Management Theory and Studies for Rural Business and Infrastructure Development, Volume 36, Number 2

Creation of producer organisations as opportunity of agricultural cooperation development in Lithuania

Vytautas Vaznonis

Abstract

The imperfection of the agri-food market determines the low power of single farmer in the market; therefore it creates the need of cooperation. The creation of producer organisations generates the new opportunities for development of farmers’ cooperation. The aim of the research is to evaluate effects and possibilities of producer organisations creation in Lithuania. For achieving the research aim the analysis of the essence and the content of the producer organisation was done, the results of support application for producer organisations creation in Lithuania were analysed, the creation and activity effects of producer organisations were revealed. Having done the analysis of laws of Lithuanian Republic it was determined that the most appropriate legal form of producer organisation is the cooperative. The proposals for farmers, especially for small ones, about the consolidation to producer organisations are introduced.

JEL codes: Q01, Q13, Q17.

Keyword(s): cooperation, producer organisation, producer group


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DOI: http://dx.doi.org/10.15544/mts.2014.040

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

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