Does commitment to cooperatives affect the economic benefits of smallholder farmers? Evidence from rice cooperatives in the Western province of Zambia

Abstract

ABSTRACT Using local provincial authorities, the government of Zambia has demonstrated renewed interest in cooperatives as a means of reaching smallholder farmers in rural areas. There exists, however, the problem of high heterogeneity within cooperatives regarding members’ commitment, with many passive members holding only formal membership and having a minimal understanding of the cooperative's principles and benefits. The main objective of this study was to analyse how varying levels of members’ commitment determine their economic benefits. We selected a total of 215 rice farmers (72 active and 143 passive members) from two rice-dominant districts and used the propensity score matching technique and endogenous treatment regression model for the analysis. The study results show that educational level, distance to the cooperative, members’ perception about trust and acceptance, and value of the investment in the cooperative have a considerable influence on member commitment. The results further indicate that actively committed members of the cooperative achieve much more economic benefits than passive members.