EFFECT OF AGRICULTURAL COOPERATIVES ON THE PRODUCTION AND PROFITABILITY OF CATFISH FARMERS IN DELTA CENTRAL AGRICULTURAL ZONE

TOPIC IS SUITABLE FOR:
1-Department of Agricultural Economics
2-Department of Fisheries and Aquaculture
3-Department of Agricultural Extension and Rural Development
4-Department of Agribusiness Management

TOPIC: EFFECT OF AGRICULTURAL COOPERATIVES ON THE PRODUCTION AND PROFITABILITY OF CATFISH FARMERS IN DELTA CENTRAL AGRICULTURAL ZONE

TABLE OF CONTENT
Abstract
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
1.2 Statement of Problem
1.3 Objectives of the Study
1.4 Research Hypotheses
1.5 Justification of the Study
1.6 Definition of Terms
CHAPTER TWO: REVIEW OF LITERATURE
2.0 Introduction
2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review
CHAPTER THREE: METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Study Area
3.4 Target population
3.5 Sample Size Determination
3.6 Sampling technique
3.7 Instruments for data collection
3.8 Validity of instrument
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0 Introduction
4.1 Response Rate Analysis
4.2 Analysis of the socio-economic characteristics of catfish farmers who are members of agricultural cooperative societies in Delta Central agricultural zone
4.3 Analysis of the determinants of Involvement in Agricultural Cooperative Societies among Catfish Farmers in Delta Central Agricultural Zone
4.4 Analysis of the level of production outputs between cooperatives and non cooperative farmers in Delta Central agricultural zone.
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
5.2 Summary of the Study
5.3 Conclusion
5.4 Limitations of the Study
5.5 Recommendations
5.6 Suggestions for Further Studies
References
Appendix

ABSTRACT
This study examined the effect of agricultural cooperative societies on the productivity and profitability of catfish farming in Delta Central Agricultural Zone, Nigeria. The study aimed to assess the socioeconomic characteristics of catfish farmers, determine their level of participation in cooperatives, compare productivity before and after joining cooperatives, evaluate profitability, and identify the challenges faced within the cooperative framework. A descriptive survey research design was adopted, with a target population of catfish farmers registered with cooperative societies in the study area. A multi-stage sampling technique was used to select 341 respondents through stratified, proportional and simple random sampling. Data were collected using a structured questionnaire and analyzed using descriptive statistics (frequency, percentage, mean, and standard deviation),logistics regression** paired sample t-test, gross margin analysis, and Ordinary Least Squares (OLS) regression. Results showed a significant increase in average harvest per cycle from 580 kg before joining cooperatives to 1,050 kg after, with a mean difference of 470 kg (t = 15.27, p < 0.001). Gross margin analysis revealed higher profitability for cooperative members (₦890,000) compared to non-members (₦363,000). The OLS regression indicated that cooperative membership (B = ₦74,500, p = 0.001), access to credit (B = ₦68,200, p = 0.001), and market access (B = ₦59,700, p = 0.002) significantly influenced profitability, while feed cost (B = -₦0.65, p = 0.000) and labour cost (B = -₦0.45, p = 0.000) negatively impacted it. Descriptive analysis of challenges showed that high feed cost (Mean = 3.61), limited credit access (Mean = 3.49), and disease outbreak (Mean = 3.40) were major constraints. The study recommends strengthening cooperative capacity, enhancing input subsidy schemes, improving extension services, and facilitating better access to markets and finance to promote sustainable aquaculture and increase the economic returns of catfish farmers in the region.

