Food Security through Targeted Cooperative Programmes
Introduction
Food security is the ability of a country's economy to produce and accumulate the necessary food reserves in excess of the physiological needs of the population, so that, if necessary, the country can operate independently for a long time, without importing food. Achieving high food security is a strategic goal, as it is directly related to national economic stability and the well-being of the population. In today’s world, cooperative organizations are seen as a key tool for ensuring food sustainability. According to the International Cooperative Alliance, there are more than 760 million members of cooperatives in the world, and through them the welfare of almost half of the world’s population is ensured. In agriculture, cooperatives already unite about 400 million people and in a number of countries produce more than 50% agricultural products, playing a leading role in the supply of the domestic market and food exports.
International experience and UN analysis confirm that sustainable development of the agricultural sector is possible only with the active participation of producers themselves in collective initiatives. The report of the UN Secretary-General notes that only through a people-centred, participatory approach can there be an effective transformation of agriculture, and cooperatives are one of the most effective organizational mechanisms for such a transformation. Thus, strengthening the food base requires combining the efforts of producers, the state and society on the principles of cooperation.
This analytical report will examine food security through the prism of targeted cooperative programs. Models of machine-technological stations (MTS), mechanisms of participation of consumer societies and credit unions, as well as their contribution to the formation of regional and national food sustainability will be analyzed. Special attention is paid to the integration of these programs with global initiatives such as the Assembly of the Peoples of the World, the concept of “EQUILIBRIUM” and the idea of “One State”. In addition, innovative methods of accounting, cooperative planning and financing used in modern cooperative projects of the agro-industrial complex are investigated. Based on the review, recommendations will be made for the development of cooperative food security programmes.
Cooperative programmes as a factor of food security
Targeted cooperative programmes are integrated initiatives aimed at supporting agricultural producers through cooperation, joint investment and joint planning. Their main goal is to ensure sustainable growth in food production and an even supply of the population by consolidating the resources of local farms. The Russian Federation has developed a number of programmes that link the improvement of food security with the development of agricultural cooperation. For example, the MTS support program directly sets the task of organizing a new type of machine-technological stations in the structures of cooperatives (consumer societies and credit unions) to ensure the food security of the country.
Key objectives of such programmes include:
- Rehabilitation of agricultural enterprises. Deletion of insolvent agricultural enterprises in a solvent state for 2–3 years by creating a single borrower on a cooperative basis (consumer society "MTS") and ensuring their further development at the expense of their own savings. This measure increases the financial sustainability of agriculture and allows for an increase in food production.
- Mobilization of extrabudgetary funds. Attracting borrowed resources from extra-budgetary sources through the system of credit unions to finance innovative projects of commodity producers (cooperative members) of all forms of ownership. Credit cooperatives accumulate funds from farmers and local communities themselves, directing them to the development of production, which reduces dependence on the state budget and bank loans.
- Increased production of key products. Increase in gross production of strategically important types of food - grain, oilseeds, potatoes, milk, meat, flax fiber, etc. - on the basis of MTS-cooperatives. The increase in the output of these goods directly increases the food self-sufficiency of regions and countries. At the same time, conditions are being created for the production of import-substituting products, reducing critical dependence on external supplies.
- Execution of the state order and stabilization of the market. MTS co-operatives take over the execution of local food orders (for example, for social institutions) as part of a general government order. This allows us to respond flexibly to the needs of the regions, maintain the stability of the consumer market and create reserves. In particular, consumer cooperation is involved in the creation of a network of wholesale food markets (ODS), a key element of stabilizing the food market. At the initiative of the Central Union of the Russian Federation, a concept of a system of wholesale markets is being developed to provide a wide sale of agricultural products of cooperatives, the necessary range and quality of food for the population.
Thus, targeted cooperative programs are aimed at comprehensive strengthening of the agro-industrial complex: from financial recovery of producers and investment in new technologies to expansion of sales channels and creation of reserves. The involvement of farmers in cooperatives increases their market opportunities and sustainability, allowing them to solve food problems systematically. These measures form the basis for food security at both the regional and national levels, reducing the impact of external risks (price fluctuations, imports, sanctions, etc.) and ensuring a more even and reliable food supply.
