In article rise rather actual problem of cooperation of farms of the Crimea, positive experiment of the countries of European Union in this sphere is shown.
Cooperation – a way to strengthening of the Crimean agricultural industry
Owners small and owners of personal part-time farms face in the Crimea a problem, characteristic for any small enterprise – to buy expendables at retail price, and to sell made production on the wholesale. Profitability of each separately taken crop from it decreases, decreases total income. Besides, the choice of the supplier of expendables is limited that limits also possibility of agricultural producers to get them at the price favorable to them. Moreover, farms often unable to divide the production on a rating, and it compels them to trade informally – at the house, at the road or in the vegetable markets in not sorted production at the price of lower, than take at sale of its enterprise of home shopping service.
This problem usually is solved by creation of cooperatives or as them more often call now, the farmer enterprises. Having created and having registered cooperative (according to the law No. 1087-IV from 10.07.2003) his members receive more market power in procurement process of expendables, can market in common production and to appoint higher prices a way of sales in large volumes (in particular if production is divided on a rating). The cooperative also can invest in the equipment for cooling, construction of warehouse or production processing that to each farmer not on forces. Thus, the cooperative can appoint higher price and add cost to the processed raw materials. Members of cooperative also can make the decision on joint processing of the earth that can be useful in those areas where the land lots are small. In a similar case it would be expedient to invest in the irrigational equipment.
Agricultural cooperatives are widespread in member countries of European Union. According to COGECA data – the organizations which represents all agricultural and fishing cooperatives in EU – in member countries of European Union about 30 000 cooperative enterprises which members are 9 million people are. In cooperatives 600 000 hired workers work, and commodity turnover makes 210 billion euro. Cooperatives deliver more than 50 % of agricultural expendables on the market and collect, overwork and sell more than 60 % from agricultural products total.
In favor of cooperation in the Crimea it is possible to give many arguments. Development of farming is already limited to the small size of the land lots and the moratorium on agricultural appointment sale of land. Also it is an insuperable barrier to commercialization of agricultural industry: the land lots can’t be united, so and to give the chance to be created to the viable, close located farms. Besides, it is much heavier to agricultural producers to obtain the credit as it is impossible to pawn the earth. Therefore, it is necessary for them to look for ways of increase in profitability from every crop, to develop cost of the production and, as a whole, to increase the income of a farm. Such possibility, cooperation represents to them.
The development program and integration of the Crimea (PRIK) gives serious support to the Crimean farming in formation of cooperatives in five regions of the Autonomous Republic Crimea. PRIK became a part of the Development program the accepted United Nations (PROON), and component financing on development of cooperatives which provides the stage-by-stage help to beginning cooperatives, is carried out by the governments of Sweden and Switzerland. Work in the sphere of development of cooperatives includes carrying out the public presentations devoted to benefits of cooperation, assistance to formation of initiative groups which advance idea of cooperation, the help to such groups in area definition in which the cooperative, specification of this idea, support in process of creation of the business plan and preparation of charters for registration will work.
In separate cooperatives their members have a certain experience of collaboration and at present pass to registration. 30 initiative groups are at present created and 6 cooperatives are registered.
At formation of cooperatives the special attention was given to an approach from below up when members of initiative groups estimate possibilities of the most successful cooperation with support and consultation of PRIK which is provided in case of need. This moment is very important, as cooperatives are business structures and should have support of the members which make in them a contribution, and, as a result, assume the risk connected with this enterprise. In other words, cooperatives can’t be "created", they should grow from understanding potential members of a positive effect from cooperation and formalization of the contract on collaboration by registration and the beginning of work of such enterprise.
Supporting cooperatives, PRIK, except other, finances process of granting to potential cooperative of two consultations provided by agricultural information advice centers (IKTs) of the Crimean agrarian university (YuF KATU NAU) or the Agromarketing project and also the centers of assistance to business development (created PRIK in target areas) which offer package training on development of the business plan. During the consultation provided by IKTs, questions of possibility of technical realization of actions which the cooperative plans to carry out are discussed. Such consultations before carrying out training on business planning guarantee, that business the plan won’t be created under technically impracticable concept. The leading role in process of creation of the business plan is assumed by the Center of assistance to business development, however process intentionally is under construction on direct participation – members of initiative groups are trained in how to create the business plan before process of its writing will begin. It means that members of initiative groups (and further and members of cooperative) feel participation in process of creation it. As a result there are more chances that the business plan will be realizable and realistic.
Formed cooperatives get support and consultations (which sometimes should be paid by cooperative) at a formation stage that they didn’t break up and became the successful commercial enterprises. They also receive the help from the Centers of assistance to business development when the decision on change of sphere of action is made. So, for example, those cooperatives which plan to reach today an advance in price at the expense of installation of the centers for collecting and milk cooling, can make in the future the decision on processing of milk and production of cheese or other dairy products.
Apparently, new cooperative movement has high potential in the Crimea. And even in spite of the fact that the current treatment of the tax legislation concerning cooperatives conducts to double taxation. The law of Ukraine About a tax on the income of individuals No. 889-IV from 22.05.2003g (with changes as of 19.10.05) provided not collection of a tax from population farms for production made and sold by them. Also, the law About cooperation 2004, article 23 Economic bases of activity of cooperatives provides possibility of registration of agricultural serving cooperatives as non-profitable which purpose is obtaining the income by members of cooperative. However, regional public tax administrations try to give to such cooperatives the status of the profitable organizations. Such treatment contradicts the law on cooperation, and the matter demands permission. If to cooperative movement it is fated to be supported - it is absolutely necessary for healthy development of agricultural industry in the Crimea.
N MEDDOK, regional coordinator of PRIK PROON and Lake OSAULYUK, expert in development of agricultural industry and PROON’S PRIK cooperatives.