An analysis of governance factors influencing performance of selected smallholder dairy cooperatives in Zimbabwe.

Cooperatives are organisations owned and operated by individuals or groups that come together for mutual benefit including pooling of resources for the purchase of inputs and marketing of products. Marketing of milk is through dairy cooperatives where the milk collection centres are mandated to help integrating smallholder farmers into competitive markets. The study investigated governance structures of five smallholder dairy schemes purposively selected based on their agroecological regions in Zimbabwe. The aim of the study was to explore how the governing boards conduct their business, particularly marketing milk, and how this affects allocation of resources (milk production and deliveries to milk centres) by smallholder farmers. Qualitative data were collected using focus group discussions with 20 dairy cooperative members from each milk collection centre. Key informant interviews were conducted with chairpersons, management committee members, and dairy value chain stakeholders such as dairy associations and processors. The SWOT analysis technique was employed to identify governance structures highlighting major strengths, weakness, opportunities, and threats as a gateway to isolating strategies for enhancing centre performance. An analysis of implications of the governance structures on resource allocation decision by farmers was also performed. So focus is on how boards are discharging mandate such as marketing on behalf of farmers, price setting and negotiations, trainings, and accountability to members. Such factors if executed well will see farmers increasing milk production and deliveries to MCC yielding positive results in income and profits. The study results show that poor governance mainly caused by incompetent boards and management committees was the major factor affecting performance. Other findings were that if good governance factors were in place, then cooperatives became proficient leading to their growth. Thus, cooperatives must adopt business models based on private sector partnerships to maximise on expertise and technical support. The schemes ought to take advantage of existing opportunities, especially policies that mitigate threats and improve product diversity, value addition, and effective pricing strategies. To achieve these milestones, capacity building roadmaps ought to identify competent and efficient boards.
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