Implementation of the cooperative marketing paradigm in the farming activity

Abstract

The globalisation of Ukrainian economy, the distribution of land resources, the diversity of commodity producers and the radical breakdown of property relations have significantly affected the agricultural sector and production volumes. The development of farming in such conditions is accompanied by a set of financial, economic, material, technical, and social problems. This implies the need to introduce a qualitatively new conceptual paradigm of its development. The purpose of the study is to prove the relevance and feasibility of the application of the cooperative marketing paradigm complementary with marketing tools in the in the context off meeting the business interests of farmers. The objectives of the study are: identification of the main directions and trends in the development of farm business; implementation of the service cooperation concept in their activities in combination with marketing tools as well as the substantiation of the prospects of using cooperative marketing for farmers. In the course of the study, the following methods were used: abstract-logical and statisticaleconomic, analysis and synthesis. The undeniably important role of farms in agricultural production has been identified. It is emphasised that they have a number of competitive advantages, however, currently, they cannot fully use their own potential. Instead, the agricultural service cooperatives will contribute to the establishment of long-term and effective coordinated interaction in the rural society. The application of the radically new management approaches is proposed, the basis of which is the cooperative ideas with the marketing tools. The methodological understanding of the use of cooperative marketing in rural areas is presented and its prospects are proved. It is argued that the concept of cooperative marketing implementation to the agricultural business environment will contribute not only to the emergence of economically strong, competitive business units and the establishment of the favourable business climate, but an increase in the welfare of the rural population