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Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya

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Title: Qualitative Analysis of Cooperatives Performance Factors in Kiambu District, Kenya


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
Sub-sector Successful Unsuccessful
Dairy Githunguri Nderi
Limuru Kinale
Coffee Komothai Mikari
Ndumberi Gititu
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
Sub-sector Performance Cooperative Promptness (months)
Dairy Successful Githunguri 1
Limuru 1
Unsuccessful Nderi 4
Kinale 3

Coffee Successful Komothai 3
Ndumberi 6
Unsuccessful Mikari 9
Gititu 9
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
Cooperative Quality control measures
Githunguri dairy -Lactometer and testing guns at collection centres -Special committee do impromptu checks -Testing instruments at plant
Limuru dairy -Impromptu checks at collection centres -Lactometers
Nderi dairy Organoleptic tests
Kinale dairy -Organoleptic tests - Occasional inspection
18
Quality control strategies- Coffee
Cooperative Quality measures
Komothai -Elected field committee to supervise weeding, pruning and intercropping
Ndumberi coffee -No intercropping with heavy crops eg maize and nappier grass -Use well aerated wire mesh bins rather than concrete bins -Strict on timely delivery and pulping
Mikari coffee -Recently - instituted inspection committee to oversee farm input credit fugibility -Train on benefits of good farm management -Use non- smokers in drying -Ladies using perfumes not engaged -engaged an experienced and quality sensitive manager
Gititu coffee None
19
Record keeping and access to credit
Sub-sector Performance Cooperative Computerized SACCOs Stores
Dairy Successful coops Githunguri Y Y Y
Limuru Y N Y
Unsuccessful Nderi N N N
Kinale N N Y

Coffee Successful Komothai N Y Y
Ndumberi N Y Y
Unsuccessful Mikari N N N
Gititu N N N
20
Qualification of management committee and staff
Sub-sector Performance Cooperative Most qualified committee member Most qualified staff member
Dairy Successful Githunguri University Post-graduate
Limuru University University
Unsuccessful Nderi Secondary Secondary
Kinale Secondary Secondary

Coffee Successful Komothai Diploma University
Ndumberi College College
Unsuccessful Mikari University Secondary
Gititu Primary College
21
Diversification in cooperatives
Sub-sector Performance Cooperative Diversification activity
Dairy Successful Githunguri -AI -Shares with union -Foodstuff -Fuelling station -Rental houses
Limuru -AI -Rental houses -Foodstuff -Ploughing
Unsuccessful Nderi -Idle plots
Kinale -Foodstuff
Coffee Successful Komothai -None
Ndumberi -Public address system -Letting out idle land
Unsuccessful Mikari -None
Gititu -Idle plots
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
Dos Donts
Add value Avoid heavy indebtedness
Increase Membership and output Mismanage
Capacity building Invest unprofitably
Provide credit
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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