Critical factors for the success of the agricultural cooperatives

Abstract

Agricultural cooperatives face numerous challenges and changes, their existence being influenced by their ability to adapt to resource scarcity, market instability and the need for continuous development. Based on the review of the specialized literature, the present paper aims to highlight the main driving forces behind the performance of cooperatives in agriculture. The findings indicate that the success of the agricultural cooperative are dependent not only on the economic environment, but also on the social context in which the cooperative operates. Two main categories of success factors were identified: external factors, such as government policy, the marketing system, external assistance, the legal framework; and internal factors, related to managerial skills, governance and the motivation for establishing the cooperative. The degrees of importance of these critical succes factors are determined by the level of development of the cooperative system.