Epsilon Archive for Student Projects

Abstract

This exploratory comparative case study seeks to understand challenges and strategies for
farmer collective action in post-Soviet settings. It does so by examining member relations,
trust and commitment in two successful dairy cooperatives in western Ukraine: one NGOinitiated
cooperative with a bottom-up organization, and one cooperative developed in liaison
with a local large-scale agricultural enterprise (LSE). Through qualitative field study data from
28 interviews, the study shows how the rural institutional context affects cooperative
initiatives.
The results indicate that initial and to some extent lingering issues of trust among villagers
seemingly linked to failed or fraudulent projects and investments of the transition period
can be an obstacle for cooperatives linked to NGOs. Meanwhile, such trust issues could easily
be circumvented by the second cooperative through its strong links to the local LSE, which
could bestow the cooperative with trustworthiness.
The study also shows how the two cases, due to their origins and support, differ a lot in their
member relations, including how they handle collective action problems and how members
identify within the cooperatives. While the NGO-backed cooperative opts for a strategy that
advocates equity, participation and a strong care for community, the LSE cooperative opts for
a more vertical, business-like organization, at the expense of some of the cooperative
principles.
Pointing to the institutional factors which enable LSE cooperatives, a continued development
of LSE cooperatives is expected and discussed. Lawmakers may need to distinguish between
traditional cooperatives and LSE cooperatives in order to secure the needs of both types of
arrangements.