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Profile of the Small-Scale Farms Willing to Cooperate—Evidence from Lithuania

Jolanta Droždz (), Vlada Vitunskienė () and Lina Novickytė ()
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Jolanta Droždz: Faculty of Economics and Business Administration, Vilnius University, 10222 Vilnius, Lithuania
Vlada Vitunskienė: Faculty of Bioeconomy Development, Vytautas Magnus University, 44248 Kaunas, Lithuania
Lina Novickytė: Government Strategic Analysis Center, 01108 Vilnius, Lithuania

Agriculture, 2021, vol. 11, issue 11, 1-21

Abstract: Cooperatives cover a large part of the agricultural sectors and have substantial market shares in agri-food supply chains in the EU Western countries. They account for approximately half of agricultural trade in the EU. By contrast, in the EU Western countries, where farmer cooperatives are widespread and successful, agricultural cooperation in Lithuania has developed intermittently in the last century. We still have very limited knowledge of why the country’s agricultural producers (especially smallholder farmers) are reluctant to cooperate in Lithuania. The aim of this study is to assess the level of the willingness to cooperate among smallholder farmers in Lithuania and to draw up the profiles of small-scale farms that participate in and intend to join cooperatives and, conversely, that do not participate in cooperatives and do not intend to do so. To achieve this goal, a representative survey of small-scale farms was conducted. Results of surveys carried out in 2019 in Lithuania on a group of 1002 small-scale farms showed that only 8% of the surveyed farms participate in producer groups or cooperatives, while another 8% intend to participate. Small-scale farms in Lithuania have weak market integration, with no bargaining power on input and output markets. The vast majority of small-scale farms are reluctant to participate in cooperative activities in Lithuania. Therefore, this study aimed to determine the profile of a small farm that tends to cooperate. The main social characteristics of farm managers and economic factors of farms willing to cooperate have been identified.

Keywords: small-scale farm; cooperation; contractual integration; willingness to cooperate; farm profile; Lithuanian case (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2021
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