Benefits of agriculture cooperatives to their member households in Bhutan
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ต.ค. 23, 2020
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Agriculture cooperatives (ACs) increase access to assets, information, services, and markets. However, little is known, to what extend ACs benefit farmers in Bhutan, owing to scarce studies. Understanding this research gap is indispensable for making informed decisions about ACs. Thus, this study investigates as to whether ACs improve access to livelihood assets (1) and if access to these assets predict livelihood outcomes (2) of farmers. These objectives were tested by using data collected from 192 member households of ACs in Trongsa and Zhemgang Districts (sampled by multistage sampling procedures) employing pre-tested structured questionnaires between June to July 2018. Data analyses, comprising descriptive statistics, principal component analysis, and regression analysis, were performed using the Statistical Package for the Social Sciences 19. Results reveal that ACs improve human, physical, natural, financial, and social capitals of farmers. Findings further prove that access to these capitals predict 65.7% of the livelihood outcomes of the households, where R2 = 0.657, F (4, 192) = 74.329, p < .001. Given such importance of ACs, the Royal Government of Bhutan should continue strengthening existing ACs and establishing new ACs to expand benefits yield from such collective actions to farmers. This study recommends future studies to assess spillover benefits of ACs to non-members in the wider communities.
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References
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Barbier, E. B. 2011. Capitalizing on Nature: Ecosystems as Natural Assets. Cambridge University Press, Cambridge, UK.
Bennett, N. 2010. Sustainable Livelihoods from Theory to Conservation Practice: An Extended Annotated Bibliography for Prospective Application of Livelihoods Approaches in Protected Area Community Research. Protected Areas and Poverty Reduction Canada-Africa Research and Learning Alliance Working Paper No. 1. Available: https://dspace.library.uvic.ca/bitstream/handle/1828/4461/sustainable-livelihoods.pdf?sequence=1&isAllowed=y. Accessed Dec.14, 2019.
Birchall, J. 2004. Cooperatives and the Millennium Development Goals. International Labour Office, Geneva.
Chagwiza, C., R. Muradian, and R. Ruben. 2016. Cooperative membership and dairy performance among smallholders in Ethiopia. Food Policy. 59:165-173.
DAMC. 2018. Summary of cooperatives. Available: http://www.agrimarket.gov.bt/public/farmer/summary/type/1. Accessed Mar. 2, 2019.
Dendup, T. 2018. Agricultural transformation in Bhutan: from peasants to entrepreneurial farmers. Asian. J. Agri. Exten. Econ. Sociol. 23: 1-8.
DFID. 1999. Sustainable Livelihoods Guidance Sheets. Department for International Development, London, UK.
Fischer, E., and M. Qaim. 2012. Linking smallholders to markets: Determinants and impacts of farmer collective action in Kenya. World. Dev. 40: 1255-1268.
Garnevska, E., G. Liu, and N. M. Shadbolt. 2011. Factors for successful development of farmer cooperatives in Northwest China. Int. Food. Agribus. Man. 14: 69-84.
Gejabo, M. T. 2016. Agricultural cooperatives and rural women’s access to livelihood capitals, the case of Garagodo and Hembecho cooperatives, Wolaita zone, Southern Ethiopia. Glob. J. Hum. Soc. Sci. 16: 26-33.
Getnet, K., and T. Anullo. 2012. Agricultural cooperatives and rural livelihoods: evidence from Ethiopia. Ann. Public. Coop. Econ. 83: 181-198.
GNH Centre Bhutan. 2019. The Nine Domains of GNH. Available: http://www.gnhcentre/bhutan.org/what-is-gnh/the-9-domains-of-gnh. Accessed Mar. 11, 2019.
Hair, J. F., W. C. Black, B. J. Babin, R. E. Anderson, and R. L. Tatham. 2006. Multivariate Data Analysis. 6th Edition. Pearson Prentice Hall, Upper Saddle River, NJ.
Holloway, G., C. Nicholson, C. Delgado, S. Staal, and S. Ehui. 2000. Agroindustrialization through institutional innovation transaction costs, cooperatives and milk‐market development in the East‐African highlands. Agr. Econ. 23: 279-288.
Holmgren, C. 2011. Do cooperatives improve the well-being of the individual? A case study of a Bolivian farmers’ cooperative. B.S. Thesis. Lund University, Lund.
IBM Knowledge Center. 2019. Factor analysis scores. Available: https://www.ibm.com/support/knowledgecenter/en/SSLVMB_subs/statistics_mainhelp_ddita/spss/base/idh_factsco.html. Accessed June. 18, 2019.
