Cooperative purchasing enhanced its effectiveness
 
          The purchasing of agricultural produce is one of the main activities carried out by the cooperative organisations within the Central Cooperative Union system since their establishment. It represents only 5% of the total operating revenue, but the sector is still traditional for the cooperative system and sustains its well established market positions in the country and abroad.
          Products worth over BGN 15 million flow through the 96 cooperative purchasing bases every year, and the full-time employees involved with this activity are approximately 110. Seasonal workers are also hired as necessary. 
          Subject to purchasing are herbs, technical seeds, fruits, vegetables, nuts and ecologically clean products. These products are extremely important economically as they have foreign and domestic market, they bring significant revenue to the cooperative organisations involved in their purchasing and they secure means of living for many people in regions with low purchasing power and poor business activeness. The production and sales of a large portion of these are promoted and financed through various European programmes dealing with the development of agriculture.
          In 2008 the Central Cooperative Union, the consumer cooperatives and the Cooperative Unions put joint efforts in the restructuring of the purchasing activities, aimed at achieving several key strategic objectives: recovering the reputation of the cooperative organisations as a fair and reliable partner, offering modern terms and conditions, initial handling and storage of the products; increase in the volume and improvement of the quality of the purchased produce, expansion of the market positions and enhancement of the profitability of the operations.
          To achieve these goals the Purchasing Directorate at the CCU developed and provided to the Cooperative unions and the Cooperatives "Handbook on the Purchasing of Herbs, Mushrooms, Technical Crops, Apian Products, Fruits and Vegetables”. The Handbook states the conditions to achieve successful purchasing activities: establishment and registration of purchasing bases, meeting certain requirements; organisation of the purchasing activities and those employed therein; nomenclature of the purchased produce; initial handling, packaging and marking of the purchased products; outputs and collection periods, etc.
          The Directorate developed and provided the cooperative organisations with information material titled: "Organic Products: Collection, Production, Processing and Trade, Certification”, making the cooperatives dealing with purchasing and cultivated production of agricultural produce aware of the terms and conditions and the ways to obtain certification for their products and to enhance their competitiveness.
          Both documents were discussed and approved by the Purchasing Commission at CCU Management Board.
          A great deal of attention was given to the improvement of the qualifications of the purchasing specialists at the cooperatives and the Cooperative Unions. Training titled: "Organisation and Implementation of the Purchasing Activities within the Cooperative System" was organised for them, where leading experts from the Faculty of Biology at Sofia University "St. Kliment Ohridski", from the District Agriculture Advice Offices of the Ministry of Agriculture and Foods, Regional Inspectorates on Protection and Control of Public Health, etc. were invited as lecturers.
          The analysis of the achievements in the area of purchasing in 2008 indicated that this activity has huge development potential within the cooperative system. Its advantages before the competition include: lasting traditions, increased demand for agricultural and high quality ecologically clean products with guaranteed origin, well-functioning system of cooperatives covering the whole territory of the country, the national cooperative company – "Bulgarcoop – Import - Export” ÅÎÎD, having almost 50 years of experience in the organisation and implementation of purchasing, exporting products to tens of countries on 3 continents.
          However, to be able to realise these advantages it is necessary to take steps in several key directions:
  • Training of the personnel and securing all-year employment and performance based remuneration.
  • Securing investments to modernise the purchasing bases and making sure they have available modern equipment.
  • Transition to cultivated growing of herbs, technical seeds, fruits and vegetables.
  • Certification of the collected wild and the produced cultivated products as organic.
  • Development of projects for financing the purchasing activities of the cooperatives through the European Funds and Programmes.
  • Improvement of the organisation of the purchasing activities and expansion of the nomenclature of the purchased products.
  • Setting higher quality criteria for the purchased products and the control over their compliance.
  • Expansion of the contractual relations between the cooperative organisations and strict compliance with the contractual and fiscal discipline.