Financing of the Agricultural Sector via Cooperatives in Turkey and in the World

25th Scienific-Experts Congress on Agriculture and Food Industry

Organized by

Faculty of Agriculture, Ege University, TURKEY &

Faculty of Agriculture and Food Sciences

University of Sarajevo, BOSNIA and HERZEGOVINA &

Faculty of Agriculture, Uludağ University, TURKEY

DISCLAIMER: All papers and titles of presentations were only formatted into the correct fond, size and paragraph style and were not language edited. The papers were repinted as submitted by the authors. The editors accept no responsibility for any language, gramer and spelling mistakes.

Presidency of the Congress

Prof. F. Akın Olgun, President of the Congress, Dean of the Faculty of Agriculture, Ege

University, Turkey

Prof. Mirsad Kurtović, Deputy President of the Congress, Dean of the Faculty of Agriculture and

Food Sciences, University of Sarajevo, Bosnia and Herzegovina

Prof. İsmail Filya, Deputy President of the Congress, Dean of the Faculty of Agriculture, Uludağ

University, Turkey

Organizing Committee

Prof. Murat Yercan, President of the Organizing Committee, Faculty of Agriculture, Ege

University, Turkey

Prof. Hamid Čustović, Deputy President of the Organizing Committee, Faculty of Agriculture and

Food Sciences, University of Sarajevo, Bosnia and Herzegovina

Prof. Muharem Avdispahić, Rector of the University of Sarajevo, Bosnia and Herzegovina Assoc. Prof. Harun Kesenkaş, Faculty of Agriculture, Ege University, Turkey

Assoc. Prof. Emine Malkoç True, Faculty of Agriculture, Ege University, Turkey

Hamdija Čivić, PhD., Director of the Agency for Harmonization, Coordination System Payment in

Agriculture and Rural Development in Bosnia and Herzegovina

Sıdıka Ekren, PhD., Faculty of Agriculture, Ege University, Turkey Mahmut Tepecik, PhD., Faculty of Agriculture, Ege University, Turkey

Hanefija Topuz, PhD., Head of the Agricultural Policy, Federal Ministry for Agriculture, Water

Management and Forestry, Sarajevo, Bosnia and Herzegovina

Senaid Memić, PhD., Mayer, Ilidža Municipality, City of Sarajevo, Bosnia and Herzegovina Res. Asst. Fatih Özden, Faculty of Agriculture, Ege University, Turkey

Res. Asst. Duygu Tosun, Faculty of Agriculture, Ege University, Turkey Res. Asst. Aslı Akpınar, Faculty of Agriculture, Ege University, Turkey Res. Asst. Ahmet Hatipoğlu, Faculty of Agriculture, Ege University, Turkey

Management and Editing Committee of the Proceedings

Dr. Mahmut TEPECİK Dr. Ahmet HATİPOĞLU

Res. Asst. Fatih ÖZDEN Res. Asst. Duygu TOSUN

Scientific Committee

Prof. Riza Avcıoğlu, President of the Scientific Committee, Ege University, Turkey

Prof. Milenko Blesić, Deputy President of the Scientific Committee, University of Sarajevo,

Bosnia and Herzegovina

Prof. Konstadinos Mattas, Artistotle University of Thessolaniki, Greece Prof. Adalet Mısırlı, Ege University, Turkey

Prof. Emine Bayram, Ege University, Turkey Prof. Elâ Atış, Ege University, Turkey

Prof. Şerafettin Aşık, Ege University, Turkey Prof. Vahap Katkat, Uludağ University, Turkey Prof. Ö. Utku Çopur, Uludağ University, Turkey Prof. Hatice Gülen, Uludağ University, Turkey

Assoc. Prof. Emir Džomba, University of Sarajevo, Bosnia and Herzegovina

Prof. Terrence Thomas, North Carolina Agricultural and Technical State University, USA Prof. Mirha Đikić, University of Sarajevo, Bosnia and Herzegovina

Prof. Aleksandra Nikolić, University of Sarajevo, Bosnia and Herzegovina Prof. Ö. Akgün Karabulut, Uludağ University, Turkey

Prof. Aydın İpek, Uludağ University, Turkey

George Baourakis, PhD., Mediterranean Agronomic Institute of Chania, Greece Selma Tozanlı, PhD., Mediterranean Agronomic Institute of Montpellier, France Prof. Enver Durmuşoğlu, Ege University, Turkey

