and healthy image of
cooperatives.
Cooperatives are democratic organizations controlled by their members, who actively

participate in setting their policies and making decisions. Men and women serving as
elected representatives are accountable to the members. In primary cooperatives, members
have equal voting rights (one member, one vote) and cooperatives at other levels are also
organized in a democratic manner.
Considering the importance of cooperative form of organizations for the Nation’s growth,
the Federal Democratic Republic of Ethiopia notified Cooperative Societies’ Proclamation
No. 147/1998 on 29th December, 1998. The Act facilitates the organization of cooperative
societies at all levels. Based on the provision, the paper visualizes a model for forest
management.
Statement of the Problem
The rapid deforestation and environmental degradation have forced forest conservation
authorities to seek an alternative to the conventional way of forest conservation by realizing
that unless the local community is involved in the conservation effort, the forest is certain to
disappear (Aklilu, 2002). Numerous efforts made by the government to restore forests such
as forest border demarcation, resettlement of people within and outside the forest in
confined areas, establishing forest protection committees and check points, afforestation,
use of selected indigenous tree species ( like Podocarpus Falcatus, Cordia African,
Hayginia Abyssinica ) and forbid logging deserve special mention. Therefore, as a strategy
for development intervention, the beginning of managing forest involving the local
community is imperative in the fighting of forest degradation in Ethiopia.
Objectives of the study
The study was carried out with the following objectives: -

