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The high relative share of small farms in Bulgaria and Serbia and their low incomes, high unemployment, and population decline in rural areas are among the reasons for seeking forms of coordination, co-operation and cooperatives for farmers. The purpose of the report is to analyze the problems of small farms and the opportunities for increasing their competitive potential through participation in network structures. The subject of the report is the benefits for farmers in Bulgaria and Serbia from participating in different network structures, as well as the difficulties in their creation and functioning. The article contains four parts. The first one is Main characteristics and trends of agricultural development in Bulgaria and Serbia; the second one structures, characteristics and problems of agricultural holdings; the third one Problems of setting up and functioning of network structures of small farmers; and the last one Opportunities, guidelines and recommendations. The research in this study is based on the results of the Census of Agriculture 2012 in Serbia and on the information from the Department of Agrostatistics of the Bulgarian Ministry of Agriculture and Food, Agrostatistics Department (2013), as well as official data of EUROSTAT for the EU 28.

Increasing the competitive potential of agricultural holdings through collaboration and cooperation