Internationalization of agricultural cooperatives in EU
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 5, Issue
Abstract
One of the main trends in the global economy is the internationalization of agriculture. The saturation of domestic markets, increased competition and low prices for agricultural products led to stimulate agricultural producers to enter foreign markets and cooperate with foreign partners. The purpose of the article is to identify factors that influence the development of internationalization of agricultural cooperatives in the EU, main foreign market strategies, and how they attract new members. The article identifies the factors that stimulate agricultural cooperatives to go beyond national boundaries: the limited opportunities for growth in the home country, liberalization of agricultural market in the EU and in the world, the integration of the European market, the concentration among food retailers, consumer demand for more variation, more convenience and higher quality. Distinguish between international and transnational cooperatives is considered in the article. International cooperatives are cooperatives with suppliers in more than one country. Transnational cooperatives are cooperatives with members in more than one country. In recent years, the number of transnational agricultural cooperatives in the EU is increasing. Many of these transnational cooperatives act also as international cooperatives. The main sectors with transnational cooperatives are cereals, fruit and vegetables and dairy. Mostly, they are found in the Nordic countries (Denmark, Sweden, Germany and Finland) and in Benelux. There are four transnationalisation strategies of the agricultural cooperatives: when a national cooperative invites members from neighboring country, through acquisitions in foreign countries, via the establishment of a new co-operative, through mergers or acquisition between national co-operatives. External expansion of agricultural cooperatives in the EU has different forms, the main of which is the inviting of foreign suppliers or the foreign members. In the last case, the most common strategic alternatives are inviting of members from neighboring countries and cross-border mergers and acquisitions.
Authors and Affiliations
Vasyl Vasylovych Matei
Keywords
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