Models of Machine-Technological Stations (MTS) in Cooperation
Machine and technological stations (MTS) are specialized production and technical centers that provide agricultural producers with modern machines, technologies and services. Historically, the prototype of the MTS was machine-tractor stations of the Soviet era, which provided tractors and technical support to the collective farms. In modern Russia, MTS is being revived on a new basis - as elements of cooperative associations focused not only on the provision of equipment, but also on the integration of all stages of agricultural production. Within the framework of targeted programs, it is proposed to create a "new type" of MTS - not state enterprises, but executive structures in the framework of cooperative associations acting in the interests of cooperative members.
In the cooperative MTS model, a group of agricultural producers (farmers, farms) is united through a consumer society in order to jointly own and use a fleet of equipment, technological equipment, as well as implement innovative projects. MTS in this structure performs a number of functions: introduces new technologies and innovations into production, provides agricultural services cooperative members, supplies them with material and technical resources (GSM, spare parts, fertilizers, etc.) and often participates in the final production of agricultural products. In fact, MTS becomes the operational core of the integrated system, a link between the various members of the cooperative.
An important feature of the MTS cooperative model is the functioning in a closed production cycle. Within the framework of one cooperative, all stages of the agro-industrial process can be combined - from the production of raw materials to the processing and sale of finished products. For example, in the grain subcomplex cooperative members cooperatives can be farmers, grain storage and processing enterprises (elevators, mills, feed mills, breweries, bakeries), transport organizations, trading enterprises and even machine-building plants that produce agricultural machinery. Figure 1 illustrates such a closed cycle on the example of the grain-product complex: all participants are simultaneously members of the consumer society "MTS" (for organizational and marketing integration) and cooperative members credit union (for financial integration).
Due to this, a multiplier effect is achieved: cooperation in a closed cycle allows to reduce costs, eliminate internal intermediaries and ensure parity settlements between participants. Thus, enterprises within the cooperative do not sell each other products at market prices, but transfer them as a contribution to the overall process. Industry, when supplying machinery or materials to farmers, sees this not as a mere sale but as an investment in the overall cycle; in turn, farmers receive resources not as an expense but as an investment in their production. This innovative approach to accounting for internal transactions eliminates price distortions and allows participants to increase profitability at the expense of the cooperative economy. Internal settlements are carried out using share contributions, internal units of account or even digital tokens, but in any form they are one - to ensure a fair distribution of costs and results between all members of the cycle.
Practical experience in the creation of such systems has been accumulated in some regions. Thus, in the Krasnoyarsk Territory in 1993, the corporation "Krasnoyarskgropromtekhservis" was formed, which united 32 state farms and collective farms, 12 repair and technical enterprises, a number of factories for the production of agricultural machinery and processing factories. Within the structure of this corporation, the MTS Center and an extensive network of zonal and district stations were organized, which allowed to stabilize the work of farms and create a single trade and sales system. Similarly, in the Krasnodar region at the municipal level acted corporation "Severskaya", which included local agricultural enterprises, service organizations, processing plants and sales enterprises; with it, MTS directed the development of the machine base for the introduction of innovative technologies in district agriculture. These examples show that the integration of MTS with manufacturers and processors creates the prerequisites for sustainable growth: the manageability of the entire system increases, the return from the introduction of new technologies in each workplace increases, and dependence on external resource suppliers decreases.
Modern cooperative MTS is not just a "station of machines", but the center of innovative development in the countryside. It distributes among cooperative members new agricultural technologies (precise agriculture, digital management services, robotics), serves as a training platform for personnel, provides maintenance and repair, and can also perform the functions of a logistics hub. For example, within the framework of digital transformation projects, it is proposed to create a network of service drones-ports on the basis of MTS for unmanned delivery of agricultural products from farmers directly to consumers. This will reduce supply chains, reduce losses and costs, especially in remote areas. Thus, the MTS model in combination with the cooperative structure is a powerful tool to increase the productivity and sustainability of the agricultural sector, ensuring technological renewal and efficient use of resources for food security.
