One of the main weaknesses of the Spanish farmers’ cooperatives is its insufficient dimensioning, that keep them in a position of weakness against the market.
The law to promote the integration of associative entities (LICA), with the figure of priority associative entity (EAP), and the Royal Decree 550/2014, of 27 June, whit the development of the requirements and the procedure for recognition, should constitute an element to take into account that can influence the size of the main cooperative groups.
This study aims to analyse the most likely strategy that will undertake the Spanish farmers’ cooperatives, to gain dimension and choose the recognition of priority associative entity (EAP), within the framework of the LICA.
For this purpose, we have designed a survey to the biggest 274 cooperatives of the thirteen main agrifood sectors, including entities with sections of large size (34 cooperatives with almost one section with a volume of business superior than 50 million €), and entities with sections of intermediate size (240 cooperatives with sections between 10 and 50 million €).
Based on the results of the survey, we have analysed:
- The interest and reliance of the cooperatives in the LICA.
- The most likely strategy that will undertake the cooperatives to gain dimension, and to recognise as EAP.
- The type of recognition, once the entity has opted for its own recognition, or by another entity.
- The most likely way to qualify for the recognition in all its sections, in the case of multisectoral cooperatives.
Also, we have established the differences in the strategy of the recognition, according to the following parameters: the size (big, or medium size), the type (first or second degree), the location, the main section, and the antiquity of the cooperative.
Key words: integration law, farmers’ cooperative, priority associative entity, governance body, business strategy.
