By combining resources needed for establishing joint ventures, farmers are given an opportunity to reduce costs, increase the production, improve product quality and get more profit from sales.

An agricultural cooperative is established based on voluntary membership, whose members are carrying out agricultural activities and share common economic benefits.

Principles of cooperatives:

• Voluntary and transparent membership

• Democratic management of the cooperative by the members

• Participation of the members in economic activities

• Autonomy and independence

• Education, training, awareness raising of its members

• Cooperation with other cooperatives

• Showing concern for the community/society

The establishment of cooperatives will promote to:

• Improving product sales

• Reduction of costs

• Introduction of up-to-date technologies

• Creation of additional jobs

Advantages of the cooperative

• Members of the agricultural cooperative have more income and less expenses, because costs and risks are divided among several entities.

• A stable market is more accessible through joint economic activities

• Unified wholesale purchases: lower prices at necessary agricultural or other materials

• Introduction of new, modern technologies.

• High availability of financial resources for the agricultural cooperatives.

Scope of activity

• Agricultural activities include: production, manufacture, processing, collection, packing, packaging, storage, transportation, marketing of agricultural products.

• In addition to agricultural activities, an agricultural cooperative is authorized to carry out other activities related to the improvement of the economic and social status of the shareholders, not prohibited by laws of Georgia.

How to establish a cooperative and get the status of an agricultural cooperative

Step 1: It is necessary to unite at least 5 person around a common idea.

Step 2: Formulate a charter, the cooperative chooses its management system - monistic or dualistic. In the monistic management system, the governing bodies of the cooperative are the general meeting and the board, and in the dualistic management system - the general meeting, the supervisory board and the board) (recommended form of the charter)

Step 3: Establish a cooperative in the Public Registry

If the management system of the cooperative is monistic, the application for registration of the cooperative in the Public Registry, must be accompanied by:

• Minutes of the founding general meeting;

• Charter of the cooperative;

• Minutes of the meeting of the cooperative board (on the election of the chairman)

• Founding agreement.

If the management system of the cooperative is dualistic, the application for registration of the cooperative in the Public Registry, must be accompanied by:

• Minutes of the founding general meeting;

• Charter of the cooperative;

• Minutes of the meeting of the supervisory board (on the election of the chairman and deputy chairman of the supervisory board and also on the election of the board of the cooperative);

• Minutes of the meeting of the cooperative board (on the election of the chairman)

• Founding agreement.

Step 4: Submitting an application for the status of an agricultural cooperative to the Rural Development Agency.

The following must be attached to the application:

• Extract from the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities, confirming the registration of the legal entity (cooperative) and the applicant’s authority;

• If necessary, an extract from the public register confirming the ownership right of the legal entity to agricultural land pot and/or property.

• Copy of an identification document of a person having authority to represent;

• A document confirming share contribution;

• Agreement concluded by and between the shareholder and the agricultural cooperative on mutual obligations and rights, determining the type and cost of services to be provided by the cooperative to the shareholder, the economic participation of the shareholder, the amount of the shares and other terms and conditions;