The Committee on Rural Affairs of the Seimas (Parliament of Lithuania) is currently reviewing a proposal aimed at simplifying the registration of agricultural cooperative societies in the Register of Legal Entities. The proposed changes also seek to clarify membership and governance rules for these cooperatives, with the overarching goals of reducing administrative burdens and enhancing the negotiating power and competitiveness of cooperatives.
„The main objective is to strengthen farmers’ ability to collaborate and be more powerful in the market, as cooperation gives farmers more bargaining power. Together, they can more effectively sell their produce, purchase necessary raw materials and services, and, in line with the Government’s program on short food supply chains, jointly supply and provide our institutions with raw materials – vegetables, fruits, and other products – enabling cooperatives and their members to operate, grow, and participate more clearly in cooperative activities,” stated the Minister of Agriculture, Kęstutis Mažeika, while presenting the draft.
To reduce administrative burdens, the proposal suggests registering the cooperative’s status directly in the Register of Legal Entities, instead of requiring a time-limited certificate of recognition.
Furthermore, the proposal aims to clearly define what constitutes an agricultural cooperative by regulating three primary criteria:
- A majority of the cooperative’s members must be farmers or other individuals or companies engaged in agricultural activities, with at least 90% of members having ties to agriculture.
- More than half of the agricultural products purchased by the cooperative must be grown and produced by its members, or more than half of the services provided must be for the cooperative’s members.
- To allow individuals who cannot actively farm due to objective reasons to remain cooperative members, a passive membership status is being introduced. Clear limits will be set to ensure these members do not gain undue influence over the cooperative’s management.
The legislative act is proposed to come into effect on July 1, 2028.
Citizens can submit their proposals regarding the draft amendments to the Law on Cooperative Societies (Cooperative Companies) No. XVP-1666 until October 7, 2026. Proposals can be sent via email to [email protected] or by following the provided link to submit a proposal. Information related to the draft amendments to the first section, articles 8, 10, 16, 17 of Law No. I-164 on Cooperative Societies (Cooperative Companies) and the addition of Article 8-1 can be found here.
All draft legal acts currently awaiting public proposals can be found on the Seimas website.