(i) to examine the rationale of cooperative management of forest resources,
(ii) to review the current status of cooperatives engaged in the management of forest
resources,
104
(iii) to propose a cooperative model to manage the forest resources.
Methodology
The study was carried out by using both primary and secondary data. To justify the first
objective, reviews of relevant literature were made and summarized. The second objective
was achieved with the data generated from Federal Cooperative Agency and the field visits
carried out by the authors. The third objective was an outcome of the experiences in
Ethiopia and India on Participatory Forest Management. Moreover the current status of
different types of cooperatives and its development have been taken into consideration for
framing the model. The study lacks detailed empirical evidences but having a strong point
for further research.
Findings of the study
Rationale of Cooperative Management of Forest Resources
provide sustainable benefit flows in the form of food, fodder, fuel wood, fiber, timber,
Until recently the role of natural resources in the rural economy was not understood
properly. Therefore, privatization or nationalization of natural resources was suggested as a
solution to arrest their degradation and preserve the environment. Experience with
and condemned on equity and sustainability grounds.
For the success of any strategy of forest resources management, the involvement of local
people is essential. This is so because overexploitation of forest resources by any user has
many unintended side-effects, or in technical terms, externalities on other co-users. For
example, overgrazing of common land, uncontrolled felling of trees and illegitimate use of
forest resources like gum, herbs and other fruits by some would affect other law abiding
people in the forest land. In a nutshell, all uses of the forest resources, irrespective of
cooperation of all the resource users of the watershed for internalizing/minimizing the
externalities involved. This is best achieved when the planning and management of forest
resources is done on watershed basis and the resources managed by their users are
105
organized in the form of an association preferably a cooperative society. Cooperative
management of forest resources is therefore the most appropriate of all forms of
management in most situations. Moreover, theoretically and ideologically, the cooperative
mode of forest resources management seems to be the best of all. This is so because, with
proper rules and regulations, it can better meet the goals of efficiency, sustainability, equity
and resource users’ satisfaction and is politically and socially more acceptable in most
societies and nations than any other alternatives.
Status of Cooperatives in Ethiopia
their socio-economic needs. Agriculture, trade and military operations were carried out
through cooperative efforts. In Ethiopia there are three well known traditional cooperatives
or self-help groups namely, Edir, Ekub and Debo. Edir is one of the traditional cooperative
forms which have been practicing almost in all parts of Ethiopia. Edir mainly stand for
performing burial ceremonies. Ekub is a rotating saving and credit type association whose
members make regular contributions to a revolving loan fund. The third one Debo is one of
the cooperative system for mutual farming operations. These traditional forms of
association which have values and customs of our society should be brought to modern
form of cooperation and can contribute to the economic and social development of the
country.
Development of Cooperative Movement
Modern form of cooperatives was started during the regime of Emperor Hailesselase I
(1932-1974) with the first legislation called “Farm Workers Cooperatives Decree” in 1960
to help the agricultural lord. In 1966, Cooperative Society Proclamation No. 241/1966 was
declared to promote real mutual help and self-help cooperatives. During the post-revolution
cooperative movement (1974-1991) in the military Junta system, the peasant associations
were given legality by Proclamation No. 71/1975. In 1978, another cooperative societies
proclamation was issued (proclamation No. 138/1978) that includes other form of
cooperatives. In the late 1990 there were already 3316 Producers’ Cooperatives and 525
Service Cooperatives in the country.
The cooperative movement in Ethiopia from 1991 was well organized than in the previous
regimes. The new cooperative proclamation which suits to the transitional economic system
was declared as Agricultural Cooperative Societies Proclamation (proclamation No.
85/1994). In 1996 a great cooperative movement was made for organizing and
reorganizing different cooperative societies and establishing cooperative promotion offices
in the regions and in the federal government under the Prime Minister. A new proclamation
in 1998 (Proclamation No. 147/1998) was also announced to bring all types of cooperative
societies under one umbrella, Currently(1997EC) there are 19147 primary cooperatives and
122 unions in the whole of Ethiopia, of which 23 were Forest Production and Conservation
Cooperatives and a Union.
106
Case I Gum Arabic and oleo-gum production
The non-timber forest products have been essential for subsistence and economic activities
all around the world. It is also among the oldest and most long-standing of internationally
traded commodities, dating back thousands of years to ancient times continuing in the
present day (Wilkinson and Elevitch, 2001). Many products have traditionally been
extracted from forests, but over time the resources became marginalized since emphasize in
forest management was on timber production (Wong, 200o). This could be solved by
training and organizing people to use the resources on sustainable base.
The non timber forest products extracted from indigenous tree species in the semi- arid and
arid lands such as Acacia commiphora, Acacia syal, and Boswellia spp. could provide an
additional opportunity for accelerated economic development (Mulugeta, 2002).
Tigray is located in the most northern part of Ethiopia where most of the lands fall under
dryland categories. Gum Arabic and oleo –gum (the true frankincense) are the most
important types of natural resources found in a very wider area of the region. The Tekeze
river valley, western Tigray zone and north western zone are the major sources of
employment and income for the people. In the year 1998 E.C., there were 22 Multi Purpose
Cooperatives, one Cooperative Union and 8 big organizations working on gum and resin in
western and north western Tigray. The total area devoted for this purpose is 118,486 ha.
The target of the government policy is maximizing production without threatening
environment. Every cooperative should manage the resources registered under it. The
government discounts the tax for cooperatives showing improvement in vegetative cover
and density of gum and resin bearing trees. In addition to this, they can import different
farm machineries free of tax. On the other hand, the government takes measures through its
executives if the landholder associations do not manage the resources properly. The near by
agricultural offices follow those associations closely and they inform the regional office of
Agriculture to terminate the association and is obliged to handover their land to the
government.
Case II Community intervention in proper management of Adaba-Dodola forest in

