Abstract:
Poverty and unemployment are the main problems facing many people in the Vhembe
District Municipality. Due to these main problems, most people turn into farming as a tool to
reduce poverty, ensure food security and create employment in their rural communities.
Because of high production and marketing costs, farmers often find it difficult to pool their
resources together in order to raise farm income and substantially improve their living
conditions. In order to deal with this problem, farmers form cooperatives to pool their
resources for increased agricultural productivity, employment creation and poverty reduction.
The study assessed the role of agricultural cooperatives in poverty reduction within the rural
communities of the Vhembe District Municipality. The research study was a combination of
both qualitative and quantitative research method. There are 70 agricultural cooperatives
producing field crops and vegetables in Vhembe District. A clustered random sample of the 4
Local Municipalities within Vhembe District Municipality was employed. It involved the
selection of 9 cooperatives from Thulamela, 3 cooperatives each from Makhado and Mutale
respectively and 1 cooperative from Musina. Relevant data was collected from both primary
and secondary sources. Descriptive and Binary logistic regression modelling was used to
analyse data.
The study revealed that socio-economic characteristics of respondents have an impact on
the role agricultural cooperatives play in reducing poverty. The study further showed that
agricultural cooperatives play a significant role in reducing poverty and ensuring food
security to members’ households. The respondents showed a positive response in the
effectiveness of cooperatives in poverty reduction. The study also showed that cooperatives
have a significant role in creating employment opportunities. Cooperatives were also faced
with various challenges which hinder their success in poverty reduction. Some of the
challenges include; market access, lack of funding, conflicts within cooperatives and high
electricity costs. The study concludes by recommending different strategies which will
enhance the success of cooperatives in poverty reduction. Further studies concentrating on
poverty reduction, food security and employment creation need to be carried-out which will
help cooperatives respondents to eradicate poverty in their households and communities.
