Cooperative models in the agricultural sector

Increased concentration in agricultural market has spurred recently controversial debates regarding the potential opportunities and adverse effects stemming from the way that market power along the value chain is balanced and distributed. Cooperatives in the Eastern European countries are still underestimated in terms of their economic potential and ability to accumulate certain social benefits, while the coopeartive model in the Western European countries remains one of the most solid and successful organizational forms in the sector. Therefore, the present work is focused on bridging the gap between the economic reality and the institutional prescripts concerning support and development of cooperative movement in the European agricultural sector. The imposed decision that only institutional framework is sufficiently enough to provide incentives and background for stable cooperative organizations proved to be misleading. Indisputably purposeful legal basis is a necessary pre-condition, but beyond these formally established rules to follow, remains the notion for self-initiative,responsibility and social commitment of the local community.