CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
       In developing countries as in the case of Nigeria, Agriculture dominates the nation’s economy. It has been established that about to percent of Nigeria population is engaged in agriculture (Obasi and Aug, 2000) while 90 percent of Nigeria total food production comes from small farms and to percent of the country population earn their living from these small farms (Oluwatayo et al, 2008). The recent importation of food items into the country to make up for the short falls in food supply Is a dangerous indication of warning farm productivity and warning sign that if the nation continue with the business as usual, the prospect of food security will be black for millions of people (Nwede 2003)
       It terms employment agriculture is by far the most importance sector of Nigeria’s economy engaging about 70% of the labour force. Agricultural holding are generally small and scattered, family is often of the subsistence variety characterized by simple tools and shifting cultivation. These small farms produce about 80% of the total foods. About 30.7 million hectares (76 million acres) or 33% of Nigeria land area are under cultivation. Nigeria’s diverse climate from the tropical area of the coast the arid zone of the North, make it possible to produce virtually all agricultural products that can grown in the tropical and semitropical area of the world the economic benefit of large scale agriculture are recognized, and the government favors the formation of cooperative societies and settlements to encourage industrial agricultural. Large scale agriculture, however, is not common.
       Despite an abundant water supply a favorable climate and wide area or arable land, productivity is restricted owing to low soil fertility in many areas and inefficient method of cultivation agriculture. Contributed 32% to GPD in 2001
It’s widely recognized that co-operative form an indispensable component. Through community organization co-operative serves the basis and plant form for bring together the economically weak member of the society with a view of enhancing their individual capacities (Akali, 1991). The contributions of cooperative to the economy especially in the developing countries are enormous, ranging from provision of credit to its members and sourcing of inputs at reasonable price to scale of member produce (Okonkwuo, 1991). Cooperative are defined as “an autonomous association of persons who unite voluntarily to meet their common economic and social needs and aspiration through a jointly owned and democratically controlled enterprise. (ICA, 1995) cooperative are established by like-minded persons to pursue mutually beneficial economic interest. Researcher are of the opinion that under normal circumstance, cooperative play significant role in the provision of service that enhance agricultural development.