THE IMPORTANCE AND ROLE OF TRUST IN AGRICULTURAL PRODUCER-OWNED ORGANISATIONS

In theory and according to Western European (Dutch, Danish etc.) and US practical experiences, one of the main important private institutions which can strengthen producers ’ countervailing power and help to co-ordinate (agricultural) chains is the co-operative form. According to many authors and writers, one of the sources of increasing the competitiveness of co-ops can be traced back to trust which are exist between the members and the co-operative (management), as well as among the members. In this paper using mainly New Institutional Economics ’ theories, as well as the “co-operative identity ” concept, we try to analyse the role and importance of trust and co-operative principles in cases of agricultural producer-owned organisations. Empirical (case) studies supplement the theoretical considerations. Such producers ’ organisations, like the Mórakert Co-operative and the others mentioned in the study can be solutions for farmers to cope with their problems arising from incomplete pricing mechanisms and to reduce transaction costs, at least at the regional level. Some of them are also good examples for the vertical integration based on the horizontal coordination of farmers as initiators. Despite recent liquidity problems, they also proves that by co-operation there is an opportunity to significantly improv