Description

Practice abstract

Florin Burzo, a young farmer from Agrisel, Bistrița-Năsăud county, manages a family farm on an area of 20 hectares. The farm is located in the mountain area of Bistrița-Năsud county, close to the Țibleș mountains. Approximately 13 hectares are dedicated to summer grazing, where 10 dairy cows of the Romanian Baltata breed, adapted to the conditions of the area, graze. Faced with low milk prices, Florin Burzo took the initiative to establish a cooperative (https://www.facebook.com/TiblesSomesMeles/) to bring together several milk producing farmers in the area (approximately 100), with the aim of obtaining better milk prices and to benefit from discounts on agricultural inputs purchased together (in average approximatively 10%). 

With the help of a 220,000-euro financial support obtained through the Local Action Group (GAL), they purchased two tanker trucks for the collection of approximately 10,000 liters of milk/day, which they sell to a processor about 30 km away, thus facilitating the transport and efficient management of production. Also, the members of the cooperative benefited from the issuance of certificates that gave them an advantage in accessing European CAP funds, ensuring them a higher score in the application process. 

Cooperation in agriculture is a growing phenomenon, but there are many barriers to overcome. Although the association is based on interpersonal relationships, the social capital provided by the cooperative members is low. Some of the advantages of agricultural cooperatives are: • the democratic character of the operating mechanisms, which are based on modern cooperative principles; • the possibility of establishing them also by people who have a small capital; • fiscal facilities granted by the state: exemption from paying the agricultural tax for the first five years after incorporation, access to subsidies, public funds and external funds provided in the Romanian agriculture support program, exemption from paying customs duties for imports of tractors, machines and agricultural machinery or irrigation equipment, the recognition and assimilation of agricultural cooperatives as groups of producers, to benefit from all the rights provided by the legislation in force, the contribution to rural development, by creating new jobs, and engaging young people in a form of organized activity. 

Through the cooperative, Florin and the other farmers managed to significantly improve their incomes and make their agricultural activity more efficient. The milk price is higher on average with 15% compared to the farmers that are not members in a cooperative.   This business model not only strengthened the local community, but also contributed to sustaining a sustainable and competitive agriculture. Florin Burzo is an example of determination and innovation in agriculture, illustrating the power of cooperation in creating sustainable opportunities for agriculture. 

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