Local Engagement in the Agricultural Cooperatives (ACs) Operation in Cambodia

Abstract

Agricultural Cooperatives (ACs) have empowered farmers to develop resources sustainably. They transfer traditional subsistence agriculture to diversify crops and develop a value chain. This paper aims to analyze local engagement by focusing on the degree of participation, factors influencing local engagement in ACs operations and the constraints of ACs operations to support communities. With a cohort of 421 farmer members in the Kampong Speu and Pursat provinces of Cambodia, household surveys were designed to consider how factors influence local engagement. It was discovered that: (i) local engagement in ACs operations is limited, and management of boards of directors is a critical constraint to motivating local involvement; (ii) local engagement in ACs operations is associated with access to water, benefits from ACs, participation in ACs activities, risk control and ACs management, and ACs operations do not promote access to agricultural inputs; and (iii) ACs operations have faced several constraints, including poor management, inadequate capital accumulation, unavailable loans, loan mismanagement, a lack of skills, high illiteracy levels, small share values, a lack of access to credit facilities, access to the competitive market and a lack of support from extension services. This empirical study, with implications from Structural Equation Modeling (SEM), addresses a gap in the literature by exploring engagement in ACs operations.