Farmer’s willingness to join agriculture cooperatives in Moldova

Bc. Magdaléna Holmanová

Master's thesis

Abstract:

In the aftermath of the Soviet Union's collapse, Moldova struggled with the transition from a communist-collective system, which had significant implications for its agricultural industry. Given the significance of agriculture in Moldova's economy, as well as in addressing poverty and food insecurity, cooperatives are a potentially crucial strategy for overcoming the challenges of land fragmentation, achieving economies of scale, and reducing transaction costs that hamper Moldova's development prospects, despite its fertile land and proximity to the EU. The study aimed to investigate the factors that influence farmers' willingness to join agricultural cooperatives in Moldova. The first objective analysed how the political environment affects farmers' willingness to join cooperatives, while the second objective analysed specific factors influencing this decision. The study was conducted in Moldova with a sample size of 208 respondents, data was analysed using descriptive statistics, comparison of means in two-group research design and Structural Equation Modelling (SEM). In addition, five in-depth interviews were conducted to provide a comprehensive picture of the context. The results indicate that the political environment influences farmers' decision to join cooperatives mainly through awareness, while past experience with the Soviet Union indirectly affects this decision through a lack of trust. The study disproves the hypothesis that farmers with larger farms are less likely to join cooperatives and confirms that organic farmers who are more innovative and less risk-averse are more likely to join. Attitudes towards institutional advantages and strong support from social networks were significant factors influencing farmers' willingness to join. To improve the success of cooperatives in Moldova, it is recommended to enhance communication, provide better incentives to farmers, increase the visibility of existing cooperatives, and build trust among farmers and supporting institutions.

Keywords

Producer group, rural development, smallholder, reasoned action approach, motivation

Language used: English

Date on which the thesis was submitted / produced: 23. 4. 2023

Thesis defence

• Date of defence: 31. 5. 2023
• Supervisor: Ing. Jiří Hejkrlík, Ph.D.
• Reader: Engjell Skreli, externi

Czech University of Life Sciences Prague

Faculty of Tropical AgriSciences

Master programme:
Agri-food Systems and Rural Development