Minko Georgiev, Teodora Stoeva and Violeta Dirimanova
Agricultural University, Faculty of Economics, 4000 Plovdiv, Bulgaria
Abstract
Georgiev, M., Stoeva, T. & Dirimanova, V. (2025). Legal and economic challenges before agricultural integration: from cooperatives to associations. Bulg. J. Agric. Sci., 31(3), 455–463
The purpose of this publication is to explain current economic and legal problems which face existing agricultural associations in Bulgaria. The study presented relies on a mix of theories related to legal and economic aspects, thus analyzing: 1) the historical path of development of organizational forms of Bulgaria’s agriculture; 2) circumstances creating the conditions for integration; 3) integration in the various organizational forms as well as upcoming controversial effects on the lateral and vertical organizations; 4) agricultural contractual agreements, as a specific form of integration of the organizations defining the role of modern agricultural associations and their influence on resource allocation; and 5) comparison of the coordination structure of the agricultural associations with other agricultural organizations, including the manner and number of their transactions. The framework of the associations as a form of organization creates additional incentives for economies of scale and opportunities for indirect transfer of transaction costs on one hand but could be a burden on other subjects. Legal solutions to improve the legal framework are presented.
Keywords: Agriculture Cooperations; Associations; Hybrid Organizations