Introduction: Contextualization of the problem and main objectives

4Based on field survey data, the paper focuses on the case of the SCE “Modousa” in the olive area of Gera, on Lesvos Island. It is one of the first social economy projects in Greece, dealing with sustainable olive oil production and commercialization. It is deemed to be successful while proposing another way to social innovation and prosperity of local communities as attractive places of life and work. Agriculture in Lesvos (and in Greece, in general), is threatened not only by the global market pressures but also by structural and economic problems: land segregation, low producer prices as olive oil (extra virgin) is sold without benefiting from the Protected geographical indication (PGI) label, abandonment of mountain olive groves, aging of the rural population, etc. The research question is whether and to what extent “Modousa” a) represents a different path for the valorization of local productive potential to the conventional one of wholesale suppliers and conventional marketing channels, b) fulfills its social role, and c) succeeds its sustainability goals and territorial branding of place, co-creating local capital and contributing in community capacity building.

Farming olive grove in Lesvos Island. The emergence of the SCE “Modousa”

6Modousa, representing a bottom-up collective action, was created in the legal form of Social Cooperative Enterprise (SCE) in 2014 by 9 local olive oil producers in Gera bay. Members became 30 in 2016, 63 in 2017 and 77 in 2018 (until 2020). It is one of the largest SCEs in Greece, according to the General Social Economy Register of the Ministry of Employment, and is considered as a successful example of best practices of New Social Entrepreneurship in the country. Modousa means an abundantly productive olive tree that bears many “modia” (traditional weight units) of olives. The main products of the cooperative enterprise are virgin, extra virgin and organic olive oil, organic table olives and olive paste, mainly of the “kolovi” local variety, as well as some synergy fig products (dried figs and walnuts and fig must pudding). In this context, Modousa sets the following key objectives: the sustainable management of the “commons” with an emphasis on the valorization of a century-old olive grove of Gera as an ecosystem and a cultural landscape of special value, the promotion of social cooperation and solidarity through fairness along the agro-food chain, the creation of jobs locally, a community-led local development perspective. To achieve this overall perspective, and to ensure the place-based quality of the cooperative labeled olive oil in all stages, Modousa controls the olive oil processing according to a certain code of practices and since January 2020 bottles production in its plant.

9Modousa is trying to overcome the structural and economic problems of insular agriculture. Specifically, in terms of the problematic small fragmented agricultural holdings, Modousa is facing it through cooperation and enhancement of locally added value by branding and promoting territorial quality specificities. It has, so far, managed to: a) trade its olive oil “Modousa” (bio and extra virgin) in both Greek and some foreign niche markets through networks of friends, diaspora, and solidarity economy networks (e.g., in Belgium and Germany), and emerging markets (e.g., Taiwan), b) set up a greengrocery store with local/Greek and cooperative products, c) organize meetings and seminars on agricultural management, social economy and local development, d) organize an informal/pilot (for the moment) farmers market, e) organize eco-festivals promoting local production and local arts and crafts and f) control the olive oil processing according to code of practices and bottle oil production in its plant (self-financed) to ensure high-quality standards in all stages.

Methodology and characteristics of the survey

11The survey used qualitative and quantitative methods using participatory observation, semi-structured and structured questionnaires. Preliminary research was conducted on key informants (president and sales department of the SCE, representatives of the local cultural and environmental association, etc.) in the form of semi-structured interviews, during July-September 2017 and September 2020. The main objectives of the survey were to draw insights into local actors’ perceptions and practices on olive grove land management, olive-growing systems, and olive oil valorization, as well as on the dynamics of associative and cooperative actions and development prospects.

12Subsequently, a survey was conducted on the olive producers-members of Modousa at both individual levels (i.e., strengthening the olive-growing farms and market negotiating power, stimulate participation and the sense of belonging to the group of disconnected producers, etc.) and collective level (revelation and valorization of latent resources, enhancing the spirit of cooperation and solidarity; promoting Gera’s image, etc.). The structured questionnaire regarded questions on their participation in Modousa (time and reasons for enrollment, advertising), farm size and tenancy (number and size of holdings and number of olive trees), land productivity (annual production and cultivation type), production allocation (percentage of the production offered to Modousa), farming engagement, reasons for participation in Modousa, perception of the role of Modousa as a cooperative structure, vision for the development of Modousa and willing for active participation to them and questions about participants characteristics.

