The Value of Cooperation and Tendencies of Its Development in the Agricultural Business of Geostrategic Border Territories

Olga A. Moiseeva ()
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Olga A. Moiseeva: Federal Research Center of Agrarian Economy and Social Development of Rural Areas - All-Russian Research Institute of Agricultural Economics

A chapter in AgroTech, 2022, pp 99-107 from Springer

Abstract: Abstract The approved “Spatial development strategy of the Russian Federation until 2025” aims to develop agriculture of geostrategic border areas through the cooperation of producers of agricultural products, providing access to markets, including outside the country, and increasing the share of sales of products with high added value. During the creation and functioning of cooperatives, producers of geostrategic border territories face several problems, including the low level of state support from the federal and regional authorities, the lack of understanding of the goals and objectives of cooperation, the low interest of cooperative members in its patronage, and the presence of subsidiary responsibility of cooperative members for its obligations. The legislation provides for the possibility of supporting cooperatives established and operating only in traditional forms; other cooperative practices are not subject to support. Developed countries give cooperatives the leading role in the processing, promoting, and selling of agricultural products. The main trends in the development of cooperatives are associated with the enlargement of cooperative business, the development of vertical integration, innovation, and digitalization, and the provision of a wide range of state support mechanisms. The main participants-investors of such cooperatives are representatives of small forms of farming. The organizational structure of most foreign cooperatives differs from the traditional one (it does not always use the principle “one participant-one vote,” liability for the obligations of the cooperative, etc.), which ensures their high competitiveness. The analysis of the best foreign practices links the development of cooperatives in the agricultural business of geostrategic border areas with an increased role of state support, increasing the scale of activities, access to markets for organic products, and the export of agricultural products with high added value.

Keywords: Cooperation; Agricultural consumer cooperatives; Border geostrategic territories; State support; Subsidiary responsibility; Small business; Export of agricultural products; Q13; O18 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-19-3555-8_10

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DOI: 10.1007/978-981-19-3555-8_10

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