Moldova has a rather well developed legal framework concerning the foundation and regulation of the activity of cooperatives. The most viable forms of cooperation turned out to be the production and entrepreneurial ones. However, the production cooperatives act as a form of farmland renting rather than as a way of integrating agricultural producers. Such conclusions are contained in a study carried out by the National Institute of Economic Research, IPN reports.
The research authors say cooperation is one of the key solutions to the multiple problems faced in horticulture. The problems in this sector are similar to the general problems encountered in agriculture, such as land consolidation, lack of labor force, excessive bureaucracy, difficult access to sources of financing, etc. Cooperatives can play an essential role in strengthening the power of negotiation of small agricultural producers. However, the power of negotiation of cooperatives with wholesale and retail customers is yet rather limited.
The development of cooperatives hasn’t yet become an evident priority for the subsidization system of Moldova and is not sufficiently supported through national programs and external financial and technical assistance projects. The study shows it is important to identify and promote success cooperation cases both at the local and foreign levels so as to stimulate the development of cooperatives and producer groups in Moldova. The educational programs in universities and vocational schools should be adjusted to train specialists for developing cooperatives.
The technical and financial support for small producers should be strengthened so that they form groups, associations and unions and diminish costs associated with the penetration of new markets and prevent their exclusion from the existing markets. To improve the institutional situation, a Cooperatives Development Agency could be set up by the example of other states.
The study was presented in a roundtable meeting staged by the National Farmers Federation of Moldova “AGROinform”.
