ORGANIZATIONAL AND ECONOMIC MECHANISM OF ORGANIC LIVESTOCK PRODUCTS PRODUCTION AND CONSUMPTION DEVELOPMENT IN UKRAINE

Main Article Content

Iryna KYRYLIUK
Yevhenii KYRYLIUK

Abstract

Problem. Despite the significant increase in the area of organic land in Ukraine, the vast majority of these areas are occupied by arable crops. Thus, 48.1% of all organic lands are occupied by cereals, more than 16% are oilseeds; 4.6% - legumes; 2% - vegetables, 0.6% - fruits. Of the 485 domestic entrepreneurs who received an organic certificate, only 15 entrepreneurs or 3% of their total number produce livestock products.

Purpose of the article is a theoretical and methodological justification of the organizational and economic mechanism of organic livestock products production and consumption development in Ukraine.

Results. The logical chain of concepts "mechanism" - "economic mechanism" - "organizational and economic mechanism" - "organizational and economic of organic livestock products production and consumption development" is substantiated, and also author's interpretations of these concepts are offered. The principles of formation and improvement of organizational and economic mechanism (EOM) of organic livestock products production and consumption development are defined: unity of economic, social and ecological goals, neoprotectionism, and sufficiency of grounds for state intervention and efficiency, equivalence and proportionality, efficiency. The conceptual scheme of OEM development of organic production and consumption of livestock products is offered, which combines the purpose and tasks, factors and preconditions, priorities of formation, as well as tools, measures and expected results of OEM implementation.

The existing disparities in the development of the domestic organic sector (in the direction of priority development of organic crop production) are indicated. The tools of direct and indirect state support for the production of organic livestock products are substantiated. A number of measures and tools have been developed to stimulate demand for organic livestock products, as well as to expand their exports.

Originality. For the first time, the theoretical foundations of the study of the impact of organizational and economic support for the organic livestock products production and consumption development on the formation of value added within the country, as well as the growth of intellectual potential of the nation. Theoretical principles serve as an effective tool for understanding the priority of creating added value in animal husbandry, the direct dependence of the nation's health and the growth of its intellectual potential on the processes of consuming food rich in essential animal proteins.

Mechanisms for stimulating demand for organic livestock products and mechanisms for stimulating its exports have been improved. Their implementation will increase the capacity of the domestic market of organic livestock products, increase the competitiveness of domestic products, accelerate the process of conquering new markets, improve the structure of domestic exports and expand its range.

Conclusions. Given the actual absence of PDO / PGI / TSG certification systems for livestock products in Ukraine, given the duration of the relevant legislation and its implementation, there is no reason to predict the growth of production and consumption of these products in the medium term. Accordingly, high-quality livestock products will be associated primarily with organic products.

Author's measures and tools provide a direct link between state support for the livestock industry and ensuring the quality of livestock products. To increase the availability of organic products to the average consumer, to curb the social stratification of society, it is proposed to reduce the VAT rate to 7% on the main types of organic livestock products. This will achieve a number of goals: first, to provide healthy food to a significant proportion of the population, and secondly, increase the efficiency of organic livestock production and competitiveness of these products, which will strengthen the position of domestic producers of organic products in domestic and foreign markets, accumulate added value inland.

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