The Role of Co-operative Societies in Supply Chain of Agricultural Products: A Review of Literature

Abstract

Co-operative societies and the agricultural sector have emerged among the important activities that contribute significantly towards socio-economic transformation in many countries. Generally, the agricultural sector is dominated by smallholder farmers who depend on middlemen in supplying and marketing agricultural products due to the long marketing chain. This paper examines the role of co-operative societies in strengthening operations of the agricultural supply chain through an extensive literature review. The study reviewed and connected co-operatives’ activities with the operational requirements at each node of agricultural supply chain. To have the latest set of data, the study reviewed articles published between 2017-2021 with a focus on co-operative societies and agricultural supply chains. From the literature, the study revealed a significant role of co-operative societies in the supply chain of agricultural products. Co-operatives provide operational, technical, financial and support services to agricultural supply chain actors. These include provision of agricultural inputs and loans to farmers, production, processing, transportation, storage and marketing of agricultural products. This study advances the body of knowledge by linking co-operative’s activities with the agricultural supply chain model and offers managerial implications to co-operatives societies, policymakers and agricultural supply chain actors. Further research is needed to determine the challenges facing practical integration of co-operatives societies with agricultural supply chain.