Participation of consumer societies and credit unions
The cooperative model of MTS is inextricably linked with the activities of consumer societies (consumer cooperation) and credit unions. These two forms of cooperatives complement each other, creating a single infrastructure to support agriculture. Consumer societies bring together producers and consumers for the purpose of joint economic activity, supply and marketing, while credit unions provide financial interaction, savings and lending on a reciprocal basis. Within the framework of food programs, both types of cooperatives are organized, as a rule, by the same cooperative members - agricultural producers, and perform different but complementary functions:
- Consumer Societies (“MTS”). They are the economic core of the cooperative. They deepen the integration of production and technological processes "horizontally" - that is, at the level of production, processing and trade. In the consumer society, agricultural producers jointly plan production, create their own processing capacities (mini-factories, workshops), organize logistics and sales. Through software, participants cooperate in their material and technical base - warehouses, refrigerators, transport, retail outlets. In fact, the consumer society forms a single economic space for its members, allowing them to act together as a single production and supply complex. In the example of the Krasnoyarsk Territory, the corporation-cooperative created an extensive system from procurement points to retail trade, which provided volumes, assortment and quality of products for the market. Thus, consumer cooperation plays a crucial role in stabilizing local food markets - through its stores and wholesale markets, it guarantees the sale of products, bypassing speculative chains, and keeps affordable prices for the population.
- Credit unions (credit cooperatives). They perform the function of financial guarantor and investor. They integrate the management system “vertically”, linking producers with sources of capital and providing constant resource support. cooperative members Credit unions are investing their savings (share contributions), forming a collective fund, from which preferential loans are granted to members of the cooperative - for the purchase of equipment, seeds, production development. Credit unions thus accumulate local financial resources and direct them to the development of their own cooperative, closing financial flows within the region. The most important principle is extra-budgetary financing: co-operators rely on their own and attracted private funds, reducing the burden on the state budget. At the same time, credit unions can work with external investors: through the system of collateral funds, they receive bank loans or private investments under collective guarantees cooperative members . For example, the MTS development program provided that the assets of commodity producers and municipalities are placed in credit unions and funds in the form of securities, and the necessary investments are attracted under their pledge. Thus, the credit cooperative serves as a financial mechanism of the cooperative agricultural system, supporting its growth.
By interacting, the consumer society "MTS" and the credit union associated with it form a soldered cooperative structure. The consumer society is responsible for production cooperation - resource sharing and sales, and the credit union - for financing and settlements. This model eliminates the contradiction between production and the market: all participants, from the farmer to the processor and seller, are interested in the overall success and are bound by a circular guarantee. Payments within the closed cycle are carried out according to an agreed financial mechanism, using units, shares, bills and other internal settlement documents. This allows you to set parity prices between raw materials, processing and finished product and honestly distribute profits. As noted in the program documents, no company does not lose its legal independence, joining the cooperative only by property units, but all benefit from coordination. With proper management, the cumulative effect is expressed in the growth of the profitability of all links.
It should be emphasized that consumer cooperation is useful not only for rural producers, but also for consumers (population). Consumer societies have historically been concerned with the harvesting and distribution of food in hard-to-reach and rural areas. In modern conditions, they again come to the fore, especially in the regions of Siberia and the Far East, where the federal retail network is poorly developed. Cooperatives supply local products there, supporting food availability. In addition, the system of consumer cooperation can flexibly respond to social demands: for example, open cooperative stores within walking distance, supply schools, hospitals, military units with quality products of local production. This approach increases social stability - people are confident in the availability of basic products at fair prices.
In general, the merger of MTS, consumer societies and credit unions creates a multi-level cooperative ecosystem in which issues of production, processing, marketing and financing are resolved. This significantly increases the resilience of the agricultural sector to external shocks. If one farm or enterprise faces difficulties (harvest risk, price fluctuations), a cooperative association helps to redistribute resources, support a participant with credit or material means. As a result, the region gets a more stable food base, and national food security is strengthened by the cumulative effect of many local cooperatives.
