Theoretical and methodological bases of the cooperative marketing in agribusiness


Olga Budnik
Zhytomyr National Agroecological University
Ukraine

Abstract


Purpose. The purpose of this study is to substantiate the importance of the all entrepreneurial activity forms in the agrarian sector of the economy existence, which is possible through the introduction of cooperative marketing as an effective factor in their development in the difficult conditions of our times.

Methodology / approach. In the course of this study general scientific and special methods were used, in particular  abstract-logical (theoretical generalization) – for study and outline features of various organizational and legal forms of management in rural areas and also definition and concretization the essence of the concept of cooperative marketing in the agrarian business and the specifics of its use for various business entities formulating; statistical and economic – for the analysis of structural and dynamic changes and trends of agricultural servicing cooperatives activity in Ukraine; analysis and synthesis – to determine the dynamics of agricultural service cooperatives development; generalization – in substantiating the importance and perspective of cooperative marketing for agricultural commodity producers.

Results. The problems of entrepreneurial structures activity, non-equivalent conditions of their existence and distribution are revealed; the topicality of the cooperative marketing application in the agrarian sector is substantiated; its main types are determined and the perspectives are considered. Based on scientific research, thoughts and views of leading scholars, it has been discovered that there can be no objection to the existence of any entrepreneurial activity form, regardless of its size or volume of profit at present. At the same time, the formation of effective and competitive business structures is considered possible in the use of the benefits of agricultural service cooperatives, which, in addition to its classical understanding, involves the use of marketing components.

Originality / scientific novelty. The basis of the cooperative idea should be considered activity, which involves the creation of a complete cycle of interaction from the production of goods to the sale of its end-user, that means cooperative marketing. It is obvious, that its application as a fundamentally new concept will stimulate agrarian enterprises to unite efforts in order to carry out joint work in equal conditions while saving their independence. As a result, in prospect, each entrepreneurship form objectively will have the opportunity to realize its own economic potential in full measure.

Practical value / implications. Cooperative marketing is proposed as a perspective labor organization form in agriculture, which aims to overcome existing problems by obtaining the «scale effect» among commodity producers while maintaining their independence.


Keywords


cooperative marketing; entrepreneurship in agribusiness; agrarian sector of the economy.

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