Agricultural cooperation as protection of landowners against market aggression

In article there is a speech that cooperation was historically created as an organic component of market economy. The Law where the list and the content of constitutional provisions of cooperative are provided is specified.

Emergence of cooperation in its modern understanding connect with formation of the capitalist relations, approach of industrial revolution

Emergence of cooperation in its modern understanding connect with formation of the capitalist relations, approach of industrial revolution. These phenomena caused growth of aggression of the market environment in connection with emergence and a competition aggravation.

In such conditions agricultural producers are compelled to look for ways of rescue and self-defense from negative aspects of market pressure by joint activities for many directions of managing.

Thus, cooperation was historically created as an organic component of market economy which allows small producers to function effectively in difficult conditions.

On the other hand, modern experience testifies that cooperation carries out not only anti-recessionary functions, but also is of great importance at normal functioning of market economy. In it the urgency of development of cooperation also consists in agro-industrial complex of Ukraine, as important direction of formation of the market relations in agrarian sector of economy.

The Ukrainian agrarian economy for the last 15 years endured considerable stresses. Crushing of land tenure, a production melkotovarnost, increase in aggression of the market environment because of a competition aggravation on the one hand and reduction of the income of small producers - with another, absence of access to the markets, dependence on the markets are those conditions which point to need of development of agricultural serving cooperatives.

Such cooperatives are a new form of the economic organization for modern landowners. As a whole, the agricultural serving cooperative is a non-profitable type of the enterprise which belongs to agricultural producers and copes them on democratic principles. The cooperative purpose not receiving profit, and increase in profitability of farms, his members by granting necessary services by it.

Activities of cooperatives as a whole can be reduced to granting services, the services connected with production, processing and sale of production of agricultural production, forestry and fish breeding.

Results of questioning testify that initial needs of landowners the standard. At the moment of cooperative creation peasants – individualists feel the greatest need for plowing and cultivation of kitchen gardens, providing with chemical protection of plants, veterinary service of KRS, providing with breeding young growth. Besides, the population has a need for the solution of social problems and cultural leisure.

Integration in the form of different types of agricultural serving cooperatives is economically convenient also to ultimate consumers as assists decrease in consumer prices in the domestic market of products and services of agroindustrial production.

Development of agricultural serving cooperatives as non-profitable organizations is caused in the Presidential decree of Ukraine from December 03, 1999 of No. 1529.

According to the presidential decree of Ukraine from August 08, 2002 of No. 694 about measures for acceleration of development of the agrarian market, the Cabinet council of Ukraine for No. 1858 approved on December 12, 2002 actions for development of agricultural serving cooperatives for 2003-2004.

However agricultural cooperation process in Ukraine goes quite slowly. Among problems of development of a network of serving cooperatives it is necessary to allocate legislative, organizational and economic.

Creation and functioning of agricultural cooperatives in Ukraine is regulated by the Law About agricultural cooperation (from July 17 1997g.) and the Law About cooperation (from July 27, 2003). However the first law actually isn’t brought into accord with the current legislation as it is uncoordinated to the Law of Ukraine About cooperation which became base for all types and cooperation forms in Ukraine. (The law of Ukraine About cooperation has advantage over the Law About agricultural cooperation as article 41Zaklyuchitelnyx of provisions of the Law About cooperation provides reduction in compliance with it all legislative and normative legal acts). Thus, the considerable part of provisions of the Law About agricultural cooperation demands essential specifications and additions.

 The law About cooperation solves questions which weren’t solved by the Law About agricultural cooperation (in the law About cooperation the list and the content of constitutional provisions of cooperative) is expanded. But also this law also demands improvement of a number of provisions.

First of all it is necessary to define accurately legal status of agricultural serving cooperatives. Because of uncertainty of their status it is impossible to solve the tax matter. In practice paradoxes take place: one cooperative is registered as profitable, by another – as non-profitable.

Concerning organizational problems it is necessary to note that the initiative of creation of cooperatives should proceed from people. It is necessary for citizens to explain, in what the essence of serving cooperatives, principles of their functioning consists. Imposing won’t give to peasants of cooperation due results.

Among economic problems it is necessary to allocate dictatorship of the prices of intermediaries both for material resources for peasants, and on agricultural products which agricultural producers realize of.

One of ways of development of a network of agricultural serving cooperatives can consider creation of the state comprehensive program of development of cooperation. In it the corresponding incentives not only for serving cooperation, but also for all cooperative movement should be provided. Only this way it is possible to reach optimum option: initiatives of agricultural producers from below and state support from above.

Cooperation can’t exist out of the market, in turn and the market system of managing is incapable to function effectively if it doesn’t contain cooperative mechanisms of self-defense and self-defense of producers in cruel competitive fight.

Now, when Ukraine is going to access to WTO, process of agricultural cooperation has a special urgency of small and medium-sized agricultural enterprises, farmer and personal country farms.

V. Tyshkevich, deputy minister of an agrarian policy of the Autonomous Republic Crimea.