Example: cooperative structures and their role in food security
For clarity, a general comparison of key cooperative structures and their functions in ensuring food sustainability is provided (see para. Table 1).
|
Structure |
Role in the Cooperative Program |
Contribution to food security |
|
Machine and technological station (MTS) |
Agrotechnology and Innovation Operator. Provides cooperative members equipment, introduces new technologies, organizes joint production and services. Coordinates the closed cycle from field to processing. |
Increased productivity and production efficiency due to access to modern technology and technology. Increasing yields, reducing costs, introducing innovations - all this increases the volume and quality of food on the market. |
|
Consumer society (producers/consumers cooperative) |
Organizational and economic platform. Combines farmers, processors and trade; plans production; owns a common infrastructure (warehouses, trade). Purchases raw materials from members, carries out processing and marketing of final products. |
Stabilization of market supply through direct delivery of products from producers to consumers. Formation of local food reserves and reduction of dependence on external supplies. Ensure the availability of products to the public through its trading network. |
|
Credit Union (credit cooperative) |
The financial mechanism of the cooperative. Accumulates savings cooperative members; provides loans for the development of farms, the purchase of equipment, sowing campaign, etc. Attracts investments through shares, bonds, mutual aid funds. |
Sustainable financing of agricultural production at the local level. Increase investment activity in the village. Reducing credit risks and dependence on commercial banks. In crisis situations - support of farms with working capital, prevention of disruptions in food production. |
Table 1. The main cooperative structures and their functions in ensuring food sustainability. cooperative members cooperatives simultaneously participate in several structures, which creates a synergistic effect: MTS increases production efficiency, consumer society guarantees sales and processing, and the credit union provides the system with finances.
The role of cooperation in regional and national sustainability
The development of these cooperative structures directly affects the food sustainability of the regions and the country as a whole. At the regional level, the emergence of MTS and cooperatives allows you to involve unused resources in production - abandoned arable land, idle equipment, the labor of excess rural population - and thereby increase food production. For example, the integration of scattered farms into a single cooperative stimulates the introduction of reserve lands and the use of intensive crop rotations. Through cooperation, farmers have access to equipment and competencies that would be inaccessible to them alone - as a result, yields and crop diversity increase, and land use improves.
In addition, the cooperative system creates new jobs in rural areas - in MTS services, in mini-factories of consumer cooperation, in the field of logistics. This increases the income of the population and, as a result, its physical availability of food (people can afford better and more varied food). The social effect of cooperation - reducing the outflow of population from the village, strengthening rural communities, the development of local infrastructure - indirectly also affects food security, as it revitalizes agriculture and ensures the influx of youth into the industry.
Regional food security is largely dependent on the Territory ' s ability to feed itself. Cooperatives make a major contribution to this ability. They help to build a balanced structure of agricultural production in the region: they stimulate the development of not only raw materials industries (plant farming), but also livestock production, processing, storage - that is, a full cycle. For example, if the cooperative organized feed and livestock subcomplex, local production of meat and milk becomes profitable and competitive, instead of the region dependent on imported food. In a number of northern and eastern regions, consumer cooperation is practically the only channel for supplying villages with food, especially in the off-season, which directly supports food security there.
At the national level, cooperative programmes help to correct imbalances between the various constituent entities of the Federation. Some areas have excess grain, others vegetables, and others milk. Through cooperative unions (for example, through the system of the Central Union of the Russian Federation, which unites regional consumer unions), interregional exchange is being established: cooperatives can sell surplus products to other regions, bypassing expensive intermediaries. This increases the overall self-sufficiency of the country with basic types of food. Cooperation also contributes to the formation of a state food reserve. Excess production from cooperatives can be bought into stabilization funds or stored, creating stocks in case of crop failure or emergencies.
