IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v11y2021i11p1071-d669035.html
   My bibliography  Save this article

Profile of the Small-Scale Farms Willing to Cooperate—Evidence from Lithuania

Author

Listed:
  • Jolanta Droždz

    (Faculty of Economics and Business Administration, Vilnius University, 10222 Vilnius, Lithuania)

  • Vlada Vitunskienė

    (Faculty of Bioeconomy Development, Vytautas Magnus University, 44248 Kaunas, Lithuania)

  • Lina Novickytė

    (Government Strategic Analysis Center, 01108 Vilnius, Lithuania)

Abstract

Cooperatives cover a large part of the agricultural sectors and have substantial market shares in agri-food supply chains in the EU Western countries. They account for approximately half of agricultural trade in the EU. By contrast, in the EU Western countries, where farmer cooperatives are widespread and successful, agricultural cooperation in Lithuania has developed intermittently in the last century. We still have very limited knowledge of why the country’s agricultural producers (especially smallholder farmers) are reluctant to cooperate in Lithuania. The aim of this study is to assess the level of the willingness to cooperate among smallholder farmers in Lithuania and to draw up the profiles of small-scale farms that participate in and intend to join cooperatives and, conversely, that do not participate in cooperatives and do not intend to do so. To achieve this goal, a representative survey of small-scale farms was conducted. Results of surveys carried out in 2019 in Lithuania on a group of 1002 small-scale farms showed that only 8% of the surveyed farms participate in producer groups or cooperatives, while another 8% intend to participate. Small-scale farms in Lithuania have weak market integration, with no bargaining power on input and output markets. The vast majority of small-scale farms are reluctant to participate in cooperative activities in Lithuania. Therefore, this study aimed to determine the profile of a small farm that tends to cooperate. The main social characteristics of farm managers and economic factors of farms willing to cooperate have been identified.

