PROBLEMS OF FORMATION OF PRODUCER GROUPS IN LITHUANIA

Abstract

In the Lithuanian agricultural sector, it is noticeable that the number of farms tends to decrease significantly, which is influenced by the inability of small farms to survive in competitive conditions. Large market players tend to dictate conditions that are not always favorable to small farmers. Assessing the situation, the European Union RDP measure is being implemented in Lithuania, the aim of which is to unite agricultural producers, ie to merge into producer groups. However, after assessing the situation of Lithuanian producer groups, it is noticeable that farms passively evaluate the positive aspects of the producer group. In order to assess the problems that prevent producers from joining producer groups, a qualitative study was conducted - an interview. During the interviews, representatives of agricultural organizations and agricultural specialists who assess the development of producer groups in Lithuania were interviewed. The informants agreed to name the problems due to which farms have a negative assessment of the establishment of producer groups in Lithuania. The results of the interviews are presented, identifying the problems. Problems that make farms reluctant to join producer groups: lack of information, provisions for setting up a producer group, lack of a potential role model, passivity of farmers, lack of leadership qualities, financial resources. Assessing the role of producer groups in farms, we can say that the establishment of groups gives farms the opportunity to reap the benefits of producer groups, so that farms can influence buyers, increase income, share experience and reduce production costs.