13Participatory observation included recording and participation of the researcher in administrative boards of Modousa, events and festivals, meetings, seminars and information days organized by Modousa in the context of its social role.

Results

14The interviews have been conducted with the oldest members of Modousa (i.e. 30 in number enrolled up to 2016). The remaining 36 persons enrolled a few months before the survey (in Feb. 2017) were deemed not to have the cooperative experience yet. That is why they also showed themselves reluctant to be involved. We had 24 responses (80% of the total) and the respondents mainly regarded the core of its founding and active members; this rate is considered satisfactory for the research purposes. Founding members publicize Modousa to the wider public (and especially to the inhabitants of the Gera region) by word-of-mouth (and keep on doing it) and not by the media or the web. Most of them declared that they were enrolled in Modousa mostly because they wish to contribute to local development and to succeed better price for their olive oil. They also declared that they are members of Modousa because they would like to cooperate and contribute to the valorization of their products (i.e. locally added value). Most of them declared that they participate in much of Modousa’s activities. Half of them claimed that the economic crisis had no effect on their participation in Modousa and the other half claimed the opposite. The profile of the survey’s respondent was the following: married (80%) men (65%), around 45 years old (sample from 31 to 58 years old), living in the Gera region, having a high school level of education (46%) and almost half of them full-time farmers as an occupational status (46%).

15As far as the new entrants are concerned, the key informants believe that they approached Modousa in order to simply succeed a better selling price (not essentially to resist wholesale suppliers) and to try to do something different, new, dynamic and fresh. In addition, they follow the example of their peers and members of the Modousa cooperative, who they can trust since they share the same values and concerns about the future of their land and olive grove territory. In terms of the landowner characteristics of the sample, most respondents were small-size olive oil producers. They totally owned 139 ha, 188 olive fields with 32.030 olive trees. An average Modousa producer owns approximately 6,6 ha, 9 olive fields, 1.527 olive trees, and produces 2,3 tons of olive oil per year. Almost one-third of the respondents rent their olive farms (a total of 54 ha rented).

17Specifically, as regards the details of annual variations in olive oil production and marketing practice, in 2016-17, 51% of the total olive oil sold was organic and 23% of conventional (virgin and extra virgin) quality according to the data of the sales department of Modousa. The cooperative managed to sell most of its olive oil (79%) in the conventional market (via standard distribution channels). This was mainly in domestic market as Greek consumers are more accustomed to buying the standard virgin olive oil quality than the organic one. The rest (21%) was sold in alternative and solidarity food networks, mainly in Western Europe, where organic olive oil is more sought after by informed consumers.

18In 2017-18, 54% of the total olive oil sold was organic and 33% of conventional quality. The production of Modousa nearly doubled (due to favorable weather conditions and the fact that new members delivered their olive produce) and reached 40 tons. Modousa sold a bit more than half of its olive oil production in the conventional market and the rest in alternative and solidarity food networks. The domestic sales were almost as much as were the external ones. The percentage of olive oil distributed in alternative and solidarity food networks increased. Some new networks in Sweden and Netherlands emerged while the existing ones in Belgium, Germany, Austria, and France were strengthened.

19In 2018-19, the olive production was only 2 tons due to unfavorable weather conditions reflecting the dependence of traditional dry cultivation on natural conditions as well as the economic vulnerability of family farms; production followed the same destinations in and out of Greece, between the conventional market and the rest in alternative and solidarity food networks.

20In 2019-20, the production was 10 tons. For the first time, most olive oil (80%) was sold in niche markets mainly out of Greece, and the rest (20%) in conventional ones, mainly in Greece. Such niche markets include a) exports abroad through solidarity networks and hubs (e.g., the NGO “Solidarity for all” in Athens) where the 2/3 of the olive oil production were distributed, b) diaspora networks (in Australia, Canada, USA, other countries in Europe, but also in Athens and Thessaloniki in Greece), and c) alternative tourism structures (in Taiwan), where the rest of the production was destined. Niche markets are proving to significantly increase their share contributing to Modousa’s market viability.

