After submission, Parliament on Thursday approved the Government’s proposed amendments, which, among other things, would exempt cooperatives from the obligation to renew certificates every two years.
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“The goal is to strengthen farmers’ ability to act together and be stronger in the market. Cooperation gives farmers more bargaining power, together it is possible to sell products more efficiently, buy necessary raw materials and services,” said Minister of Agriculture Kęstutis Mažeika when presenting the amendments in the Seimas.
“Less bureaucracy, more clarity, and stronger cooperatives,” he added.
Liberal Viktoras Pranckietis emphasized that the amendments eliminate discrimination against some farmers: “All cooperatives will be equal.”
Currently, cooperatives are granted status only for two years, after which farmers must submit data again to obtain it.
It is planned that a mark confirming the cooperative status will be visible in the Legal Entities Register system.
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In addition, three requirements for such status are proposed: at least 90% of cooperative members must be engaged in agricultural activities, more than 50% of the value of purchased products or services must consist of transactions with its members, and tax arrears and debts must not exceed 500 euros.
“A cooperative must be created for farmers to work primarily for its members and be financially sustainable,” emphasized K. Mažeika.
It is also proposed to legalize the status of “passive member.” This will allow long-term members who no longer farm for objective reasons to remain part of the cooperative while ensuring that active members dominate decision-making.
The amendments more clearly regulate the election procedure for the chairman of the board, the board, and the supervisory board members, as well as establish how to resolve situations when candidates receive an equal number of votes.
These amendments to the Cooperative Companies (cooperatives) Act will next be considered by the Rural Affairs Committee.
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