8 th International Scientific Conference EMAN 2024 – Conference Proceedings https://doi.org/10.31410/EMAN.2024.89 https://orcid.org/0000-0002-0196-7235 Promoting Cooperation: Factors Affecting Profit Sharing Among Farmers and Cold Stores in Albania Ina Pagria 1 Anjeza Bekolli 2 Keywords: Cooperation; Profit distribution; Farmers; Cold stores; Cooperative Game Theory Abstract: The purpose of this study is to analyze some of the factors that in- fluence the agreement of the members in the distribution of the profits that come as a result of the cooperation. The linear regression model is used as a statistical model. In the study, two links in the supply chain were identified: the farmers who produce the product and the cold stores (refrigerated ware- houses) who buy it. This study was done in Albania, one of the most popu- lar areas for the production and cultivation of apple products, in the area of Korca. There exist two moments of cooperation, one between refrigerat- ed warehouses, which can combine joint orders to benefit from reductions in the purchase cost and the other between the farmers themselves. At the end of the study, it is noticed that the agreement of the members in the di- vision of the profit depends on the importance they attach to maximization of the personal profit, the members’ equal distribution, the main contribu- tor, and the higher risk taker. As one of the most useful mathematical mod- els for dividing the result between the members of a cooperative situation, the authors suggest the application of the cooperative game theory model. Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non- Commercial 4.0 License (https://creative- commons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduc- tion and distribution of the work without further permission. 1. INTRODUCTION O ne of the primary issues with the members’ agreement in a cooperative setting is benefit shar- ing. A large number of the participants attempt to increase their own gains, which affects the sustainability of the collaboration. The supply chain is one of the most useful situations where mem- bers are motivated to work together. Collaboration within a supply chain can lead to increased ef- ficiency in processes such as production, transportation, and inventory management. Supply chain partners often face similar risks, such as disruptions in the availability of raw materials, transpor- tation delays, or fluctuations in demand. By cooperating and sharing information, members can better anticipate and mitigate these risks collectively, making the entire supply chain more resil- ient. The most studied and generalized supply chain is the one that includes suppliers and retailers. In this study, the authors have taken into consideration the farmers of the Korca area who culti- vate apple fruit and the owners of refrigerated warehouses. These are also part of the apple fruit supply chain in this area. A large part of the farmers who have more than 2 ha of planted apple roots sell the product to the refrigerated warehouses in this area. The reason why the authors have chosen this particular area is because Korca is one of the four main districts in Albania that utilizes agricultural land. Fruit trees are the primary crop produced in this area. About 23% of all fruit roots in the Republic of Albania’s entire area are concentrated in the Korca district. It is especially attractive for researchers to concentrate their studies in this area because apple types make up about 79% of the fruit trees in the Korca region (Figure 1). 1 Agricultural University of Tirana, Faculty of Economics and Agribusiness, str. Paisi Vodica, 1025, Tirana, Albania 2 Agricultural University of Tirana, Faculty of Economics and Agribusiness, str. Paisi Vodica, 1025, Tirana, Albania Received: March 28, 2024 Accepted: September 25, 2024 Published: December 17, 2024