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Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya

Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya. BY James Nyoro and Isaac Komo. Outline of Presentation. Introduction Problem statement and objectives Methods Indicators of success Factors attributed to performance of cooperatives Recommendations .

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Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya

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  1. Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya BY James Nyoro and Isaac Komo

  2. Outline of Presentation • Introduction • Problem statement and objectives • Methods • Indicators of success • Factors attributed to performance of cooperatives • Recommendations

  3. Introduction • Agricultural cooperatives enhance: • Economies of scale (inputs and output) • Advocacy and bargaining power • Financial access • Role: • production • collection • processing • marketing • In general, promote economic interests and general welfare of members

  4. Problem Statement and Objectives • Increased competition • Varied performance by cooperatives • Why this scenario? • Objectives: • Identify success and failure factors of cooperatives

  5. Methods • Interviews with key informants- CBK officers, MoCDM and KUSCCO • Identified measures of success • Selected study area • Identified cooperatives • Interviews with Management committees • Data on performance factors • Qualitative approach adopted

  6. Measures of success •    Payout rates •     Promptness paying members •     Credit accessibility •      Conflicts

  7. Selected cooperatives

  8. Payout levels in relation to industry rate, year 2003 (Dairy) KShs.14.60

  9. Trends in Nominal Annual Average Payout Rates to Farmers by Dairy Cooperatives, 1993-2003

  10. Trends in Real Annual Average Payout Rates to Farmers by Dairy Cooperatives, 1993-2003

  11. Promptness in paying farmers

  12. Success factors • Vertical integration • High output • Large number of members • High quality produce • Proper record keeping and level of technology • SACCOS • Stores for farm inputs • skills and education of mgt committee and staff • Timely and appropriate information • Diversification

  13. Benefits from Vertical Integration • Savings on transport and processing cost • Gains from value addition • Gains from by-products • Enhanced promptness in paying farmers

  14. Quantity of Milk Marketed Through Cooperatives

  15. Number of active members

  16. Factors influencing quality Coffee: • Farm Management practices • Factory level factors • Milling level factors Dairy: • Adulteration • Diseases

  17. Quality control strategies- Dairy

  18. Quality control strategies- Coffee

  19. Record keeping and access to credit

  20. Qualification of management committee and staff

  21. Diversification in cooperatives

  22. Additional factors attributed to failure • Credit burden & debtors • Competition: hawkers and processors • Wrangles and hostilities • External forces • Mismanagement • Investment on non-income generating activities • Dishonesty & embezzlement of funds

  23. Debt burden

  24. Summary

  25. Recommendations • Measures to improve quality • Improve record keeping (eg computerize) • Measures to check mismanagement • Diversification to profitable enterprises • Value addition • Enhance market access

  26. Acknowledgements • SAGA: Cornell University, USA • MoCDM • CBK • Cooperatives’ management committees • Tegemeo staff

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