Agricultural Cooperative Struggling with Productivity

Case study

Issue:

An agricultural cooperative based in rural Nigeria, specializing in staple crops like cassava and maize, was struggling with low productivity and inefficiency. Despite a high demand for their products in urban centers, the cooperative’s outdated farming techniques and inconsistent access to modern agricultural tools kept them from scaling. The cooperative’s members were dependent on seasonal yields, and any unexpected disruptions like droughts or floods severely impacted their income.

Additionally, without access to proper storage facilities, a significant portion of their harvests would rot before reaching the market. This not only reduced their potential revenue but also created distrust with buyers, who required consistent supply and quality.

Hypothesis: If the cooperative adopted modern farming techniques, invested in precision agriculture technology, and strengthened its market linkages with urban buyers, it could significantly increase productivity, reduce post-harvest losses, and create a reliable supply chain for urban markets. By doing so, the cooperative would be able to meet demand more efficiently, increase profitability for its members, and enhance food security in the region.

Counter-Argument: Some cooperative members, particularly the older generation, were resistant to change. They believed that traditional farming methods, which had been passed down for generations, were sufficient and doubted the benefits of new technologies. There was also concern about the upfront costs associated with modernizing their operations, with fears that any new investments might not yield immediate returns.

Solution: Recognizing these concerns, the cooperative adopted a phased approach to modernization, balancing cost-effective solutions with education and support for its members.

Solution 1
Solution 2
Solution 3

Invest in Precision Farming Technology:

Actionable Step: The cooperative sought support from the government and NGOs to acquire affordable precision farming tools, such as soil moisture sensors, weather monitoring apps, and drip irrigation systems. These tools enabled farmers to make data-driven decisions about when to plant, water, and harvest crops, optimizing resource use and increasing yields.
Result: By using real-time data, farmers could better manage their crops, reducing water usage by 30% and increasing yields by 20%. The precision farming tools paid for themselves within a single growing season, as the cooperative saw a significant reduction in wasted resources.

Establish Training Programs for Farmers:

Actionable Step: To address resistance to new farming techniques, the cooperative partnered with agricultural extension services and NGOs to provide regular training sessions for its members. These programs focused on the benefits of modern farming practices, teaching members how to use new tools and techniques effectively. The training was delivered in local languages to ensure accessibility.
Result: Farmers gradually became more open to adopting new techniques once they saw firsthand the increased yields and efficiency. The training programs helped to bridge the generational gap within the cooperative, fostering collaboration between younger and older members.

Build Stronger Market Linkages with Urban Buyers:

Actionable Step: The cooperative established direct supply agreements with supermarkets, restaurants, and processors in major urban centers like Lagos and Abuja. This allowed them to sell their produce at better prices and on a more consistent basis. The cooperative also invested in proper storage facilities to reduce post-harvest losses.
Result: With better storage and direct market access, the cooperative was able to reduce spoilage by 50% and increase sales by 30%. By providing a consistent and reliable supply, the cooperative strengthened its relationships with buyers, leading to repeat business and higher income for its members.

Outcome: Within two growing seasons, the cooperative increased its productivity by 40%, resulting in higher incomes for its members. The adoption of precision farming tools and modern techniques significantly reduced wastage, while better storage facilities ensured that more of their produce reached the market. As a result, the cooperative became a model for other agricultural groups in the region, demonstrating the potential of technology and market linkages in transforming rural agriculture.

Description

An agricultural cooperative based in rural Nigeria, specializing in staple crops like cassava and maize, was struggling with low productivity and inefficiency despite a high demand for their products in urban centers.