Agricultural Cooperatives in Kazakhstan: Example of Dairy Sector

Abstract

Agricultural cooperatives are important tools to encourage small farms to overcome various limitations in developing countries. Cooperative membership can reduce transaction costs, improve safety, increase bargaining power, and enhance quality for agriculture. A 2015 bill on agricultural cooperatives by the Kazakhstani government aims sustainable development in agriculture dependent regions., Repeated reform efforts and changes in ministry cabinets have altered the bill. We study the link between productivity and cooperative membership in Kazakhstan using a survey of 80 farmers from different regions. Our survey respondents are predominantly from rural regions. Overall, we find evidence to support that agricultural cooperatives are effective for sustainable development in rural regions of Kazakhstan. The government policy should focus on financial support to help the agricultural cooperatives in addition to promoting education, expanding information services, providing training and improving production facilities...