The role of agricultural cooperatives in economic development: international experience

Zhupargul Abdykaliyeva, Saltanat Baidybekova, Samal Abdykalyk, Bota Baitarakova and Aigerim Kenjassarova

International Review of Applied Economics, 2025, vol. 39, issue 4-5, 789-806

Abstract: This paper reviews the impact of agricultural cooperatives on economic development, drawing on international experience and identifying key factors for their successful operation. The study explores the nature and characteristics of agricultural cooperatives as voluntary associations of farmers and agricultural producers formed to collectively address economic, social, and cultural challenges. The study provides a review of various governance models for agricultural cooperatives, including the conventional, two-tiered, professional, programme-based, and member participation-based management models. Examples of successful agricultural cooperatives in the USA, Germany, Japan, and India are reviewed, providing insight into their role in supporting farmers, ensuring economic stability, and fostering growth in the agricultural sector. Based on an analysis of income data from cooperatives in these countries, trends and challenges faced by these organisations are identified. Attention is given to the influence of digital technologies and innovations on the development of cooperatives, including the use of data-driven farm management systems, the Internet of Things (IoT), automation, and robotics. Recommendations for improving the performance of cooperatives include the implementation of modern agricultural technologies, the creation of specialised financial products, the improvement of transportation and storage infrastructure, and the adoption of environmentally sustainable technologies and community support programmes.

Date: 2025
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DOI: 10.1080/02692171.2025.2498351

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