Suggested Citation

  • Jolanta Droždz & Vlada Vitunskienė & Lina Novickytė, 2021. "Profile of the Small-Scale Farms Willing to Cooperate—Evidence from Lithuania," Agriculture, MDPI, vol. 11(11), pages 1-21, October.
  • Handle: RePEc:gam:jagris:v:11:y:2021:i:11:p:1071-:d:669035
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/11/11/1071/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2077-0472/11/11/1071/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ozgul Calicioglu & Alessandro Flammini & Stefania Bracco & Lorenzo Bellù & Ralph Sims, 2019. "The Future Challenges of Food and Agriculture: An Integrated Analysis of Trends and Solutions," Sustainability, MDPI, vol. 11(1), pages 1-21, January.
    2. Mateus de Carvalho Reis Neves & Felipe de Figueiredo Silva & Carlos Otávio de Freitas & Marcelo José Braga, 2021. "The Role of Cooperatives in Brazilian Agricultural Production," Agriculture, MDPI, vol. 11(10), pages 1-15, September.
    3. Juliana Lutz & Barbara Smetschka & Nelson Grima, 2017. "Farmer Cooperation as a Means for Creating Local Food Systems—Potentials and Challenges," Sustainability, MDPI, vol. 9(6), pages 1-16, June.
    4. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    5. John M. Crespi & Tina L. Saitone & Richard J. Sexton, 2012. "Competition in U.S. Farm Product Markets: Do Long-Run Incentives Trump Short-Run Market Power?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(4), pages 669-695.
    6. Shyhrete Muriqi & Maria Fekete-Farkas & Zsolt Baranyai, 2019. "Drivers of Cooperation Activity in Kosovo’s Agriculture," Agriculture, MDPI, vol. 9(5), pages 1-12, May.
    7. Klepacki, Bogdan & Krajewski, Jakub, 2015. "Wykorzystanie Środków Pomocowych Unii Europejskiej W Rozwoju Infrastruktury Logistycznej Grup Producenckich W Ogrodnictwie," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2015(5), October.
    8. Bina Agarwal & Bruno Dorin, 2019. "Group farming in France: Why do some regions have more cooperative ventures than others?," Environment and Planning A, , vol. 51(3), pages 781-804, May.
    9. Balezentis, Tomas & Ribasauskiene, Erika & Morkunas, Mangirdas & Volkov, Artiom & Streimikiene, Dalia & Toma, Pierluigi, 2020. "Young farmers’ support under the Common Agricultural Policy and sustainability of rural regions: Evidence from Lithuania," Land Use Policy, Elsevier, vol. 94(C).
    10. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    11. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    12. Zakić, Nebojša & Vukotić, Svetlana & Cvijanović, Drago, 2014. "Organisational Models In Agriculture With Special Reference To Small Farmers," Economics of Agriculture, Institute of Agricultural Economics, vol. 61(1), pages 1-13, March.
    13. Zsuzsanna Kispál-Vitai & Yann Regnard & Klara Kövesi & Claude-André Guillotte, 2019. "Cooperative case studies from three countries: Is membership a problem or a solution in the 21st century?," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(4), pages 467-485, December.
    14. Michał Borychowski & Sebastian Stępień & Jan Polcyn & Aleksandra Tošović-Stevanović & Dragan Ćalović & Goran Lalić & Milena Žuža, 2020. "Socio-Economic Determinants of Small Family Farms’ Resilience in Selected Central and Eastern European Countries," Sustainability, MDPI, vol. 12(24), pages 1-30, December.
    15. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    16. Jeanneaux, Phillipe & Capitaine, Mathieu & Mauclair, Anais, 2018. "PerfCuma: A framework to manage the sustainable development of small cooperatives," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 7(1), July.
    17. Judith Möllers & Diana Traikova & Brînduşa Ana-Maria Bîrhală & Axel Wolz, 2018. "Why (not) cooperate? A cognitive model of farmers’ intention to join producer groups in Romania," Post-Communist Economies, Taylor & Francis Journals, vol. 30(1), pages 56-77, January.
    18. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    19. David L. Ortega & Aniseh S. Bro & Daniel C. Clay & Maria Claudia Lopez & Espoir Tuyisenge & Ruth Ann Church & Alfred R. Bizoza, 2019. "Cooperative membership and coffee productivity in Rwanda’s specialty coffee sector," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 967-979, August.
    20. Bazyli Czyżewski & Agnieszka Sapa & Piotr Kułyk, 2021. "Human Capital and Eco-Contractual Governance in Small Farms in Poland: Simultaneous Confirmatory Factor Analysis with Ordinal Variables," Agriculture, MDPI, vol. 11(1), pages 1-16, January.
    21. Murray Fulton & Konstantinos Giannakas, 2013. "The Future of Agricultural Cooperatives," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 61-91, June.
    22. Edward Martey & Prince Etwire & Alexander Wiredu & Wilson Dogbe, 2014. "Factors influencing willingness to participate in multi-stakeholder platform by smallholder farmers in Northern Ghana: implication for research and development," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-15, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    2. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    3. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    4. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    5. Yuanyuan Peng & H. Holly Wang & Yueshu Zhou, 2022. "Can cooperatives help commercial farms to access credit in China? Evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 325-349, December.
    6. Junying Lin & Zhonggen Zhang & Ziming Liu & Jens Rommel, 2020. "The impact of cooperatives’ transportation services on farm income: Evidence from tobacco farmers in Guizhou, China," Agribusiness, John Wiley & Sons, Ltd., vol. 36(1), pages 146-158, January.
    7. Maurice Kesonga Nsele & Jules Nkulu Mwine Fyama & Kevin Maréchal & Thomas Dogot, 2022. "Factors Influencing the Sustained Adoption of Innovative Techniques by Urban Farmers in Lubumbashi, Democratic Republic of Congo," Agriculture, MDPI, vol. 12(8), pages 1-19, August.
    8. Samal Kaliyeva & Francisco Jose Areal & Yiorgos Gadanakis, 2020. "Attitudes of Kazakh Rural Households towards Joining and Creating Cooperatives," Agriculture, MDPI, vol. 10(11), pages 1-20, November.
    9. Jan Polcyn, 2021. "Eco-Efficiency and Human Capital Efficiency: Example of Small- and Medium-Sized Family Farms in Selected European Countries," Sustainability, MDPI, vol. 13(12), pages 1-15, June.
    10. Dennis Etemesi Olumeh & Dagmar Mithöfer, 2024. "Impact of collective action on household welfare: Empirical evidence from baobab collectors in Malawi," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 385-411, June.
    11. Hongyun Zheng & Puneet Vatsa & Wanglin Ma & Dil Bahadur Rahut, 2023. "Does agricultural cooperative membership influence off‐farm work decisions of farm couples?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 831-855, September.
    12. Baeuml, Theresa & Möllers, Judith & Dufhues, Thomas & Wolz, Axel & Traikova, Diana, 2021. "What Motivates Commercial Small-Scale Farmers to Collaborate? Modelling the Intention to Join a Producer Organisation," 2021 Conference, August 17-31, 2021, Virtual 315034, International Association of Agricultural Economists.
    13. Liu, Y., 2018. "Determinants and impacts of marketing channel choice among cooperatives members: Evidence from agricultural cooperative in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275898, International Association of Agricultural Economists.
    14. Katherine S. Nelson & Tuan D. Nguyen & Jean R. Francois & Shreya Ojha, 2023. "Rural sustainability methods, drivers, and outcomes: A systematic review," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1226-1249, June.
    15. Yi Qu & Jing Zhang & Zhenning Wang & Xinning Ma & Guangcheng Wei & Xiangzhi Kong, 2023. "The Future of Agriculture: Obstacles and Improvement Measures for Chinese Cooperatives to Achieve Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    16. Fang Wu & Xibao Guo & Xia Guo, 2023. "Cooperative membership and new technology adoption of family farms: Evidence from China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 719-739, September.
    17. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    18. Rui Chen & Nawab Khan & Shemei Zhang, 2022. "Policy Evaluation of Demonstration Cooperative Construction: Evidence from Sichuan Province, China," IJERPH, MDPI, vol. 19(19), pages 1-22, September.
    19. Bazyli Czyżewski & Agnieszka Sapa & Piotr Kułyk, 2021. "Human Capital and Eco-Contractual Governance in Small Farms in Poland: Simultaneous Confirmatory Factor Analysis with Ordinal Variables," Agriculture, MDPI, vol. 11(1), pages 1-16, January.
    20. Theo Benos & Nikos Kalogeras & Martin Wetzels & Ko De Ruyter & Joost M. E. Pennings, 2018. "Harnessing a ‘Currency Matrix’ for Performance Measurement in Cooperatives: A Multi-Phased Study," Sustainability, MDPI, vol. 10(12), pages 1-38, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:11:y:2021:i:11:p:1071-:d:669035. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.