southern parts of Ethiopia
Adaba-Dodola forest is one of the remnant coniferous forests in Ethiopia. It is found in the
southern parts of Ethiopia as extension of Bale Mountain in west Arisi zone that belongs to
Oromia region. The forest has been indiscriminately exploited and threatened for longer
periods as a result of transfer of ownership from private to state in 1974, rapid population
growth, agricultural expansion, absence of community involvement and unstable
institutional arrangements (Aklilu, 2002). This natural forest is a mixed forest mainly with
indigenous flora dominated by Hagenia abyssinica, Podocarpus falcatus, Juniperus
procera and Erica heather. The forest is also spot for ecotourism sit establishment.
Since managing and conserving the remnant indigenous forests of the country is a priority
task in the restoration of ecosystem; government and non government organizations are
107
interfering to restore the Adaba-Dodola forest. The association of nearby villagers to
conserve and use the forest sustainbly is an indication of participatory forest management
practice in the country.
In the past, the forest administration has generated income from the forest through –
destructive- commercial logging and charcoal burning. Nowadays the forest is particularly
important for the local communities, for pasture and source of wood for various purposes.
Small-scale commercialization of forest produce by the local people in local markets is a
routine activity ( Aklilu, 2002).
The villagers who live near by the forest have organized themselves in the form of
cooperatives to manage, use and conserve the forest resources. There were four primary
cooperatives functioning with 966 members. The primaries have formed their own union
with a share capital of ETB88840. The cooperatives were functioning with the principle of
democratic management as stipulated in the proclamation. The Objectives of the union
were: to develop self reliance; to preserve and develop the natural resources; to increase
produce and productivity and to convert raw materials of the forest to new products using
modern technology and increasing the income of members.
Some of the rules and functions of the union regarding forest resource use:
•
•
Maintain/preserve the forest and develop it;
•
Supply different equipment that are used for forest development;
•
Improve the services to the members, gain and create link with similar cooperatives;
•
Expansion of eco-tourism;
Supplying different forest seedlings to members and undertake enrichment of
•
plantation;
Supplying transportation facilities for visitors and improving and coordinating the
•
services to tourists;
•
Collecting the income obtained from tourism activity;
•
Giving saving service and public relations for the society ;
•
Supplying goods for members and to the society;
•
Providing credit service;
Updating members by providing information and educating the members and
•
employees;
•
Carrying out researches to maximize members’ participation
•
Advertising to attract new members and increase the capital;
•
Permit use of unwanted forest products by the members;
•
Permit the member to use woods for construction purpose;
•
The member can earn money from sale of dry wood;
•
Buying machines used for producing forest products and
Share the remaining profit equally for the members
108
Model for the Participatory Forest Management through Cooperatives
Considering the administrative division of the country, on going cooperative experiments

and the successful model of India, the authors propose the following structure
National Forestry Cooperatives Federation
Regional Forestry Cooperatives Union
Primary Forestry Cooperatives
Primary Forestry Cooperatives
The area of operations of a Primary forestry Cooperative society should be of a forest

range. The forest villager should be in a position to reach the head office within two hours
of walk. Who ever resides in the area of operation and make use of its services and is
willing to accept the responsibilities of membership can be enrolled as member of the
cooperative society. The society can take the entire management of forest from the ministry
• preparation of nurseries,
or they can undertake the following activities;
• planting of trees as part of reforestation, afforestation and roadside plantation,

• collection and transportation of deadwood,
• collection , management and marketing of non-timber forest products,
• provision of credit to the members,
• running of fair price consumer shops
• Dissemination of knowledge and information.
• Conduct of ecotourism
Based on the patronage extended by the government and non-governmental agencies, the
functions can be modified and made appropriate to suit the local needs and conditions.
109
Regional Forestry Cooperatives
The jurisdiction of the Regional Forestry Cooperative Union shall be of a region as defined
in the constitution. It should be a union of all primary forestry cooperatives operating in the
respective region. Representatives of the primary forestry cooperatives will constitute the
general assembly.
• Organization and supervision of primary forestry cooperative societies,

The regional forestry cooperative union can undertake the following functions;
• Procurement and supply of consumers good,

• Arranging credit facilities to the primary cooperatives,
• Processing of non-timber forest products and sale through city outlets and
• Conduct of member-education program.