CHAPTER ONE
INTRODUCTION (Preview)
1.1 Background of the Study
In emerging economies, agriculture is closely intertwined with other sectors and plays a vital role in fostering growth and development. This interdependence underscores the significance of agricultural productivity, which serves as a defining factor for societal progress. As Nwigwe,  & Ndem, (2024) posit, the manner in which societies increase agricultural production largely determines their developmental trajectory. Among the various segments of agriculture, catfish farming, a subset of aquaculture, has emerged as a crucial contributor to economic and nutritional well-being. Gbigbi, & Achoja, (2019) highlighted the African catfish's adaptability to adverse environmental conditions—such as varying salinity levels, low dissolved oxygen, and low pH—along with its rapid growth rate, disease resistance, and efficient feed conversion ratios (FCR). These traits, coupled with its popularity in live-fish culinary practices like "point-and-kill," have made it a preferred species among farmers and consumers alike. 
Historically, the evolution of aquaculture in Nigeria dates back to the colonial era when species such as catfish, carp, and tilapia were introduced across the country in the 1950s (Ikenga, Enwa, Edewor, Abushe, & Akpogheneoyibo, 2022). Catfish farming holds immense promise in addressing food security challenges in Nigeria, where it serves as a primary source of affordable protein for millions.  Initially characterized by subsistence-level extensive systems, aquaculture saw significant growth by the 1990s, driven by the adoption of locally manufactured feeds and a burgeoning population that expanded the market for fish products. According to Ashley-Dejo, & Adelaja (2022), the intensification of catfish farming during this period resulted in a proliferation of small- to medium-sized farms and the establishment of large-scale, intensively managed operations. By 2009, Nigeria became the largest producer of catfish in Africa, with over 5,000 farms, marking a remarkable leap from the 2,658 farms recorded in 2004 (Sarkar, Wang, Rahman, Qian, & Memon, 2022).
Progressively, the aquaculture sector's growth in Nigeria has outpaced global averages, recording an annual growth rate of 12% compared to the global average of 8% over the past three decades. Production rose from 6,000 metric tons in 1980 to over 300,000 metric tons by 2016 (WorldFish, 2019; cited by Cai, D., Tong, Wei, & Hu, 2022). Despite this impressive growth trajectory, catfish farmers face numerous challenges, including limited access to quality inputs such as feed and fingerlings, insufficient financial resources, and inadequate technical knowledge. These challenges underscore the need for collaborative approaches to support farmers, with agricultural cooperative societies emerging as a viable solution. George (2020) defined cooperative societies as self-help organizations that enable individuals to achieve shared goals that may be unattainable individually. Agricultural cooperatives, in particular, offer a structured framework for addressing farmers' challenges through collective action. 
Ogidi (2019) emphasized that cooperatives serve as institutional mechanisms for improving farmers' access to credit, production inputs, and markets. Globally, cooperatives have been instrumental in reducing rural poverty, enhancing agricultural productivity, and improving the livelihoods of small-scale farmers. In Nigeria, Okafor, Okonkwo, & Ngene, (2022) observed that agricultural cooperatives significantly contribute to farm sustainability by fostering the adoption of sustainable practices and improving supply chain dynamics. Through democratic decision-making, equality, and solidarity, cooperatives distinguish themselves as unique enterprises capable of pooling resources, sharing risks, and facilitating collective investments. Through their close relationships with farmers, agricultural cooperatives may be key actors in supply chains to help farmers change their agricultural practices and to favour the adoption of more sustainable practices(Ikenga, et al., 2022). This applies to Delta Central agricultural zone, where agricultural cooperatives have the potential to transform catfish farming by facilitating better access to credit, quality production inputs, and profitable markets. 
Okonkwo, & Umebali, (2021) buttressed that Cooperative values such as democratic decision-making, equality and solidarity give cooperatives a unique identity, which differentiates them from other types of enterprise and implies that they have a distinct organizational characteristic. Solidarity within the cooperative enables farmers to cope with market risks and favours investment by sharing fixed costs. As cooperatives’ members are the owners, investors and users of the cooperative, agricultural cooperatives have thus a large spectrum of action(Onyekuru,  Ihemezie, & Chima, 2019). They can design incentives to encourage farmers to change their practices through the services provided, a stronger market position and the pooling of investments resulting in cost sharing among members. In Delta Central agricultural zone, the cooperative values of solidarity, equality, and democratic decision-making provide a supportive framework for catfish farmers to navigate market challenges. By pooling resources, sharing risks, and collectively investing in infrastructure or inputs, cooperatives empower farmers to adopt improved farming techniques (Onuwa, Emmanuel, Fatoke, Eshimutu, & Owa, 2021). This, in turn, reduces production costs and encourages sustainable practices, making farming more profitable and resilient to market fluctuations. Cooperatives also promote the adoption of these practices by decreasing farmers’ perceived risks and by making investment more feasible.
Evidently, the relationship between catfish farming and agricultural cooperatives is symbiotic, with cooperatives playing a critical role in enhancing production and profitability (Abdul-Azeez, Suleiman, Aminu, Mudi and Oyinloye (2024). By providing technical support, training, and collective marketing strategies, cooperatives address the systemic barriers that hinder production efficiency. Shi, Zhao,  Kiwanuka, & Chang (2019) argued that farmers’ socio-economic characteristics such as age, education level, and farm size significantly influence their participation in cooperatives. These characteristics determine the extent to which farmers can access and leverage cooperative benefits. Meanwhile, Umaru, Okoh, & Ishiwu (2021) noted that cooperatives enhance profitability by reducing transaction costs, improving market access, and offering financial support. This dual focus on production and profitability makes cooperatives indispensable to the sustainability of catfish farming, underscoring the need for targeted interventions that bolster cooperative activities and, by extension, the livelihoods of catfish farmers. From the aforementioned, this study is being carried out to explore how agricultural cooperatives can enhance the production and profitability of catfish farmers in Delta Central agricultural zone. 

