Corporative Societies in Livestock – SS2 Livestock Farming Lesson Note (Third Term)

A livestock cooperative society is a group of farmers who come together voluntarily to meet their common needs. They pool their money to buy feed and vaccines in bulk, find buyers for eggs, meat and milk, and give loans to members. Together, the farmers have more power in the market than any one of them has alone.

Behavioural objectives

By the end of the lesson, students should be able to:

• define a livestock cooperative society;
• state the roles of a livestock cooperative;
• explain how a cooperative helps farmers with savings, loans and dividends;
• list other benefits a farmer gets from being a member;
• state what a livestock cooperative needs in order to succeed.

What is a livestock cooperative?

In farming, there is an old saying: “If you want to go fast, go alone. If you want to go far, go together.” A livestock cooperative society is a group of farmers who come together voluntarily to meet their common needs. Instead of every farmer struggling on their own to buy feed or find buyers, they join hands, pool their money, and work as one big “family.”

The main idea: Individually, a small poultry farmer with 50 birds has no “power” in the market. But if 100 of such farmers join a cooperative, they suddenly have 5,000 birds. Now big hotels and supermarkets will listen to them.

What roles do cooperatives play?

Cooperatives do more than hold meetings. They perform specific jobs to help their members stay in business:

1. Input supply: The cooperative buys things like fish feed, vaccines, and day-old chicks in huge quantities (bulk) directly from the factory. This makes the price much cheaper for the members.
2. Marketing: The society looks for big buyers for the members’ eggs, meat, or milk. They sometimes even have their own shop in the city to sell “Cooperative Brand” products.
3. Processing: Some big cooperatives buy machines to process their members’ products, like a milk pasteurising machine or a giant fish smoking kiln.
4. Education: They invite experts (extension agents) to teach members new ways to stop diseases or how to use new technology.

How do cooperatives help farmers with money?

One of the biggest headaches for a livestock farmer in Nigeria is getting a loan from a regular bank. Banks often ask for “collateral” (like a house) that small farmers do not have.

How cooperatives solve this

• Savings and credit: Members contribute a small amount of money every month. If a member’s cow falls sick or they need to expand their piggery, they can take a “soft loan” from the cooperative at a very low interest rate.
• Guarantee: Sometimes, the cooperative stands as a “surety” for a member to get a loan from a government agricultural bank.
• Dividends: At the end of the year, if the cooperative made a profit from its businesses, that money is shared among the members. This is called a dividend.

What other benefits does a farmer get from a cooperative?

Apart from money and feed, being in a cooperative gives a farmer “peace of mind.”

1. Risk sharing: If a disease wipes out one farmer’s birds, the cooperative members can contribute to help that person start again. You are never truly “alone” in a disaster.
2. Better bargaining power: Because they represent many farmers, the leaders of the cooperative can tell the government what farmers need (like better roads to the farm or lower taxes on feed).
3. Standardisation: The cooperative makes sure all members produce high-quality meat. This helps build a good reputation so that customers always trust their products.
4. Storage facilities: A cooperative can build a “cold room” or a big warehouse that a single farmer could never afford on their own.

How is a successful cooperative formed?

Not every group of people is a good cooperative. To succeed, a livestock cooperative must have:

• Clear rules (by-laws): Everyone must know how much to contribute and what happens if someone breaks the rules.
• Honest leadership: Members must elect people they trust to manage the money. If the treasurer is greedy, the cooperative will fail.
• Active participation: A cooperative only works if members attend meetings and pay their dues on time.
• Registration: In Nigeria, a cooperative should be registered with the Ministry of Rural Development or Cooperatives to be recognised by the law.

Student activity: the “bulk buy” calculation

Imagine you are a poultry farmer.

• A single bag of feed at the local shop costs ₦18,000.
• If your cooperative buys 100 bags at once from the factory, the price drops to ₦14,500 per bag.

If you need 10 bags for your chickens this month, how much money will you save by being a member of the cooperative? (Do the maths in your notes.)

Teacher’s closing note: In the world of business, “Unity is Strength.” A lone farmer is a target for middle-men and high prices, but a cooperative farmer is a protected businessman.

Evaluation

1. What is a livestock cooperative society?
2. State the four roles of a livestock cooperative.
3. Explain how a cooperative helps a farmer who cannot get a bank loan.
4. What is a dividend?
5. List four things a livestock cooperative needs in order to succeed.

Assignment

1. Explain any three benefits a livestock farmer gets from belonging to a cooperative, apart from loans.
2. Describe how risk sharing and storage facilities help members of a cooperative.