The year 2024 was declared the International Year of Cooperatives by the General Assembly of the United Nations, which is a significant step for the global and national improvement of cooperatives. The President of the Cooperative Federation of Serbia, Nikola Mihailović, points out that this marking will enable the promotion of the advantages of association of agricultural producers, including access to information, resources and financial support. Serbia, with around 3,000 active cooperatives, of which 70% are agricultural, is committed to the further development of cooperatives, which is crucial for farmers in small communities.
The Cooperative Federation of Serbia helps producers by providing them with information on the formation of cooperatives, contracts and registration procedures, which eases bureaucratic obstacles. This organization helps farmers save time and money, while simultaneously providing business ideas and promoting successful cooperative models. Farmers, through advisory processes, have the opportunity to become familiar with the potential of their territory, which helps them choose appropriate programs for the cooperative.
“Once upon a time, ‘cooperative’ was not a derogatory word…”
After the establishment of the cooperative and the selection of the program, the Cooperative Union provides support in the business connection of various cooperatives at the national and international level. This is especially true when the final product is ready for export. According to Mihailović, the establishment of a cooperative requires a minimum of five members. However, he states that it is better for more people to recognize the benefits of association, especially when it comes to the joint procurement of inputs such as seeds, fertilizers and other resources. This contributes to cost reduction and enables the sale of finished products at the best price, he claims. The association brings an advantage in the storage area as well, because the products can be sold when the market conditions become more favorable.
In addition to logistical support, the Cooperative Alliance seeks to solve problems such as property issues and difficult access to credit. Mihailović points out that cooperatives need working capital and funds for investments. And he sees one of the solutions in the formation of a fund for interest-free lending to cooperatives. According to him, this would enable the circulation of funds and further support successful projects.
Negotiations are active with the Ministry of Agriculture and other relevant ministries in order to solve these challenges, with the support of agricultural and veterinary faculties and research institutes. Education and promotion in the field, along with cooperation with local governments, are important for informing and motivating producers. Mihailović believes that the International Year of Cooperatives and further lobbying will open opportunities for incentives from European funds, enabling cooperatives to contribute to the development of agriculture and rural areas in Serbia.
Cooperatives in Serbia have a long tradition, spanning over 180 years of existence, including AP Vojvodina. The Cooperative Union of Serbia, founded in 1895, actively participates in the international cooperative movement.
Source: AgroTV
Source: boljazemlja.com
