NATALIA SHAGAIDA: “DESPITE THE DECLINE IN AGRICULTURAL PRODUCTION, THERE IS A CAPACITY FOR THE DEVELOPMENT OF AGRICULTURAL COOPERATION IN RUSSIA”
In mid-March, the Ministry of Agriculture of Bashkortostan announced the resumption of state support for agricultural cooperatives. Natalia Shagaida, Doctor of Economic Sciences, Head of Agrarian Department of the Gaidar Institute, spoke to RBC Ufa about the capacity for the development of agricultural production.
According to the expert, there is a capacity for the development of agricultural cooperation in Russia, although the volume of agricultural production in the sector of household farms is constantly decreasing. She said that cooperation is an opportunity to increase the income of rural population by entering new markets, however, its development faces now a number of problems, in particular, lack of proactive people willing to take on the establishment and operation of a cooperative.
"Today, support is provided for establishing cooperatives as organizations, while often in such cases the processors initiate the creation of cooperatives, e.g. dairy cooperatives. An analysis of the development of cooperation over the years shows that there is a need for it at the grassroots level, but it requires exceptional skills on the part of the organizer, as it is difficult to set up a cooperative and make it work from scratch. Indeed, not all rural residents are prepared to unite and adjust to common requirements. Besides, the functioning of the organization requires costs that may be disproportionate to the benefits of setting up a cooperative, for example, when there is a seasonal need for its activities", says Natalia Shagaida.
According to the expert, there are successful experiences of cooperation efforts of small-scale agricultural producers outside the cooperative as an organization. For example, state support for a major farmer-entrepreneur, who provides services based on long-term agreements with villagers for the production and sale of agricultural products and cooperates with them to produce foodstuffs on their personal plots. Natalia Shagaida noted that there is such a successful experience of cooperation around a major farmer in the village of Dolzhanskaya in Krasnodar Krai aimed to produce grapes using the same technology on individual plots.
"Today, support is provided for establishing cooperatives as organizations, while often in such cases the processors initiate the creation of cooperatives, e.g. dairy cooperatives. An analysis of the development of cooperation over the years shows that there is a need for it at the grassroots level, but it requires exceptional skills on the part of the organizer, as it is difficult to set up a cooperative and make it work from scratch. Indeed, not all rural residents are prepared to unite and adjust to common requirements. Besides, the functioning of the organization requires costs that may be disproportionate to the benefits of setting up a cooperative, for example, when there is a seasonal need for its activities", says Natalia Shagaida.
According to the expert, there are successful experiences of cooperation efforts of small-scale agricultural producers outside the cooperative as an organization. For example, state support for a major farmer-entrepreneur, who provides services based on long-term agreements with villagers for the production and sale of agricultural products and cooperates with them to produce foodstuffs on their personal plots. Natalia Shagaida noted that there is such a successful experience of cooperation around a major farmer in the village of Dolzhanskaya in Krasnodar Krai aimed to produce grapes using the same technology on individual plots.