Organizational system and representing economic and social interest (cooperatives )

CEEPUS, Gödöllő, 25th June 2010CEEPUS, Gödöllő, 25th June 2010 11

Organizational system and Organizational system and representing economic representing economic

and social interest and social interest (cooperatives(cooperatives))

Assoc. Prof. Assoc. Prof. Dr. (CSc) Zsarnóczai, J. Dr. (CSc) Zsarnóczai, J. SándorSándor

Szent István UniversitySzent István UniversityFaculty of Economic and Social SciencesFaculty of Economic and Social Sciences

Institute of Regional Economics and Rural Institute of Regional Economics and Rural DevelopmentDevelopment

[email protected]@gtk.szie.hu

CEEPUS, Gödöllő, 25th June 2010 2

Main SubjectsMain Subjects

►1- Organization and representing 1- Organization and representing interest;interest;

►2- Some main international 2- Some main international experiences from EU: Danish-experiences from EU: Danish-Swedish ARLA-Foods Cooperative;Swedish ARLA-Foods Cooperative;

►3- Some EU experiences: COPA and 3- Some EU experiences: COPA and COGECA, their brief historical COGECA, their brief historical background.background.


1- Organization and 1- Organization and Representing Interest, Namely Representing Interest, Namely

COGECACOGECA► 1- Data given by COGECA (General Committee for 1- Data given by COGECA (General Committee for

Agricultural CooperationAgricultural Cooperation)) in EU: in EU: ► - number of cooperative members in EU increased - number of cooperative members in EU increased ► to to 115 million members115 million members by the end of 2003 by the end of 2003 ► from 29,6 million members in 1990/1991 - four from 29,6 million members in 1990/1991 - four

times more – as 389 % - during one and half times more – as 389 % - during one and half decade. decade.

► 2- Increase of number belonging to cooperative 2- Increase of number belonging to cooperative members provides proof for development of members provides proof for development of cooperative movement, as strategic aimcooperative movement, as strategic aim in EU. in EU.

► 3- Three sectors, as 3- Three sectors, as primary, secondary, primary, secondary, tertiarytertiary, having important economic role, mainly , having important economic role, mainly banking, basic agricultural and food production, banking, basic agricultural and food production, integrated product channel. integrated product channel.


22- Organization and - Organization and Representing Interest, Namely Representing Interest, Namely

COGECACOGECA► Statement on the Co-operative Identity Definition and cooperative Statement on the Co-operative Identity Definition and cooperative

principlesprinciples► A co-operative: A co-operative: voluntarilyvoluntarily to meet their common economic, social, to meet their common economic, social,

and cultural needs and aspirations through a and cultural needs and aspirations through a jointly-owned and jointly-owned and democratically-controlled enterprisedemocratically-controlled enterprise. .

► The value of co-operatives is based on the values of The value of co-operatives is based on the values of self-help, self-self-help, self-responsibility, democracy, equality, equity and solidarityresponsibility, democracy, equality, equity and solidarity. .

► Believe in the Believe in the ethical values of honesty, openness, social ethical values of honesty, openness, social responsibility and caring for othersresponsibility and caring for others. .

► All activities: in fields of All activities: in fields of economic, social, political and economic, social, political and educational activitieseducational activities. .

► 1st Principle: Voluntary and Open Membership1st Principle: Voluntary and Open Membership► 2nd Principle: Democratic Member Control2nd Principle: Democratic Member Control► 3rd Principle: Member Economic Participation3rd Principle: Member Economic Participation► 4th Principle: Autonomy and Independence4th Principle: Autonomy and Independence► 5th Principle: Education, Training and Information5th Principle: Education, Training and Information► 6th Principle: Co-operation among Co-operatives6th Principle: Co-operation among Co-operatives► 7th Principle: Concern for Community7th Principle: Concern for Community


33. THE ECONOMIC IMPORTANCE . THE ECONOMIC IMPORTANCE OF CO-OPERATIVES IN EUOF CO-OPERATIVES IN EU

► EU focuses its cooperative assistance programmes EU focuses its cooperative assistance programmes on on three technical areasthree technical areas: :

