. MAXIMIZING FARMER'S INCOME IN ALBANIA: EXPLORING THE IMPACT OF COOPERATIVES IN AGRICULTURE

Abstract

Vegetable farming is a highly intensive production operation that requires significant investments. Although it can provide high levels of profits, recent developments have shown that actual profitability margins for vegetable growers are low due to several reasons such as low yield level, high production costs, lack of partnership in producer-buyer relations, limited access to agricultural input markets, and high prices for consumers. Studies have shown that there are different options for selling vegetable products in the market. While some farmers sell their products on the street, most of the vegetable producers use more than one alternative for selling their produce. A large number of farmers sell their products in local markets, to wholesalers, and in some cases to exporting companies. Furthermore, studies show that vegetable producers earn about 20 All from their activity on the farm, while other actors in the supply chain earn about 35 All for operations like transport, storage, etc., which are performed for a short period of time. The length of this supply chain and the significant number of actors involved in it are major problems for vegetable producers. They are not part of the supply chain, and horizontal cooperation between them is necessary. Through this type of cooperation, farmers become active participating actors in this supply chain, with all the benefits that derive from it.