Rural producers horizontal integration as innovation symptom as well as its opportunities

Journal Title: International Journal of Contemporary Management - Year 2011, Vol 10, Issue 4

Abstract

This paper refers to horizontal integration of rural producers taking it for innovative thus bringing profits and benefits for scattered sector. The scale of farmers organizing into producers groups is still poor because such cooperation until 2007 concerns only 3,5% of rural producers producing for market. There is a special need for productive potential to concentrate in regions of scattered structure like Lublin region. Small economic power in the majority of farms as welld as small production scale result in weak competitive position of particular rural producers. The surveyed carried in Lublin region in 2010 showed that farmers are aware of benefits from horizontal integration. Save products sale as well as an opportunity to negotiate the purchase conditions to buy production means are recognized to be the greatest benefits. But there are some barriers connected with functioning within group like fear of loosing decision independence, misunderstandings and conflicts. The farmers would willingly cooperate with the following entities; processing enterprises, production means deliverers, extension service centers and other advisory institutions.

Authors and Affiliations

Anna Nowak

Keywords

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  • EP ID EP58043
  • DOI -
  • Views 95
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How To Cite

Anna Nowak (2011). Rural producers horizontal integration as innovation symptom as well as its opportunities. International Journal of Contemporary Management, 10(4), 163-171. https://europub.co.uk/articles/-A-58043