It is also important that cooperatives actively participate in the implementation of social state programs - supplying food to schools, kindergartens, hospitals, the army, as well as food assistance to the poor. cooperative members cooperatives are often themselves employees of the public sector, pensioners who, through their associations, solve problems close to the state food policy. For example, consumer societies have historically implemented school feeding programmes by supplying local fresh produce to schools at affordable prices, which improves the quality of children's nutrition. The MTS program included a separate item on improving the reliability of food supply to "budget special consumers" (military units, prisons, other departments) on the basis of MTS cooperatives. This underlines the state importance of cooperatives in the food security system.
Finally, cooperative structures are highly flexible in times of crisis. In times of economic turmoil or sanctions (as, for example, in 2022–2023), it is cooperation that helps to quickly reorient logistics, find domestic suppliers instead of imported ones, and mobilize additional resources. Credit unions can temporarily restructure farmers’ debts, provide vacations, which reduces the risk of bankruptcy, and preserve production. Consumer unions, having established ties with local producers, are able to prevent the shortage of individual goods by organizing mutual assistance between regions. All this makes the country’s food system more resilient to external and internal challenges.
Integration with global initiatives
Ensuring food security exclusively at the national level in the modern world is not enough - it is necessary to coordinate efforts with international initiatives. Consider the three concepts of global integration mentioned in the task and the possibilities of interaction with them by cooperative food programs.
- Assembly of the Peoples of the World. It is an international union of non-governmental organizations and citizens, which aims to develop friendship and partnership between peoples, public diplomacy and Eurasian integration. The Assembly of the Peoples of the World (formerly the Assembly of the Peoples of Eurasia and Africa) serves as a platform for multilateral cooperation, bringing together representatives of more than 60 countries. One of the directions of her work is the support of economic ties and integration processes in the space of Eurasia and Africa. Within the framework of the Assembly, projects on interstate partnership, election observation, cultural and scientific cooperation are discussed. For cooperative food programs, participation in such a global association opens up opportunities for sharing experiences and best practices. Russian cooperatives can present their MTS and agricultural cooperation models at international forums, gaining knowledge of foreign cooperatives (for example, about the success of agricultural cooperation in the BRICS or SCO countries). The Assembly, having cooperation agreements with partners from 41 countries, is able to promote large-scale projects, for example, the creation of interstate food funds, joint cooperative enterprises in the agricultural sphere, cross-border wholesale markets. Integration with this initiative strengthens people’s diplomacy: cooperatives of different countries can directly establish ties, conclude commodity exchange agreements, bypassing geopolitical barriers. This is especially true in the era of global challenges (pandemics, climate change), when food security requires solidarity actions of many states.
- EQUILIBRIUM. This concept implies a global initiative that puts forward the ideas of biosociocybernetic evolution of society and new principles for the unification of mankind. EQUILIBRIUM is positioned as a kind of development paradigm based on the synthesis of social, biological and information systems. In the context of food security, this concept can be interpreted as a call for the creation of a global digital ecosystem where resources (including food) are managed on the basis of data, cybernetic models and collective intelligence. Integration of cooperative programs with ideas EQUILIBRIUM could mean the introduction of advanced technologies - for example, biometric monitoring of farmland, artificial intelligence for crop forecasting, global information platforms for food exchange. In addition, EQUILIBRIUM focuses on the unity of mankind, which is consonant with the cooperative principles of solidarity. Perhaps, based on this concept, the world cooperative food network could develop, where countries and regions act as part of a single cybernetic organism that jointly prevents hunger and supply imbalances. Practically, this could be expressed in the creation of international food information registers (global blockchain registries), tracking the origin and movement of products that prevent shortages and falsification. Already in pilot projects in Russia, elements of such a system are being worked out - for example, blockchain registries are being introduced to track supply chains "from farmer to consumer". The concept of EQUILIBRIUM could combine such developments of different countries under a single methodological approach.
