MODULE 1

The principles and benefits of farm-level co-operation

1. Agriculture and cooperation: basic principles

This chapter aims to define the role of cooperation as development and competitiveness factor in agriculture. In this context we’ll give you an overview of different forms and sectors of cooperation in Europe. The chapter will give you some elements relevant to the European strategy for cooperation, in the framework of Rural Development policies.

The agricultural sector is founded on a particular structure:

  • Agriculture is mainly based on small family farms
  • Farmers live in rural areas, often far from the towns and the market
  • Production costs for each production unit is high compared to industry and other sectors

A good collaboration between farmers and with other actors of rural development can help farmers in different ways:

  • Integration of production processes (i.e. Cultivation and transformation of products)
  • Storage of products
  • Sharing of the management of machinery
  • Common marketing strategies to promote products and their quality
  • Common selling of products in the market

FOR THESE REASONS IS VERY IMPORTANT FOR FARMERS TO CREATE THERE OWN RELATIONSHIPS AND COOPERATION SYSTEM

Following a definition of Polenske, Co-operation refers to when ‘two or more actors agree through a formal or informal arrangement to share information, support managerial and technical training, supply capital and / or provide market information’.

This means that:

  • A good cooperation is based on the strength of sharing management processes.
  • A good cooperation could bring mutual benefit to the participants
  • In a good cooperation no participant would have a single dominant position
  • Read more in the summary report of COFARM Project – web address LINK TO SUMMARY REPORT

The European Regulation n. 1305/2013 designs the EU strategies for Rural Development in Europe

One of the six priority of the regulation is to: ‘promoting food chain organisation, including processing and marketing of agricultural products…’ (Article 5 – point 3)

  • The rural development programs give financial support to the cooperation through:
  • Integrated Chain Projects, aimed to foster the competitiveness of food chains
  • Cooperation actions (under measure 16) in the field of innovation, short supply chain, processes management, sustainable energy production, development of rural villages

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SELF-ASSESMENT

This questionnaire will allow you to evaluate the competences acquired by studying the module.

This project has been funded with support from the European Commission.This publication reflects the views only of the author, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
CO-FARM: Enhancing COoperation amongst FARMing entrepreneurs
Project Number: 2016-1-IE01-KA202-016870

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