Ito, J., Z. Bao, and Q. Su. 2012. Distributional effects of agricultural cooperatives in China: exclusion of smallholders and potential gains on participation. Food. Policy. 37: 700-709.
Jack, B. K., C. Kousky, and K. R. E. Sims. 2008. Designing payments for ecosystem services: Lessons from previous experience with incentive-based mechanisms. Proc. Natl. Acad. Sci. U.S.A. 105: 9465-9470.
Karl, B., A. Bilgiç, and Y. Çelik. 2006. Factors affecting farmers’ decision to enter agricultural cooperatives using random utility model in the South Eastern Anatolian Region of Turkey. J. Agri. Rural. Dev. Trop. 107: 115-127.
Lawless, G. and A. Reynolds. 2004. Worker cooperatives: Case studies, key criteria & best practices. UWCC Staff Paper No.3. Available: https://staging.community-wealth.org/sites/clone.community-wealth.org/files/downloads/paper-lawless.pdf. Accessed Mar. 20, 2019.
Lenjiso, B. M., J. Smits, and R. Ruben 2016. Smallholder milk market participation, dietary diversity and nutritional status among young children in Ethiopia. J. Gender Agri. Food. Secur. 1: 129-147.
Likert, R. 1932. A technique for the measurement of attitudes. Arch Psychol. 140:1-55.
Ma, W. and A. Abdulai. 2016. Does cooperative membership improve household welfare? evidence from apple farmers in China. Food Policy. 58:94-102.
Markelova, H., R. Meinzen-Dick, J. Hellin, and S. Dohrn. 2009. Collective action for smallholder market access. Food Policy. 34: 1-7.
Mojo, D., C. Fischer, and T. Degefa. 2016. Collective action and aspirations: the impact of cooperatives on Ethiopian coffee farmers aspirations. Ann. Public Coop. Econ. 87: 217-238.
Mojo, D., C. Fischer, and T. Degefa. 2017. The determinants and economic impacts of membership in coffee farmer cooperatives: Recent evidence from rural Ethiopia. J. Rural Stud. 50:84-94.
Moktan, M. R., L. Norbu, and K. Choden. 2016. Can community forestry contribute to household income and sustainable forestry practices in rural area? A case study from Tshapey and Zariphensum in Bhutan. Forest Policy Econ. 62:149-157.
Mphande, F. A. 2016. Infectious Diseases and Rural Livelihood in Developing Countries. Springer, NewYork.
National Statistics Bureau. 2018. Statistical Yearbook of Bhutan 2018. RGoB, Thimphu, BT.
Nugusse, W. Z., G. V. Huylenbroeck, and J. Buysse. 2013. Household food security through cooperatives in Northern Ethiopia. Int. J. Coop. Stud. 2: 34-44.
Ortmann, G. F., and R.P. King. 2007. Agricultural cooperatives II: Can they facilitate access of small-scale farmers in South Africa to input and product markets? Agrekon 46: 219-244.
Perman, R., Y. Ma, J. McGilvray, and M. Common. 2003. Natural Resource and Environmental Economics. 3rd Edition. Pearson Education, London, UK.
Philip, K. 2003. Co-Operatives in South Africa: Their Role in Job Creation and Poverty Reduction. South African Foundation, Brighton, UK.
Roy, D., and A. Thorat. 2008. Success in high value horticultural export markets for the small farmers: The case of Mahagrapes in India. World Dev. 36:1874-1890.
Sonam, T., and N. Martwanna. 2011. Smallholder dairy farmers’ group development in Bhutan: strengthening rural communities through group mobilization. Khon Kaen. Agri. J. 39: 413-428.
Tabachnick, B. G., L.S. Fidell, and S.J. Osterlind. 2001. Using Multivariate Statistics.7th Edition. Pearson, New York.
Tenzin, G., and K. Natsuda. 2016. STocial capital, household income, and community development in Bhutan: A case study of a dairy cooperative. Dev. Pract. 26: 467-480.
Tenzin, G., K. Otsuka, and K. Natsuda. 2015. Can social capital reduce poverty? A study of rural households in Eastern Bhutan. Asian Econ. J. 29: 243-264.
Valentinov, V. 2007. Why are cooperatives important in agriculture? An organizational economics perspective. J. Inst. Econ. 3: 55-69.
Wanyama, F., P. Develtere, and I. Pollet. 2008. Encountering the evidence: co-operatives and poverty reduction in Africa. J. Coop. Stud. 41: 16-27.
Wiggins, S., J. Kirsten, and L. Llambi. 2010. The future of small farms. World Dev. 38:1341-1348.
Wossen, T., T. Abdoulaye, A. Alene, M.G. Haile, S. Feleke, A. Olanrewaju, and V. Manyong. 2017. Impacts of extension access and cooperative membership on technology adoption and household welfare. J. Rural Stud. 54:223-233.