- "The One State." This idea implies the deepest possible integration of states up to the formation of a single planetary community or supranational association. In a utopian sense, the One State is a world without borders, where the resources of the planet belong to all mankind and are distributed fairly according to general laws. With regard to food security, such an approach would mean the establishment of a global food planning system. National food programmes could be synchronized at the level of international institutions, distributing production according to world needs and ecosystem sustainability. As part of the movement towards a single state, cooperatives can become the “bricks” of the general structure - local nodes in the global supply chain. Integration with this idea also implies the development of unified standards for food accounting and exchange. For example, a single electronic platform could be created, where each cooperative or farm union registers and exchanges information on stocks and product demand. Such initiatives are beginning to be implemented at the level of the EAEU, BRICS - generalized food balance maps, price monitoring systems, joint reserve funds are being created. The concept of a One State raises the bar - the ultimate goal is world food sustainability, when no country suffers from hunger, and excess resources are automatically directed to where there is a shortage. For Russian cooperative programs, participation in the movement towards such unity means the need to more actively integrate with international rules (for example, UN food aid standards, global programs FAO) and offer their solutions on the global arena.
It should be noted that all three global initiatives - to varying degrees - appeal to the principles of cooperation, peaceful association and exchange. The cooperative movement has historically been closely associated with these principles, because cooperation has grown as an international solidarity movement (the ideals of the Rochdel pioneers, etc.). Modern challenges (climate change, pandemics, geopolitical conflicts) make international cooperation in the food sector even more relevant. Therefore, the integration of national cooperative programs into the global context is a logical step. The Assembly of the Peoples of the World can provide an institutional platform for such interaction (forums, agreements), EQUILIBRIUM - an ideological and technological basis (new methods and concepts), and the movement towards a One State - a strategic goal (a harmonized food security policy for the whole world).
Innovative approaches: accounting, planning and financing
The success of cooperative food programs depends largely on the implementation of innovations in management - from accounting and control to strategic planning and modern methods of financing. Let’s look at some advanced solutions in these areas.
1. Innovative forms of accounting. Traditional accounting in agriculture records the transactions of purchase and sale between independent farms. In the cooperative system, especially in a closed cycle, new approaches to accounting for inter-office settlements are required. As described above, within a cooperative, the exchange of resources is often treated not as a sale, but as a mutual investment in the overall process. To reflect this, special accounting tools are used: share books, internal accounting units, clearing systems. Digital technologies have been added in recent years. For example, in the pilot projects, the internal cryptocurrency of the cooperative is introduced, relying on a blockchain platform for accounting transactions. Such a system allows transparently tracking the contribution of each cooperative member and the distribution of profits, protecting savings from inflation and external risks. Blockchain as a distributed registry makes accounting virtually immutable and trusted for all participants: everyone sees how much resources he has invested (grains, machinery, labor) and what share of finished products or profits he can get. In Russia, experiments are being conducted to create such registries in the agro-industrial complex - for example, the Waves Enterprise platform was tested to track deliveries and settlements in agrologistics. Innovative accounting also includes more “soft” innovations, such as taking into account the social contribution of a cooperative (how many jobs are created, how many young people are trained, etc.) as a special asset. Modern cooperatives begin to report not only in financial indicators, but also in indicators of sustainable development (SDG), which increases their investment attractiveness and trust from society.
2. Cooperative planning and digital coordination. Unlike a single farm, a cooperative unites dozens and hundreds of participants, which requires more complex planning. The innovation here was the use of the principles of joint (partisan) planning with the help of IT platforms. Strategic committees are formed with the participation of representatives of all groups cooperative members (Farmers, processors, consumers, investors) where production and development plans are developed collectively. For example, in one of the projects it is proposed to create a Project Management Committee (ICOPOR) under the Security Council of the Russian Federation, including authorities, business and co-operators, for strategic planning of the development of the agro-cooperative ecosystem. This shows that cooperative planning is reaching a new level - state-cooperative partnership. On the technical side, digital platforms are used for coordination: from simple CRM-systems of accounting for units to complex AI platforms. Examples include satellite monitoring systems (for joint crop planning), online portals for cooperatives that display stocks, needs and prices in real time, and mobile applications for cooperative members (allowing MTS services or product delivery). Minimally viable products have already been implemented (MVP) such platforms - for example, an AI-based data management platform with route optimization functions for 50 Agrohubs integrated with GLONASS. Digitalization of planning provides significant benefits: it increases the speed of decision-making, reduces losses (for example, the cooperative sees the overall picture and redistributes resources to those who have a drought or, conversely, an excess of harvest), provides transparency for all members (what is planned to be sown, at what price to sell). Innovative methods, such as platforms for joint supply and demand management (C2C2G – “consumer-to-consumer-to-government” mentioned in the drone delivery project) actually allow building digital markets within cooperatives, directly linking producers and consumers with minimal involvement of intermediaries.