► 1. - 1. - designdesign of national policies, strategies and of national policies, strategies and legislation to enhance cooperatives' role in legislation to enhance cooperatives' role in development, emphasizing the need for synergy and development, emphasizing the need for synergy and the economic efficiency gains to be derived from the economic efficiency gains to be derived from their involvement in their involvement in decision-makingdecision-making and and programme implementation; programme implementation;

► 2. - development and refinement of concepts and 2. - development and refinement of concepts and techniques for techniques for coalition-building and coalition-building and partnershipspartnerships in support of rural development and in support of rural development and food security; food security;

► 3. - internal capacity-building to make cooperatives, 3. - internal capacity-building to make cooperatives, along along with other civil society organizationswith other civil society organizations, , equal and efficient partners in development.equal and efficient partners in development.



Strategy of EU cooperative movement, which is as follows:Strategy of EU cooperative movement, which is as follows:► 1 1 - Promote the EU co-operative movement, even in - Promote the EU co-operative movement, even in

direction to the direction to the world cooperative movementworld cooperative movement, based , based on mutual self-help and democracy.on mutual self-help and democracy.

► 2 2 - Promote and protect - Promote and protect co-operative values and co-operative values and principles.principles.

► 3 3 - Facilitate the development of economic and - Facilitate the development of economic and mutually beneficial relationsmutually beneficial relations between its member between its member organisations.organisations.

► 4 4 - Promote - Promote sustainable human developmentsustainable human development and and further economic and social progress of people, thereby further economic and social progress of people, thereby contributing to international peace and security.contributing to international peace and security.

► 5 5 - Promote - Promote equalityequality between men and women in all between men and women in all the the decision-making and activitiesdecision-making and activities within the co- within the co-operative movement.operative movement.



► SSome differents of co-operatives from other business ome differents of co-operatives from other business organisations:organisations:

► 1 1 - Co-operatives have to be as efficient in their business - Co-operatives have to be as efficient in their business and use their capital at least as efficiently as other and use their capital at least as efficiently as other players on the market. In this respect cooperatives players on the market. In this respect cooperatives are are no different from other players on the market.no different from other players on the market.

► 2 2 - The co-operative difference – the social dimension - The co-operative difference – the social dimension “cooperative advantage”“cooperative advantage”: : member/user-led as member/user-led as opposed to investment-led organisationsopposed to investment-led organisations..

► 3 3 - Support to co-operative development in developing - Support to co-operative development in developing countries and to countries in economic transition countries and to countries in economic transition contributes to economic growthcontributes to economic growth shared by many. shared by many. The co-operative method is socially inclusive – not The co-operative method is socially inclusive – not exclusive as is the case with purely investment/profit-led exclusive as is the case with purely investment/profit-led organisations.organisations.



► Three main branches of the economic activities: Three main branches of the economic activities: the primary sector, the primary sector, secondary sector and secondary sector and tertiary sectortertiary sector..

► Aims at strengthening their Aims at strengthening their competitivenesscompetitiveness on the world on the world and EU markets. and EU markets.

► To build the To build the integrated product channelintegrated product channel from the lands of from the lands of farmers to table of consumers. On this product channel, farmers to table of consumers. On this product channel, cooperatives integrated the basic production activities, for cooperatives integrated the basic production activities, for example the plantexample the plant production, animal husbandry; and production, animal husbandry; and manufacturing activities in food industry; and service manufacturing activities in food industry; and service activities, like transporting, storing, advisory works. activities, like transporting, storing, advisory works.

► The cooperatives want to increase their The cooperatives want to increase their value addedvalue added activities in order to increase value of their input.activities in order to increase value of their input.


