УДК 631.1

Features of the cost optimization process and its impact on improving the activities of agricultural cooperatives

Абдыкалиева Жупаргуль Шайласовна – магистр наук, преподаватель-лектор Жетысуского университета имени Ильяса Жансугурова, Талдыкорган, Республика Казахстан.

Abstract: The important role of the development of agricultural consumer cooperatives in improving the efficiency of farms and personal subsidiary farms, in ensuring the sustainable development of rural areas is recognized by both scientists and representatives of state and local governments. It should be noted that in the last five years, the state's attention to solving this problem has increased significantly, which has been expressed in the implementation of appropriate measures to support cooperatives at the national and regional levels. The traditional criticism of the authorities regarding the insufficient amount of financial support for small businesses in the agricultural sector, including cooperatives, is certainly justified. However, more and more often scientists express the opinion that only an increase in financial injections will not solve the problem of cooperation development.

Аннотация: Важная роль развития сельскохозяйственных кооперативов отводится повышению эффективности деятельности сельских хозяйств, в обеспечении устойчивого развития сельских территорий признается учеными и представителями органов государственной власти и местного самоуправления. Важно отметить, что в последнюю пятилетку внимание государства к решению данной задачи существенно возросло, что получило выражение в реализации важнейших мер поддержки кооперативов на республиканском и региональном уровнях. Традиционная критика власти относительно недостаточного объема финансовой поддержки малого бизнеса и среднего в аграрной сфере, и в том числе кооперативов, безусловно, оправдана. Однако, все чаще ученые высказывают мнение о том, что только увеличением финансовой поддержки проблему развития кооперации не решит.

Keywords: agricultural sector, process of cost optimization, finance, economic development, improvement of agriculture.

Ключевые слова: аграрный сектор, процесс оптимизации затрат, финансы, экономическое развитие, совершенствование сельского хозяйства.

Difficulties with the sale of products, unequal access to markets compared to large companies, low prices for products sold and high prices for purchased resources are traditional problems of farms, among others, and their relevance has not decreased in recent years. Agricultural consumer cooperatives created by farmers and personal subsidiary farms should contribute to solving these problems. The factors hindering the development of agricultural consumer cooperation in our country have also been studied in sufficient detail. The following can be noted as the most significant: imperfection of the regulatory framework; lack of qualified personnel in the cooperative; lack of own funds of cooperatives and their potential members; unwillingness of farmers and personal subsidiary farms to join a cooperative due to fears of limiting independence and unfair behavior of other shareholders; remoteness of farmers of the same specialization from each other; price discrimination by processors [1, p. 43].

Foreign experience shows that the problems of cooperatives in our country are not unique. By itself, farmers' participation in cooperatives does not lead to an increase in production indicators and incomes due to possible inefficient management in cooperatives. In some cases, contract manufacturing can provide more substantial benefits to farmers. The complexity of coordinating important management decisions between members and the significant time costs of making such decisions require a high level of trust in the cooperative and the development of mechanisms for coordinating the interests of all participants [2, p. 127]. The transformation of cooperative organizations in the agri-food sector of Western countries has been taking place since the 1990s, characterized by mergers, liquidation of cooperatives, and demutualization (transformation of a cooperative into another organizational and legal form). The concept of hybrid cooperatives is introduced into scientific and practical circulation, the appearance of which can be considered an evolutionary stage in the development of cooperation, the result of the consolidation of traditional cooperatives, changes in market conditions. The development of cooperatives is not an end in itself, their value is determined by how effectively they ensure the integration of farms and personal subsidiary farms into agri-food value chains. Of particular relevance is the inclusion of farms and their cooperatives in short supply chains, when the entire cycle of value creation from the production of raw materials to retail sales is localized at the local level, which contributes to the development of rural areas [3, p. 87].

