The Comparative Advantage of Agricultural Cooperatives

In Egypt, agricultural cooperatives were first formed in the early 20th?century as a reaction to international financial crises that had negative impacts on farmers’ solvency. Cooperatives had the aim to support farmers through the provision of inputs and access to credit. Membership was voluntary and, though the intention was to support all farmers, only middle and large landholders had access to their services.

After the 1952 and until the end of the 1980s, the government sought to allow all farmers to have access to agricultural cooperatives' services. Furthermore, agricultural cooperatives became the government’s tool to closely control agricultural production. Therefore, cooperatives were established in every village and membership became mandatory. A mandatory crop rotation was imposed, subsidized inputs were provided, and farm produce was purchased at fixed prices.

Since the 1990s, agricultural liberalization, decreasing budgets, repeated institutional reorientation and socio-economic changes contributed to agricultural cooperatives’ loss of identity.

Current conditions, however, underline the importance of taking innovative steps to put agricultural cooperatives on the right track again. For example, through the infusion of fresh and up-to-date experiences, formulation of new vision and mission, flexibility, use of information technology, farmers’ participation and bottom-up decision making, etc.

Agricultural Cooperatives – if well positioned - are suited to support farmers address their dire needs, such as:

·??????Counter land fragmentation

·??????Access agricultural inputs and equipment at reasonable prices

·??????Provide access to technical and financial assistance

·??????Market agricultural produce at fair prices

·??????Limit agricultural food loss/ waste throughout value chains

#egypt?#agriculture?#naturalresources #ruralcommunities