Serbian agricultural cooperatives and their path towards the European Union: Legal aspect

Abstract

The association of farmers as a model of sustainable rural development is a significant factor in the rapid development of agriculture and the improvement of the position of agricultural producers. The economic importance of cooperatives in the world and Europe is continuously growing, especially in the conditions of global and regional economic and financial crises, when cooperatives show a high degree of resistance to the shocks of these crises and a high percent of survival on the market. The European Union recognizes the growing role of cooperatives. The European Commission define the cooperative sector as protector and promoter of the European model of social economy, and as an extremely important factor in building and preserving local "social capital" - trust, mutual assistance and horizontal ties between citizens and organizations. New EU members and candidate countries preparing to join the EU, including the Republic of Serbia, should promote cooperatives as a key aspect of economic development and social policy. The aim of this paper is to analyze the current legal position of agricultural cooperatives in Serbia, and to determine the degree of harmonization with EU regulations and comparative analysis of their legal regulation in the EU Member States. Based on the conducted analysis, recommendations will be proposed in order to improve the legislative framework of agricultural cooperatives in Republic of Serbia in order their future successful functioning on the EU market.