Table 1.: The number of cooperative business, members Table 1.: The number of cooperative business, members and employees in EU, as a percentage of each sector and employees in EU, as a percentage of each sector and all sectors of 41 European Countries at the and all sectors of 41 European Countries at the beginning of XXI. Century (in %)beginning of XXI. Century (in %)

0

10

20

30

40

50

60

70

80

Business Members Employees

Primary

Seconmdary

Tertiary

All Sectors


Table 1.: The number of cooperative businesTable 1.: The number of cooperative businesss, members , members and employees in EU, as a percentage of each sector and and employees in EU, as a percentage of each sector and all sectors of 41 European Countries at the beginning of all sectors of 41 European Countries at the beginning of XXI. Century (in %)XXI. Century (in %)

►1. 1. Number of cooperative businessNumber of cooperative business►2. 2. Number of membersNumber of members ►3. 3. Number of employeesNumber of employees ►EU of 41 European CountriesEU of 41 European Countries in %in %


0

10

20

30

40

50

60

70

80

90

100

Business Members Employees

Total EU

Primary

Secondary

Tertiary

Table 2.: The co-operative movement has the Table 2.: The co-operative movement has the following weight in the European Union (based following weight in the European Union (based on the 2000 definition) per industryon the 2000 definition) per industry


7. Danish Cooperative7. Danish Cooperativess

► The cooperativeThe cooperative mai main advantagesn advantages: : they are non-they are non-profit organisations, so the competition rule does not profit organisations, so the competition rule does not limit their share on national and EU domestic limit their share on national and EU domestic markets.markets.

► IIn 2001 the Danish Crown cooperative could produce n 2001 the Danish Crown cooperative could produce 95% of red meat – mostly pork – in Denmark. 95% of red meat – mostly pork – in Denmark.

► The production concentration resulted in cooperative The production concentration resulted in cooperative development Denmark became the development Denmark became the fourth biggest fourth biggest pork producerpork producer in EU, and in EU, and first pork exporterfirst pork exporter on on the world market. the world market.

► Danish cooperativesDanish cooperatives: : ► 50% of large sized supermarket chains50% of large sized supermarket chains andand 25% 25%

of all retail tradeof all retail trade became owned by cooperatives became owned by cooperatives. . Danish cooperatives extended their share in Danish cooperatives extended their share in bank bank and insurance sectors. and insurance sectors.


88. Swedish-Danish ARLA-. Swedish-Danish ARLA-Foods CooperativeFoods Cooperative

► Swedish-Danish Swedish-Danish ARLA-Foods CooperativeARLA-Foods Cooperative has realized has realized integrated integrated product-channel-cooperativesproduct-channel-cooperatives in field of milk in field of milk production, and production, and Danish-Crown CooperativeDanish-Crown Cooperative realised one in realised one in meat production. meat production.

► ARLA Foods, the joint Danish-Swedish co-operative, was ARLA Foods, the joint Danish-Swedish co-operative, was established on 17th April 2000 as a result of the established on 17th April 2000 as a result of the amalgamation of MD Foods, in Denmark, and ARLA, in amalgamation of MD Foods, in Denmark, and ARLA, in Sweden. Sweden.

► This co-operative provides at least 90 percent of their milk This co-operative provides at least 90 percent of their milk production, procession, and sales. production, procession, and sales.

► The co operative is active in 22 countries and employs 18.200 The co operative is active in 22 countries and employs 18.200 people. There are some important countries, in which ARLA-people. There are some important countries, in which ARLA-Foods Cooperative has had traditional activity, for example: Foods Cooperative has had traditional activity, for example: naturally in Sweden and Danish Kingdom, and then UK, naturally in Sweden and Danish Kingdom, and then UK, Canada, USA, France, Germany, Italy, Japan, Russia, Poland, Canada, USA, France, Germany, Italy, Japan, Russia, Poland, Hungary, Brasilia, United Arab Emirates and others. Hungary, Brasilia, United Arab Emirates and others.



► By the end of 2001, ARLA-Foods Cooperative has realised sales worth By the end of 2001, ARLA-Foods Cooperative has realised sales worth 38,1 billion Danish Crowns, i. e. US$ 4,7 billion. 38,1 billion Danish Crowns, i. e. US$ 4,7 billion.

► Integration of the single parts of the product channel (production, Integration of the single parts of the product channel (production, processing, and sales, including exports) can be efprocessing, and sales, including exports) can be effficiently realised iciently realised also in a co-operative form.also in a co-operative form.

► The ARLA-Foods Danish-Swedish is the biggest common dairy The ARLA-Foods Danish-Swedish is the biggest common dairy production, manufacturing and marketing co-operative in European production, manufacturing and marketing co-operative in European Union, which works in 22 countries by about 15 thousand members, Union, which works in 22 countries by about 15 thousand members, of which there were 7921 Danish and 6988 Swedish farmers. of which there were 7921 Danish and 6988 Swedish farmers.

