Integration of small and medium size farmers by co-operatives in the Hungarian fruit and vegetable sector - a case study

The main co-ordinators/channels used in Hungarian fruit and vegetable supply chain are the following: local market, wholesale markets, production co-operatives, marketing cooperatives, producers organisation, processing industry, wholesalers and retailers. Different retail chains gain a progressively larger share of the fresh fruit and vegetable market. It is very important, therefore, that the farmers have to use marketing channels which could give them the strengths (countervailing power) of more concentrated organisations. In this case study, we examine the integration role of Mórakert Purchasing and Service Co-operative, in Mórahalom in county Csongrád which can be found in the southern east part of Hungary. The Morakert co-operative active in the fruit and vegetable sector and it was the first officially acknowledged Producers Organisation (PO) in Hungary. It works as a very successful cooperative (e.g. in terms of increasing annual turnover and membership) thus being a good example for a number of emerging producer organisations.