8. Conclusion
The olive oil industry consists of a large number of companies, most of them small. The entrepreneurs in this
industry do not have adequate training and, given the advanced average age of most farmers, they are unlikely to
obtain the required training in the future.
The problems that exist in contemporary cooperatives require more professional solutions. Olive oil cooperatives
of adequate size should be managed by professionals with the ability to manage with efficiency. Smaller
cooperatives should join together to hire a professional manager.
The cooperatives attached importance to three issues. The first was cost accounting (with a score of 4.39 on a
scale of 5). The second was the possibility of losing subsidies (with a score of 4.12). The third was the
enhancement of export markets (4.09).
The cooperatives do not see a promising future for the industry. In fact, they perceive themselves as becoming
increasingly uncompetitive against the big companies that will dominate the market.
An important contribution of this study is the sector analysis of the behaviour of the cooperatives. Three
segments were identified. The first consists of small cooperatives of local scope, with a closed-mind attitude and
a lack of a professional approach. Most of these did not have a manager. Until now, these cooperatives have
depended on EU subsidies, and they are therefore worried about losing these subsidies. Nevertheless they are not
worried about the sector’s future because they can sell their production to loyal clients. They do not therefore
consider that being associated is important. Nevertheless they worry about new countries entering the EU.
The second segment consists of medium-sized cooperatives with limited scope and limited market focus. This
was the largest segment. These cooperatives are more focused on the market, and they do not see newcomers to
the EU as a threat. Nevertheless, they demonstrate a lack of professional management, despite being in external
markets. They consider that external markets should be enhanced, and that the Internet should be used to access
new markets.
The third group consists of large cooperatives with professional management and an online presence. This is the
smallest group of the sample. They are the largest cooperatives, quite diversified, and with a presence in
international markets. They are worried about losing subsidies. Due to their size, they need more financing and
their projects are more ambitious. They believe that external markets must be enhanced, and they undertake
advertising and marketing campaigns.
Another finding in this study were the factors that determine the behaviour of these segments and the
cooperatives in general. These factors are: (i) orientation towards marketing and quality management; (ii)
perceived risk; and (iii) a closed mind. Analysing the cooperatives’ behaviour with respect to these factors, it
was noted that segment 1 perceives risk in the sector—due to the entry of new countries into the EU and the
attendant risk of losing subsidies and lacking qualified personnel. Segment 3 attaches more importance to
marketing research, Internet presence, enhancing external markets, establishing guarantee of origin, and quality
certification. Segment 2 does not see a threat in the newcomers to the EU; neither do they focus on quality
management or commercialisation.
8. Conclusion
The olive oil industry consists of a large number of companies, most of them small. The entrepreneurs in this
industry do not have adequate training and, given the advanced average age of most farmers, they are unlikely to
obtain the required training in the future.
The problems that exist in contemporary cooperatives require more professional solutions. Olive oil cooperatives
of adequate size should be managed by professionals with the ability to manage with efficiency. Smaller
cooperatives should join together to hire a professional manager.
The cooperatives attached importance to three issues. The first was cost accounting (with a score of 4.39 on a
scale of 5). The second was the possibility of losing subsidies (with a score of 4.12). The third was the
enhancement of export markets (4.09).
The cooperatives do not see a promising future for the industry. In fact, they perceive themselves as becoming
increasingly uncompetitive against the big companies that will dominate the market.
An important contribution of this study is the sector analysis of the behaviour of the cooperatives. Three
segments were identified. The first consists of small cooperatives of local scope, with a closed-mind attitude and
a lack of a professional approach. Most of these did not have a manager. Until now, these cooperatives have
depended on EU subsidies, and they are therefore worried about losing these subsidies. Nevertheless they are not
worried about the sector’s future because they can sell their production to loyal clients. They do not therefore
consider that being associated is important. Nevertheless they worry about new countries entering the EU.
The second segment consists of medium-sized cooperatives with limited scope and limited market focus. This
was the largest segment. These cooperatives are more focused on the market, and they do not see newcomers to
the EU as a threat. Nevertheless, they demonstrate a lack of professional management, despite being in external
markets. They consider that external markets should be enhanced, and that the Internet should be used to access
new markets.
The third group consists of large cooperatives with professional management and an online presence. This is the
smallest group of the sample. They are the largest cooperatives, quite diversified, and with a presence in
international markets. They are worried about losing subsidies. Due to their size, they need more financing and
their projects are more ambitious. They believe that external markets must be enhanced, and they undertake
advertising and marketing campaigns.
Another finding in this study were the factors that determine the behaviour of these segments and the
cooperatives in general. These factors are: (i) orientation towards marketing and quality management; (ii)
perceived risk; and (iii) a closed mind. Analysing the cooperatives’ behaviour with respect to these factors, it
was noted that segment 1 perceives risk in the sector—due to the entry of new countries into the EU and the
attendant risk of losing subsidies and lacking qualified personnel. Segment 3 attaches more importance to
marketing research, Internet presence, enhancing external markets, establishing guarantee of origin, and quality
certification. Segment 2 does not see a threat in the newcomers to the EU; neither do they focus on quality
management or commercialisation.
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