Opportunities and threats of agricultural producer groups development

Abstract

Joining of farmers in producer groups is necessary in the situation of progressing intensification of competition on agricultural markets. Stronger integration of producers ensures economic advantages of production scale and lower costs. Following Poland's integration with EU the process of formation of new groups became more dynamic. The motives for integration were changes in legal regulations and the possibility of obtaining subsidies from the EU budget. Although the number of producer groups has been increasing steadily it still is far from large, especially in relation to the number of agricultural farms operating in Poland. On the basis of surveys conducted among members and leaders of agricultural producer groups efforts to determine development barriers and opportunities of this form of farmers' co-operation were launched. Farmers perceive the advantages of co-operation mainly through joint actions to overcome market barriers, and further financing from the EU budget. The principal barriers are mentality problems, weak economic condition of farms, insufficient engagement of local governments in the activity of producer groups and administrative problems.