Agrarian Economy 2021 Т. 14 № 3-4: 30-38

TENDENCIES OF ORGANIC MARKET DEVELOPMENT IN UKRAINE

H. Syrotiuk, Candidate of Economic Sciences, associate professor
ORCID ID: 0000-0002-8740-7959
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2021.03-04.030

ANNOTATION

The article represents findings of the analysis of current conditions of organic production in Ukraine and identifies its economic, social, and ecological advantages. It is determined that Ukraine has a sufficient potential in organic production development. The research considers dynamics of the number of organic producers and land area under organic production in Ukraine, and points that the share of land area, engaged under organic production, makes 1% of the total area of agricultural lands. The motivating factor to increase the number of organic producers suggests applying the measures on their protection by minimizing unfair marking. It is studied that organic production in Ukraine is export-oriented and, in the structure of export, the largest share is taken by Europe. Thus, Ukraine takes the fourth position among the countries exporting organic products to the EU member-states. Among the exported products, the largest share is taken by cereals and oilseeds, eggs, honey, vegetables, fruit. It is determined that at the domestic market, consumption of organic products is insufficient, however it demonstrates a permanent tendency to growth. At the domestic market, dairy products, porridge and cereals are the most popular. The author identifies problems of the domestic organic market development, particularly consumers’ low awareness of organic products and low purchasing capacity. The research justifies the necessity to intensify the state support for organic producers because the current programs of state support for organic production are mostly focused on reimbursement of certification cost, whereas there is no governmental assistance in the form of preferential taxation and concessional lending. The work substantiates the ways of further development of organic production in Ukraine that is focused on increased capacity of domestic organic market and rise in exports.

KEY WORDS

organic products, organic agricultural production, organic products market, certification

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