Performance of Agricultural Producer Cooperatives and Economic Development Sustainability of Rural Community Farmers in Burundi: A Case of Ngozi Province

Abstract

According to the International Cooperatives Association (ICA, 2005; 2018), cooperatives are autonomous associations of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through jointly owned and democratically-controlled enterprises, respectively. Agricultural producer cooperatives are basically the most binding and prominent examples of cooperative enterprises in contexts like rural Ngozi Province (UWCC, 2022). The cooperatives are according to Ortmann and King (2007); UWCC (2022), started by farmers producing similar products in either crop or animal husbandry or both. Farmers use producer cooperatives to leverage on joint and large purchases of agro inputs to cut procurement and production costs and to enhance production efficiency by processing raw products for value addition (NCDC, 2021). Farmers also rely on producer cooperatives for marketing purposes; products can effectively access larger markets, attract well negotiated prices and lead to increased production returns. Agricultural producer cooperatives may also be used to provide the following support services: transportation, storage, artificial insemination, legal and accounting support, equipment repair, and among others (EOSDA, 2022). Performance agricultural producer cooperatives. The performance of agricultural producer cooperatives measures how well a group of farmers are organized and supported to reach shared economic, operational, and social goals from their intended and comprehensive mix of cooperative practices or services; supplies, marketing and support services (EOSDA, 2022). Irrespective of whether farm production is jointly or individually done, agricultural producer cooperatives are mainly oriented on delivery of such services to member farmers. Supplies are inputs that cooperatives supply their members for agricultural production, including seeds, fertilizers, chemicals, fuel, and machinery and sometimes water (Eka, 2022; EOSDA, 2022). Cooperative marketing services include promotion, transportation, packaging, pricing, distribution, and sales of farm products, both crop and livestock (USDA, 2000). Support services include those specified above. Rural farmers’ economic development sustainability. Sustainability of economic development of rural farmers refers to achievement of quantitative and qualitative prosperity of such rural dwellers without exhausting future welfare prospects including natural agricultural resources (Krueger & Myint, 2022; Universal Class, 2022). According to SFU (2020), such development is the capacity of rural farmers to consistently meet their economic needs while preserving the farming environment that supports that ability. Such a sustainable rural community has the potential to enhance own economic livelihoods and at the same time spare resources for future generations. This involves minimizing destruction and promoting efficiency in the utilization of local agricultural resources. As a sustainability issue, rural agro-economic development, according to the EU (2006), includes wealth creation and uplifting living standards of the poor farmers without compromising the ability of future generations to meet their own needs. This symbolises cross generational community driven improvements in the livelihoods of the rural poor. There is a myriad of economic development gains that agricultural cooperatives can sustainably engender and are consistent with the livelihood needs of rural farmers. In the context of Ngozi province, key of these gains include commercialization of agriculture, agricultural productivity, employment opportunities, food security, quality social services, conserved natural resource management