untimely credit services, inadequacy of capital, infrastructural and technical problems were the dominant ones. Key Words: Cooperatives, Coffee, Economic Contributions, CCSs, Yirgacheffe. CHAPTER I INTRODUCTION Background of the The co-operative movement brings together over 1 billion people around the world. The United Nations estimated in 1994 that the livelihood of nearly 3 billion people, or half of the world's population, was made secure by co-operative enterprise. These enterprises continue to play significant economic and social roles in their communities (Edward, (nd) available at ). They provide a unique tool for achieving one or more economic goals in an increasingly competitive global economy. These goals include achieving economy of size, improving bargaining power when dealing with other businesses, purchasing in bulk to achieve lower prices, obtaining products or services otherwise unavailable, obtaining market access or broadening market opportunities, improving product or service quality, securing credit from financial institutions and increasing income (Bello, 2010). The Problem Statement Cooperatives have been noted for their role in enhancing economic activities (Pur, 20 03). However, cooperative societies were thought to be associations meant only for farmers, small traders and other very low-income earners. Cooperative activities could play an effective role in supporting coffee farmers by supplying the price information, capital, and transportation that small-scale farmers often lack (Kodama, 2007). But some members of cooperatives have an experience of selling their produce to other marketing channels. The actual volume of purchase, too, is limited due to financial constraints. They finance their transactions using credit from banks. In cases in which they are unable to repay the credit, they are not granted new credit. Moreover, cooperatives face real challenges in the form of over-control and regulation by government; limited access to credit; inability to scale up their activities; and inability to penetrate markets ( HD565.pdf). Literatures available at disposal confirms that very few studies have attempted to measure the economic contributions of coffee cooperatives in the context of Ethiopia, means their contribution
untimely credit services, inadequacy of capital, infrastructural and technical problems were the dominant ones. Key Words: Cooperatives, Coffee, Economic Contributions, CCSs, Yirgacheffe. CHAPTER I INTRODUCTION Background of the The co-operative movement brings together over 1 billion people around the world. The United Nations estimated in 1994 that the livelihood of nearly 3 billion people, or half of the world's population, was made secure by co-operative enterprise. These enterprises continue to play significant economic and social roles in their communities (Edward, (nd) available at ). They provide a unique tool for achieving one or more economic goals in an increasingly competitive global economy. These goals include achieving economy of size, improving bargaining power when dealing with other businesses, purchasing in bulk to achieve lower prices, obtaining products or services otherwise unavailable, obtaining market access or broadening market opportunities, improving product or service quality, securing credit from financial institutions and increasing income (Bello, 2010). The Problem Statement Cooperatives have been noted for their role in enhancing economic activities (Pur, 20 03). However, cooperative societies were thought to be associations meant only for farmers, small traders and other very low-income earners. Cooperative activities could play an effective role in supporting coffee farmers by supplying the price information, capital, and transportation that small-scale farmers often lack (Kodama, 2007). But some members of cooperatives have an experience of selling their produce to other marketing channels. The actual volume of purchase, too, is limited due to financial constraints. They finance their transactions using credit from banks. In cases in which they are unable to repay the credit, they are not granted new credit. Moreover, cooperatives face real challenges in the form of over-control and regulation by government; limited access to credit; inability to scale up their activities; and inability to penetrate markets ( HD565.pdf). Literatures available at disposal confirms that very few studies have attempted to measure the economic contributions of coffee cooperatives in the context of Ethiopia, means their contribution