Are Co-operatives a Way to Integrate Small Farmers in Supply Chain Networks? Preliminary Thoughts on Hungary
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Vertical coordination in agri-food chains is a significant and increasing
phenomenon in Central and Eastern European Countries (CEEC). It has been
observed that this development prefers large scale production. However, the
agricultural sector is still a mixture of small scale and large scale farming in
these countries. Hence, for small scale farmers, horizontal collaboration can
be assumed to be a prerequisite for remaining in the market. Therefore, the
goal of this paper is to investigate whether co-ops are appropriate means for
integrating small farmers into modern supply systems. Further, we want to
analyze how cooperatives can cope with the quality demands they face in
modern distribution channels.