federation
• Coordinating the ecotourism activities of the primary cooperatives
The above mentioned functions should be in tune with the cooperative societies
proclamation.
National Forestry Cooperatives Federation
The National Forestry Cooperatives Federation should serve the entire country. It should be
the spokesman of forestry cooperatives of Ethiopia. All the regional forestry cooperatives
unions shall be members of the Federation. Representatives of the regional unions shall
constitute the management. The Federation should function as a promotional and business
agency. The following functions can be visualized at the outset.
• organizing seminars , conferences and workshops,

Promotional function:
• running a training institute,

• publication of newsletters
• sponsoring candidates to national and international forums,
• organizing exhibitions and opening stalls in the international shopping festivals
• Lobbying for higher share and privilages from the government and non –
governments.
• Arranging refinance facilities from the cooperative banks, national banks of

Business function
• Exporting non-timber forest products of Ethiopia

Ethiopia. Commercial bank of Ethiopia and other financial institutions.
• Importing of consumer goods if necessary

• Acting as a financial intermediary between the international donors and the forestry
• Promotion of ecotourism at the national and international level.

cooperatives.
110
The federation can also undertake any other functions which will improve the efficiency of
forestry cooperatives. For the effective implementation of the above mentioned activities,
the Federation should have proper management information system and logistics.
Conclusion
By organizing and running forestry cooperatives in the three tier structures in Ethiopia, we
can manage the forest resources effectively and the forest villagers can share the benefits
that flow from those resources. The government and non – governmental agencies should
take necessary steps to organize forestry cooperatives. Both the bureau of cooperation and
the department of forestry should act together. The government should ensure technical,
administrative and financial aid to the forestry cooperatives, the foremost constraints of
cooperative movements through out the world is that the non participation of members in
the affairs of cooperatives. To overcome this the agencies should create awareness among
the potential members. After making them aware of cooperative principles and philosophy,
social and economic benefits they themselves will come forward to start their own
cooperatives. Then no force can prevent their growth and green Ethiopia will not be far
away from our vision.
111
Selected References for further Reading:
1. Aklilu Ameha ( 2002).Sustainable Supply of Wood Resources From Adaba-Dodola

Forest Priority Area. Paper presented on the Alumni Seminar Addis Ababa/
Ethiopia, 14-15 December 2002 at the University of Addis Ababa 'Resources
Management'
2. Berhanu Gebremedhin , John Pender and Girmay Tesfay, Community Natural
Resources Management: the case of woodlots in Northern Ethiopia, International
Food Policy Research Institute, Washington,2003.
3. Eyasu Yazew, Herman Depeweg and Mitiku Haile, “Earthen Dam Irrigation
Schemes in Tigray, Ethiopia Development Opportunities Versus Sustainability
Challenges” , Mekelle University, Mekelle, 2003.
4. Federal Nigarit Gazeta of the Federal Democratic Republic of Ethiopia (1998),
Proclamation No.147/1998 Cooperative Societies Proclamation.
5. Frank Ratna Kumar and et.al., (2003), A New World through Cooperatives,
Rainbow Publications, Coimbatore.
6. http://planningcommission.nic.in/reports/sereport/ser/irmed/irm_ch4.pdf
H
T H
T
7. http://www.fao.org/ag/agl/aglw/
H
T T
H
8. http://www.fao.org/ag/agl/aglw/wh/default.htm
H
T T
H
9. http://www.fao.org/ag/search/agfind.asp
H
T T
H
10. http://www.fao.org/wfs/index-eu.htm
H
T T
H
11. http://www.ifad.org/evaluation/public_html/eksyst/doc/lle/pa/l133come.htm
H
T H
T
12. http://www.iwra.siu.edu/
H
T T
H
13. http://www.wca-infonet.org/id/1246
H
T T
H
14. Ian McPherson (1996), Cooperative Principles for the 21st Century, International
P P
Cooperative Alliance, Geneva.

