MEMORANDUM
Memorandum of the participants in the cooperation for the sale and purchase of agricultural products
Preamble
The participants in this cooperation, hereinafter referred to as the “Parties,” guided by the principles of international cooperation, sustainable development of the agricultural sector, mutual benefit, and fair distribution of economic results, express their intention to develop cooperation in the field of sales and purchases of agricultural products.
The Parties recognize that combining their efforts makes it possible to increase the market stability of producers, ensure the predictability of supplies for buyers and processors, and improve access to sales markets and financial resources.
This Memorandum establishes the general principles of interaction, the goals, and the basic mechanisms of cooperation, and is not a contract that creates direct obligations regarding individual supplies. Obligations under specific transactions are formalized in separate agreements (supply contracts, framework agreements, etc.).
The Parties recognize that combining their efforts makes it possible to increase the market stability of producers, ensure the predictability of supplies for buyers and processors, and improve access to sales markets and financial resources.
This Memorandum establishes the general principles of interaction, the goals, and the basic mechanisms of cooperation, and is not a contract that creates direct obligations regarding individual supplies. Obligations under specific transactions are formalized in separate agreements (supply contracts, framework agreements, etc.).
The goals of the cooperative
Creating a sales system
Creating a sustainable system for the distribution and procurement of agricultural products on a mutually beneficial basis.
Improving competitiveness
Reducing costs through a comprehensive approach: eliminating intermediaries and speculative links from the supply chain and promoting it in domestic and foreign markets.
Cost optimization
Centralization of logistics, marketing, and certification functions to reduce transaction costs.
The development of cooperative practices
Exchange of experience, training of participants, and implementation of joint projects to strengthen cooperative ties.
Support for manufacturers
Integrating small and medium‑sized producers into the overall supply chain and supporting them.
Operating principles
Benefit
Mutual benefit and fair distribution of results. The terms of cooperation should ensure fair profitability for all categories of participants, including producers, logistics, and service providers.
Honesty
Transparency and openness. The parties undertake to provide reliable information about the volumes, quality, timing, and terms of supplies, as well as about market indicators that are significant for planning.
Equality
Equality of participants.
Decisions on key issues of cooperation are made on the basis of consensus or according to pre‑agreed voting rules that take into account the contribution of the participants.
Decisions on key issues of cooperation are made on the basis of consensus or according to pre‑agreed voting rules that take into account the contribution of the participants.
Standards
Compliance with international standards. Regarding the quality, safety, and certification of products, the Parties rely on recognized international standards (including requirements for organic products, GAP, HACCP, etc.) and the requirements of the target markets.
Ecology
Sustainable development and ecology. The parties promote the implementation of sustainable agricultural practices, the reduction of losses and waste, and the rational use of resources.
Competition
Fair competition. Cooperation is not aimed at creating barriers for other market participants and does not violate the antitrust legislation of the Parties’ countries.
Implementation mechanisms
- Coordinating bodyTo ensure effective management of the cooperation, a Coordination Council is established, consisting of representatives of the Parties, which is responsible for planning, monitoring implementation, and resolving disagreements.
- Working groupsWorking groups are formed to address key areas (quality, logistics, exports, finance) and to prepare solutions and recommendations.
- Interaction protocolThe parties adopt an internal regulation that defines the procedure for exchanging information, agreeing on the scope of work, resolving disputes, and making changes to the terms of cooperation.
- Monitoring and reportingA quarterly analysis of the effectiveness of cooperation is carried out (supply volumes, level of fulfillment of obligations, cost dynamics, satisfaction of participants).
Financial and economic principles
Distribution of costs and revenues. Costs for common functions (marketing, certification, IT platform) are distributed among the cooperative members in proportion to their share in the total volume of activities or according to another agreed formula, which ensures transparency and fairness in financial relations within the organization.
Pricing. The base prices and mechanisms for their formation in our agricultural cooperative are determined based on current market indicators and the actual production costs. This approach allows us to take into account the interests of all parties and ensure a fair margin for producers, supporting their sustainable development.
Advance payments and financing. The parties are actively considering the possibility of jointly using effective financing tools, such as advances, factoring, and specialized cooperative funds. These measures are aimed at providing comprehensive support to producers and successfully smoothing out seasonal fluctuations in agricultural production.
Main areas of cooperation
Effective cooperation within an agricultural cooperative to achieve common goals.
1. Planning of volumes and assortment. The parties formulate forecast production and demand plans, based on which the volumes of purchases and sales, as well as delivery schedules, are determined.
2. Standardization of quality and packaging. Coordination of uniform technical requirements for products, packaging and labeling, as well as quality control and sampling procedures.
3. Joint logistics and storage. Coordination of transport flows, use of shared warehouse capacity, optimization of routes and reduction of logistics costs.
2. Standardization of quality and packaging. Coordination of uniform technical requirements for products, packaging and labeling, as well as quality control and sampling procedures.
3. Joint logistics and storage. Coordination of transport flows, use of shared warehouse capacity, optimization of routes and reduction of logistics costs.
4. Marketing and promotion. Joint marketing initiatives, participation in exhibitions, promotion of a single brand/product line (if available), work with target segments and export markets.
5. Certification and compliance. Joint financing and organization of certification procedures, audits, and confirmation of compliance with the requirements of target markets.
6. Information system. Creation or use of a unified platform for data exchange (volumes, prices, delivery statuses, documents), ensuring transparency and efficiency of interaction.
5. Certification and compliance. Joint financing and organization of certification procedures, audits, and confirmation of compliance with the requirements of target markets.
6. Information system. Creation or use of a unified platform for data exchange (volumes, prices, delivery statuses, documents), ensuring transparency and efficiency of interaction.
Правовые и организационные положения
Applicable law and dispute resolution.
Disputes and disagreements arising in the course of implementing the Memorandum shall be resolved through negotiations. If no agreement is reached, the disputes shall be subject to consideration in accordance with the applicable legislation of the country, as determined by the Parties in a separate agreement.
Confidentiality.
The Parties undertake not to disclose commercially sensitive information obtained within the framework of the cooperation, except in cases provided for by law.
Compliance with standards
Our activities fully comply with the legislation of the Russian Federation and all applicable legal requirements in the field of our work.
Transparency policy
We adhere to the principles of openness and transparency in all matters, providing complete information about our activities and internal processes.
