Net income effects of co-operative groundnut production in the traditional sector of the Sudan [USA]
1997
Abdelrahman, A.H. (Iowa State University. Department of Economics, Ames, Iowa (USA))
The small farmers of the rural communities in the rural communities in the traditional sector in the Sudan are facing many problems. Examples include absence of modern inputs, reliance on hand tools, humn labour and unavailability of a credit system. These result in small size farmers and their rural communities facing low standard of living. Co-operative organizations have allowed some farmers to help themselves and thus their communities toward improved production and enhanced income. This study was carried out to investigate the impact of supply co-operatives on farmers' net income due to membership in established agricultural co-operatives. Specifically, the focus is on groundnut production within En Nahud Governorate in West Kordofan State of western Sudan. The overall econometric specification of the model fits the data very well. With respect to the findings of the study, the most important variable in the model is co-operative membership. The farmers' average net income was found to be significantly affected by the co-operative membership, there exists a positive relationship between being a co-operative member and average net income per "mukhams" (0.73 ha) of groundnut. This result indicates that the co-operative contributes to its members' average net income from groundnut
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