Prof. Elena Horska, Slovak University of Agriculture in Nitra, Slovak Republic Jean-Marie Codron, PhD., INRA - MOISA, Montpellier, France

Prof. Nermina Spaho, University of Sarajevo, Bosnia and Herzegovina Prof. Ömer Lütfü Elmacı, Faculty of Agriculture, Ege University, Turkey Prof. Banu Yücel, Ege University, Turkey

Prof. Şerif Hepcan, Ege University, Turkey

Assoc. Prof. Cem Karagözlü, Ege University, Turkey Prof. Gökhan Söylemezoğlu, Ankara University, Turkey Assoc. Prof. M. Ulaş Çınar, University of Erciyes, Turkey

CONTENTS

ORAL SESSION

AGRICULTURAL ECONOMICS

Examination and Comparing of Technical, Allocative and Economic Efficiency of Date Producer in Baravat and Rostamabad Region from

Bam Township, Iran ... 1-4 Alireza ABDPOUR, Ehsan ASADABADI

Better Cotton Initiative Approach for Sustainable Cotton Production: A Case

Study of Turkey ... 5-8 Hakan ADANACIOĞLU, Gamze SANER, Duran GÜLER, Zakiyeh NASERI,

Seren ÇELİMLİ

Effect of Domestic Policies on Market Integration for Fertilizer in Ethiopia ... 9-12 Johanes AGBAHEY, Jonas LUCKMANN, Harald GRETHE,Bamlak ALAMIREW

An Ecological Footprint Analysis and Sustainability of Turkish Agriculture ... 13-16 Yarkın AKYÜZ, Ela ATIŞ, H.Ece SALALI

The Dimensions of Traditional Foods in the Global Markets ... 17-20 Mevhibe ALBAYRAK, Kemalettin TAŞDAN, Kürşad ALBAYRAK

Comparison of Cost and Profitability of Major Field Crops in Adana

Province ... 21-24 Tuna ALEMDAR, Arzu SEÇER, Burak ÖZTORNACI

Implications of the Current Structure of Livestock Herds from Romania

upon Food Self-Sufficiency ... 25-28 Cecilia ALEXANDRI, Lucian LUCA

Consumer’s Perception of Risk in Foodstuffs: Some Evidence from Izmir ... 29-32 Sule AZAK, Bulent MIRAN, Kenan CIFTCI

The WTO Integration and Agricultural Policy in BIH - What We Can

Expect... 33-36 Jakub BUTKOVIČ, Hamdija ČIVIĆ, Edin RAMIĆ

The Current Situation and Marketing Problems of Cut Flower Sales Units

in Adana Province of Turkey ... 37-40 Müge KANTAR DAVRAN, Burak ÖZTORNACI, Arzu SEÇER

The Problems and Suggested Solutions about Farmer’s Organizations in

Dairy Cattle ... 41-44 Zübeyde ALBAYRAM DOĞAN, Murat YERCAN, Ayşe UZMAY

Economic Aspects of Dairy Goat Farming in Turkey ... 45-48 Sait ENGINDENIZ, Kubilay UCAR

Understanding Consumers’ Attitudes toward Fruits and Vegetable Attributes: A Multi-method Analytic Approach ... 49-52

Cihat GUNDEN, Terrence THOMAS, Bulent MIRAN

Financing of the Agricultural Sector via Cooperatives in Turkey and in the

World ... 53-56 Seyit HAYRAN, Burak ÖZTORNACI

Agricultural Potentials in Central African Republic ... 57-60 Karl Christofer KINGUELEOUA K., Mehmet Ali CANYURT

Analysis of Balance Sheet and Income Statement of Meat Processing

Companies in Bosnia and Herzegovina ... 61-64 Berin KULELIJA, Dragana OGNJENOVIĆ, Mirza UZUNOVIĆ,

Emir BEĆIROVIĆ

Building Database for Bosnia and Herzegovina AGMEMOD Model:

Challenges and Solutions for Application of Common Methodology ... 65-68 Aleksandra NIKOLIĆ, Mirza UZUNOVIĆ, Merima MAKAŠ, Guna SALPUTRA

