Main Reasons for Joining Producers’ Organisation and their Influence on the Market Activity of the Participants

Kovács, Zoltán

Keywords: sale, motivation, services, producer organisation, fruit and vegetables, Q13

Producer organisations (POs) in the leading vegetable and fruit producing European Union (EU) Member States have a key role in the coordination of product path; their market share exceeds 40%, and in some countries even reaches 90%. Typically, the market share of these organisations is rather low, around 20% in those countries – including Hungary – which joined the EU from 2004 onwards. Considering the current situation of the sector, however, it is necessary to strengthen the position of producer organisations. Exploring the reasons and motivations behind entering these types of partnerships and conducting sales through these organisations can be a very useful addition to this. This is the main objective of the present study.
The results of questionnaire survey carried out among the members of PAPRIKAKERT TÉSZ Producer Organisation Ltd have shown that the main motivation for farmers to enter the cooperation is the possibility of reducing risks regarding sales. Another important motive, is the potential exploitation of other services offered by the organisation. The survey has confirmed that the good personal relationships, high level of trust and the availability of a logistical background, which can adapt flexibly to the needs of member farms, have the greatest impact in encouraging the members to sell their produce through POs. The advantages, which can be realized through buying-in prices and payment conditions can be regarded as further motives. However, the possibility of using other services provided by the PO are among the less important factors. The outcomes of research can be compared with the results of earlier studies made in similar topics. The examinations carried out in MÓRAKERT and ZÖLD-TERMÉK cooperatives in 2008 and 2009 reached essentially the same conclusions.