Most members totally agreed that they participate in Modousa because they feel that the fame of Gera and the olive grove culture are strengthening (19/24, 79%) and because they feel more active as citizens, contributing to local development issues (18/24, 75%). Fewer members totally agreed that they participate in Modousa because they feel that their effort is rewarded (5/24, 21%) or because they have the chance to take care of the farm more systematically (manuring, lopping, etc.) (4/24, 17%).

21Most members agreed that Modousa can play a significant role in the development of the small and fragmented agricultural holding through a re-territorialisation process of olive farming of Gera region in many ways. The great majority of the respondents totally agreed that Modousa can contribute in creating more market opportunities and succeeding a better price for olive oil as a local product of distinct quality (17/24, 71%). Information, training and agricultural education of olive producers seemed not to be what most of the members consider as the most necessary priority of Modousa (10/24, 42%).

22Priority projects for the Modousa members of the survey were the establishment of a small bottling plant for more efficient management of place-based quality label (17/24, 71%) and the training and education of olive farmers in olive farming issues (14/24, 58%). The least priority was the development of an open ecomuseum for integrated plans for agrotourism, ecotourism, gastronomy, etc. (25%). Key informants explained that the bottling plant (operating since 2020) is about to be certified to ISO and HACCP and that the machinery (new and used) was purchased with an internal loan (among Modousa members). In terms of employment, two members of Modousa have been employed in logistics and technical support units. Members were also ready to offer some voluntary work.

23SCE Modousa has organized and participated in meetings and seminars, eco-cultural events, musical events and programs analyzed above, including radio broadcastings, articles and journal publications, interviews, etc., promoting social economy, local entrepreneurship and local development. It should be mentioned that Modousa was the first entreprise in North Aegean –and one of the first SCE in Greece– to participate in the “Erasmus for Entrepreneurs” program.

Discussion

The profile of the respondents: the local farming pathway

24According to the responses of the core of its founding and active members, Modousa is a cooperative of low-intensity, small size, monocultural family farms of low input trying to survive in the marginal rural area of Gera. Members of Modousa are mostly 45 year-old men, having a high school level of education. Almost half of them are full-time farmers. The economic crisis made a significant part of people participate in Modousa, along with other motivating factors. Profitability from agricultural activities seemed to be limited. Local households could not make a living without off-farm income.

26Modousa members are small producers who believe that they may succeed better price to sell their product through collaborative actions. However, they do not appear to do this essentially to resist wholesale suppliers. Most of them seem to adopt a rather practical than ideological positioning. In addition, they view Modousa as something new, fresh and dynamic (low median age, frequent meetings, amount and range of initiatives, social, economic and political influence, voluntarism, etc.), different from the “old deprived cooperatives”. They regard that participation in SCE Modousa contributes to the promotion of their product, olive landscape and culture, and feel that it makes them more active as citizens and raises their social status. However, they do not fully feel that their effort is rewarded yet (this is perhaps a response revealing their higher expectations), but they seem to accept that this needs time and more effort to mature.

Production, cooperation and the market

27One of the most significant findings of this survey, and perhaps the greatest accomplishment of Modousa, is that the cooperative members have managed to reverse the dependence on conventional markets and open new alternative ones (niche markets). In three year-time Modousa managed to be principally based on solidarity networks and hubs.

28Most of the production regards olive oil of distinct quality, either organic, extra virgin, or first-class olive oil. This quality focus is what Modousa niche markets seem to prefer. However, production is small and, so far, is not getting over 40 tons. This quantity may be a non-satisfactory one for a productive SCE of 77 members. Here, it is worth mentioning that some of their production aims at self-consumption. In addition, the quantity (and quality) of Lesvos olive oil production is largely due to climatic conditions (increased olive production is almost each second or third year, while the other years may be little or no production at all).

29Only half of the total olive oil production is delivered to the cooperative by the members. Modousa cannot market larger quantities and pay on time the producers such as the big dealers are doing (lack of cash-flow, advertising and promotional costs, isolation from major markets due to insularity, lack of economies of scale, etc.). There is an urgent need for repayment for many members, irrespective of whether it is for farm reproduction or additional income). Thus, Modousa members prefer to give their olive oil out of their cooperative, as long as their SCE faces cash flow problems and cannot pay them directly (payments might take place after 8-10 months). Modousa producers of the survey are small full and part-time farmers trying to cover their daily needs. They need cash flow. The members of Modousa may not be ready to become independent from wholesale suppliers since they perform “acrobatics” between the certainty and safety of the wholesale supplier and the vision of the area, between the private/individual and the public/collective, which is a paradox. They show ambivalence and tend to be directed towards certainty, even if it undermines the branding strategy and the prospect for sustainable development. However, the situation is complex and multi-dimensional. The transition to such collective/cooperative forms of governance is not something fixed but under construction.

