Federal Cooperative Agency (FCA) is a governmental organization working on cooperative societies in Ethiopia, and having the objective of benefiting the members in particular and the country in general.
The primary objective of the agency is to enable cooperatives of rural and urban society in different categories and levels based on their will and resource build the capacity, empower the market share in order to solve their economic and social problems for the assured members benefit.
Cooperatives play vital role for the well-being of their members, and for the economic development of the country. Cooperativeplays irreplaceable role in creating job opportunities for the citizens of the country.Cooperatives created job opportunities for over 1.5 million citizens so far said Usman Surur Federal Cooperative Agency’s General Director.
Ethiopia’s economy is transforming rapidly, mostly driven by growth in the agricultural sector. Among the mechanisms through which agricultural growth has been achieved is through intensifying land use and increasing labor productivity, including through mechanization. Cooperatives were playing pivotal role in agricultural sectors by supplying modern technologies for farmers which helps to further upgrade the agricultural sectors he noted.
Now the products area and market area is directly linked and the products were directly transported from producers to the cooperative union and this help the producers to benefit from their products properly. The direct linkage of the product area with cooperative union will help to avoid illegal cost of adding to the products.
On the other hand cooperative societies are contributing their part to the productivity of the agriculture sector through providing the necessary agricultural inputs and other necessary materials for farmers and pastoralist communities in the country. In addition, the sector is also working hard to improve individual members’ income by means of product value addition and through searching for better marketing access for members’ products.
Moreover, the role of cooperative societies for urban dwellers is essential. Cooperative societies are working on the provision of consumable products at reasonable prices and also the sector is creating greater employment opportunity for the urban community. In addition providing goods with affordable price will help to regulate inflations and control cost of living, Usman pointed out.
Cooperatives play a vital role in economic development in all sectors of the economy in creating well-organized and properly functioned cooperatives’ links, and supply new technologies and marketing for its members, and create a modern production and marketing system which is competitive across the country and world.
Usman further stated that, these cooperative provide farmers with agricultural inputs such as different chemicals and stronger crop varieties, help to avoid higher payments through market chain commissions, and providing timely, cost-effective market opportunities. This may help in the development of the agricultural sector particularly and for the overall development.
Ethiopia is getting in expansion and improving infrastructure services recently. Because of road, electric and telecommunication development, cooperative are able to supply members products efficiently and effectively with quality and competitive price for domestic and foreign markets, timely so that members and the consumers benefit from market significantly Usman stressed.
Similarly, infrastructure development is also created better capacity for cooperatives to supply consuming goods, inputs and services for members. Infrastructure service development is able cooperative promotion implementing bodies to provide competent technical support for cooperatives but much effort remains still.
Usman said that lots of problems were facing the cooperative or unions beyond their success. From among this lack of finance for the unions in getting credit to start and run business, land supply for the union’s timely, lack of transparency of the top officials in managing the unions effectively and creating awareness for the member is essential.
The union plays indispensable roles in stabilizing market and regulate cost of living. The agency is planned to construct more than seven marketing center for the producers in which directly sells their product to the cooperative unions in GTP II out of which four of them in Addis Ababa, and the rest three in Dire Dawa, Mekelle and Bahir dar Usman said.
Endalkachew Abie, Tsehay Multipurpose Cooperative Union Director, for his part said that mainly the union is focused on oil production because of the products found in the area is available for the production of the oil. Among the available oil seed inputs like Sesame, Soya bee and others which were the primary input for the production of oil.
He also indicated that the newly inaugurated factory is producing 7000 liters of oil per days and for the future the factory has a capacity to produce 10,000 liter oil per day.The union generates job opportunity for over 172 citizens in permanent, temporary and time basis. To produce such amount of oil of liters it need huge amounts of inputs or oil seeds and this directly benefits local farmers in increasing their capital and cooperative as well.
Moreover Endalkachwe stressed that the factory have a plan to export Edible Oil, beyond local markets, because in the past years we were highly beneficial even by just exporting raw sesame, however, with high demand of edible oil, we will be more beneficial by such value adding activities.
The primary objective of the union is adding values to agricultural products to improve income of members, strengthening member’s capacity through education and training and providing agriculture inputs to members adequately and timely. Tsehay multipurpose Farmers’ cooperative union is found in Ethiopia, Amhara region, Gondar town.
By doing this Ethiopia will save cost that spent every year to import oil products in massive costs from foreign and replacing them with domestic products in affordable prices for the consumers. Ethiopia imports oil and related products from outside and the unions were playing insignificant role in curbing the problem Endalkachew noted.
On the other hand establishing such kinds of products will curb shortages of oil that happened in the country. In addition to this the union is exporting products by adding value to them. Though various types of products like pea, chickpea, were produced in the area but for the time being the union is exporting sesame only.
The Ethiopian Herald June 7,2019
BY HAILE DEMEKE