Understanding the Motives behind Organic Food Consumption in Bosnia

and Herzegovina ... 69-72 Aleksandra NIKOLIĆ, Mirza UZUNOVIĆ

Underlying Factors Shaping Level of Market Orientation of Food

Companies in Bosnia and Herzegovina ... 73-76 Aleksandra NIKOLIĆ, Mirza UZUNOVIĆ, Alen MUJČINOVIĆ

Evaluation of Food Security About Some of the Main Food Products in

Turkey ... 77-80 Özge Can NİYAZ

Recent Developments in WTO Negotiations on Agriculture and Position

of Turkey ... 81-84 Burhan ÖZALP, M.Necat ÖREN

The Relationship Between Gender and Poverty in Rural Areas of Turkey ... 85-88 Burak ÖZTORNACI, Müge KANTAR DAVRAN, Püren VEZİROĞLU

The Use of Geographical Information System in Agricultural Biodiversity Conservation: The Case of Aegean Region ... 89-92 H.Ece SALALI, Nurdan ERDOĞAN, Ela ATIŞ

Analysis of Attributes Considering for Meat Preference of Consumers:

A Case of Izmir, Turkey ... 93-96 Busra SIMSEK, Kenan CIFTCI, Bulent MIRAN, Ayca Nur SAHIN

The Wine Industry in Greece: Does Market Orientation Affect Wineries’ Performance? ... 97-100 Prokopis THEODORIDIS, Ifigeneia LERI

Analysis of the Turkish Domestic Market for Organic Products under the

Light of Consumer Studies ... 101-104 Özlem Karahan UYSAL, Zerrin KENANOĞLU BEKTAŞ

Recent Developments on Economics of Milk and Dairy Products in the

World and Turkey ... 105-108 Ayşe UZMAY, Murat YERCAN, Zübeyde ALBAYRAM DOĞAN

Bosnian and Herzegovinian Dairy Sector Position at Croatian and Serbian

Markets... 109-111 Mirza UZUNOVIĆ, Aleksandra NIKOLIĆ, Sabahudin BAJRAMOVIĆ,

Vesna DELIBAŠIĆ, Berin KULELIJA

Economic Potential of Sewage Sludge Use in Primary Agricultural Production: Case Study of Wastewater Plant Žepče, Bosnia and Herzegovina ... 113-116

Mirza UZUNOVIĆ, Arnela OKIĆ, Alen MUJČINOVIČ, Ines JURETIĆ, Hamid ČUSTOVIĆ

Estimation of Demand for Macronutrients and Food Diversity in the Slovak Republic ... 117-120 Ivana VARGOVÁ, Marcel PURMA

Factors Affecting Consumer Preferences between Red Meat and Chicken

Meat; A Case of Izmir ... 121-124 Murat YERCAN, Ayşe UZMAY, Zübeyde ALBAYRAM DOĞAN

Determination of Environmental Attitudes of Farmers in the Aegean Region ... 125-128 Özlem YILDIZ, Murat BOYACI

ORAL SESSION

ANIMAL PRODUCTION

A Study on Adopting Probit Method for the Calculation of Lethal

Concentration (LC-50) Regarding Aquatic Organisms ... 129-131 Şaban EREN, Mehmet Ali CANYURT

Aquaculture Potential and Inventory of Fish Species in Central African

Republic ... 133-136 Karl Christofer KINGUELEOUA K.,Mehmet Ali CANYURT

Preliminary Study for Utilization of Some Invasive Aquatic Plants as Raw

Material for Aquaculture Feeds ... 137-139 Ali Yıldırım KORKUT, Aslı GÜNEŞ, Handan ÇAKAR, Özlem AKAT,

M. Aydın GÜNEY, Burak ÖZKUL, Ediz KORU, Cüneyt. SÜZER, Semra CİRİK, Kürşat FIRAT, Şahin SAKA, Aysun KOP, Çağdaş GÖKTEPE

ORAL SESSION

FOOD TECHNOLOGY

Production of Functional Cheese by Replacement of Milk Fat with Hazelnut

Oils ... 141-144 Bahram FATHI-ACHACHLOUEI, Javad HESARI

Sensory Acceptability of the Autochthonous Fruits of Bosnia and Herzegovina -

Challenges and Possibilities for Food Industry ... 145-148

Adnan ALIHODZIC, Fuad GASI, Pakeza DRKENDA, Asima BEGIC-AKAGIC, Amila VRANAC, Mekjell MELAND, Nermina SPAHO