30At the same time, Modousa members perceive that cooperation would protect their products in the free market, prevent sales in bulk (meaning loss of the added value), provide more incentives for the production of quality olive oil, and struggle for less dependence on wholesale. They are willing to continue to work voluntarily for Modousa, promote the ideas of cooperation, collectivism, solidarity, community, belonging, etc., and empower the social capital of the place. They do not act through marketing strategies and advertising campaigns since they are not professionals. They do not employ full-time working staff (apart from a hired employee in a greengrocery store and perhaps, shortly, one or two workers in the bottling plant). Modousa members prefer to act through solidarity forms in Europe, emigrants and diaspora networks and, so far, through small quantities and not so organized, since Modousa depends on members’ volunteerism. They achieve this mainly using the following techniques: contacting other social and solidarity economy structures and initiatives/groups, participating in social economy events, word of mouth marketing, finding market “penetrators”, etc. This strategy, with an emphasis on organic olive oil, seems to be successive.

31Members of Modousa recognize the value of cooperation. They are aware of their quality product (natural capital) and realize that their cooperative structure can play a significant role in olive oil promotion as a product of a place-based quality label (social and cultural capital). They realize that they cannot survive in a continuously competitive market without using their competitive advantages, without extraversion (which presupposed standardization in their bottling plant, their priority project), and without a distinct added value. Their basic concern seems to be to ensure a fair market for their olive oil through short/alternative distribution channels associated and/or contextualized by a social (i.e. collectivity), cultural (i.e. history, tradition and education) and economically diversified (i.e. tourism) focus. Towards that direction, they managed the operation of their bottling plant. In addition, they are about to hire new full-time and part-time workers and offer more voluntary work themselves.

Social role of Modousa

32SCE Modousa promotes rural values, participation, agricultural knowledge and communication in a lagging agricultural and insular area of marginal potential for agriculture. The enterprise raises awareness of the concept of social economy. The enterprise’s social vision is to promote and advance a) the olive oil as a socio-cultural product and to link it with other products and services of the olive grove, and b) the olive grove as an ecosystem and as a landscape and the culture of the commons. It combines land and landscape management and planning with local production, manufacturing, arts and crafts and festivals, place identity and addresses a vision of sustainable development. Modousa cooperates with scientists and other experts, organizes information days, meetings and seminars on education and training of farmers, gastronomic and eco-cultural events and participates in some project proposals. The enterprise aims at a sustainable, humane and ethical re-orientation of economic activity. It intends to reverse the increase of inequalities, sustain social cohesion, improve life in ecosystems together with the human quality of life, giving priority to human and common welfare rather than profits. But to what extent it fulfills the above goals?

33Modousa revived an abandoned cooperative industrial unit (old mill) and re-offered it to the public with an altered use. The implementation of the above vision concerned members’ active involvement and specialization in quality region-branded produce. Specifically, the social function of Modousa, so far, involved issues of agricultural practices for the production of olive oil, certification of olive oil quality, integral management of the olive grove, the revival of traditional occupations and practices, promotion of arts and crafts, home handicrafts, folk dances, participation as a host institute in Erasmus for Entrepreneurs, registration and exploitation of annual and/or perennial wild plant species in cooperation with the National and Kapodistrian University of Athens, etc. The plans for the organization of an olive festival, a multifunctional farm and an ecomuseum (actions of an expected positive social impact) have not been fulfilled, yet. The majority of the core members of Modousa do not seem to have the tools, the networks, and a clear vision to succeed in a much better social impact. In addition, most of the 53 late members enrolled after 2016, do not have the training and education on issues of social economy and do not seem to share the same visions for the enterprise. Modousa needs some professional staff, and a lot of guidance, meaning the construction of even stronger relationships between scientists and members. In terms of the empowerment of social capital, the survey respondents seem to identify some structural problems and the general need for community-led development. They attempt to overcome them through collective targets. There are some actions (e.g. initiative for organizing a meeting for Dacus disease) but not enough.