15. IFAD loan and grant 438-ET, Irrigation and water management, Mid term review,
IFAD special country programme-Phase II (SCP-II), Water Works Design and
Supervision Enterprise, Ministry of Water Resources, Addis Ababa, June 2002.
16. IFAD loan and grant 438-ET, Mid term appraisal, IFAD special country
programme-Phase II (SCP-II), Water Works Design and Supervision Enterprise,
Ministry of Water Resources, Addis Ababa, June 2002.
17. IFAD loan and grant 438-ET, Organisation and Management, Mid term appraisal,
IFAD special country programme-Phase II (SCP-II), Water Works Design and
Supervision Enterprise, Ministry of Water Resources, Addis Ababa, June 2002.
18. Katar Singh and Kulbhnshan Balooni, Role of Tree Growers’ Cooperatives in
Promoting form Forestry in India, IRMA, Anand, India, 1994.
19. Katar Singh and Vishwa Ballabh, Cooperatives in Natural Resources Management,
Institute of Rural Management, Anand, India, 1993.
20. Katar Singh, Cooperative Property Rights as an Instrument of Managing
Groundwater, IRMA, Anand, India, 1994.
21. Kindeya G. (2003). Ecology and Management of dryland forests of Boswellia
papyrifera DEL HOTCH. Doctoral Dessertation, university of Gorge Augest
University , Germany.
112
22. Meehan F.2003. Nutrition and Food security in Tigray. A baseline survey for Relief
Society of Tigray and Steelworkers Humanity Fund.
23. Ministry of Natural Resources Development and Environmental protection (TFAP)
( 1996). Tigray Forestry Action Program (TFAP) final report, Tigray, Ethiopia.
24. Mitiku Haile, Diress Tsegaye and Tegegne Teka, “Dryland Husbandry in Ethiopia,
Research Report”, Dryland Husbandry Project, OSSEREA, Ethiopia, 2001.
25. Mitiku Haile, Diress Tsegaye and Tegegne Teka, “Research Development on
Dryland Husbandry in Ethiopia,” Dryland Husbandry Project, OSSEREA and
Mekelle University, Ethiopia, 2004.
26. Operational Manual for the SSI component, IFAD special country programme-
Phase II, Water Works Design and Supervision Enterprise, Ministry of Water
Resources, Addis Ababa, July 1999.
27. R.Rajagopalan (Ed.), Rediscovering Cooperation, Institute of Rural Management,
Anand, India, 1996.
28. R.Rajagopalan(edt.), Rediscovering Cooperation, Institute of Rural management,
Anand,1996.
29. R.Selvaraj(edt.),Cooperatives in the New Millennium, Vikas Publishing House,
New deelhi,2000.
30. R.Selvaraju (2000), Cooperatives in the New Millennium, Vikas Publishing House,
New Delhi.
31. Ruerd Ruben, Making Cooperatives Work, Thesis Free University, Amsterdam,
1997.
32. Sustainable Agriculture and Environmental Rehabilitation Programme (SAERP),
1997. Household Level Socio-economic survey covering all administrative
Zones/woredas of the Tigray Region, Ethiopia. Vol.XX. Produced by the Tigray
National Regional Council and the United Nations Economic Commission for
Africa.
33. Training Materials, IFAD special country programme-Phase II/ PY-2, Water Works
Design and Supervision Enterprise, Ministry of Water Resources, Addis Ababa,
December 2001.
34. Transfer of Irrigation Management Services-Guidelines, FAO Irrigation and
Drainage Paper 58, Rome 1999.
35. Tushaar Shah, Catalysing Cooperation, Sage Publications, New Delhi,1996
36. Tushaar Shah, Making Farmers’ Cooperatives Work, Sage Publications, New
Delhi,1995
37. Understanding the WUA, WHIST, December 2003.
38. United States Department of Agriculture (1997), Rural Business Cooperative
Services, Cooperative information Reports, Washington.
39. V.Kulandaiswamy, Cooperative dairying in India, Rainbow Publications,
Coimbatore, 1986
40. V.Kulandaiswamy, Cooperative Management, Arudra Academy, Coimbatore,2002
41. Water users’ Association marketing conservation agronomy environment, IFAD
special country programme-Phase II/ PY-3, Water Works Design and Supervision
Enterprise, Ministry of Water Resources, Addis Ababa, August 2003.
42. www.doe-bd.org/UNCCD.pdf
H
T T
H
43. www.iwmi.cgiar.org/pubs/Proceedings/Accra/theme2.pdf
H
T T
H
113
44. www.iwmi.cgiar.org/pubs/pub011/REPORT11.PDF
H
T T
H
45. www.iwmi.cgiar.org/pubs/working/WOR50.pdf
H
T T
H
46. www.winrockindia.org/nrm/ap_isnfi.htm
H
T T
H
114

