Diversification of activities in agricultural cooperatives in the Northern of Rio Grande do Sul

Abstract

Agricultural cooperatives are considered organizations that contribute to the socioeconomic development of the region in which they are located. The action form of the cooperatives, as focus on business diversification, can contribute to the generation of a stronger and more effective rural development. This study aims to demonstrate the diversification existing in the agricultural cooperatives from the Northern of Rio Grande do Sul state. The central objective is to identify and analyze the diversification types based on activities performed by agricultural cooperatives. The theoretical framework for data analysis takes into account the types of diversification used by the cooperatives, especially the concentric and the conglomerate ones. In concentric, new activities are carried out using the same set of technologies already dominated by the cooperative, while in conglomerate new activities are fulfilled but distinct from the usual activities of the cooperative. This study was conducted in three Rio Grande do Sul regions, through the application of a questionnaire on single agricultural cooperatives, affiliated to the Federation of Agricultural Cooperatives of Rio Grande do Sul (FECOAGRO). The results indicate that cooperatives diversify its internal activities offering to the members and community various services: connected to consumption, technical assistance, supplies, specialized services, among others. It was also found out that most cooperatives make use of agro-industrialization, both products for human and animal consumption. The business diversification by cooperatives, through a concentric or conglomerate, is directly related to the production of the membership and the different activities that each member realizes to stay and prosper in the competitive market.