A Catalyst Approach to a Farm Cooperative’s Success in Halaidovo Village
Forming cooperatives according to western principles has not been easy in Ukraine. Attitudes and idealism left over from the old collective agriculture system still pervade.
Some years ago, 10 people from Halaidovo village, Monastyrishe raion in Cherkasy, decided to found a cooperative to purchase seed and fuel, and to share necessary farm equipment during their fieldwork. By joining the cooperative, the members could add value to their produce and process their crops at a local mill. But still, they had to solve a common problem - to find better market outlets for their produce.
Halaidovo is located far from bigger towns and has few stores. After analyzing possibilities, the members decided to open a cooperative farm store that would serve them and the community.
First, the members approached the village council with a request to use an abandoned building to open a farm store. Then, they applied for a small “learning” grant from the Monastyrishe extension office of the USAID-funded project “Improving Income for Ukrainian Agricultural Producers through Agricultural Extension.”
After participating in a small grant application process, the cooperative’s proposal was awarded $2,500 for educational activities. But before the grant program with the cooperative began, they had to come up with matching funds. The members contributed nearly $600 to renovate the building for the store, paid for all necessary operating licenses and purchased a cash register.
The Extension Office provided several educational seminars on how to set up a business and trained store personnel. The cooperative farm store was officially opened in September 2003. The entire community was invited and local media followed the event.
Although, the cooperative development may be a gradual process, the members learned that they could gain many benefits as a result of the grant program. In less than three months, the members have sold almost 40 tons of wheat, barley, buckwheat and sunflower, and seven tons of crops processed into flour and oil. Total sales were valued at 55,670 Hr ($10,670).
“The profit from sales will help us to purchase so much needed inputs for next year planting and fieldwork,” said Zanaida Valyuko, the head of the cooperative Ukraina and an agricultural producer with four hectares.
It was calculated that by opening the own market outlet, they saved up to 20 percent on transportation costs and appropriate commodity prices. By selling their crops through the farm store, they received profit valued at 7,240 Hr ($1,580). Due to the LSU grant, three new jobs were created, and one will be created this year.
News about the cooperative farm store success has spread throughout the raion. Based on the Ukraina cooperative’s success, the agricultural producers from Ivahniy and Dibirivka villages requested assistance the local Extension Office in setting up similar service cooperatives. Currently, the Cherkasy extension office lawyer is them to register necessary documents.
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| Farmers’ produce, gathered in the cooperative’s store, is ready for sale. |
Members of the Ukraina cooperative at the opening of the cooperative farm store |
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