JEL classification: Q13
Performing both economic and social functions, agricultural cooperation contributes to the development of business on rural area, filling of local budgets, creation of new job places for rural population, and rise of competitiveness of small agricultural producers. The process of formation of the strategic potential suggests several stages, particularly identification, decomposition of structural elements and exploitation of a set of business opportunities. Innovations make one of the manifestations of planning and implementation of the effective strategy of agricultural cooperative development, particularly it expects appropriate upgrading of technologies, diversification of activities, attraction of investment resources and participation in projects. Moreover, establishment of business partnership relations with the bodies of local power, institutes of public society, mass media and population contribute to improvement of the image of agricultural cooperation as a socially focused system, which participates in solution of the problems of rising the living standards of rural population. Formation of the strategic potential in the environment of agricultural cooperation should promote business activities in villages. The synergetic effect should secure a high level of social infrastructure development on rural territories that will contribute to a stronger feeling of stability and confidence about the future. Thus, development of cooperation and business on rural territories on the fundamentals of implementation of the strategic potential can solve a set of problems, i.e. it secures employment, reducing unemployment level; increases living standards of rural population; contributes to development of village infrastructure; creates target markets for the products of agricultural producers; supports development of competitive environment, as well as reduction of the prices for food products for population; provides appearance of new territorial brands; creates conditions for development of niche production.
Key words: cooperation, agricultural cooperative, strategic potential, agribusiness entities, competition, rural areas.
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The article was received 18.03.2020