• COOPERATIVE SOCIETIES
• MANAGEMENT OF AGRICULTURAL COOPERATIVE SOCIETIES
• CHANNELS OF AGRICULTURAL PRODUCE
• AGRICULTURE IN STOCK EXCHANGE
• EXPORT PROMOTION IN AGRICULTURE

Cooperative Societies

Agriculture JSS3 First Term

Week 1 & 2

Topic: Cooperative Societies

Cooperative Societies

An agricultural cooperative society may be defined as a business organization in which a group of individuals who have common interest agreed to pool their financial resources or to distribute goods and services for the purpose of making profit and to maintain the welfare of their members. Cooperative society is owned and controlled by members who may be from two persons to a number which has no maximum.

Objectives of Agricultural Cooperative Societies

1. To make goods and services available to the members at affordable prices
2. To encourage their members form the habit of saving money
3. To assist their members financially by giving them loans with low interest rate
4. To encourage and assist members to acquire assets themselves
5. To save members from embarrassingly high interest rate charged by banks before giving loans

Types of Agricultural Cooperatives

1. Consumer Cooperative Society – This society consists of people who pool their resources together in order to buy goods in bulk from producers. They avoid middlemen so as to get cheaper prices and then distribute to their members
2. Producers Cooperative Society – This is an association which consist of producers of similar products who have come together for the purpose of promoting the production and the sales of their products. Members of the society contribute money to buy or hire equipment at reduced rate to ease production
3. Produce Marketing Cooperative Society – They are mainly concerned with marketing of member’s products for their benefit. They engage in purchase, storage, transportation and marketing of agricultural produce like coffee, rubber, and food crops
4. Thrift and Credit Cooperative Society – Members are encouraged to save money together from their savings and money is lent to any member that is in need with little or no interest.
5. Farmers Multi-purpose Cooperative Society – This society combines many functions such as production, processing, storage, transportation, marketing and other service like credit for the benefits of their members

Importance of Agricultural Cooperative Societies

1. They enable farmers to obtain loans at better terms and conditions than that of commercial banks
2. They improve the status of their members by helping them to acquire personal assets
3. Members can come together to establish a cooperative bank which will develop the economy
4. They encourage members to produce more. The surplus can be exported to earn foreign exchange for the country
5. They promote marketing of produce by carrying out marketing functions
6. They provide capital for economic development

Management of Agricultural Cooperative Societies

Agricultural Science JSS3 First Term

Week 3

Topic: Management of Agricultural Cooperative Societies

Cooperative Societies

Cooperative societies are managed and controlled by the members. A management committee is elected on a one-member one-vote basis to direct the affairs of the cooperative. It can appoint a manager or president but he or she would be responsible to the committee by-laws or constitution that will guide the cooperative in its activities is developed. A bank account is opened with three signatories drawn from the committee member. Then it is registered with the appropriate body to operate in Nigeria as a cooperative. All members should be involved in the activities of the cooperative society. Meetings are held regularly to take decision on how to improve the activities of society.

Principles or features of Cooperative Societies

1. Membership is open to those who fulfill the terms and conditions stated in the constitution of the society
2. In the principle of democracy is applied to say or suggest how the society should be organized, equal right to vote and to be voted for
3. Trading surpluses are distributed to members as dividends on purchases
4. Fixed interests are paid to member on the basis of capital invested
5. There is political and religious neutrality

Qualities of a good cooperative member

1. A good member should have team spirit. He should be able to cooperate and work with others to achieve the objective of the society
2. He must be dedicated to the course of the society
3. He must be responsible and loyal to the society
4. He must show selfless attitude. He mustn’t be selfish
5. He must be honest. Others should be able to trust him and place confidence in him
6. He must be tolerant and ready to respect the view of others
7. He must be fair in his decision making
8. He must be humble and obedient

Problems of Agricultural Cooperative Societies

1. Embezzling of the society’s fund by some officials is common
2. Most members are illiterate and they do not understand the principles and benefit of the society
3. Lack of capital has hindered the development and expansion of cooperative societies
4. Individuals may be denied personal initiative which may hinder development of entrepreneurship
5. Poor management resulting from lack of business experience
6. Problem of repayment of loans from beneficiaries
7. The appointment of officials may be influenced by more powerful members
8. Cooperatives sometimes involves themselves with politics which leads to wasteful expenditure