Using Particule Size Index Hardness in Biscuit Wheat Selection ... 149-152 Yasar KARADUMAN, Recai ERCAN

Application of Bacteriocins in Dairy Products ... 153-156 Lenka KOURIMSKA, Eva VLKOVA, Vojtech RADA, Matej PATROVSKY, Radko PECHAR

Association Between Socioeconomic and Nutritional Status in Relation to

the Place of Residence ... 157-160 Irzada TALJIC, Ahmed SMAJIC

Perception and Satisfaction with the Body Image According to Nutritional

Status among Adolescent Boys ... 161-164 Irzada TALJIC, Azra HADZIC, Davorka DJUKIC RATKOVIC

ORAL SESSION

LANDSCAPE ARCHITECTURE

Assessing the Availability of the Health Datasets and the National Land

Cover to Provide Useful Results Regarding Health and Green Space Studies ... 165-168 Abdullah AKPINAR

The Influence of Foreign Designers on the Turkish Garden Culture - Izmir

Culture Park ... 169-172 Gülhan BINGÖL

Analyzing Urban Agriculture Pattern; The Case of Bornova ... 173-176 Cigdem COSKUN HEPCAN

The Analysis of User - Space Relations in Terms of Environmental Psychology: Urla Urban Settlement ... 177-180 Emine MALKOÇ TRUE, İpek ALTUĞ TURAN, Hatice SÖNMEZ TÜREL,

Ayşe KALAYCI

Determination of the Behaviour and Opinions of the Local Community

Towards Tourism Advancements ... 181-184 Emine MALKOÇ TRUE, Çiğdem KILIÇASLAN, Tendü Hilal GÖKTUĞ,

Birsen KESGİN ATAK

Design Recommendations for iParks ... 185-188 Osman ZEYBEK, Elvan ENDER

ORAL SESSION

PLANT PRODUCTION

Detection of Nitrogen Status in Cotton Using an Image Processing Approach ... 189-192 Mahdi ALI, Ahmet AL-ANI, Daniel TAN, Derek EAMUS, Ian ROCHESTER

Evaluation of Agronomical and Quality Traits of Triticale Genotypes in Spring Planting, under Arid Conditions of Gumushane ... 193-196 Bilge BAHAR, Mehmet YILDIRIM, Önder ALBAYRAK, Necmiye BAHAR

Evaluate the Quality of Potato Minituber Changes During Storage Period After Application of Salicylic Acid and Methyl Jasmonate in Maternal Plant and Minituber Before Storage... 197-200 Morteza BARMAKI, Amin DEYLAMI MOEZI

Melatonin Content of Endemic Tanacetum cadmeum (Boiss.) Heywood ssp. cadmeum From Turkey ... 201-204 Emel DIRAZ, Şengül KARAMAN, Ahmet İLÇİM

Low Temperature Tolerance of Leaf Tissues in Cold-Acclimated Strawberry

Plants ... 205-208 Sergul ERGIN, Muge KESICI ZENGIN, Hatice GULEN

Effects of Nitrogen Levels on the Grain Yield and Related Characteristics

of Sweet Sorghum (Sorghum bicolor (L.) Moench var. saccharatum) in a Mediterranean Environment ... 209-212 Hakan GEREN, Vedat Çağlar GİRGİN

Pre-study on Some Morphological Properties of Endemic Fritillaria

fleischerina. ... 213-216 Özgür KAHRAMAN

Soccer Playing Characteristics of Some Soccer Fields Around Izmir/Turkey

under Mediterranean Conditions ... 217-220 Behcet KIR, Riza AVCIOGLU, Ali SALMAN, Sukru Sezgi OZKAN

Determination of the Most Convenient Cool Season Turfgrass Species and

Turf Performance under Mediterranean Climate Conditions ... 221-224 Alpaslan KUSVURAN, Veyis TANSI

Green Tobacco Sickness in Turkey Tobacco Farmers ... 225-228 H. Vakıf MERCİMEK, Sıdıka EKREN, Dursun KURT, Ahmet KINAY,