1.2 Statement of Problem
In recent times, catfish farming has gained prominence as a viable economic activity in Nigeria, contributing to food security and rural income generation. Despite the potential of aquaculture in Nigeria, data from FAO, (2021) show a decline in aquaculture production from 2015 to 2017 and in 2021, FOA reports increasing withdrawal of farmers from fish farming in favour of other agricultural ventures. Some of the reasons attributed to this include poor quality of fish feed and seed and reduced profitability of fish farming (PIND, 2017). In Delta Central agricultural zone, catfish farmers face persistent challenges, including limited access to quality inputs, inadequate financial resources, and poor market linkages, which hinder their productivity and profitability. 
However, Nwigwe, & Ndem,  (2024) claimed cooperative societies significantly helps farmers to navigate through structural and non structural challenges which increases farmers' production inputs. Similarly, Okafor et al., (2024) demonstrated that cooperative membership enhances the bargaining power of small-scale farmers, enabling them to secure better prices for their produce. Despite these findings, gaps remain in understanding the impact of agricultural cooperatives on production output and profitability of catfish farming in Delta Central agricultural zone. This study seeks to address these gaps assessing the socio-economic characteristics of cooperative members, evaluating the determinants of cooperative involvement, and analyzing the influence of cooperatives on production output and profitability among catfish farmers in Delta Central agricultural zone.
1.3 Objectives of the Study
The general objective of this study will be to evaluate the effect of agricultural cooperative societies on the production and profitability of catfish farmers in Delta Central agricultural zone while the specific objectives will be to:
1.describe the socio-economic characteristics of catfish farmers who are members of agricultural cooperative societies in Delta Central agricultural zone.
2.evaluate the determinants of involvement of agricultural cooperative societies among catfish farmers in Delta Central agricultural zone.
3.determine the level of production outputs between cooperatives and non cooperative farmers in Delta Central agricultural zone.
4.examine the effect of agricultural cooperative societies in enhancing the profitability of catfish farming in Delta Central agricultural zone.
5.determine the challenges faced by catfish farmers in the cooperative societies in Delta Central agricultural zone.
OTHER PARTS OF CHAPTER ONE INCLUDE:
1.4 Research Hypotheses
1.5 Justification of the Study
1.6 Definition of Terms

CHAPTER TWO
REVIEW OF LITERATURE (Preview)
This chapter critically examines relevant literature that would assist in explaining the research problem and, furthermore, recognizes the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps. This chapter, therefore, focuses on the concept of agricultural cooperatives, the concept of catfish production, the profitability of catfish farming, the effects of agricultural cooperatives on catfish production and profitability, and the challenges facing catfish farmers in accessing cooperative services. The chapter covers the following subheadings:
2.1 Conceptual Framework
2.2 Theoretical Framework
2.3 Empirical Review

