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RunājumiProducer organizations for long term development of horticulture sectorAndris Miglavs, Latvijas Valsts agrārās ekonomikas institūts (LVAEI)
29.06.2007 Nīderlandes - Latvijas/Lietuvas dārzeņu ražotāju organizāciju attīstības atbalsta projekta noslēguma seminārkonference Kāpēc un kādām būt dārzkopju ražotāju organizācijām?, notika Rīgā, 2007.gada 29.jūnijā. Šis ir viens no runājumiem konferencē. ### Lasāmākā formātā šis runājums pievienots kā Bilžrāde PDF formātā. ### Pievienots arī tulkojums Latviešu valodā. Producer organizations for long term development of horticulture sector Andris Miglavs Latvian State Institute of Agrarian Economics www.agropols.lv 2007/06/29 To remind: What is needed to have successful business? Higher price for product marketed better product greater market power Less productions costs lower input prices less use of inputs Markets’ physical availability ability to meet market demand and fulfil the requirements quality assortment delivering schedule Comparable competition environment state support Modern business philosophy Successful producer organisation – it’s a cooperative, self- run unit, having: goal logical set of goals (goal tree)- not only getting state support payments members active and interested in developing not only in consuming the benefits idea, how to reach the goals which is better as “capital business units” do have there are activities better carried out in separately run business units tools to reach the goals resources and technologies efficient decision taking mechanism strategic and daily decisions are separated each from other clear and reasonable profit distribution mechanism all the factors involved in production are remunerated relationship - participation, management and distribution To remind – producer organisation (PO) in FVS according to the Article 11 of 2200/96: established by the initiative of the producers has goals: to provide planinng and adjustment of the production to the demand, specially in terms of qualilty and quantity to facilitate concentration of the supply and marketing of products produced the members of the PO to lower the production costs and to stabilise producer prices ..... is, which statutes require from the member: to follow the rules approved by the organisation .... to be a member of only one PO of the type regarding the correspondent product category to sell all the produce of that category only via PO, with minor exemptions <25 % directly on the farm for final consumers that product and in amounts, which according to the PO decision is not important for the PO and few more... to provide the own PO with the information requested by it, mainly for statistical purposes to make all the members’ payments agreed in the PO statutes n Cooperative will never be efficient, if: goals will not be agreed commonly and/or they will be contradictory members are consumers rather then developers there is no idea how to reach the goals because of the lack of knowledge (or ability to use) - modern business there are no resources to reach the goals no resources available already and no investment resources to set up decision making mechanism is not working properly strategic decisions can not be taken, because there are no commonly agreed goals members don’t recognise the business realities or they do have too different understanding and /or interpretation about the solutions daily business decisions are problematic, coop does not have a well recognised leader, he is not professional possible conflict of interests: - manager – one of the members Profit distribution mechanism contradiction between the ownership, management and distribution members urge to benefit not to take duties Cooperative – preconditions for the development mental clear recognition goals and the ways, how to reach them the need for the resources management needs cooperation needs understandable formulation of the common operation platform and joining on its basis financial ability to attract financial resources own borrowed legal solving of the contradiction between the understanding of the cooperative as public organisation or business organisation one member – one vote, openness , ... NL PO from our view point They are really huge market power - volumes and relationship technology development level international business cooperation They have well developed management business quality management financial management and also services information exchange and distribution However there are some clearly useful things (features) to take: Producers have joined to generate profits (no for crying) and not only for subsidy harvesting Cooperatives are managed by the members with strong daily business management Targeted to the increase the profits cost saving newer technologies research organisational and IT solutions market power – volumes, assortment, all year supplies also imports Quality management and improvement standards, new products, monitoring QUALITY AND MARKET – A BASIS FOR SUSTAINABLE BUSINESS |