Български
EnglishRumen Yankov explains how the young cooperative “Blagodenstvie” (translates: “Prosperity”) avoided a major mistake—rushing to purchase an agricultural property without having the necessary specialists. Instead, the team focused on building a lawful and decentralized network for direct deliveries of more affordable and higher-quality food through partnerships with already established producers and importers.
The initial enthusiasm of the cooperative members for owning a physical asset near Targovishte quickly gave way to pragmatism. Realizing that an emotional investment could lead to serious financial losses, wasted time, and disappointment among members, the leadership completely changed its strategy. Here is how this transformation in the working model took place.
The Avoided Mistake and the Complexity of Agriculture
According to Rumen Yankov, the leadership’s original idea had been to purchase a ready-made farm with fertile land, a water source, greenhouses, and a roadside sales booth near the city of Targovishte. This emotional investment was intended to quickly demonstrate a tangible asset to the organization’s members. With decisive help from Ivaylo from the initiative “Food from the Village,” the team realized that managing such a farm requires specific expertise and many years of experience. Agricultural work is extremely complex and includes daily care for soil and crops, maintenance of greenhouses and irrigation systems, engineering thinking, proper machinery operation, and logistics for the finished production.
To protect cooperative members from financial losses and disappointment, the leadership decided to postpone acquiring its own land until suitable and qualified personnel could be found. The strategy shifted toward building partnerships with already successful producers, such as those in the regions of Plovdiv and Pazardzhik. In the future, the cooperative has developed a model in which it will finance farms for trained individuals without starting capital, who will manage the land and be able to buy it back within five to ten years.
Optimization Through Partnerships: Olive Imports
During an exhibition in the city of Plovdiv, Rumen Yankov met representatives of a company from Sliven with 35 years of experience importing olives and olive oil from Greece and Turkey. The cooperative’s initial plan to import independently in small tins directly from Greek farmers was quickly abandoned. The established importer offered dramatically better conditions when purchasing wholesale in barrels of 150 to 200 liters. An additional advantage was that the Sliven-based company had its own logistics network and delivered goods without extra cost to Varna, Sofia, Plovdiv, and Northern Bulgaria. This saved the young organization serious administrative and transportation headaches.
| Indicator | Mass Retail Network | Through the Cooperative Network | Final Result / Difference |
|---|---|---|---|
| Price per 1 kg of olives | 10 BGN | 4 – 6 BGN | 40% to 60% lower price |
- What the table shows: It illustrates the price difference per kilogram of olives between a standard retail store and wholesale delivery through the cooperative.
- Explanation of benefits: By purchasing large bulk quantities directly from the importer, members avoid the markups of small retailers. The organization provides a quality product at roughly half the price while completely eliminating its own costs and risks related to international transport.
The Financial Power of Collective Consumption
Rumen Yankov states categorically that the cooperative’s main strength lies in the collective consumption of its members. When orders grow from 10 kilograms to hundreds of kilograms or even a ton per month, the organization becomes an important market player and can demand the best commercial terms from producers. The leadership aims to build a habit among members to shop regularly through the organization, since individual benefit automatically increases advantages for the entire collective.
| Indicator | Value | Household Result |
|---|---|---|
| Average discount | Min. 20% | Access to high-quality food at preferential prices. |
| Monthly food expenses | 200 euros | Part of the family budget redirected to purchases through the cooperative. |
| Monthly savings | 40 euros | Net money saved based on achieved discounts. |
| Annual savings | 500 euros | An amount allowing the member to recover their initial capital contribution within the first year. |
- What the table shows: It calculates the direct financial impact on the budget of an average family spending about 200 euros monthly through the cooperative network.
- Explanation of benefits: The member not only receives cleaner food but also generates net financial gain from savings, quickly recovering their membership investment.
| Indicator | Value | Economic Effect |
|---|---|---|
| Number of active members | 1,000 people | Formation of a critical mass of consumers. |
| Monthly turnover | 200,000 euros | A guaranteed market that attracts the most serious producers in the country. |
- What the table shows: It illustrates the mathematical potential of combining 1,000 households.
- Explanation of benefits: By generating such monthly volumes, the cooperative can save entire farms from bankruptcy by providing a secure market while simultaneously setting rules and prices in favor of its members.
Expanding the Network of Local Producers
The successful model quickly attracted the attention of a number of producers. A beekeeper from the village of Aydemir, producing 15 tons of honey annually and creating innovative products such as cream honey with strawberries and raspberries, expressed direct interest in joining the cooperative as a member. The organization also established contact with a bee pollen producer from the city of Dobrich.
Impressed by the initiative, the owner of a licensed slaughterhouse for East Balkan pigs near the village of Neofit Rilski also contacted Rumen Yankov. The two sides plan to close the production cycle by producing pork with sauerkraut in jars—a product with high added value and a long shelf life—by the end of the year. Interest has even come from a Bulgarian returning from Germany to Gabrovo, offering to provide various machines for the association’s needs.
Decentralization, Legality, and Restoring Trust
Rumen Yankov describes a key meeting with the owner of a winery in the Silistra village of Kainardzha. The winemaker shared that the word “cooperative” has a negative image in Bulgaria due to widespread corruption schemes by former chairmen during the 1990s. Nevertheless, he is willing to bottle wine exclusively for the new organization, reducing the final price by half compared to the retail market, provided he receives a preliminary order by June. To overcome this negative historical legacy, the leadership is building a fully transparent and decentralized network.
The main goal of this decentralization is for local consumers to buy from local farmers, eliminating the need for goods to travel unnecessarily across the country. Yankov gives the example of garlic producers in the Silistra region who perform heavy manual labor only to be pressured by traders in Varna to leave their products without advance payment. Through the new model, 50 cooperative members from the Silistra region will be able to purchase this local production completely directly. All activities will be conducted fully in compliance with the law, with all required permits secured from the Food Safety Agency. Any potential profit from commercial processes will be returned to the cooperative members. In conclusion, Rumen Yankov expresses confidence that over 80% of Bulgarians would embrace this idea of affordable and high-quality food—provided it is presented to them correctly.
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