Impact of Agricultural Cooperatives on Farmers Output in Denmark

Abstract

A farmer cooperative can serve one or more functions including but not limited to providing loans to farmers, supplying information pertinent to agricultural production, selling inputs necessary to agricultural production, bargaining on behalf of its members, providing transportation services, and marketing the farm products. The agricultural cooperatives are regarded as critical to the farmers in the enhancement of their production. Thus, the study sought to look at the impact of agricultural cooperatives on farmers' output in Denmark. The study was literature-based and the concussions of the study was based on the findings from the previous studies. Based on the findings of the study, it was noted that agricultural cooperatives play a critical role in enhancing the output of the farmers. Agricultural cooperatives usually pool together inputs to maximize production and further promote capacity building of the farmers. It was noted that working together makes farmers improve their profits by getting into bigger markets, lowering costs and acquiring a higher negotiating power. Farmers are free to join and leave the cooperative, and there is no governmental intervention in managing the organization in Denmark. Farming and customer cooperatives have been widely known in Denmark. The study noted that small and medium-sized cooperatives, financial cooperatives, workers' cooperatives, and cooperatives for seniors have been rampant in Denmark. The study concluded that cooperatives play an important function in the agricultural sector of several nations. Agricultural cooperatives assist farmers to fix a collective action problem. With co-operatives, farmers may bring in traders and institutional buyers, and improve their bargaining power. The study recommended that agricultural cooperatives are required to provide more training on agricultural production and motivate members to actively join those training. The cooperatives need to strengthen and broaden markets to get better prices for their members.