ANALYSIS OF THE ROLE OF AGRICULTURAL COOPERATIVES' IN FUNDING PROCESSING MILLS IN CROSS RIVER STATE, NIGERIA

A study was undertaken to determine the role of agricultural co-operative societies as institutional source of finance to processing mills in Cross River State, Nigeria. Data were obtained from a random sample of 150 respondents in the study area by means of structured questionnaire. The first stage involved random selection of fifteen local government areas from eighteen local government areas in Cross River State. This was followed by random selection of one village in each of the fifteen local government areas of Cross River State. Ten respondents were randomly selected from each of the fifteen co-operative societies making a sample size of 150. The study revealed that agricultural co-operative societies in Cross River State were established between 1980 and 2008. The study also  revealed that  the  major  reasons  for the formation  of farmers’ co-operative societies in the  study area  is to  enable  farmers to  obtain  loans (60%) and farm inputs (6.67%).  The result of the findings indicated that 90% of the agricultural co-operative societies in the study area have membership contribution as the major source of funding. The study  revealed that cooperatives  funded  rice processing mill(12 %), groundnut processing mill( 14.67%), oil palm  processing mill(6.67%), cassava  processing mill(7.33%), palm kernel processing mill(5.33 %), pineapple juice processing mill(3.33%), plantain chip processing mill(8%), soy bean milk processing mill(8.67%),  alcohol (local gin ) processing mill( 5.33%), fish processing mill/animal feed processing mill(6.67%),  maize processing mill(6%),  sugar cane processing mill(3.33%),   tea processing mill(2%),  cocoa processing mill( 6.67%),  and cashew nut processing mill( 4%). Based on these findings, it was recommended that agricultural co-operative societies should be well organized and properly managed in Cross River State. Managers and members of cooperatives should cooperate and collaborate with government agencies such as universities and formal financial institutions for extra training.