The Cooperative Fund helps break the cycle of poverty through economically viable system of cooperation. Just like in other parts of the world, rural poverty in Georgia is widespread. When land plots are small, the costs are high and climate change negatively effects agriculture, cooperation seems the most cost-effective solution to farmers’ problems. The best practice shows that cooperatives can play a big role to eliminate poverty in their communities. Unfortunately, many agricultural cooperatives lack financial resources and technical knowledge to grow and adopt to climate and market changes.
In today’s competitive environment, it is quite challenging for agricultural cooperatives to build sustainable businesses. Cooperatives are new phenomena for Georgia and due to their specific governance structure, their needs are not addressed by any financial institution. Loans are difficult to obtain and farmers don’t have access to relevant market information or innovation solutions. The fund assists the cooperatives to become self-reliant and independent businesses and play large role in rural development.
Cooperatives can be crucial to eliminate poverty in rural communities and create new opportunities for smallholder farmers. But successful cooperatives not only provide employment opportunities to rural population, they also manage to engage communities in the activities, and voice the needs and rights of the most vulnerable population.