The Importance of the Role of Agricultural Cooperatives in the Development of the Agricultural Sector: The Case of Greece

Abstract

Background: The subject of the study in the present work was the correlation of the development of the agricultural sector with the operation of agricultural cooperatives. Considering the importance of the agricultural sector with its big and small problems, the role of agricultural cooperatives in the development of this sector is identified. As it was found from the Greek literature, the agricultural cooperatives in Greece, offered technical and material assistance to the Greek farmers, helped in the economic recovery of the local communities, helped significantly in the operation of the agricultural products market, undertook activities of utilization of agricultural production and in many cases also competed with private companies. Methods: The model chosen for the analysis is the input-output analysis method which measures the economic impact that companies have on their local economies. In this case it concerns the change of production from the various companies belonging to the cooperatives to a financial contribution to the whole economy. Result: The results of the theoretical and empirical analysis clearly showed that the cooperative organizations in Greece, despite the chronic problems they face, contribute positively and satisfactorily to the entire economy of the country. This contribution is made not only by the services they offer to their members but also through the financial activities they undertake with their cooperative enterprises.