Practice Questions

1. State 4 problems of cooperative societies

2.  List 5 qualities of a good cooperative member

Channels of Agricultural Produce

Agricultural Science JSS 3 First Term

Week: 4

Topic: Channels of Agricultural Produce

Channels of Distributing Agricultural Produce

A marketing or distribution channel consists of the various routes or pathways through which farm produce farm (producer) to the consumer. Market channel is very important because it shows at a glance the various ways through which the farm produce move from the producer to the final consumer.

1. The Producers – These are people who are engaged in production but also sell directly to final consumers
2. Local Market – This is where buyers and sellers are in close contact. The producer brings goods to the market and buyers buy from them
3. Wholesaler and Retailer – The middlemen as they are called are a link through which the farm produce are bought from the producers and sold to the consumers
4. Cooperative Society – They buy goods in large quantities  and distribute to their members who are final consumers
5. Commissioned Agents – These are agents who act on behalf of the principal. They buy goods in large quantities and sell to the marketing board or other exporter and then collect their commission.
6. Marketing Board – These are agencies or public corporation set up by the government to buy agricultural produce from the farmers and market them either internally or outside the country. Marketing boards are mainly concerned with the marketing of export commodities such as cocoa, cotton, rubber, groundnut, palm produce and coffee.

Activities taking place at the channels for Agricultural Distribution

• Farm level processing – This involves the transportation of farm produce from their original state to forms which make them consumable or easy to sell
• Grading or Sorting – This involves selecting produce and placing them in groups according to their sizes, weight and quality
• Transportation – This involves the movement of farm produce from the producer or warehouse to the markets. It makes goods produced in one geographical area available in another area are needed by consumers
• Loading – This involves the movement of farm produce from warehouse or point of production into vehicles , train, ship etc and arranged for them to be transported to the market or where they are needed by the consumer
• Off – loading – This involves the movement of goods from the vehicles or train to th warehouse or market
• Packaging – This involves the process of arranging the produce into different packs or easy storage. Sack, drums, tins, bags etc are used for packaging.

Challenges in or Problems of Agricultural Marketing

1. Bulkiness of farm produce – Some farm produce are bulky and difficult to transport e.g cattle, goat, sheep
2. Transportation problems – Bad roads and inadequate transportation facilities prevent the movement of goods from one place to another
3. Problem of perishability – Most farm produce are perishable and are easily damaged
4. Inadequate storage facilities – Farm produce are wasted every year due to lack of storage facilities
5. Poor financing – Buyers do not have enough money to handle farm produce
6. Inadequate Basic Amenities – Amenities such as electricity, pipe borne water and telephone which facilitate marketing or farm produce are not available

Practice Questions

1.  ____ are agencies or public corporation set up by the government to buy agricultural produce from the farmers and market them either internally or outside the country.

2. _____ is where buyers and sellers are in close contact

3. _____ involves selecting produce and placing them in groups according to their sizes, weight and quality

4. _____  involves the process of arranging the produce into different packs or easy storage

5. _____ are the middlemen who act as a link through which the farm produce are bought from the producers and sold to the consumers

6. _____ involves the movement of farm produce from warehouse or point of production into vehicles , train, ship

Answers

1. Marketing Board
2. Local Market
3. Grading or Sorting
4. Packaging
5. Wholesalers and Retailers
6. Loading

Agriculture in Stock Exchange

Agricultural Science JSS 3 First Term

Week: 5
Topic: Agriculture in Stock Exchange

Stock Exchange

Stock exchange is a corporation or mutual organization which provides trading facilities for stock brokers and traders to trade on stock and other securities. It is a market where shares and stock and other securities are bought. The securities traded on stock include shares issued by the companies, units trust, derivatives, pooled department and bonds.

People involved in Stock Exchange

The broker – A broker acts as an agent for firms and/or individuals who want to buy or sell securities. They instruct him to buy or sell stocks and shares on their behalf. They charge commission for the services rendered. They give advice on what type of stock or shares to buy.