► By the end of 2001 ARLA Foods increased its By the end of 2001 ARLA Foods increased its turnover more than turnover more than two times within a yeartwo times within a year. The value of the turnover increased by . The value of the turnover increased by mostly increasing production and mostly increasing production and only partly by increasing only partly by increasing pricesprices. The share of Denmark and Sweden in the total turnover . The share of Denmark and Sweden in the total turnover decreased from 53 percent in 2000 to 50,6 percent by the end of decreased from 53 percent in 2000 to 50,6 percent by the end of 2001. 2001.

► From the developing countries the Middle East countries have the From the developing countries the Middle East countries have the biggest share, which increased from 5,0 percent in 2000 to 5,5 biggest share, which increased from 5,0 percent in 2000 to 5,5 percent in 2001. It is resulted by higher purchase power capacity and percent in 2001. It is resulted by higher purchase power capacity and increasing market demands in MENA countries. increasing market demands in MENA countries.



In 2005 (Financial Times)In 2005 (Financial Times)► Swedish-Danish ARLA-Foods Cooperative was Swedish-Danish ARLA-Foods Cooperative was

one of the first 10 biggest corporations, one of the first 10 biggest corporations, companies, coops of all over the world!companies, coops of all over the world!

► Swedish-Danish ARLA-Foods Cooperative was Swedish-Danish ARLA-Foods Cooperative was one of the first 10 biggest cooperatives of all one of the first 10 biggest cooperatives of all over the world!over the world!

► Swedish-Danish ARLA-Foods Cooperative Swedish-Danish ARLA-Foods Cooperative integrates into activities of NASA of USA!integrates into activities of NASA of USA!

► 2 or 3 Danish Cooperatives were of the first 2 or 3 Danish Cooperatives were of the first 10 biggest cooperatives of all over the world!10 biggest cooperatives of all over the world!


1111. Role of Co-operative Banks, . Role of Co-operative Banks, Credit Unions in Irish Development Credit Unions in Irish Development

PolicyPolicy ► The LEADER program financed partly by EU aims at promoting:The LEADER program financed partly by EU aims at promoting:► - economic activities of the rural areas based on implementation - economic activities of the rural areas based on implementation

of innovation projects. of innovation projects. ► - In LEADER II. program the low contribution of private sector to - In LEADER II. program the low contribution of private sector to

financing of projects was 41,4 percent, as amount of 75 million financing of projects was 41,4 percent, as amount of 75 million EURO. EURO.

► - The LEADER Plus program for 2000-2006. The FEOGA - The LEADER Plus program for 2000-2006. The FEOGA Guarantee Section of EU contributed to this program by 2020 Guarantee Section of EU contributed to this program by 2020 million EURO.million EURO.

► Activities of co-operative banks in LEADER programs (LEADER = Activities of co-operative banks in LEADER programs (LEADER = Links between Actions for the Development of Rural and Links between Actions for the Development of Rural and Economy) in European Union and Ireland have increased Economy) in European Union and Ireland have increased considerably. considerably.

► In EU the European Association of Co-operative Banks has 37 In EU the European Association of Co-operative Banks has 37 million members, also members of co-operative banks, including million members, also members of co-operative banks, including saving, credit co-operatives and credit unions. The co-operative saving, credit co-operatives and credit unions. The co-operative banks have 17 percent market share of total banking sector in banks have 17 percent market share of total banking sector in EU.EU.


12. Role of Marketing 12. Role of Marketing Cooperatives in EUCooperatives in EU

► The role of marketing cooperatives in The role of marketing cooperatives in sale and storingsale and storing of agricultural - food products by end of 1990s. of agricultural - food products by end of 1990s.

