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Cooperatives in Lithuania
According to agricultural specialists, both the long-term development of cooperative companies in foreign countries and the experience of cooperatives in our country show that in a market economy, cooperatives provide undoubted benefits to farmers, especially small and medium-sized ones. Cooperation in agriculture is particularly important for the survival of small farmers and the development of their activities. Unfortunately, cooperatives are not very strong in Lithuania yet. 47 percent Cooperatives established in Lithuania have been in operation for more than 10 years, but few members join cooperatives, for example, only 7% have more than 100 members. cooperatives, with a majority of up to 10 members, up to 72%. However, according to experts, in recent years the role of agricultural cooperatives in our country has been growing steadily. It should be noted that now not only small, but also medium and large farmers and agricultural companies participate in the activities of cooperatives. Due to these circumstances, the membership composition of cooperatives is changing in a good direction and the scope of cooperative activities is growing rapidly. This process strengthens cooperatives and also provides feedback to their members.
This is also supported by cooperative leaders, who, when asked about the benefits of cooperation, always first identify the benefits to their members.
The farther the better
According to Edita Katutienė, director of Pamario pienas, an agricultural cooperative company (ŽŪKB), her cooperative was established in 2002. The idea of getting together came from seven farmers on the island of Rusn in Šilutė district: three from the village of Uostadvaris and four from the city of Rusnė. Currently, according to the interlocutor, who took over the management of the cooperative in 2004, they unite about three hundred members, and the company collects about 50 tons of milk per day.
“Now it is good: we have our own base, five milk transporters, two transfer stations, we work not only with Lithuanian companies, but also with foreign countries, we provide services to our members: car service, accounting,” said E. Katutienė happy. – In addition, we provide our members of the cooperative with everything necessary for agriculture: films, nets, compound feed, etc. Due to the larger quantities, cooperation is very beneficial in both buying and selling. We take care of our members, we try to give them as much information and other necessary help as possible. Collaborating is easier because there is someone to help or advise ”.
For a better future, unification
According to E.Katutienė, the cooperative sells milk through the company “Pieno partneriai”. According to the manager, this second-tier dairy cooperative organization was formed in 2019. It is made up of 8 large farmers and 3 cooperatives: ŽŪKB “Pieno gėlė”, “Pamario pienas” and Kupiškėnai “Pienininkai”.
According to the interlocutor, the support for the establishment of the group was approved in accordance with the Lithuanian Rural Development Regulation 2014-2020. Program measure (PDR) “Establishment of producer groups and organizations” area of activity “Establishment of producer groups and organizations in the agricultural sector”. “We did our homework and realized that not only milk producers had to cooperate, but also cooperatives had to come together,” said the director. – This is necessary for the sale of milk in better conditions, and the main objective is a competitive and profitable price of milk. Many of our farmers live solely on a dairy farm and have no other income, so this is very important to them. “
According to E. Katutienė, if there were no cooperatives in Lithuania, the processors would take advantage of the fact that there is no one representing the interests of small dairy farms, thereby offering a lower milk price. This would leave only the hardiest and most patient farmers who cannot imagine their lives without dairy farming. “After all, the success of the farm consists in the price, that is to say, in the income,” said the director of “Pamario pieno”. “Everyone wants to sell more expensive and buy cheaper, and that the price or quality of the service or product they receive is adequate.”
Used support
According to the interlocutor, in 2018. In 2019, the cooperative submitted a request for EU aid in the field of activity “Support for investments in the transformation, marketing and / or development of agricultural products” of the PDR measure “Investments in tangible assets “. At the beginning of August, 2 modern milk transporters were purchased, which can hold even 10-11 tons of milk. According to E. Katutienė, these vehicles are a strong support for the cooperative company.
According to the director, “Pieno partneriai” also strengthened and expanded its transport base with support funds from the EU. “Automatically, it is better for us because we are part of this complex,” said the interlocutor.
Costs are high, profits are low
Vytautas Klidzio, director of the Pienininkai cooperative, another member of Pieno partneriai, said that Pienininkai, located in Aukštaitija, Kupiškis district, has been operating for ten years, and the circle of its members and milk producers includes three districts: Kupiškis, Pasvalys and Biržai. According to the interlocutor, about 370 dairy cattle farms and about 140 members supply milk to the cooperative. , – said the director.
“The costs of milk collection are very high, because it is necessary to hire the manager of the milk collection point, drivers, the cost of milk tests, the installation of the point itself, the carts to transport the milk,” he said. V. Klidzio. – That is why we can offer a better purchase price for milk to our members. It would be sadder for small dairies, but if they cooperated, it would be completely different. “
Request certificates
According to the interlocutor, the future of the dairy sector in Lithuania seems so far quite difficult, as the owners of small dairy farms are aging, they are declining rapidly, and high costs make it unprofitable for them. “But if they cooperated, it would be very good,” Klidzio assured again. “A recent study has shown that only farms with around 150 cows can be profitable and viable.”
The Director was pleased that the Ministry of Agriculture is fostering cooperation and giving cooperative members additional selection points when evaluating requests for support. “The acceptance of applications for small livestock farms has been announced, so several of our farmers have requested certificates that they are members of the cooperative,” said Klidzio.
At the same time, a greater force
The interlocutor is very satisfied that “Pienininkai” has merged with two other cooperatives and several large dairy farms and has merged into “Pieno partnerius”. “We all collect a lot of milk together, so we can talk to processors differently, increase the price of milk,” Klidzio said.
In addition, according to the director, the new company received support under the Lithuanian Rural Development Program 2014-2020. and they bought a new milk truck that, as an independent cooperative, they would not have been able to buy because they would have been too small to receive this amount of aid.
Now, according to the interlocutor, they sell milk to Rokiškis pienas, Marijampolės pieno konservai and Polish companies. “Poles are happy to buy Lithuanian milk,” explained the director. – It is curious that we are transporting milk not to the Rokiškio pieno company 30 kilometers away, but 800-900 kilometers from Poland. And Rokiškio pienas buys milk from Poland. All for pennies. It is like. It’s all about the price. “
More points and more support
It should be noted that cooperatives in all agricultural sectors have greater access to EU aid. Application of the PDR measure, area of activity “Investments in tangible assets”, area of activity “Support for investments in agricultural holdings” and “Investments in the transformation, marketing and / or development of agricultural products”, and area of activity of the measure “Economic and business development”, “Aid to small farms” cooperation is encouraged by awarding project selection points to eligible agricultural cooperatives or their members. Likewise, for recognized agricultural cooperatives seeking support in the area of activity “Support for Investment in Agricultural Holdings”, the intensity of support for the implementation of collective investments increased by 20%. (in the sectors of livestock, horticulture, horticulture and soft fruit), and in the field of activity “Support for investments in the transformation, marketing and / or development of agricultural products”, the intensity of the aid for applicants who are recognized agricultural cooperatives increases by 10%. points and is 50 percent. eligible costs.
Those wishing to establish a cooperative should be aware that the RDP measure “Establishment of producer groups and organizations” is directly aimed at promoting cooperation between farmers (legal entities in the agricultural sector consisting of participating primary agricultural producers) by providing support for the establishment of producer groups and organizations.
Order No. 1754754.
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