The jobbers – These are people who specialize in a particular type of stocks and shares. They acts as middlemen who do not buy or sell securities direct from members of the public but through brokers who act as their agent. The jobbers quote two different prices, one for buying and a higher one for selling. The difference between the jobbers buying and selling price is called the Jobber turn or his profit.

Authorized clerks – These are salaried office workers who are employed by brokers and jobbers. They are called authorized clerks because they have authority to buy and sell securities on behalf of their principals.

Investors – These are people or institute that buys stock or shares for the sake of investment.

Speculators – These are people who buy shares not because of regular income they could obtain but because of the profit they will make from fluctuation of prices. Those who buy hoping the prices would fall are called Bulls while those who sell shares because they expect the price to fall are called Bears.  

Importance of stock exchange in Agriculture

1. It encourages investment in agriculture
2. It helps raise capital for business
3. It encourages cooperative or contract farming
4. It creates investment opportunities for small scale farmers
5. Stock exchange makes long term loans in form of debentures available to commercial farmers
6. It encourages savings as stock and shares bought can be kept and sold in the future
7. It is a means of measuring the wealth of a company
8. It helps to facilitate the growth of companies

Practice Question

A. Explain the roles of the following people

1. Jobber
2. Authorized clerk
3. Speculators
4. Investors

B. _____ is a market where shares and stock and other securities are bought

Answers

A. Jobber – A person who specializes in a particular type of stock and shares. He does not buy or sell directly from members but through stock brokers.

Authorized Clerk – He/she is a person employed by a stock broker or jobber and has the authority to buy and sell on behalf of the principal

Speculator – Someone who buys shares not because of the salary they get but because of fluctuation in prices of shares

Investor – Institute that buy stock for the sake of investment

B. Stock Exchange

 

Export Promotion in Agriculture

Agricultural Science JSS3 First Term

Week 6

Topic: Export Promotion in Agriculture

Export Promotion

Export promotion refers to the collective programmes a country has to help organizations sell their products abroad. In Nigeria, export promotion refers to programmes and activities put in place by public or private sector to encourage the sales of Nigeria produce on other countries. It is a strategy for economic development for a country based on encouraging domestic producer to export their produce to other countries and earn foreign exchange which can be used to purchase other goods not available in the country.

Examples of Nigeria Export Produce  

Export crops are crops which are cultivated in Nigeria and at maturity are harvested, processed and packaged for sale to another country.

Major crops are

1. Cocoa – The second major non-oil foreign exchange earner in Nigeria after leather. It is produced in 16 states of the country.
2. Cotton – A major agricultural and industrial crop. It is produced in 24 states of the country.
3. Palm oil
4. Rubber
5. Cassava – Grown in all states of Nigeria.
6. Cashew nuts – Produced in 28 states of the federation.
7. Sesame seeds
8. Palm kernel
9. Gum Arabic – It is produced in 14 states of Nigeria. Annual production is about 20,000 metric tonnes.
10. Sorghum

Cashew Nut

Cocoa

Gum Arabic

Palm Kernel

Rubber

Sesame Seed

Sorghum

Importance of Export Promotion

1. Foreign exchange earning
2. It advises exporters on quality standard, packaging, product design and adaptation.
3. Creation of wealth to farmers
4. Generation of employment
5. It serves as a necessary tool for trade expansion
6. Provision of raw materials for industries
7. Provision of market for industrial goods
8. Diversification of the economy
9. It attracts new investments both foreign and domestic  hence it helps to create employment
10. It encourages exportation of non-oil commodities in order to diversify our revenue instead of depending on oil
11. Provision of finished products

Practice Question

1. List 5 major crops exported to other countries from Nigeria

2. How is export promotion important to a Nation

Answers

1. Cocoa
   Cotton
   Palm oil
   Rubber
   Cassava
   Cashew nuts 
   Palm Kernel
2. Creation of Employment through the attraction of both foreign and domestic investors. More jobs are created and the able bodied men get employed
   Creation of wealth to farmers
   Diversification in the economy
   Provision of raw materails for industries
   The country earns more money from foreign exchange