Development support of agricultural cooperation in Ukraine by public institutions

Problem statement. It is important to encourage entrepreneurial activity in various areas for the development of rural areas. One of the means of boosting local economic development is to promote the formation and development of agricultural cooperatives.

Analysis of recent research and publications. In order to create effective conditions for the development of agricultural cooperatives, scientists and experts suggested the following ways: informational support of the agricultural cooperative movement by the state; easing tax pressure; strengthening cooperation between agricultural cooperatives and higher education institutions; using international experience of cooperation between commodity producers; development of advisory and consulting services in the field of functioning of agricultural cooperatives, etc. Under the conditions of war and in the post-war period, the proposals given by FAO specialists are relevant, in particular: to include small landowners and cooperatives, especially those located in the affected areas, in sustainable production chains.

In general, a wide range of experts and scientists considered the topic of the activities of agricultural cooperatives in Ukraine. At the same time, the practice of cooperatives functioning in Ukraine and changes in legislation require reasonable proposals to support the development of agricultural cooperation.

Highlighting the previously unsolved parts of the general problem. Opportunities detection for support from various public institutions and improving legislation are important areas of research regarding the further development of agricultural cooperation in Ukraine.

Presentation of the main material. In November 2020, the updated law of Ukraine “On agricultural cooperation” came into force. The new law defines that members of an agricultural cooperative can choose whether to be a profitable organization or to work with no purpose of making a profit. The generated profit can be reinvested in promising business initiatives.

The additional opportunities that producers receive through participation in agricultural cooperatives are primarily related to facilitating the product’s sale. One of the advantages is the possibility of joint financing by participants of agricultural cooperatives of product storage processes.

Various public institutions can contribute to agricultural cooperation development in accordance with their capabilities. Thus, experts suggest that the Agricultural Exchange consider the possibility of accreditation of agricultural cooperatives under a simplified system and provide them with holidays to pay the exchange fee.  There is a positive experience of assistance in the formation and development of agricultural cooperatives by advisory services. Agricultural cooperatives receive additional opportunities to access material and financial resources thanks to international technical assistance. The result of such assistance is not only an increase in revenues to local budgets from the operation of business entities but also the creation of new jobs and the unification of people living in territorial communities.

It will be advisable to identify in the territorial community a person, responsible for consulting and training on agricultural cooperation in the context of expanding the powers of local self-government bodies. An example of cooperation between public organizations, experts, and local governments is their participation in the EU4Business International Technical Assistance Program: Competitiveness and Internationalization of Small and Medium-sized Enterprises in 2021–2022. It is also planned to conduct a series of training on the development of entrepreneurship, including agricultural cooperation at the following program stages.

Conclusions and prospects for further research. Since local self-government bodies and public organizations are the closest to entrepreneurship, their activity and communication with the population of rural areas can contribute to the expansion of the development of agricultural cooperation. Expert consulting services in the field of agricultural cooperation development can be provided by educational institutions, advisory services, various public organizations, and other public institutions. Further  research should be directed to the dissemination of the territorial communities' experience where agricultural cooperatives are successfully functioning.