THE NEED AND OPPORTUNITY OF PROMOTING INVESTMENTS BY SMALL FARMERS THROUGH AGRICULTURAL COOPERATIVES

Abstract

The market economy generates a tough competition between agricultural producers. Individual farmers with small and medium-sized farms are in an unfavourable position on the agricultural market because they currently produce very low yields, have a reduced investment capacity, and poor access to outlets. The cooperation of agricultural producers represents a measure with an important role in improving the competitiveness of farmers organized as cooperatives, because it allows access to markets and to information to better know the market conditions, thus influencing demand and supply in different segments of agriculture. In this paper, the authors present the possibility of consolidating and restructuring small and medium-sized farms through association, to benefit from such financial support, through cooperatives, through the Agricultural Policy of the European Union.