Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 19 ISSUE 1
Written by Ivan Mikhailovich KULIKOV, Ivan Alekseevich MINAKOV

Achieving a successful resolution to a nation’s food problem is largely dependent on the development of cooperation. As an organizational-legal form of business in the agro-industrial complex, cooperation is represented by agricultural production cooperatives. Most of the world is currently dominated by consumer cooperatives, while Russia – by production ones. Over the last ten years, the number of production cooperatives in Russia has declined. The primary reason behind this is their low investment attractiveness. The paper examines the role of cooperation in driving sustainable development in rural areas, makes a case for the efficiency of production cooperatives as opposed to other forms of business, and reiterates the need for further development of cooperation in the country. A cooperative is not just a for-profit organization but a socio-labor form of business as well. The current level of profitability of agricultural production in cooperatives does not allow them to implement reproduction on an enlarged scale at this time. The authors explore a set of primary areas for the development of agricultural production cooperation in the country and examine a set of key measures of government support for it.

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