Zeuli, K., and J. Radel. 2005. Cooperatives as a community development strategy: Linking theory and practice. J. Regional Anal. Policy. 35: 43-54.
Zeuli, K. A., and R. Cropp. 2004. Cooperatives: Principles and Practices in the 21st Century. University of Wisconsin, Wisconsin, WI.
Zeweld,W., G. V. Huylenbroeck, and J. Buysse. 2015. Household food security through cooperative societies in Northern Ethiopia. Int. J. Dev. Issues. 14: 60-72.
Barbier, E. B. 2011. Capitalizing on Nature: Ecosystems as Natural Assets. Cambridge University Press, Cambridge, UK.
Bennett, N. 2010. Sustainable Livelihoods from Theory to Conservation Practice: An Extended Annotated Bibliography for Prospective Application of Livelihoods Approaches in Protected Area Community Research. Protected Areas and Poverty Reduction Canada-Africa Research and Learning Alliance Working Paper No. 1. Available: https://dspace.library.uvic.ca/bitstream/handle/1828/4461/sustainable-livelihoods.pdf?sequence=1&isAllowed=y. Accessed Dec.14, 2019.
Birchall, J. 2004. Cooperatives and the Millennium Development Goals. International Labour Office, Geneva.
Chagwiza, C., R. Muradian, and R. Ruben. 2016. Cooperative membership and dairy performance among smallholders in Ethiopia. Food Policy. 59:165-173.
DAMC. 2018. Summary of cooperatives. Available: http://www.agrimarket.gov.bt/public/farmer/summary/type/1. Accessed Mar. 2, 2019.
Dendup, T. 2018. Agricultural transformation in Bhutan: from peasants to entrepreneurial farmers. Asian. J. Agri. Exten. Econ. Sociol. 23: 1-8.
DFID. 1999. Sustainable Livelihoods Guidance Sheets. Department for International Development, London, UK.
Fischer, E., and M. Qaim. 2012. Linking smallholders to markets: Determinants and impacts of farmer collective action in Kenya. World. Dev. 40: 1255-1268.
Garnevska, E., G. Liu, and N. M. Shadbolt. 2011. Factors for successful development of farmer cooperatives in Northwest China. Int. Food. Agribus. Man. 14: 69-84.
Gejabo, M. T. 2016. Agricultural cooperatives and rural women’s access to livelihood capitals, the case of Garagodo and Hembecho cooperatives, Wolaita zone, Southern Ethiopia. Glob. J. Hum. Soc. Sci. 16: 26-33.
Getnet, K., and T. Anullo. 2012. Agricultural cooperatives and rural livelihoods: evidence from Ethiopia. Ann. Public. Coop. Econ. 83: 181-198.
GNH Centre Bhutan. 2019. The Nine Domains of GNH. Available: http://www.gnhcentre/bhutan.org/what-is-gnh/the-9-domains-of-gnh. Accessed Mar. 11, 2019.
Hair, J. F., W. C. Black, B. J. Babin, R. E. Anderson, and R. L. Tatham. 2006. Multivariate Data Analysis. 6th Edition. Pearson Prentice Hall, Upper Saddle River, NJ.
Holloway, G., C. Nicholson, C. Delgado, S. Staal, and S. Ehui. 2000. Agroindustrialization through institutional innovation transaction costs, cooperatives and milk‐market development in the East‐African highlands. Agr. Econ. 23: 279-288.
Holmgren, C. 2011. Do cooperatives improve the well-being of the individual? A case study of a Bolivian farmers’ cooperative. B.S. Thesis. Lund University, Lund.
IBM Knowledge Center. 2019. Factor analysis scores. Available: https://www.ibm.com/support/knowledgecenter/en/SSLVMB_subs/statistics_mainhelp_ddita/spss/base/idh_factsco.html. Accessed June. 18, 2019.
Ito, J., Z. Bao, and Q. Su. 2012. Distributional effects of agricultural cooperatives in China: exclusion of smallholders and potential gains on participation. Food. Policy. 37: 700-709.
Jack, B. K., C. Kousky, and K. R. E. Sims. 2008. Designing payments for ecosystem services: Lessons from previous experience with incentive-based mechanisms. Proc. Natl. Acad. Sci. U.S.A. 105: 9465-9470.
Karl, B., A. Bilgiç, and Y. Çelik. 2006. Factors affecting farmers’ decision to enter agricultural cooperatives using random utility model in the South Eastern Anatolian Region of Turkey. J. Agri. Rural. Dev. Trop. 107: 115-127.
