||This research examines the transformation of Hungarian agricultural
production cooperatives. In contrast to early expectations, cooperatives
did not experience much membership loss. Rather, the enterprises held together,
although they downsized. The distribution of collective assets occurred
quickly and created much tension. The sector experienced a severe decapitalization,
and the efficiency of the sector fell. There was a sharp rise in unemployment.
Sales and marketing were disrupted. Thus, the cooperatives transformed
in a very hostile situation. They survived, and some prospered, yet, in
general, they remain vulnerable to adverse economic developments. Healthy
cooperatives will be vital to the success of smaller private farms.