CHAPTER THREE
METHODOLOGY (Preview)
Research Design: The study adopted a descriptive survey research design.
Population of the Study: The population of the study comprises catfish farmers, including cooperative members and non-members, across the eight local government areas of Delta Central Agricultural Zone, Delta State.
Sample Size Determination: The study adopted the Taro Yamane formula (1967) to determine a sample size of 359 respondents.
Sampling Technique: The study employed a multi-stage sampling technique to select the individual respondents.
Research Instrument: The study utilized a self-developed structured questionnaire based on a five-point Likert scale as the instrument for data collection.
Methods of Data Analysis: The collected data were analyzed using frequencies, percentages, means, and standard deviations to summarize the socio-economic characteristics of the respondents and identify the challenges faced by catfish farmers. Inferential statistics, including binary logistic regression, paired sample t-test, gross margin analysis, and Ordinary Least Squares regression, were used to analyze cooperative participation, production levels, and profitability.

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
MAJOR FINDINGS (Preview)
The analysis results were presented in tables. Based on the results obtained from the analysis, the following findings are made:

i. The study found that catfish farmers in agricultural cooperative societies in Delta Central Agricultural Zone were predominantly male (67.4%), with the majority aged between 31 and 50 years, while 52.5% had secondary education and 30.3% had tertiary education. Furthermore, 45.7% had between 6 and 10 years of farming experience, 65.2% had access to credit, and 70.6% had received aquaculture training. This indicates that the respondents possessed relevant farming experience and educational backgrounds, while access to credit and training provided important foundations for cooperative participation and improved catfish production.

ii. The study found that market access, access to credit, input subsidies, training and support, and peer influence were significant positive determinants of catfish farmers’ involvement in agricultural cooperative societies in Delta Central Agricultural Zone. The logistic regression analysis showed that the overall model was statistically significant (χ² = 69.522, p < 0.001), with a Nagelkerke R² value of 0.401. Market access had the strongest positive influence, with an odds ratio of 3.333, followed by access to credit (OR = 2.773), input subsidies (OR = 2.547), training and support (OR = 2.324), and peer influence (OR = 1.930). Conversely, lack of awareness, high membership fees, lack of interest, and absence of perceived benefits significantly reduced the likelihood of participation. This indicates that economic incentives and access to cooperative benefits are important determinants of membership.

iii. The study found that agricultural cooperative membership significantly improved catfish production output in Delta Central Agricultural Zone, as average harvest per production cycle increased from 580 kg before joining a cooperative to 1,050 kg after joining, representing an increase of approximately 81%. The corresponding paired sample t-test further showed a mean difference of 470 kg, a t-value of 15.27, and a p-value of 0.000 (p < 0.001), leading to the rejection of the null hypothesis. This indicates that cooperative membership was associated with a statistically significant improvement in catfish production output.

iv. The study found that agricultural cooperative membership enhanced the profitability of catfish farming in Delta Central Agricultural Zone, as cooperative members recorded a gross margin of ₦890,000 per production cycle, compared with ₦363,000 for non-members, representing a difference of ₦527,000. The corresponding Ordinary Least Squares regression analysis further showed that cooperative membership had a positive and statistically significant effect on profitability, with a coefficient of ₦74,500, a t-statistic of 3.43, and a p-value of 0.001 (p < 0.01), leading to the rejection of the null hypothesis. Access to credit and market access also significantly improved profitability, while feed and labour costs had significant negative effects. This indicates that cooperative membership enhances profitability through improved production output, access to financial resources, and better market opportunities.

v. The study found that catfish farmers in agricultural cooperative societies in Delta Central Agricultural Zone faced several challenges, with the high cost of feed emerging as the most prominent, with a mean score of 3.61, followed by limited access to credit (3.49), disease outbreaks (3.40), inadequate government support (3.26), and market access difficulties (3.22). Other challenges included high transportation costs (3.18), poor water quality (3.15), cooperative inefficiency (2.89), theft and vandalism (2.76), and flooding (2.67). This indicates that economic, institutional, infrastructural, and environmental constraints remain significant challenges to improving catfish production and profitability among farmers in the study area.

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
This chapter covers the following outline:
5.1 Introduction
5.2 Summary of the Study
5.3 Conclusion
5.4 Limitations of the Study
5.5 Recommendations
5.6 Suggestions for Further Studies
References
Appendix

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