Results and discussion

The cooperative, in fact, is also an intermediary between the farmer and the consumer of the final product. And its attractiveness to members will be determined by how significant the increase in their share in the value chain within the framework of cooperation is. At the same time, assessing the benefits of a farmer from participating in the activities of a cooperative, it is advisable to identify two of its components [4, p. 137]. The first is a direct increase in the selling price of products. The second is an increase in the share in the equity of the cooperative. These elements are directly interrelated. If the cooperative, all other things being equal, minimizes profits, a higher price may be set for a specific transaction with a member of the cooperative. Reducing the price of purchasing products by the cooperative from its members increases its profit, which can contribute to an increase in the cooperative's own capital. This, in turn, allows the cooperative to develop, increase and modernize its material and technical base, and strengthen its own market positions. Each member of the cooperative actually has to make a choice – to maximize his benefit in the current transaction, or to give up part of the benefit in favor of the future development of the cooperative. The correspondence of the individual preferences of the farmer to the policy implemented by the cooperative in this matter will determine his motivation to participate in the activities of the cooperative. We analyzed the prices of sales of products by farms of the Zhetysu region according to the data of 2023. In total, data from 211 farms were analyzed. The coefficient of variation was calculated to estimate the level of price spread. The higher the value of the coefficient of variation, the greater the difference in the price level of the individual 12 farms in the study population. The results are presented in table 1.

Table 1. Coefficients of variation in the price level of certain types of products sold by farms of the Zhetysu region in 2023

Note: compiled by the author

Prices for potatoes, cattle meat and blue in the studied population of farmers are characterized by high heterogeneity, for other types of products, price differences can be described as moderate, but quite significant.

The assessment of the dependence of the selling price on individual indicators of the farm's activity allowed us to draw the following conclusions:

- for potatoes, the dependence of the farmer's ability to provide higher sales prices on the scale of the farm's activities is traced. On average, the larger the farm (the larger the acreage and production volumes), the higher the selling price of potatoes. Potato farmers, in order to gain access to higher value–added chains, should strive to increase production volumes. A similar effect can be achieved with the cooperation of several small producers;

- for wheat grain producers, there is little feedback between the farmer's ability to get a higher sales price and the area of crops. It can be assumed that with an increase in the total sown area beyond a certain limit, farmers are forced to sell more substantial amounts of grain at lower prices;

- for pork producers, an increase in livestock has a positive effect on the ability to ensure sales at higher prices; - an increase in milk production allows you to master more profitable sales channels for novice farmers with small production, then this influence is being leveled.

The analysis showed that the spread of product sales prices by individual farms can be quite significant, which indicates significantly different capabilities of producers to ensure an increase in their own share in the value chain. At the same time, the impact of the volume factor on access to more profitable sales channels varies for different industries and types of activities. Increasing the scale of activities can lead to a positive effect in terms of increasing sales prices, primarily for such activities as potato and milk production. And in some cases, the effect of scale in terms of price can be negative. But it is precisely small volumes of production by farmers that are often considered as a factor limiting their access to high-value-added sales chains and as an incentive to cooperate.

20.7% of the surveyed farmers sell products directly to the population. This applies mainly to grain in small batches and in small packages, which are purchased by personal subsidiary farms that raise livestock and poultry. Small farms producing meat sell their products directly to the population. 6.9% of the surveyed farmers sell their products through their own shops and retail outlets. In order to assess the most promising areas of cooperation between farms, the interview also asked about the forms of cooperation with other farms and personal subsidiary farms. More than 40% of farmers reported that they interact with other agricultural producers in the course of their activities. Moreover, such interaction is widespread mainly in mixed and crop farms. 75% of farmers engaged in animal husbandry reported a lack of cooperation and informal cooperation [5, p. 28].

Conclusion

Approaches to the organization of cooperatives in various sectors of agriculture should differ. Thus, potato and milk producers can benefit by accumulating larger batches of products and storing them (for potatoes) within the framework of a cooperative. Producers of cereals, sugar beet, beef and pork can benefit from cooperation not by forming larger batches of products, but by deeper processing, that is, by participating in the activities of processing cooperatives. In most cases, farms have the opportunity to sell products directly to processing organizations. The sale of products through intermediaries is most common when selling crop products. Short supply chains to local markets are also widely used, mainly for the sale of meat and grain in small packages. If short supply chains clearly lead to an increase in the share of farms in the value added structure, then the choice in favor of direct supply of products to a processing enterprise or sale to intermediaries is not always obvious. In some cases, intermediaries can buy back products at a higher price.

This may be due to the fact that intermediaries have access to more profitable product sales channels that are not associated with a local processing enterprise. The involvement of farms in the activities of agricultural consumer cooperatives is extremely low, and the experience of such participation is often negative. But at the same time, the practice of informal farmers' cooperation is quite common, primarily when using machinery and purchasing resources. Accordingly, these areas may be quite promising from the point of view of organizing consumer cooperatives.

List of sources

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