Analyzing the Economic Impacts of Araz 1 and Araz 2 Production Cooperative Companies of Maku Free Zone

The main purpose of this research was to exam the economic impacts of Araz 1 and Araz 2 production cooperative companies in Maku Free Zone. This research utilized a quasi-experimental research design with two wheat producers groups; experimental group (members of production cooperative companies) and control group (farmers of Gheighach plain). Employing a survey method, a questionnaire was used to collect data. Using simple randomized sampling method, 110 wheat farmers were selected. Results showed that membership in production cooperative companies has brought about 39, 60, 59, 92 and 64percent increase in production costs, yield, income, profit, and benefit-cost ratio, respectively. As well, it has caused more benefits from training courses, agricultural products insurance, and living accommodations for families. However, rich farmers have received more benefits compared to the other farmers and this has widened social gap between the members of cooperatives. Despite, cooperatives companies face with several challenges such as; high cost and lack of clearness in the field of irrigation water, lack of appropriate marketing, lack of silage and agricultural machines and equipment, lack of agricultural clinics and technical consulting services, inadequate and ineffective training courses, improper management of supply and distribution of irrigation water, lack of dredging water channels, improper use of water by farmers, and swamping and water logging of downstream lands. Based on the results, to increase the positive impact of cooperatives, it is recommended to act out solving recognized problems and fair distribution of inputs and services especially among smallholders.