Determinants of Smallholder Farmers’ Membership in Co-Operative Societies: Evidence From Rural Kenya

Abstract

Purpose – Despite the potential for co-operatives to improve smallholder farmers’ livelihoods, membership in the co-operatives is low. This study examines factors that influence smallholder farmers’ decisions to join agricultural co-operatives. Design/methodology/approach – This study involved a survey of 1,274 smallholder chicken farmers. The data were analysed through a two-sample t-test of association, Pearson’s Chi-square test and binary probit regression model. Findings – The results suggest that farming as the main source of income, owning a chicken house, education attainment, attending training or accessing information, vaccination of goats and keeping a larger herd of goats are the key factors which significantly influence co-operative membership. However, gender, age, household size, distance to the nearest agrovet, vaccinating chicken and the number of chickens kept do not influence co operative membership. Research limitations/implications – The survey did not capture data on some variables which have been shown to influence co-operative membership. Nevertheless, the results show key explanatory variables which influence membership in co-operatives. Practical implications – These findings have implications for development agencies that seek to use co operatives for agricultural development and improvement of smallholder farmers’ livelihoods. The agencies can use the results to initiate interventions relevant for different types of smallholder farmers through co operatives. Originality/value – This study highlights the influence of smallholder farmers’ financial investments in farming and the extent of commercialisation on co-operative membership. Due to low membership in co operatives, recognising the heterogeneity of smallholder farmers is the key in agricultural development interventions through co-operative membership.