Research Reports
Cooperatives' roles and its strategies for vitalizing regional agriculture
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AuthorKim, Jongsun
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Publication Date2013.12.30
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Original
Background of Research
This study is designed to identify roles of emerging cooperatives in the agriculture sector and to suggest strategies for development of new cooperatives for the purpose of vitalizing regional agriculture. Since the new cooperatives law which allows any organization with at least 5 members to establish cooperatives was introduced in December 2012, many new cooperatives have emerged in the various industrial sectors including the agricultural sector. Therefore it is important to identify roles of emerging agricultural cooperatives for revitalizing regional agriculture and to establish the relationships among the existing and emerging agricultural cooperatives and rural governments.
Method of Research
A mail survey was designed to analyze the farmers’ intention of establishing agricultural cooperatives. For the mail survey, 1,500 farmers were selected and 559 responded. Also, a case study was conducted to identify the purpose and motive for the establishment of cooperatives in the agricultural sector. For the case study, 20 new agricultural cooperatives and 4 local governments were interviewed as well as existing agricultural cooperatives in rural area. It was investigated through the case study that what the new cooperatives are doing within the regional agricultural environment and agricultural policies and how existing cooperatives and local governments are responding to emerging new cooperatives.
Research Results and Implications
According to the mail survey, farmers tend to rely on existing agricultural cooperatives when they especially sale agricultural products. However, they are appeared not to be satisfied with the role of existing agricultural cooperatives in joint use of farming facilities such as farming machines. Majority of farmers seem to have intention to build up cooperatives, which is not specific but very simple intention.
As a result of the case study, 3 types of new agricultural cooperatives are identified. In the case of type A, new members who do not take part in other similar organization establish cooperatives in order to set up new business such as marketing or direct sales. In the case of type B, familiar members who are participating in the same organization establish cooperatives in order to set up new business. In the case of type D, intimate members who are participating in the same organization establish new cooperatives in order to extend current business. In the case of cooperatives setting up new business, they seem to be challenged from other competitors in the same market.
Newly emerging agricultural cooperatives need to play key roles in solving current problems concerning the regional agriculture such as deficiency in farm hands, difficulties of farm products marketing, and increasing burden of farming costs. They also need to play role as a cooperative partnership and joint working with existing agricultural cooperatives and local governments.
For the successful settlement of new cooperatives, they should put, first of all, self-help efforts into setting comprehensive and specific business plan by different types of cooperatives, building trust among members, and targeting a niche market to survive. Second, local governments need to support new cooperatives by educating, consulting, incubating them in accordance with regional agricultural policies such as local food policy. Third, it needs to formulate models of successful cooperatives which are co-working with existing cooperatives such as cooperative production organizations and village-based business organizations.
Researchers: Jong-Sun Kim, Jeong-Ho Kim, Moon-Ho Park,
Chang-Ho Kim
Research Period: 2013. 1 ～ 2013. 12
E-mail address: sun589@krei.re.kr
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