► In 1998 In 1998 shareshare of marketing cooperativesof marketing cooperatives was was ► - 70% of dairy product sale in - 70% of dairy product sale in GermanyGermany; ; ► - 100% of sugar-beet sale, 94% of dairy product for - 100% of sugar-beet sale, 94% of dairy product for

storing, 65% of storing capacity of dairy product in storing, 65% of storing capacity of dairy product in AustriaAustria; ;

► - 75% of olive oil sale and 70% of wine sale in - 75% of olive oil sale and 70% of wine sale in SpainSpain; ; 82% of dairy products sale in 82% of dairy products sale in PortugalPortugal. .

► The The share of marketing cooperativesshare of marketing cooperatives was was ► - 55% of wine products sale, 41% of fruits and 38% of - 55% of wine products sale, 41% of fruits and 38% of

dairy product sale in dairy product sale in ItalyItaly; ; ► - 55% of dairy product sale in - 55% of dairy product sale in U.KU.K.;.;► - 49% of dairy product sale, 52% of wine sale in - 49% of dairy product sale, 52% of wine sale in FranceFrance..


13. Role of Marketing 13. Role of Marketing Cooperatives in EUCooperatives in EU

► The market-share of co-operatives also was higher in field ofThe market-share of co-operatives also was higher in field of► butter, cheese and milk powder in EU (EC Dairy, 1985-96). butter, cheese and milk powder in EU (EC Dairy, 1985-96). ► There were several co-operatives among the largest dairy There were several co-operatives among the largest dairy

processing companies of the world in EU, for example earlier processing companies of the world in EU, for example earlier MD Foods in MD Foods in DenmarkDenmark, ARLA in , ARLA in SwedenSweden. There were Sodiaal . There were Sodiaal in in FranceFrance, and VALIO Ltd. in , and VALIO Ltd. in FinlandFinland..

► In In EUEU milk producers controlled 70% of milk-selling milk producers controlled 70% of milk-selling within co-operative, while in within co-operative, while in HungaryHungary it was less than it was less than 5% of processing.5% of processing. Processing has concentrated in Hungary, Processing has concentrated in Hungary, first largest four processing companies provided 38% in 1998 first largest four processing companies provided 38% in 1998 and 53% of processed milk in 1999. and 53% of processed milk in 1999.

► Vertical co-ordination makes easier to keep EU qualitative Vertical co-ordination makes easier to keep EU qualitative demands, and bargain position of processors became stronger demands, and bargain position of processors became stronger than producers, but than producers, but large chain stores’ one became large chain stores’ one became stronger than processors’ onestronger than processors’ one. Type of vertical co-. Type of vertical co-ordination inside a company is vertical integration, which can ordination inside a company is vertical integration, which can be basebe basedd on co-operative model, as in EU. on co-operative model, as in EU.


14. 14. THE ECONOMIC ROLE OF THE ECONOMIC ROLE OF COPA IN EUCOPA IN EU

The COPA (Committee of Agricultural Organisations) first The COPA (Committee of Agricultural Organisations) first started out:started out:

► - 13 organisations in EU,- 13 organisations in EU,► - today 29 organisations in EU,- today 29 organisations in EU,► - represent both general and specific interests of farmers,- represent both general and specific interests of farmers,► - COPA was recognised by EU authorities for agriculture.- COPA was recognised by EU authorities for agriculture.► Representative of farmers is COPA attending 1958 Stresa Representative of farmers is COPA attending 1958 Stresa

Conference.Conference.► Farmers have their organisation, COPA in 1958. Farmers have their organisation, COPA in 1958. ► Then in 1959, the agricultural co-operatives of EU created Then in 1959, the agricultural co-operatives of EU created

organisation representing their interests by name of organisation representing their interests by name of COGECA (General Committee for Agricultural Co-COGECA (General Committee for Agricultural Co-operation). COPA’s Secretariat was established in Brussels operation). COPA’s Secretariat was established in Brussels in 1959 and it merged with that of COGECA in 1962.in 1959 and it merged with that of COGECA in 1962.


15. 15. THE ECONOMIC ROLE OF THE ECONOMIC ROLE OF COCOPPA IN EUA IN EU

► COPA has main aims: COPA has main aims: ► - to examine matters related to the development of - to examine matters related to the development of EU’EU’s agricultural policy; s agricultural policy; ► - to represent the interests of agricultural sector as a whole; - to represent the interests of agricultural sector as a whole; ► - to seek solutions which are of common interest, and - to seek solutions which are of common interest, and ► - to maintain relations with - to maintain relations with EUEU authorities and with any other representative authorities and with any other representative

organisations or social partner established at European level. organisations or social partner established at European level.

