Development of agricultural producers' groups in the Czech Republic with focus on commodity area fruit and vegetables

Abstract

Groups of agricultural producers had been established in the former Czechoslovakia already in 1930s and with the transition to a market economy it is again relevant to think about the renewal of some type of economic partnership among agricultural producers. The need to establish a group of agricultural producers may occur in the broader context of increasing dynamics within current competitive forces’ models with regard to even relatively less dynamic sector of agriculture. Further development of this kind of economic partnership among agricultural producers in the Czech Republic is eligible for support via public subsidies, namely by Common Agricultural Policy. Nevertheless many agricultural producers are still facing tougher foreign direct competitors after EU accession as single economic units instead of establishing new or joining existing producer groups, namely in production of fruit and vegetables. Authors identify and describe subsidies currently available for further establishment of economic cooperation within structures of agri-food complex and agricultural producers. This is followed by a framework economic analysis of the whole fruit and vegetables production sector within year period 2004–2009 using Farm Accountancy Data Network with the focus on established producer groups using financial statements issued in Business Register of the Czech Republic.