Cooperative principles application in agricultural cooperatives in Gisagara District, and their contribution to the wellbeing of its members : a case study of KOJYAMUGI 2006-2016.

Abstract

The research study was conducted in an agricultural cooperative based in Gisagara District, Mamba sector. That cooperative is called KOJYAMUGI which means Koperative Jyambere Muhinzi Gisagara. The aim of this study was to assess the cooperative principles application in agricultural cooperatives in Gisagara District, their effectiveness and the contribution to the welfare of the members. Therefore, the researcher aimed at assessing the following specific objectives: to appraise the current perceptions of membership, board of directors and management on the cooperative principles application within agricultural cooperatives; to assess effectiveness of agricultural cooperatives as far as cooperatives principles are concerned; and to provide the contribution of agricultural cooperatives to the welfare of its members. The research served qualitative and quantitative approaches with 70 respondents composed of 65 of cooperative members and 5 of leaders, Board of Directors and Management of the cooperative. Findings show that more than 85% of respondents confirm that the cooperative serves its members effectively and strengthen the cooperative movement by working together and applying cooperative principles. Also 86.2% of respondents have testified that the cooperative principles are effective. Findings point out that the cooperative applies cooperative principles based on One-Sample Kolmogorov-Smirnov Test: the p-value is .000, inferior to .05, to mean that there is no reason to doubt that cooperative principles application and effectiveness in KOJYAMUGI Cooperative distribution is normal. Thus principles of cooperative were applied even though some of them remain a challenge such as the fifth cooperative principle of education, training and information and the sixth cooperative principle of cooperation among cooperatives. Findings show that cooperative has improved the welfare of members and has positively impacted on the welfare of its members. Also respondents have enumerated a number of benefits gained from the cooperative: a 78.5% increased agricultural production, a 52.3% increased in family household income, a 63.1% diversified income generating sources, a 89.2% have the ability to pay health insurance and health facilities, a 66.2% have changed the way of doing savings. A number of 67.7% has changed nutrition in the family and 78.5% have increased skills and practical knowledge in agricultural domains, a number of 47.7% has been able to find in improved shelter and housing while a number of 75.4% have gotten the ability to send children to school among others. The study finds that even though there is a good step forward, a number of challenges exists which may hamper the sustainable management of the cooperative such as lack of training to members, low skills of members in cooperative management, dishonest and mismanagement of resources by some leaders and climate change which avers to be the eminent problem; lack of accountability to both members and leaders, lack of effective communication and lack of commitment of Rwandan community due to absenteeism and participation in cooperative activities. Thus among major suggestions to achieve sustainable cooperative management and application of cooperative principles the cooperative and the government of Rwanda should incorporate training and education programs in order to offer capacity building to cooperative members.