► COPA is advisory organisaCOPA is advisory organisattion haion havingving decision making and representative decision making and representative process based on the well skilled manager-staff. process based on the well skilled manager-staff.

► WWell built network of COPA working structure ell built network of COPA working structure byby three basic elements: three basic elements: ► 1 - 1 - to enable representatives of to enable representatives of EUEU from agricultural production from agricultural production an and areas to d areas to

discuss discuss ► mattersmatters to suggest solutions to the problems posed; to suggest solutions to the problems posed; ► 2 - 2 - to co-ordinate work in the agriculture, agricultural policy and policy in to co-ordinate work in the agriculture, agricultural policy and policy in

general; general; ► 3 - 3 - to represent all sectors and areas together. to represent all sectors and areas together.

► FFollowing structures: ollowing structures: Assembly Assembly consisting of representatives delegated by the consisting of representatives delegated by the member organisations; member organisations; Praesidium Praesidium consisting of one representative per consisting of one representative per member organisation.member organisation.


16. 16. THE ECONOMIC ROLE OF THE ECONOMIC ROLE OF COCOPPA IN EUA IN EU

► RRepresentativesepresentatives take part in Praesidium meetings: the President take part in Praesidium meetings: the President of COGECA, the President of CEJA (European Council of Young of COGECA, the President of CEJA (European Council of Young Farmers), the Chairman of the COPA Women's Committee, and Farmers), the Chairman of the COPA Women's Committee, and the Chairman of COPA’s General Experts Group. the Chairman of COPA’s General Experts Group.

► RRepresentepresents ofs of COPA to take decisions within the general COPA to take decisions within the general guidelines laid down by the Assembly. Positions of the Praesidium guidelines laid down by the Assembly. Positions of the Praesidium are taken jointly with COGECA.are taken jointly with COGECA.

► OOrganisations rganisations of of COPE, like COPE, like Presidency, Group of General Presidency, Group of General Experts. Experts. Also Also Working Parties and Specialist Sections Working Parties and Specialist Sections are are working. COPA has more than 50 Working Parties, sub-Groups working. COPA has more than 50 Working Parties, sub-Groups and Specialist Sections, either from specific commodity sectors or and Specialist Sections, either from specific commodity sectors or for general questions (structural, social, environmental etc.).for general questions (structural, social, environmental etc.).

► CCOPA contacts withOPA contacts with thethe European Institutions European Institutions, as , as Commission Commission that drafts proposals; that drafts proposals; for for submittsubmittinging to the Council for adoption to the Council for adoption or toor to European Parliament, the Economic and Social Committee European Parliament, the Economic and Social Committee and the Committee of the Regions for their opinions. and the Committee of the Regions for their opinions.


17. 17. THE ECONOMIC ROLE OF THE ECONOMIC ROLE OF COCOGECGECA IN EUA IN EU

1. COGECA’s representatives1. COGECA’s representatives► Important agricultural co-operatives currently are for Important agricultural co-operatives currently are for

agriculture, the supply and marketing area and food agriculture, the supply and marketing area and food industry of EU, which is illustrated by the end of industry of EU, which is illustrated by the end of 2000:2000:

► About 30 000 co-operative enterprisesAbout 30 000 co-operative enterprises► Almost 9 million membersAlmost 9 million members► Over 600 000 persons employedOver 600 000 persons employed► About 210 billion EURO turnoverAbout 210 billion EURO turnover► Over 50% of shares in the supply of agricultural inputsOver 50% of shares in the supply of agricultural inputs► Over 60% of shares in the collection, processing and Over 60% of shares in the collection, processing and

marketing of agricultural products.marketing of agricultural products.► Secretariat presents economic and social Secretariat presents economic and social

developments of agricultural co-operatives in EU.developments of agricultural co-operatives in EU.



