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Agricultural association in 2026: why it works on paper and fails in practice

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2026 January 26

Agricultural association remains one of the most frequently cited solutions for increasing the competitiveness of small and medium-sized farms, yet its practical implementation is limited. According to Eurostat data, fewer than 15% of Romanian farmers are active members of functional associative structures, well below the European Union average, which exceeds 40%.

The problem is not the legal framework. Romania has legislation that allows for agricultural cooperatives with tax incentives and preferential access to funding. The blockage is economic and operational. Many cooperatives operate formally, without sufficient volume, capitalization, or contractual discipline, which limits their real negotiating capacity.

Data from the European Commission show that associated farms obtain, on average, prices that are 10–20% better for their output and lower input costs due to joint procurement. In Romania, these benefits are rare, due to production fragmentation and the lack of professional management.

For 2026, association can no longer be treated as an objective in itself. Without critical mass, shared capital, and clear rules for delivery and payment, a cooperative does not generate economic value and does not stabilize farm cash flow.

(Photo: Freepik)

 

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