Financial Analysis of Agricultural Development Cooperatives: A Case of Western Mediterranean Region, Turkey

In Turkey, Agricultural Development Cooperatives are very important for bringing the resources in rural area to the economy, establishment of agro-industrial facilities for processing agricultural products and preventing migration from rural area to cities. While the number of Agricultural Development Cooperatives in Turkey was 6000 in 1974, it rose to 7196 in 2017. Total number of partners of these cooperatives is 775255.The aim of the study is to reveal financial structures of Agricultural Development Cooperatives within the scope of the research by using ratio analyses. Data in this study were retrieved from income statement and balance sheets belonging to 2016 of 70 Agricultural Development Cooperatives in the Western Mediterranean Region. Ratio analyses were classified as financial structure ratios, activity efficiency ratios and profitability ratios in this study. Financial analysis was conducted for Agricultural Development Cooperatives by comparing the values obtained as a result of analysis with the standard values. Findings obtained from this study and other similar studies suggest that one of the most significant problems of agricultural development cooperatives is finance. As a result of the study, it was determined that the cooperatives studied were not in financial sufficient level. The financial weaknesses of the cooperatives examined mean that they can face financial problems in the long run. Financial insufficiency poses a risk in terms of the continuity of the surveyed cooperatives.