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The average farm size in Slovenia is one of the lowest in the EU so cooperation is vital especially when it comes to permanent crops and horticulture. The “Group of producers of organic fruit” has connected farmers who produce organically, in order to give them better opportunities when it comes to securing bigger contracts and marketing of their products.
Area: cca 40 ha of orchards
The farms involved in this type of cooperation are very small. In total, the farmers own approximately 40 hectares of orchards and a small number of beehives. These are small businesses which do not engage in large production and are typically sole traders. Initially, the main agricultural activity was apple production but the group later expanded into other varieties of fruit and vegetable production. Examples incude: berries, plums, carrots, potatoes, garlic and honey products.
Cooperation Process Data
The cooperation is based on connecting small producers who have previously tried to work alone but came to re- alization that co-operating together could benefit them greatly. Through RDP there are more options for different types of cooperation where different groups of farmers can establish a formal entity and maybe get some additional mentoring and funding. The main objective is to connect smaller fruit producers for easier marketing, delivery and production. The group has been working on optimization of delivery costs with common delivery. Together they have achieved a more concentrated supply, greater product visibility and the option to gain public funding because they have an officially registered co-operative. The farmers who are participating in the cooperative are very committed to it and this is why it works. If the people involved especially at the beginning of the initiative were not devoted to the cause the group of producers would not operate as well as it does. At the beginning of the initiative it was essential to gain the trust of all members in order to ensure the long-term sustainability of the co-operative.
Natural disasters – After two consecutive years of severe frosts in Spring, apple producers have had very small yields. Consequently, the organization has tried to find new members who could advise existing ones on how to pre- vent this kind of issues in the future. The cooperative is facing many threats and challenges with insufficient funding being a prominent one – the group is trying to get the best price for its farmers but that means the operational costs are kept as low as possible and to keep the farmers interested in the cooperation but without external funding that is not always possible.
Keeping a balance between the optimal price for the farmer and not setting the price too high and subsequently losing customer share is another significant threat. The price of the production cannot be lowered due to various limitations (small parcels, landscape) so it is important to have loyal customers who will appreciate the origins of the product and this requires appropriate marketing campaigns.
The following are key training requirements for this this type of co-operation activity:
- Procedures to manage a group of producers (governance structures)
- Legal and financial obligations
- Effective communication skills – necessary for gaining new members and arranging new contracts for farm prod- ucts.
- Sourcing expert opinion to assist with technical tasks.
Advice/Recommendation
“You have to take it step by step, the cooperation might not be successful in the beginning. If you have a lot of patience and dedication, the cooperation will slowly start showing its benefits.”
Queries/Questions
- Social media is a vital tool in setting trends and showing the buyers what a compa- ny has to offer. Are farmers are knowledgeable in the latest developments in social media?
- What are the benefits of small scale producers working collaboratively together?
