Investigation of the Role of Cooperatives in Agricultural Value Chain Development in Kogi State

Value chain integration enables agricultural producers to participate in higher-value market activities and retain a greater share of final product prices. Cooperative societies are theoretically positioned to facilitate value chain participation by aggregating smallholder production and supporting collective marketing and processing. This study investigated the role of cooperative societies in agricultural value chain development in Kogi State, North Central Nigeria. A descriptive survey was conducted among 165 smallholder farmer cooperative members in Lokoja, Kabba/Bunu, and Igalamela-Odolu LGAs. Questionnaires assessed participation in collective processing activities, access to market information, linkage with commodity buyers, and the proportion of value chain stages in which cooperative members actively participated. Descriptive statistics and analysis of variance were employed. Results showed that 56.4 percent of surveyed cooperatives had engaged in at least one collective processing or value addition activity, including cassava flour processing (34.5 percent), palm oil extraction (22.4 percent), and grain milling (18.2 percent). Cooperative members who participated in value chain activities earned 47.3 percent more per kilogram of produce than those selling as raw commodity. However, inadequate processing equipment, limited market information systems, and poor road connectivity constrained value chain advancement in 74.5 percent of cases. The study concludes that cooperatives in Kogi State are beginning to facilitate value chain integration but require infrastructure and market linkage support. Recommendations include a cooperative value chain development grant under the Kogi State Agricultural Development Programme.

Keywords: agricultural value chain, cooperative societies, Kogi State, value addition, North Central Nigeria