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

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.

Members’ willingness to pay for sustainability agricultural organization: A Heckman model approach

“…While only 9.1% of the members supply input from cooperatives and unions, the joining ratio of the members at training programs and general meeting were 29.7% and 17.6%, respectively. Drozdz et al (2021) found that the average age of farmers who were willing to cooperate were 46 years and 45%, 40%, 10% and 5% of the farmers graduated from higher bachelor degree, vocational, higher master degree and general, respectively in Lithuania. Abdelhafidh et al (2022) emphasized that because education and training improve farmers' human capacities which lead to the efficiency's increase have important positive marginal effects on the WTP.…”

“…Literature review shows that there is a lot of study about willingness to pay for agricultural cooperatives. Many of these researches is about willingness of farmers to cooperate (Kovacic et al, 2000;Baranyai et al, 2008;Antonova et al, 2021;Drozdz et al, 2021). Research has begun to be investigate about members' willingness to pay capital for agricultural organizations in recent times (Newbery et al, 2013;Alho, 2016;Alho, 2019;Kilic Topuz, 2020;Fischer et al, 2021;Nzowa et al, 2023).…”

“…Antonova et al (2021) investigated the reasons for farmers' refusal to join cooperatives in Tatarstan, Russia using logit analysis and cross-tabulation method and logit analysis. Drozdz et al (2021) sought to assess the extent of cooperation willingness among smallholder farmers in Lithuania and create profiles for them. Kovacic et al (2000) also analysed that willingness of farmers in rural area to cooperate in Zagreb, Croation.…”

Has the agricultural cooperatives served each member fairly? A new perspective based on utilization level of member services

“…Therefore, countries all over the world generally pay attention to the development of cooperatives. For example, cooperatives account for about half of the European agricultural trade [ 7 , 8 ]. As for China, almost the Central No.…”

The Agricultural Cooperative in the Face of the Challenges of Globalization, Sustainability and Digitalization

“…Other researchers assess the level of willingness to cooperate among small farmers in Lithuania and elaborate the profiles of small farms that participate and intend to join cooperatives and, conversely, that do not participate in cooperatives and do not intend to do so [5]. The results show that only 8% of the surveyed farms participate in producer groups or cooperatives, while another 8% intend to participate.…”