Management Theory and Studies for Rural Business and Infrastructure Development, Volume 14

Activity expedience of agricultural product processing cooperatives

Audrius Gargasas, Jadvyga Ramanauskienė

Abstract

The activity of agricultural product processing cooperatives in Lithuanian is analyzed in the
paper. It is determined that the co-operation has greatly depended on the farming condition and traditions
of communication, the state policy with respect to the development of agriculture and cooperation,
various economical conditions. Particularly great are the specific features of development
under transition of economics conditions: weak agricultural structures (farmer’s farms, agricultural
companies); the domination of share capital in the processing industry and commerce.
On the base of analysis of theoretical and practical preconditions and activity of processing
co-operatives, in this paper is substantiated expedience of them to the members (raw material producers).
It was determined, that big impact to vitality of co-operatives has relative weight of raw material
in the final product weight. If raw material takes a big share in the final product, it is easy for
co-operatives to survives, when the prices for products falls down.

Keyword(s): co-operatives, raw materials, profit, cost, relative weight


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.