What makes farmers (not to) cooperate in transition economies? The case of the dairy sector in Albania

OLTA SOKOLI1*, ORJON XHOXHI1, ENGJELL SKRELI1, DRINI IMAMI1, REINER DOLUSCHITZ2

1Economy and Rural Development Policy Department, Faculty of Economy and Agribusiness, Agricultural University of Tirana, Albania
2Institute of Farm Management, Faculty of Agricultural Science, University of Hohenheim, Germany

*Corresponding author e-mail: olta.sokoli@uni-hohenheim.de

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Abstract:

In Albania, agriculture sector is dominated by small size and high fragmented farms, which make cooperation the best option to solve Albanian agriculture structural problems. However, there has been limited evidence of successful horizontal cooperation among farmers during transition in Albania. A number of factors may affect farmers willingness to cooperate, including type of service provided by cooperation, farmers characteristics, governance systems, and other economic and political environment conditions [12]. The main objective of this paper is to test the impact of farmers characteristics, with particular focus of social capital, local rules, leadership, on willingness to cooperate. The main data resource has been gathered by structured survey (240 farmers interviewed) which has taken place on June and July 2017, in the main representative areas on milk production in Albania, Lushnja and Fier region. A structural equation model is used to test the hypothesis. As expected that the higher the stock of social capital, the higher the role of local rules, the higher the presence of leadership in the community, the higher farmers concerns on their reputation and the more they are inclined to reciprocate, the higher will be their willingness to cooperate.

Keywords: local rules, cooperation, milk sector, Albania.

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