2. COGECA as the lobby of agricultural cooperatives2. COGECA as the lobby of agricultural cooperatives► Recognised representative body of all agricultural and fishery Recognised representative body of all agricultural and fishery

co-operativesco-operatives in the EU, COGECA represents their general and in the EU, COGECA represents their general and specific interests vis-a-vis the Community authorities: European specific interests vis-a-vis the Community authorities: European Commission, Council of Ministers, European Parliament, Commission, Council of Ministers, European Parliament, Economic and Social Committee, Committee of the Regions.Economic and Social Committee, Committee of the Regions.

► COGECA takes part in all Community policies, to set out COGECA takes part in all Community policies, to set out framework for co-operatives integrating to multifunctional framework for co-operatives integrating to multifunctional European Model of Agriculture and increasing farm income European Model of Agriculture and increasing farm income from market.from market.

► CAP and its market organisations for commodity sectors have CAP and its market organisations for commodity sectors have been one of the European key policies. Its integration meeting been one of the European key policies. Its integration meeting demands of society in areas as demands of society in areas as

► - environmental - consumer protection, product quality, animal - environmental - consumer protection, product quality, animal welfare,welfare,

► - food chain, guarantee competitiveness of cooperative of - food chain, guarantee competitiveness of cooperative of farmer.farmer.



3. COGECA as a platform for inter-cooperative relationship3. COGECA as a platform for inter-cooperative relationship► - representing political interests vis-a-vis the Community - representing political interests vis-a-vis the Community

authorities,authorities,► - COGECA promotes relations between co-operatives across - COGECA promotes relations between co-operatives across

borders. Offer an intense exchange of information, experience borders. Offer an intense exchange of information, experience and opinions to the co-operative business representatives. and opinions to the co-operative business representatives.

Some other important activities were:Some other important activities were:► The drawing up of a list of co-operatives active in import and The drawing up of a list of co-operatives active in import and

export.export.► The recording of the 500 co-operatives with the highest turnover,The recording of the 500 co-operatives with the highest turnover,► A symposium on the importance of a single currency for the A symposium on the importance of a single currency for the

trade with goods in the agri-food sector.trade with goods in the agri-food sector.► Comparative studies onComparative studies on: -: - Taxation of co-operatives, Taxation of co-operatives,► - - Position of co-operatives in national competition law,Position of co-operatives in national competition law,► - - Co-operative training systems,Co-operative training systems,► - - Intel-nationalisation of agricultural co-operatives. Intel-nationalisation of agricultural co-operatives.


20. Co-operatives 20. Co-operatives Strengthen Aims of the CAPStrengthen Aims of the CAP ►1.a. The agricultural co-operatives 1.a. The agricultural co-operatives

support the objectives of the CAPsupport the objectives of the CAP►1.b. Role of the co-operatives to 1.b. Role of the co-operatives to

strengthen level of quality and food safetystrengthen level of quality and food safety►1.c. Importance of co-operatives in 1.c. Importance of co-operatives in

development of rural areas in fields of development of rural areas in fields of economic and social lifeeconomic and social life

►1.d. 1.d. The agricultural co-operatives The agricultural co-operatives provide value added to agricultural provide value added to agricultural productsproducts


21. CONCLUSIONS21. CONCLUSIONS► 1. The 1. The bargain positions should be strengthenedbargain positions should be strengthened

for cooperatives within large scale sfor cooperatives within large scale selelling and storing,ling and storing,► - e- each farmer does not enough capital capacity to ach farmer does not enough capital capacity to

realise concentration in production, manufacturing realise concentration in production, manufacturing and selling. and selling.

► 2. General issue is the 2. General issue is the market informationmarket information is not is not adequate, which is resulted by lack of market-analysis adequate, which is resulted by lack of market-analysis and statistical indications. and statistical indications.

► 3. Recently there was a 3. Recently there was a significant concentrationsignificant concentration in processing of main agricultural and food products in processing of main agricultural and food products in EU.in EU.

► 4. 4. CCooperatives could extent the infrastructure-ooperatives could extent the infrastructure-background for food and agricultural basic production background for food and agricultural basic production for farmers and manufacturing.for farmers and manufacturing.

► 5. The importance of qualitative development5. The importance of qualitative development..


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Organizational system and representing economic and social interest (cooperatives )

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