Farmers' farms cooperative evolution in the context of smart development

Jadvyga Ciburiene Ciburiene

Abstract


Purpose. The paper presents an analysis which aim is to characterize the farmers’ farms cooperative activity and its results in the European Union countries members (EU-28), including Lithuania in the years 2005-2014. Many scientific sources show the importance of farmers’ farms cooperative activity in Lithuania in the historical perspective. The paper focuses on the development of the agriculture in Lithuania and on the activity of the farmers’ farms cooperative. The article analyzes one of the ways to increase the effectiveness of agricultural activities – though farmers’ farm cooperative development processes in the agricultural sector’s different activities. Analysis of scientific literature and statistical data of the European Union (EU) member countries and economically developed countries in the world show that cooperation can be developed in any of the food supply chain’s structural element: in the manufacture, supply or intermediation of agricultural products; in the reprocessing of agricultural products and in their consumption. The farmers’ cooperative enhances the operational performance of the agriculture and facilitates a balanced both the agricultural sector and both the whole economy of the country as well as the economy in the global level.

The object of this study: farmers’ farms cooperative in the economy.

The aim of the study: to analyze the farmers’ farms and their cooperative role, examining the main economic indicators of agriculture in Lithuania.

Objectives of the study: to characterize the economic transformations, including agricultural sector, in Lithuania; to discuss the changes of farmers’ cooperative importance in the development of the country economy, as a smart, sustainable and inclusive growth; to characterize the farmers’ cooperative as one of ways of the modernization of agriculture sector.

Methodology. The estimation of the main economic indicators of the development of agriculture sector in Lithuania and EU is used, giving the theoretical investigation of the economic transformations in Lithuania, including agricultural sector. The method of research is the analysis and synthesis of scientific resources, graphical analysis. For the evaluation of agriculture sector development in the year 2005-2014 year 2005 was chosen as base.

Results. The investigation revealed that in Lithuania, unlike in EU-28 and the world's developed countries such as Japan, the United States (US), the level of farmers’ farms cooperation is significantly less.

The theoretical contribution. The paper summarized the scientific literature on the question of farmers’ farms cooperative development and identified the factors that determine the current level of the farmers’ farm cooperative in Lithuania.

Practical implications (if applicable). The research show that the main goals of the organization and development of cooperatives are: satisfying its members’ economic, social, cultural needs; obtaining profit from agricultural activity and securing sustainability of agriculture and the economy at country level. The farmers’ farm cooperative helps to balance economic development, to involve more population in the labour market.

Keywords: agriculture, farmers’ farms, farmers’ farms cooperative, smart development.

Paper type: Research paper.


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