Levent DUMANTEPE

Rainfall Erosivity in Bosnia and Herzegovina ... 229-232 Marija MISILO, Hamid ČUSTOVIĆ, Melisa LJUŠA

Development of Edible Oil Quality in Kale (Brassica oleracea var. acephala),

a Traditional Vegetable at the Black Sea Region ... 233-236 Fatih SEYİS, Emine AYDIN, Muhammet İkbal ÇATAL

The Comparison of Phenotypic Characteristics of Improved and Wild

Blackberry Genotypes ... 237-240 Azra SKENDER, Tea AJDINOVIĆ, Dinko BEĆIRSPAHIĆ, Mirsad KURTOVIĆ, Semina HADŽIABULIĆ, Jasmina ALIMAN, Sezai ERCISLI

The Influence of Land Use Change on Some Soil Parameters ... 245-248 Mirza TVICA, Emira HUKIĆ, Mirsad IČANOVIĆ, Hamid ČUSTOVIĆ

Comparison of the Alkaloid Production of In Vitro Propagated Indian Tobacco (Lobelia inflata L.) under Both Laboratory and Open Field Conditions ... 249-252 Viktor József VOJNICH, András PALKOVICS

Seyit HAYRAN1* Burak ÖZTORNACI1

1_{Çukurova Üniversity Faculty of Agriculture, Department of Agricultural Economics,}

Turkey

*Corresponding author: hayran86@hotmail.com

Abstract

Agricultural enterprises which intend to continue their activities within the framework of economic principles need regular financing like other enterprises. Agriculture’s own structure shows itself in financing need, particular importance is given to agricultural sector’s financing. Many establishments like banks, the state, agricultural insurance organizations, factoring companies, cooperatives work in the agricultural sector’s financing. Cooperatives of these establishments are seen as the third sector in economic system and they are getting important. This report is about how the agriculture sector is financed by states via cooperatives in Turkey and in the world. Unlike the samples in the world, that there is not any cooperative bank which finances the agriculture is seen as the most important deficiency. And the agriculture and the other sectors are expected to provide an effective financing with a cooperative bank to be founded.

Keywords: Agriculture, finance, cooperative.

Introduction

Agricultural products which increased in 20 century and a high level of industrialization has caused to be attracted attention about financing. Financing of agriculture which is the most important step of capital accumulation is one of the most interesting topics in this process.

Like all enterprises, the main aim of agricultural enterprises is to maintain activities in the framework of economic principles. An agricultural enterprise needs financing at each stage like production, marketing and even after marketing. Financing of agriculture supplies a number of distinctive features like other sectors. These features are based on the people who finance activities, use operation and credit (Bülbül 2006, Kazancı 2010, Yılmaz 2008).

Agricultural production structure –based features: Agricultural activities need a long

production process. Although expenses (Planting, fertilizing, watering, hoeing, harvesting, harvesting, marketing etc.) in agriculture are more than once in different terms, generally income is obtained once during production. Agricultural enterprises may have cash crunch during production. The maturity of agricultural credits should be arranged more elaborate than the credits of other sectors. Generally in agricultural sector, credit interest rates are kept within a certain limit by law. And also because agricultural sector depends on natural conditions more than others, natural, social and political risks to be felt more in agriculture ect. many features of the structure of agriculture requires that financing of agriculture should be studied quite sensitively.

Small and disorganized enterprises-based features: Generally agricultural enterprises are

small and disorganized in Turkey and these causes not to supply their financing needs appropriately. Providing credits to most of small enterprises is a risky factor for financial institutions and so the number of transactions increases and profit decreases. In the future financing of the agricultural sector will have important impression and be good.

Personal characteristics of credit users- based features: In Turkey farmers have low level

of education so they have low level of information about financing. Between financial institutions and farmers there is a misunderstanding of reciprocal rights and obligations clearly and this causes that farmers avoid using credits. Besides farmers can collateral only their land and the house they live and if they cannot pay credit, they have some trouble in their social life.

report‘s subject is that agricultural sector is financed by cooperatives in Turkey and some chosen countries.

