Abstract:
This study was initiated to evaluate of gum and resin producers’ cooperatives
performance and its implication to rural household income in district. The study used
both primary and secondary data from relevant sources essential to evaluate the
participation and benefits of gum and resin producer cooperative members. A multi
stage sampling was followed to select the studied cooperatives and sample household
respondents. A total of 5(26%) gum and resin producer cooperatives and 150
cooperative member households were interviewed. Semi-structured interview schedule
was developed, pre-tested and used for collecting qualitative and quantitative data.
Furthermore, five focus group discussions conducted with 30 individuals, eight key
informant interview and field observations of production and marketing were held to
generate qualitative and quantitative data. Data were analyzed using descriptive
statistics and binary logistic regression model. Descriptive statistics were used to
compare the explanatory variables of the participating and non- participating
cooperative members in the participation of gum and resin production using t-test and
chi-square test. Ratio analysis was used to evaluate the performance of cooperatives.
The results of financial performances with regard to activity ratio and profitability
ratios fluctuation between lower figures of values were observed in all cooperatives. the
model result revealed that age, education level, family labor, access to training and
distance of production area were found to be determinants to participation of
cooperative members’ in gum and resin producer cooperatives. The contribution to the
total household income was not impressive as compared to other sources of income. It
is desirable to strength linkage with cooperative union; improve governance of
cooperatives and existing further studies so as to enhance sound performance and
development of cooperatives.
