Cooperatives: For a multidimensional benefits

BY WORKU BELACHEW

The 550 Kms. journey from Addis to Dire demands driving through various climatic zones of the bonny landscapes of Eastern Ethiopia. The heating temperature along the way from Matahara via Awash until the hills of Chiro (also called Asebe Teferi) dares to pull all the fluids out of a human body. The volcanic eruption around Lake Beseka has ploughed the land. A new visitor may conclude as it is a huge mechanized farm. The highland that appears next to the scorching desert brings one back to normal, with its cooling weather. Unfortunately, we passed the twisty road at Mount Dengego after the sun sets. This road gives a tough challenge to any driver even in a day time late alone at night. Few irresponsible drivers set their headlight long, or speeds awkwardly. It was too saddening but we counted up to ten vehicles badly crushed, and may be the people on board died, along our way from Wolenchite to Dire Dawa, most of them around Mt. Dengego. Our driver, Damtew was too careful and we arrived safe at Dire.

The Eastern Ethiopian trade, industry and service hub, Dire Dawa, took the initiative of celebrating the 6^th National Cooperative Day themed with “Cooperatives ensure development for all.” And that was the reason to head for the gorgeous and historic city.

“The World celebrated this day for the 92^nd round, while United Nations for 20^th but this day is as young as 6 years when it comes to us,” says Usman Surur, Federal Cooperative Agency (FCA) Director General.

Dire, a city home for various Nations and Nationalities of Ethiopia as well as people whose linage nexus with Europe and Middle East was busy over the past week. Nearly 800 people who made their way to the city from across the Nation arrived safely in the city. The century old Dire also received guests with comfortable hands. But, last Wednesday evening, Adem Farah, City Deputy Mayor, officially welcomed participants while opening an exhibition organized for cooperatives, unions and federations to display their products and services. Usman and Adem along with various stakeholders took time and paid a visit to the displays, senior officials were all ears as exhibitors explain their products and services. Going round each exhibition panel—over 50 cooperatives, unions and federations exhibited their products and services during the day— is deadening, with no exaggeration. But, visitors managed to do it inspired by the achievements of cooperatives.

Exhibitors displayed not only crude agricultural products and the usual services. They were proud to display products they added value, and services they improved.

After officials concluded their tour at the exhibition, this writer approached Ato Usman for an interview. “Basically the events would create opportunity for cooperatives, unions and federation as well as key stakeholders to know one another,” he said and added that “Ethiopia has wide aggro-ecology. A kind of product would be surplus in an area and scarce in another. Thus, such events liaisons the products of farmers/pastorals with industrialists and consumers.”

He also explained the basics of forming and nurturing Cooperatives. Cooperatives and Unions provide agricultural technology to farmers/pastorals. This would inevitably boost product and productivity. Finally, the outcome is surplus product. It is again these cooperatives and unions that links the product with the market. It also fosters saving and investment. It was with a raised tone that he said, “That is why we say cooperatives are key for agricultural transformation. And what we (Usman and other officials) have visited on the exhibition also proved as the works are on the ground.”

Medhin Mekonnen is Executive Officer of Dire Dawa Farmers Union (DFU). Something seems to be unique as one sets their eyes towards his tent. A decorated vehicle was parked in front of the items they were displaying. May be, it could be part of the displays. This writer approached and sought explanations. Then, he told them that he is journalist from Ethiopian Press Agency, The Ethiopian Herald Newsroom. They delightfully accept his proposal for an interview.

DFU was established in March 2001 to be a multipurpose union. The subsequent year it came to function. Their establishment was to close gaps that farmers were facing in many ways.

“Financial challenges of farmers have now got a solution as we are providing saving and loan service. Challenges related to inputs such as agricultural and consumer goods have managed to be overcome through our trade division. We also add value to agricultural products, and create market linkage using our industry division,” he explained. “When I wrap up”, he added and went on saying, “we have two unique services, which are divisional works and interest free loan service.”

DFU renders mobile financial service, both for saving and withdrawal. Unlike other unions, they also render paid extension service. “Agricultural extension service is not something left for the government only. The privet sector can effectively engage in this area,” Medhin argues. According to him, DFU is providing its members with agricultural inputs. The product and productivity booms by seven folds from only 100 quintals per hectare, consequently. It seems that their service follows such a formula, providing financial service (interest free loan, saving...) + non financial service (paid extension service) = increased product and productivity. Then, they process surplus products and look for a proper market.

However, Medhin said “One needs to hold a general assembly at least on an annual basis to sustain transparency. But, gathering thousands of members under a roof would be so imaginary for it is unmanageable in size. Thus, a kind of representational mechanism needs to be put in place modifying existing laws,” he suggested.

Yemane Kebede Tigray Multipurpose Marketing Federation LTD, Cooperative (TMMFC) marketing officer—who is among the participants— argues as cooperatives have matchless role in benefiting farmers and consumers. According to him, TMMFC is also playing a role in helping members produce market oriented products and by creating market linkage.

But, he also unveiled that bottlenecks related to loan opportunities are setbacks for them not to scale up their services. “We need to get collateral free loan access from banks. If we allocate our capital for collateral, it will be tough to carry out other activities,” he commented.

In addition to this, the day had been preceded by a panel discussion which farmers/pastorals, policy makers, cooperatives, and other key stakeholders made constructive discussions and debates.

The culmination of the celebration was kicked at a hall of Shelile High school. Children March Band of Dire Education bureau performed the national anthem of Ethiopia and the events went afterwords. Unlike previous celebrations of the day, this one was unique in that best achievers from cooperatives, unions, members, and officers were awarded with certificates, medals and trophy.

Yigzaw Dagnew is Communications Director of FCA. He had a while with this writer. “We celebrated this day since 2001. And the awarding is not unprecedented in its form but the content is so different.” According to him, this year they set a criteria to select best achievers nationwide. And regional bureaus had carried out the screening process and we awarded the finalists, he said. Yigzaw also added that, members of cooperatives are awarded for without whom the whole process could not be a success. Farmers/pastorals that delivers their products to cooperatives at a reasonable price, and who also consume services of cooperatives/unions was finalists.

“We have missions when awarding this bodies—i.e., award winners would promote culture of saving and investment and culture of handwork...,” he said. In line with this guiding principle, 21 unions, 25 cooperatives as well as officers and members won awards of this year.

In the final analysis, the exhibition, panel discussion as award ceremony had been effective in eliciting the motivations of various stakeholders as far as cooperatives are concerned. Hopefully, FCA and other policy makers have got solid opportunity to witness the achievement and drawbacks firsthand as a result of this event. Cooperatives, industrialists as well as consumers have also, hopefully, exchanged information. Therefore, decision makers need to press ahead with their efforts to scaffold the taskes of cooperatives. Challenges mentioned in this piece as well as others raised during the discussion panels need also to be overcome.

The seventh National Cooperative day would not be out of Eastern Ethiopia. Jigjiga, a town of state of Somali will host the next Cooperative Day.