Agriculture Is Financed By Cooperatives: Turkey Applications

Cooperative which is defined as “Organized Cooperation” is often in production (agriculture), marketing, purchasing, housing, services areas. In International Cooperative Union (ICA)’ definition, cooperative is defined clearly as a “operating”. Agricultural cooperatives are self-governing organizations which are created by producer and controlled democratically to provide common needs and desires which cannot be supplied by producers, themselves, in appropriate circumstances (Mülayim 2006).

In these cooperatives, Turkey Agricultural Credit Cooperatives (TKK: TACC) service to find financial sources in shareholder’s suitable proportions. TKK was established according to the Agricultural Credit Cooperatives Associations Law of the dated 1972 and of numbered 1581 and. The aims of TKK are to supply sources and credits, to reduce interest rate, to make recommendations on credit, to use the borrowed credits in production and to increase agricultural production. TKK has 16 regions, 1 Central Union, 1690 units of cooperative and more than 1.5 million shareholders (www.tarimkredi.org.tr, Tanrıvermiş and Bayaner 2006).

The financial resources of TKK are equity and external resources. These resources are shares of cooperative shareholders, domestic resources and reserve capital coming from reserve funds and undistributed earnings, accumulation of cooperative and interest earnings (Cooperatives have farmers use the sources which they use from T.R Ziraat Bank by adding margin to resource cost) and depts which TKK supplies from other resources to give credits. Resources used from T.R. Ziraat Bank are allotted as placement. Every credits which are taken from bank by cooperatives, are used in the form of current account within placement Money which is taken from shareholders , is invested in cooperative account in bank, if placement is suitable for lending money, it reuses but if it is not, new placement is demanded (Taşkıran 2011, Tanrıvermiş and Bayaner 2006).

Credits given to shareholders by TKK divided two groups. These are short-term business credits (general purpose, seed, fertilizers, pesticides animal husbandry) and medium-term investment and credits for equipment (tools and machinery, livestock and other equipment credits). Generally TKK’s shareholders benefit business credits. While business credits are opened with a 1-year maturity, it is up to 3 years in investment credits. In equipment credits, 1/10 of this credit is taken from farmers for capital share. And agricultural inputs and raw materials are sold to shareholders by TKK. .TKK’s operating activities are expanded with law of numbered 5330 and of date 06.04.2005. Goods and commodities sales activities made to shareholders by TKK are excluded from taxes with the same law (www.tarimkredi.org.tr, Tanrıvermiş and Bayaner 2006).

Except TKK, there are some cooperatives like agricultural sales cooperatives which provide credits to the agricultural sector, Tea Growers Production Cooperatives. While TKK generally finance in cash to the agricultural sector, other cooperatives finance in kind. For example Tariş S. S. Fig Sales Cooperatives Union provides inputs about production to shareholders and it researches in the areas of production, plant health, productivity, quality and evaluation with AR-GE center coordination and they offer information resources to their producers (www.tarisincir.com, Tanrıvermiş and Bayaner 2006).

Agriculture Is Financed By Cooperatives: Applications From Some Chosen Countries Turkish Republic of Northern Cyprus: Sources of cooperatives which work for financing

of the agricultural sector in the TRNC consist of equity and external resources. While equity resources of capital are taken from shareholders and this capital composes deposit which is in the Cooperative Central Bank and interest which is obtained from this deposit, external resources composes credits which is taken from Cooperative Central Bank to supply the  short and long-term needs of shareholders. Cooperative Central Bank both provides income to be

cooperative, Cooperative Central Bank which is deposit banking was established with the participation of all cooperatives which are in the country and operate. Cooperative Central Bank provide credits whose maturity is a year and which are TL, to other cooperatives or farmers who applied individually to supply for their every input needs and Cooperative Central Bank gives credits whose maturity is up to three years and which are TL and foreign currency, to supply of equipment like tractors, harvesters, etc. and agricultural project credits whose maturity is up to five years and it gives flexible payment plans in the payment of credits by taking into account the structure of agricultural production (www.koopbank.com).

Cooperative Central Bank supplies sources for other cooperatives by giving higher interest than deposit which belongs to other individuals and also applies lower interest rate to credits which cooperatives use from itself. In this way, Bank contributes to financing of the agricultural sector and to the development of the cooperative movement in the TRNC.