34Thus, the role and the prospects of Modousa in community capacity building are positive but could enrich. The enterprise could attempt to introduce new methods and tools for integrating social economy and local development and contribute to a better understanding of cultural, economic, ecological and societal dynamics for all stakeholders and, thus, immensely improve the interaction between politics, experts and the citizens. Modousa can combine different, but complementary, scientific sectors (rural, social and cultural geography to engineering, environmental science, agronomics and economics) based on land/ territorial management to succeed in integrated sustainable local development and promote the dialogue on the role of social economy.

Territorial branding and local development

35Despite the general assumption that the olive grove should be preserved and valorized and the fact that Modousa’s business plan proposes certain steps to succeed in that goal, there is no applied plan for re-territorialization of agriculture (promoting territorial quality specificities) by linking olive terroir, quality products and services and the local community.

36Members feel that Modousa promotes the fame and the cultural heritage of Gera as an olive landscape (cultural capital). They are aware of the potential role of Modousa in a sustainable development plan (rural tourism, open ecomuseum, etc.), but they do not seem to value it high on their targets. They rather seem to be focused on the trade of olive oil and on production-related targets. This might be due to their knowledge of production sector and also to the fact that Modousa is a cooperative of productive purpose with a priority in olive production.

37The identification of the needs for exploitation of natural and cultural assets, for territorial branding and local community-led sustainable development has not been matured strategically. Among Modousa members there is an increased understanding of the supremacy of territorial over the market value, since the first additionally contains know-how, tradition passing on from generation to generation, local knowledge, local identity, etc.

38In addition, there is not enough extraversion since some of Modousa members do not accept/adopt or view positively the involvement in non-productive activities. This means that there is a need for further fermentation, information and counselling (e.g. post-productive and multifunctional countryside, links of alternative sources of tourism and agriculture). All in all, we must take into consideration that the social and solidarity economy is a new field of social action and business in Greece supported by the new Special Secretariat for SSE resulting into confusion as it regards concepts and practices (based on both economic activity and volunteering) and a lack of cohesion and unity at the territorial level. This confusion is reflected in the everyday life of Modousa.

Conclusion

40Our paper aimed to reveal the role of a SCE as a catalyst for the activation of latent or poorly exploited resources. The main question was whether Modousa represents a different path to that of wholesale suppliers and conventional marketing channels contributing to territorial branding of Gera (Lesvos) and thus fulfills its social role in rural revival and prosperity. What the survey highlighted is that the members of the cooperative are oscillating between the “safe and convenient” (conventional market) and the “expected and promising” through alternative paths (to reach differential price).

41Given the very small farm size and land fragmentation, the enhancement of production value through specific territorial attributes and cooperation seems to be one-way. In this sense, the cooperative has succeeded in mobilizing a significant number of local producers. On the other hand, though members of Modousa may not be ready to become totally independent from wholesale suppliers delivering a smaller or larger quantity of olive oil to them, they are expressing a different path from the conventional marketing channels; they use niche markets based on alternative and solidarity food networks with a social business plan. They may not be ready to abandon the certainty and safety of the widely spread conventional solutions but they conserve and empower the vision of the area, and they pave the way from a private/individual entrepreneurial model to a public/collective one.

42In addition, Modousa has started to fulfill its social role to a considerable extent since 2015 with a series and variety of practices. Some significant steps are being made (revival of an old cooperative mill, information days and seminars, eco-cultural and musical events, cooperation with researchers and academia, etc.) with a positive social impact locally. However, there is a need for permanent development structures and platforms (i.e. ecomuseum, multifunctional farm, olive festival, farmers’ market) through which Modousa can fulfill its key objectives reported above. The fulfillment of such goals is progressing slowly. Moreover, apart from the imperative need for the establishment, and extension of such structures/platforms (action plan), there is a need for applying the social business plan to target wider diaspora and solidarity structures, along with networks of thematic and special interest tourism. The hiring of a director and of more full and part time staff along with a small grant available from the Special Secretariat for SSE appears to be a necessity in order to implement the above. Consequently, Modousa is not yet contributing much in the territorial branding of Gera, but there are many opportunities to do so in the near future.