Agricultural cooperatives

Calin Mihai Mateita,

Montanologie

Agricultural cooperatives have emerged as a form of organization designed to make the work of small
farmers easier, with the help they offer each other. At the beginning of July 2021, there were a total of
1,831 agricultural cooperatives in Romania. Their number has increased since 2016, as 935 agricultural
cooperatives have appeared in the last five years. In my opinion, cooperatives bring many positive
benefits when several small producers join forces.

First of all, cooperatives obtaining favorable prices for the purchase of inputs and the sale of goods,
because if someone buys a larger quantity of products, manufacturers can offer you bigger discounts
that can be negotiated. In my opinion this is one of the best ways for obtaining cost reductions. In
addition, they may agree to a higher selling price, which can be negotiated with buyers without losing
profit.

Secondly, the members of the cooperatives can easily ask for the help of the partners in case of some
problems. If one of the partners's agricultural machinery breaks down, which takes longer to be
repaired, the borrower may borrow the equipment he needs to work the land and there is no chance
that his production will decrease.

In conclusion, cooperatives help small producers because they create a more competitive business,
which increases selling prices. In addition, it is easier for cooperative members to seek help from others.

Bibliografy:

https://managusamv.ro/cooperformance/images/Dissemination/O3/
O3_Country_report_Romania_RO.pdf