3. Financing mechanisms and investments. In addition to classical credit unions, modern cooperatives are mastering new financial instruments. Crowdfunding and crowdinvesting - raising funds from the general public - help raise money for rural projects (for example, to create a processing shop or buy a batch of breeding cattle) in exchange for future products or a share in profits. Models of share financing through digital platforms are being developed, where everyone can invest in a cooperative project by purchasing a token or a digital share. With the support of the state, it is possible to implement schemes of guarantee funds: cooperatives are united to create mutual lending funds that insure each other’s risks and gain access to cheap loans under state guarantees. In Russia, the Bank of Russia and the Ministry of Agriculture are considering measures to support credit cooperation - for example, subsidizing deposits in rural credit cooperatives or refinancing through specialized institutions.
Another innovative direction is the issue of cooperative bonds or mutual funds, funds from which are allocated for agricultural projects. Large-scale consumer unions (e.g., regional or republican) can issue bonds backed by future food sales revenue, offering them to the public as a reliable investment tool. Thus, citizens simultaneously finance agriculture, and receive income, and strengthen the food security of their region.
It is necessary to mention such innovations as internal insurance funds of the cooperative. Cooperatives jointly form crop, machinery and animal insurance funds, protecting each other from force majeure. This is especially important in the face of climate change, when risks are increasing. Insurance cooperatives (mutual insurance) is a topic that is gaining momentum: they allow you to leave insurance reserves within the system, and not give them to third-party companies.
Finally, the innovation in financing is the linking of money to “human capital”. In the above-mentioned project, the concept of a new measure of value is created: “human life is a common measure of the value of all goods”. Practically, this can be understood as the orientation of financial decisions to maximize the well-being of people, not just profits. For example, investments are directed to projects that are most significant for the quality of life (healthy food, eco-products), and within the cooperative, the distribution of profits can take into account the labor contribution, social significance, and not only the monetary share. Although this idea is largely philosophical, its appearance speaks to the desire of cooperatives to combine economic and humanitarian goals.
For a better understanding of how traditional approaches differ from innovative ones, we give a brief comparison:
- Traditional accounting: each transaction is executed in cash, participants strive for profit at each stage. Innovative accounting: within the cooperative, the exchange of resources is at domestic prices or non-cash (through shares / tokens), the profit is taken into account at the final stage, which eliminates price distortions.
- Traditional planning: each farmer plans himself, the information is scattered, the state develops general programs from above. Cooperative planning: General plans are developed collectively, involving all stakeholders, often with the support of digital systems, and the state participates as a partner and coordinator.
- Conventional finance: Dependence on banks that require collateral and set high rates; government subsidies do not always reach quickly. Cooperative financing: their credit unions, mutual funds, popular financing (crowdfunding), domestic currencies - all this gives flexibility and stability, money "works" within the community.
Innovative forms of accounting, planning and financing allow cooperatives to become truly smart systems of the agrarian economy - adaptive, self-regulating and focused on long-term sustainability, rather than on short-term benefits. Their introduction is a necessary condition for strengthening food security in the XXI century.
Recommendations
Based on the analysis, a number of recommendations can be formulated for the development of cooperative food security programs:
- Improvement of legislation. To provide favorable legal conditions for cooperation: to simplify the registration of cooperatives, to give tax incentives to agricultural cooperatives and credit unions, to legalize the use of digital assets (tokens) within the framework of cooperative settlements. Apply the mechanism of public-private partnership, when the state, through treaties or agreements, supports pilot cooperative projects (as was done by the Ministry of Agriculture of the Russian Federation in 2001–2005).
