THE SPECIFIC OF ORGANIC PRODUCTS MARKET DEVELOPMENT IN UKRAINE

Daryna HONTA, Alina PROSCHALYKINA

Abstract


Introduction. According to the main provisions of the legislation of Ukraine, organic production is a certified activity related to the production of agricultural products (including all stages of the technological process, including primary production, preparation, processing, mixing and related procedures, filling, packaging, processing , restoration and other changes in the state of production), which is carried out in compliance with the requirements of the legislation in the field of circulation and labeling of organic products. The national organic market is in the forming. Although today there is a positive trend in the production of organic products in Ukraine, there are still many barriers that hinder the development of this industry.

Purpose. The purpose of the article is to identify the features of formation and development of the organic market in Ukraine.

Results. The features of the organic produce market in Ukraine are revealed. Dynamics of the main factors contributing to the development of the domestic organic produce market have been analyzed and forecasted. The state and production and regional structure of organic production in Ukraine are determined. The dependence of consumption of organic products per capita on the size of real GNI per capita is revealed. The reasons for the low rate of development of the internal market of organic produce have been identified. The problem is the ratio of domestic consumption and exports of organic products, since a significant proportion of products is exported, which impedes the development of production of domestic organic products with high added value. The importance of improving the legislative framework and the creation of public non-profit organizations for the organic consumption market is argued.

Originality. The reasons for the low rate of development of the internal market for organic products are summarized and grouped into 3 groups: due to underdevelopment of supply, supply and institutional causes. A direct link between the real GNI per capita (by PPP) and the average annual consumption of organic products in Ukraine per capita has been identified, and it is shown that the relationship between them will increase over the years. The forecast of the main factors that will determine the development of the organic produce market in Ukraine by 2022 is made.

Conclusion. Ukraine has significant potential for the development of organic production, but there are a number of problems that slow this process. These problems include inadequate regulatory framework, lack of an effective certification system for eco-producers, weak development of infrastructure in the organic market compared to other countries, and lack of state incentives for enterprises to switch to organic production. However, one of the main problems is the low purchasing power of the Ukrainian population. The study found that the consumption of organic products per Ukrainian is largely dependent on the income it receives, and since in recent years the real GNI has been declining, it is not necessary to expect rapid growth in the purchase of eco-products in the domestic market.


Keywords


organic production, organic market, organic sector, consumption of organic products, certification bodies of organic products

References


On the basic principles and requirements for organic production, circulation and labeling of organic products: Law of Ukraine of July 10, 2018 № 2496-VIII. Updated: 03/07/2019 Retrieved from: https://zakon.rada.gov.ua/laws/main/2496-19 (in Ukr.)

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Trofimtseva O., Prokopchuk N. (2017). Organic market in Ukraine. Retrieved from https://ukraine.fibl.org/fileadmin/documents-ukraine/publications_presentations/Organic_in_Ukraine_Trofimtseva_Prokopchuk-2017_UA.pdf (in Ukr.)

In Nature: How Ukrainian Organic Producers Conquer Markets. Latifundist Media Retrieved from https://latifundist.com/reportazhy/88-v-nature-kak-ukrainskie-proizvoditeli-organiki-zavoevyvayut-rynki (in Rus.)

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Milovanov E.V. The Role of Organic Social Movement in the Development of Organic Sector of Agricultural Sector of Ukraine. Electronic scientific professional publication in economics "Modern Economics". 2019. №14. pp. 161-173. Retrieved from https://modecon.mnau.edu.ua/issue/14-2019/milovanov.pdf (in Ukr.)


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