The swot analysis of romanian agricultural cooperatives

Authors:
Florentin Bercu

Volume 21, Issue 2;
Pages: 196-201; 2015
ISSN: 2069-0053 (print) (former ISSN: 1453-1399), Agroprint;
ISSN (online): 2068-9551
Abstract:
This paper elaborates the SWOT analysis of Romanian agricultural cooperatives and modern societies of agricultural cooperatives in order to establish a clear picture of their activities and to formulate future strategies for the developement of cooperatives from the agricultural sector. The study was conducted at the level of 286 agricultural cooperatives from Romania, with the support of the National Trade Register Office and the Ministry of Agriculture and Rural Development. The strengths of agricultural cooperatives in Romania are represented by their specific strong points in gathering cooperative members, merging small areas and wtih an age between 21-30(13%), 31-40(36%) and 41-50 years ( 31%). Weaknesses are reprezented by activities in which agricultural cooperatives are deficient, respectively insufficient storage capacitiesc for primary products, processing activities that represent only 3.1% and marketing activities (10.7%), lack of financial support aimed to this area and lack managerial and entrepreneurial skills of cooperatives leaders. Threats are considered the insufficiency to ensure the necessary framework for cooperative members in order to obtain economic benefits and maintain high prices and / or uncontrolled growth of food prices due to its monopoly on the shelves of major hypermarket chains, compared to the price offered to producers at purchase. The main reasons why cooperatives don’t work as well as the ones from the old memeber states: the idea of cooperation/association is misunderstood, internal struggles for leadership, flat tax that appeared in 2010, lack of help at inception, low social capital, lack of turnover fund for investment, difficulty in selling the products and lack of legislative framework aligned to the current CAP rules
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