Local Agricultural Institutions as Agents of Development - Case Study of Effectiveness of Farmer's Associations in Woreda Angacha, Southern Ethiopia
Taras Voznyuk, Jiri Hejkrlik
Czech University of Life Sciences Prague, Fac. of Tropical AgriSciences, Czech Republic
Ethiopian economy is highly dependent on agricultural sector which accounts for almost half of country's GDP and 80 percent of employment. Despite this fact, agriculture in the country is dominated by smallholder producers. According to statistics about 90 percent of Ethiopian households cultivate less than 2 hectares, and only 0.9 percent cultivate more than 5 hectares. That is why government of Ethiopia tries to accelerate agricultural growth through different policies and programs including support of agricultural cooperatives, which in turn help to boost smallholder commercialisation. A legislative base for cooperatives exists in Ethiopia since the 1960s, however, the new birth of cooperatives as we know it today was given in 1994 by Agricultural Cooperative Societies Proclamation (Proclamation No. 85/1994). This law gave cooperatives more freedom in marketing and reduced governmental control. As a result, the number of societies increased dramatically – from 2007 to 2012 it grew by almost 90 percent.
Keywords: Agricultural cooperatives, development, problems of cooperatives, small scale farmers
Contact Address: Jiri Hejkrlik, Czech University of Life Sciences Prague, Faculty of Tropical AgriSciences, Kamycka 129, 165 21 Prague, Czech Republic, e-mail: hejkrlikftz.czu.cz