tions with the representatives of both farmer
cooperatives and unions: the vast majority of
farmer-unionists has ties to the governing party,
thus making the sector’s “clean-up” even harder.
The plan
The government put to consultation its first plan
for the creation of a register including only active
cooperatives, in other words those having some
kind of business, even if they are incurring losses:
the Ministry of Rural Development & Food asked
115 extant Unions of Agricultural Cooperatives
(UAC) (these are second-degree organizations)
to provide information about their operations and
their first-degree members.
Only 80 UACs responded; the information they
gave showed that out of 6,200 first-degree coop-
eratives that exist in paper (i.e. they do have arti-
cles of association) 3,266 are “real” and only
1,000 have some kind of, however rudimentary,
activity (they didn’t have zero turnover during the
previous year).
Within three months from the passing of the law
(i.e. probably before the summer of 2011) all
cooperatives will submit to the Ministry the infor-
mation required for being listed in the register.
Those failing to present any information shall not
be recognized. Initially, some cooperatives will be
given the option to declare themselves “active” or
“inactive”. Those listed as inactive will be given
the opportunity to merge with active ones by the
end of the year; in the opposite case they will be
liquidated. The register will include cooperatives,
as well as producer groups and companies (cor-
porations or limited liability companies). The con-
cept of second-degree organizations (i.e. UACs)
is abolished, and all organizations will be consid-
ered to be first-degree bodies.
Moreover, the prerequisites for being listed in the
register will include a minimum capital of €60,000,
financial viability, transparent operations etc.,
while the elections for the leadership of the third-
degree cooperative body (PASEGES, the
acronym for the Pan-Hellenic Confederation of
Unions of Agricultural Cooperatives, which may
possibly be renamed to Pan-Hellenic Union of
Collective Agricultural Organizations) will be car-
ried out through direct voting (one vote for each
producer-member of a registered cooperative).
The current picture
According to data presented by the government,
in 1984 cooperatives distributed 70% of pesti-
cides in terms of volume and 40% in terms of
value. They also distributed almost all quantities
of concentrated animal feeds, produced 50% of
composite animal feeds, distributed almost all
inorganic fertilizers, produced and traded the
largest portion of certified seeds, while UACs and
Cooperative Enterprises exported 45% and 25%
of packaged products respectively.
“Today, these percentages have, obviously, noth-
ing to do with reality. While the private agricultur-
al product processing industry reached an
increased degree of concentration, the coopera-
tive sector was practically led to collapse, becom-
ing financially and socially disreputable.
Nonetheless, despite the condition of the cooper-
atives, the food sector remains the most impor-
tant sector of Greek manufacture”, said the
Minister of Rural Development.
Trade with Greece
132