Ethiopian Cooperative Movement

Uploaded by

Copyright:

Available Formats

Ethiopian Cooperative Movement

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ethiopian Cooperative Movement

Uploaded by

Copyright:

Available Formats

Ethiopian Cooperative Movement-An

Toidentify andgrasp thetruth fromwhatever

Case Title of the Case Page

1 Cooperatives and Food Security 5

2 University Education to Professionalize the Cooperatives of Ethiopia 20

3 Need for Cooperative Education , Training and Development in 26

4 Cooperative Management of Natural Resources 33

5 Milk Production Enhancement Activities Through Milk Cooperatives 40

of Ethiopia: An Explorative Study

6 Role of Cooperatives in Promoting Democratic Culture in the 46

7 Export Marketing of Meat Through Cooperatives in Ethiopia 52

8 Problems and Prospects of WUAs in the Tigray Region 57

9 Journalism for the Cooperative Sector in Ethiopia- An Exploratory 92

10 Marketing of Cactus and its by-products through the Cooperatives in 98

11 Participatory Forest Management-Cooperatives as an Institutional 103

Cooperatives and Food Security

A Cooperative is an autonomous association of persons united voluntarily to meet their

Objectives of the Study

The objectives of the study are:

Findings of the study

Status of Cooperatives in Ethiopia

Traditional Cooperatives in Ethiopia

Ekub: Ekub is other form of traditional cooperative or traditional self-help group in

Debo/ Wenfal/ Lefenty:

This form of traditional cooperative or mutual help group is an important form of

̇ Established on the felt needs of members and voluntary membership

• Democratic control and administration

Advantages of traditional cooperatives

̇ The chance to bring young leaders on these organizations is small.

̇ Some of its obligations needed to be meeting by its members are becoming

Cooperative movement during the Regime of Emperor Haileselassie (1960- 1974)

• To accelerate the development of the agricultural economy of the country.

• The organization of cooperative enterprise was believed to be as it can

establishment of such cooperative enterprises.

Cooperatives Decree No.44/1960

Purposes and objectives of these cooperatives

• Arrange for the cooperative production, processing, transportation and

marketing of agricultural products and commodities and the taking of other

• Promote good farming and agricultural practices

• Lack of awareness by different government institutions

• Since there was no other supportive laws to cooperatives, it was difficult to

cooperatives development ( especially for the poor peasant farmers)

Cooperative societies Proclamation No.241/1966

Purposes and Objects of societies

• reducing the cost of credit and other expenses;

• Inadequate trained manpower to promote the development of cooperative ideas,

• Lack of efficient marketing system that is characterized by low price of farm

• Introduction of modern cooperative concepts

• Establishment of independent appropriate authority to promote cooperative

• Establishment of independent regulatory body ( to register, audit and

• Establishment of training institution (the community development training and

• Arrangement of National cooperative investment fund which would administer

by special cooperative credit section in Development Bank of Ethiopia was to be

The Post Revolution Cooperative Movement (1974- 1991)

Cooperative Societies Proclamation No. 138/1978

Objectives of Cooperatives 138/1978

• to develop self-reliance and to promote the interest of their members

• to put the means of production under the control of cooperatives and to

Cooperative movement in Ethiopia: Post 1991