Capitalization and Financing of Brazilian Agricultural Cooperatives

Abstract

The new scenario of the world economy presents itself to cooperative societies in the form of a permanent contradiction, that is, to remain a competitive company, capable of facing large multinationals that conquer their markets and, at the same time, meet the needs of its members, not always being able to do it with any result.This contradiction imposes limits on the financing of its expansion process with its own resources (self-financing), especially in developing economies, where the capital factor is generally scarce and expensive, and its need is apparently infinite. There is a consensus that the development of the capital market can supply this shortage of long-term private credit, just look at the international experience, in which this market captures the necessary resources to finance the expansion process of companies, promoting gains in competitiveness. and productivity across the economic system.The potential of the capital market to assume this role depends on the growth of voluntary institutional savings (investment funds, pension funds and open pension funds), as well as the persistent reduction in the interest rate on government bonds that will be possible, if there is a clear government intention to consolidate the long-term fiscal adjustment, reducing the vulnerability of the Brazilian economy to international financial capital.The expectation regarding the strengthening of this market is what justifies the proposal of this research, given the scarcity of credit permeating all the decisions of the agricultural cooperatives, when, from a certain stage of their growth process, a new relationship between own and third party resources, which, in some cases, compromises their financial balance.