A helping hand: the role of cooperatives around the world
From farm to fork, agricultural cooperatives are present in every stage of the food supply chain. Agricultural cooperatives help producers to reduce market risk and transaction costs, access resources, achieve economies of scale and gain market power, through joint purchasing of supplies and services, processing and marketing.
Small family farms have recognised the role agricultural cooperatives can play in overcoming the business inefficiencies inherent to small holdings, including higher input costs, comparatively lower profits and the limitations of a smaller workforce. Farm sizes of less than two hectares form 85% of all farms in the world64. Consequently, the development of family farm cooperatives has become a significant vehicle that can support the viability and growth of farms as they evolve and develop to meet future global market needs.