- Scaling successful models. Circulation by regions of successful cooperative schemes (MTS + consumer society + credit union). For example, the experience of Krasnoyarsk and Krasnodar Krai on the integration of enterprises into corporations with MTS should be extended to other entities, adapting to local specifics. To create a methodological center at the Ministry of Agriculture (as it was proposed - the Interregional Consultation and Methodological Center) for training regional leaders of cooperation and exchange of practices.
- Development of wholesale market infrastructure. Support the initiative of the Central Union to create a network of wholesale food markets (ODS). It is advisable for the state to invest in the construction and equipment of such markets, and to entrust management to cooperatives. This will shorten the way of production from the field to the counter and provide transparent pricing that is beneficial to both the consumer and the manufacturer.
- Digitalization of cooperatives. Include in federal programs (Digital Economy, national project on rural areas) special measures for the digital transformation of cooperatives. Create standard IT solutions for agricultural cooperation: share accounting platforms, marketplaces for cooperative products, monitoring systems and joint decision-making. Subsidize the acquisition by cooperatives of software licenses, training in digital skills of employees (including working with blockchain systems and AI).
- Financial support and insurance. To increase the access of cooperatives to concessional loans and investments. For example, to allow credit unions to receive refinancing in state banks for cooperative projects. Establish a guarantee fund specifically for credit cooperatives in the agro-industrial complex to reduce risks for depositors. Also develop a mutual insurance system: with the support of the state, create cooperative insurance companies specializing in crop and agricultural risks insurance.
- Integration with international projects. To actively promote Russian cooperative initiatives at the sites of the Assembly of the World’s Peoples, FAO, BRICS. To propose the creation of an international consortium of food cooperatives for the exchange of experience and mutual assistance in emergency situations (failure to harvest, natural disasters). To study and implement the best world practices, for example, the successes of cooperatives in India (Amul - dairy cooperatives), Kenya (cooperative financing through mobile platforms), etc. Consider the possibility of a pilot project with international participation - for example, a cooperative greenhouse complex with joint financing by the EAEU countries.
- Education and personnel. Organize systematic training for food cooperatives. Introduce special courses and programs in agricultural universities on cooperative management, social entrepreneurship, fintech in the agro-industrial complex. Take advantage of the developments of specialized institutes (the Central Research Institute of Innovative Problems and Marketing of the agro-industrial complex in the Russian Federation, mentioned in the MTS program) and training centers of consumer cooperation. Also encourage the exchange of students and specialists within the framework of international agricultural internships (for example, through the Assembly of the Peoples of the World).
- Performance monitoring and control. Establish an inter-agency mechanism under the Security Council or the Government to monitor the implementation of cooperative food security programmes. Periodically assess indicators: production growth, the level of food self-sufficiency of regions, the dynamics of prices for basic products, the participation of the population in cooperatives. It is important to establish feedback with rural areas: what is possible, where the problems are (for example, resistance of monopolists, shortage of specialists), and promptly adjust support measures.
The implementation of these recommendations will strengthen the food security of the Russian Federation, relying on the potential of the cooperative movement. The pooling of resources based on trust and mutual benefit is a proven path that, in the XXI century, is being revitalized by innovation and global cooperation. Agricultural cooperatives, armed with modern technology (through MTS), supported by the finances of their members (credit unions) and connected in a single network (consumer societies, digital platforms), can become a cornerstone of food sustainability - both regional and global.
Sources:
- The program of MTS development and cooperation for food security, the Central Research Institute of AIC marketing, approved 2001 g.
- Investment memorandum of the ecosystem of agrarian cooperation (project A. Revina, 2023)
- Proceedings of the conference "The role of consumer cooperation in food security" (SibUPK, 2022)
- ICA Director-General’s speech at the World Food Summit (Rome, 1996) on the contribution of cooperatives to global food security
- Assembly of the Peoples of the World - official materials and chronicle of activities (2023–2025)