Over the last years, smallholder farmers and other value chain actors are either deprived of access to credit facility or unable to obtain loan due to collateral requests from commercial banks or high interest rates. Therefore, cooperatives of various interests were formed to step in and provide a level of succour to both agricultural business and personal needs of smallholder farmers. As described by Otto Kroesen, in this article: "for the functioning of cooperatives, cooperation is required, and cooperation requires trust."

All cooperatives are formed with a common interest, however, some cooperatives have short-lived their existence due to internal issues that destroyed their cooperation
All cooperatives are formed with a common interest, however, some cooperatives have short-lived their existence due to internal issues that destroyed their cooperation and trust. Some of the factors identified were: poor knowledge of governing or running a cooperative, the age factor in selecting cooperatives leaders, low participation of youths and women in the cooperative affairs, lack of knowledge of group dynamics, absent of democratic processes in running cooperatives affairs, poor conflicts resolution system, amongst others. Especially when the conflict is between an older group and a younger group within the cooperative, poor conflicts resolution systems is a challenge. It is of essence that we equip rural dwellers with the right knowledge to ensure that cooperatives achieve their objectives in full and become sustainable. This would provide the needed support to farm families in achieving food security.

Therefore, relevant stakeholders should provide leadership and group dynamics training for cooperative members, especially in rural communities. Also, guidance in building of structures that promote equality among members should be provided, and transparency for its processes should be build. Finally, the financial capacity of cooperatives should be strengthened in order to support its members more. In closing, cooperatives are the engine room of grassroots, to provide basic financial services and moral support to its members. Thus, its success would positively rub off on its members, whose majority are agricultural value chain actors. Therefore, achieving financial inclusion for smallholder farmers is hinged on the replication of cooperative-like models, in which communal bonds are strong and sustained.

Yours-in-service

Babatunde

Meeting with Microfinance Bank in Owode (Ogun) and Benin (Edo State) to provide financial dervices to smallholder farmers