Georgia is a country with high agricultural potential, which is not fully utilized due to the deterioration of conditions for agriculture after the breakdown of the Soviet Union. Because of insufficient access to input supply, credits and markets, the productivity of the Georgian agriculture is very low. The small agricultural land surfaces lead, moreover, to high transaction costs with regard to the marketing of agricultural products that each farmer sells individually on local markets. Service cooperatives have been identified as a suitable institution for sustainable agricultural development. Despite their advantages they are not widespread in Georgia. This article analyses on the basis of an empirical study (n=406) attitudes of Georgian farmers towards cooperatives and identifies prospects for their implementation.


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