Federal Republic of Germany: Germany has one of the most developed systems about

financing of agricultural sector in the world. There are three different financing structures in the system of Germany. (1) Local Banks- Raiffeisen Banken: In the country there are more than 2000 active cooperatives. These banks are connected with legal personality of cooperative; they provide not only financial services but also services concerning agricultural activities like fuel, fertilizer, seed, harvest, storage, marketing and recycling. (2) Deutsche-Zentrale

Genossenschaftbank: This bank operates as center of the top organizations of Volksbanken and

Raiffeisenbanken  which are in the southern of the country. It is the biggest economic organization with 5300 cooperatives and 17 million shareholders. It aims to reduce costs by creating synergies between parent organizations cooperatives which offer services like compliance policy, international relations, legal and tax consulting, human resources and inspection. (3) WGZ Bank is the central organization of Volksbanken and Raiffeisenbanken which are in the northern of the country. It is expected that in the different region these two top organizations will unite in the near future (Kandemir 2010).

Sources of credits which will be opened to agricultural enterprises by cooperatives are savings of unlimited liability members. To direct people’s savings to cooperatives necessary atmosphere of trust is maintained with manufacturer’s representatives who are chosen among local union and other local administrators by bringing them to co-management. To provide the equivalence between the sources and uses and make easy to control, there are two top central banks (DZ Bank and WGZ Bank) which take the task of clearing center and gather all system. Raiffeisen cooperatives are connected with 11 regional unions. Besides at the national level, there are German Raiffeisen Union, Federal Association of the German Volks and Raiffeisen Bank, small-scale industry of the Central Union and these are connected with German Cooperative and Raiffeisen Confederation. By establishing banks which accept deposit, cooperatives’ opening branches, establishing commercial establishments, warehouses and factories are symbols of competition. In Raiffeisen cooperatives, the number of the shareholders is not more than 100 and their shareholders work on the basis of unlimited liability principle and the funds which they use are intended for long-term agricultural projects. They supply necessary technical and financial support to be successful of shareholders’ activities by observing the projects where cooperatives use low-interest funds. The profits from these projects are transferred to reserves so their financial structure grows stronger (Kandemir 2010, Küçükkaplan 2003).

Japan: According to data in the end of 2008, Japan obtained 1.7% of 4.534 billion dollars of

GSMH from agriculture. The share of total employment in agriculture is around 4%. In spite of this, agricultural lobby is quite effective and this  efficiency is to ensure the protection by the state of agricultural markets. Besides agricultural production costs and product prices in the country are much higher than world market (Çakıroğlu 2008).

structure which consists of agricultural cooperatives, regional federations and national federations. In the minimal level, agricultural cooperatives divided into two groups: General and specific. General cooperatives service like sales and supply, solidarity insurance, guidance except collecting deposits and lending credits. Federations at regional level include Central Union of Agricultural Cooperatives, Agricultural Cooperative Economic Federation, Solidarity Insurance Federation of Agricultural Cooperatives, Agricultural Credit Cooperatives and federations in other specific areas of Agricultural Cooperatives. Each of them is connected with central organization and continues to operate.  Financial institutions that are associated with  agricultural cooperative develop some project like  attaining a stronger financial structure by combining of cooperatives and integrating regional federation to national federation to strengthen the management base (Kandemir 2001, Yılmaz 2008).

Conclusion

Cooperatives which are third sectors besides private and public sectors in economic system and whose importance is growing are seen to be one of the most effective organ to benefit in financing of agricultural sector because of peculiar structure of agriculture. Cooperatives in the financing of agricultural sector in the world (TRNC, German, Japan) are located effectively through a cooperative bank. In Turkey, cooperatives which provide credits to their shareholders provide these credits from their own resources or banks like Ziraat Bank. Because of this, it is important that a cooperative should be established to be useful for cooperatives which will take a task of financing of agricultural sector and also are located in other sectors.

A Cooperative Bank which will be established should cover all sectors. And so operating costs can be withdrew to the possible lowest level. Besides, the difference of credit needs (maturity, amount etc.) of sectors and A Cooperative Bank which cover all sectors like this would have deposits and credits in its portfolio belonging to different sectors and reduce the risk by diversification.

If cooperative shareholders and cooperatives made banking transactions with cooperative bank which will be established, the bank's financial structure would enrich. In addition by adhering to the principle of cooperative, banks should distribute risturn to cooperative shareholders and cooperatives holding their deposits.

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