Lawless, G. and A. Reynolds. 2004. Worker cooperatives: Case studies, key criteria & best practices. UWCC Staff Paper No.3. Available: https://staging.community-wealth.org/sites/clone.community-wealth.org/files/downloads/paper-lawless.pdf. Accessed Mar. 20, 2019.
Lenjiso, B. M., J. Smits, and R. Ruben 2016. Smallholder milk market participation, dietary diversity and nutritional status among young children in Ethiopia. J. Gender Agri. Food. Secur. 1: 129-147.
Likert, R. 1932. A technique for the measurement of attitudes. Arch Psychol. 140:1-55.
Ma, W. and A. Abdulai. 2016. Does cooperative membership improve household welfare? evidence from apple farmers in China. Food Policy. 58:94-102.
Markelova, H., R. Meinzen-Dick, J. Hellin, and S. Dohrn. 2009. Collective action for smallholder market access. Food Policy. 34: 1-7.
Mojo, D., C. Fischer, and T. Degefa. 2016. Collective action and aspirations: the impact of cooperatives on Ethiopian coffee farmers aspirations. Ann. Public Coop. Econ. 87: 217-238.
Mojo, D., C. Fischer, and T. Degefa. 2017. The determinants and economic impacts of membership in coffee farmer cooperatives: Recent evidence from rural Ethiopia. J. Rural Stud. 50:84-94.
Moktan, M. R., L. Norbu, and K. Choden. 2016. Can community forestry contribute to household income and sustainable forestry practices in rural area? A case study from Tshapey and Zariphensum in Bhutan. Forest Policy Econ. 62:149-157.
Mphande, F. A. 2016. Infectious Diseases and Rural Livelihood in Developing Countries. Springer, NewYork.
National Statistics Bureau. 2018. Statistical Yearbook of Bhutan 2018. RGoB, Thimphu, BT.
Nugusse, W. Z., G. V. Huylenbroeck, and J. Buysse. 2013. Household food security through cooperatives in Northern Ethiopia. Int. J. Coop. Stud. 2: 34-44.
Ortmann, G. F., and R.P. King. 2007. Agricultural cooperatives II: Can they facilitate access of small-scale farmers in South Africa to input and product markets? Agrekon 46: 219-244.
Perman, R., Y. Ma, J. McGilvray, and M. Common. 2003. Natural Resource and Environmental Economics. 3rd Edition. Pearson Education, London, UK.
Philip, K. 2003. Co-Operatives in South Africa: Their Role in Job Creation and Poverty Reduction. South African Foundation, Brighton, UK.
Roy, D., and A. Thorat. 2008. Success in high value horticultural export markets for the small farmers: The case of Mahagrapes in India. World Dev. 36:1874-1890.
Sonam, T., and N. Martwanna. 2011. Smallholder dairy farmers’ group development in Bhutan: strengthening rural communities through group mobilization. Khon Kaen. Agri. J. 39: 413-428.
Tabachnick, B. G., L.S. Fidell, and S.J. Osterlind. 2001. Using Multivariate Statistics.7th Edition. Pearson, New York.
Tenzin, G., and K. Natsuda. 2016. STocial capital, household income, and community development in Bhutan: A case study of a dairy cooperative. Dev. Pract. 26: 467-480.
Tenzin, G., K. Otsuka, and K. Natsuda. 2015. Can social capital reduce poverty? A study of rural households in Eastern Bhutan. Asian Econ. J. 29: 243-264.
Valentinov, V. 2007. Why are cooperatives important in agriculture? An organizational economics perspective. J. Inst. Econ. 3: 55-69.
Wanyama, F., P. Develtere, and I. Pollet. 2008. Encountering the evidence: co-operatives and poverty reduction in Africa. J. Coop. Stud. 41: 16-27.
Wiggins, S., J. Kirsten, and L. Llambi. 2010. The future of small farms. World Dev. 38:1341-1348.
Wossen, T., T. Abdoulaye, A. Alene, M.G. Haile, S. Feleke, A. Olanrewaju, and V. Manyong. 2017. Impacts of extension access and cooperative membership on technology adoption and household welfare. J. Rural Stud. 54:223-233.
Zeuli, K., and J. Radel. 2005. Cooperatives as a community development strategy: Linking theory and practice. J. Regional Anal. Policy. 35: 43-54.
Zeuli, K. A., and R. Cropp. 2004. Cooperatives: Principles and Practices in the 21st Century. University of Wisconsin, Wisconsin, WI.
Zeweld,W., G. V. Huylenbroeck, and J. Buysse. 2015. Household food security through cooperative societies in Northern Ethiopia. Int. J. Dev. Issues. 14: 60-72.