NATALIA SHAGAIDA: “COOPERATION IS AN IMPORTANT FACTOR FOR DEVELOPMENT OF SMALL PRODUCERS

Starting from 2022, Bashkiria has allocated Rb114 mn on subsidizing a portion of costs of agricultural consumer cooperatives (ACC). In her interview with the RBK Ufa, Natalia Shagaida, Head of the Agrarian Policy Department of the Gaidar Institute noted that cooperation was an important factor for development of small producers.

“The development of cooperatives as legal entities is rather difficult, though the government is willing and able to help then. But for establishing a cooperative, an action man is always needed; such a person should know how to communicate with rural residents, persuade them and unite individual producers in a single group with common interests, technology, discipline and responsibility. But such persons are few. Second, the status of a legal entity involves responsibilities. It is important to maintain a dialogue with state authorities, prepare reports and execute documents. There is actually much red tape. As a result, costs related with a cooperative’s establishment and operation may surpass all the advantages. There are some issues in the legislation on agricultural cooperation which may be interpreted not in favor of the members of the cooperative in case of its bankruptcy. We should admit that there are problems with establishment and functioning of cooperatives,” Natalia Shagaida said.