Development of Agro-Associations in Jordan: Significant Factors, Constraints and Recommendations

Abstract

Nowadays, there are diverse cooperatives in Jordan, including agricultural sphere. Nevertheless, there is not yet a fully developed cooperative sector in the Jordanian agroindustrial production system. The importance of the research lies in the fact that it brings up to date knowledge concerning agricultural cooperatives in Jordan. The purpose of this article is to study such a problem as stimulating and constraining factors of development of cooperation in agricultural sphere. The tasks of the study are to reveal the essence of the concepts of “cooperation” and “integration”; identify factors that stimulate or constraint the development of cooperation and integration in agriculture; study the current state of cooperation and integration in agriculture in Jordan, to identify problems hindering its development; develop priority measures to support agricultural cooperatives in Jordan. The methodology of the research includes comparative and factor analysis. Having conducted factor analysis, we may conclude that Jordanian cooperative and integration relations in agricultural sphere are mainly characterized by the restraining development factors. The shortage of investments, the lack of financial resources, insufficient infrastructure and the lack of cooperation constraints the agro-sector’s ability to benefit from economy of scale. Further research proposal is wider development of supportive measures for agricultural cooperatives in Jordan.