The resilience of agricultural cooperatives in the COVID-19 pandemic time. evidence from Romania

ABSTRACT

Although the role of agricultural cooperatives in supporting farmers to improve their positioning in the value chain is recognized, in Romania only 1% are members in associative structures, the cooperative system being quite poorly developed. However, despite the sudden onset and magnitude of the pandemic shock, many agricultural cooperatives have managed to adapt and mitigate the effects on their members, as evidenced by the analysis by counties, regions and nationwide of the evolution of some indicators of their economic activity, for the last 3 years with submitted balance sheets (2018-2020). In most regions, the reported total net profits were higher than the losses recorded, with a significant role being played mainly by second-tier cooperatives, which were better integrated into the agri-food system and, as a result, more resilient. By development regions, it was found that the most profitable cooperatives were located in the Nord-Vest and Sud-Muntenia regions. The highest average turnover was noticed in the Sud-Est and Nord-Vest. The areas of activity with the highest average turnover values were poultry raising;wholesale trade in meat and meat products;wholesale trade in fruit and vegetables;processing and preserving fruit and vegetables;growing cereals (except for rice), leguminous crops and oilseeds;wholesale of live animals;wholesale trade in dairy products, eggs and edible oils and fats;growing bush fruits, strawberries and nuts. The large number of agricultural cooperatives established in 2021 (737, compared to those recorded throughout the period 2005-2020, 1749) shows that farmers have begun to believe in the benefits of the cooperative system and consider that by association they are better protected from the shocks they have to deal with in the agri-food system, especially in unforeseen conditions, such as those caused by the COVID-19 pandemic.