THE CURRENT TRENDS IN THE PRODUCTION OF ORGANIC AGRICULTURAL PRODUCTS UNDER CONDITIONS OF INCREASING COMPETITION IN THE WORLD MARKET

Main Article Content

Іryna KYRYLIUK
Olena TERENTIEVA
Kateryna HERASHCHENKO

Abstract

Introduction. In modern conditions, rates of food insecurity, the health of the population, and quality of human life are strongly determined by the latest developments in organic agriculture. The small capacity of the market of organic products and the large potential for the development of organic production in Ukraine create the necessary preconditions for improving the competitiveness of agricultural producers. In these circumstances, becomes relevant detection of modern tendencies in the development of organic production and the capacity of the organic market as well as analyzing the interaction of processes of globalization and localization of production and consumption of organic products.


Purpose. The purpose of the article is identification of current trends in the production of organic agricultural products under conditions of increasing competition in the world market.


Results. Modern tendencies of production of organic agricultural products in conditions of increasing competition in the world market have been revealed. It shows dynamics of the world area of organic agricultural lands in the context of regions and countries. The structure of organic agricultural land, as well as the use of organic arable land, land under organic perennial plantations, organic pastures and hayfields, including areas in conversion, has been analyzed. The capacity of the world market of organic food in the context of countries and regions has been determined. Countries with the highest per capita consumption of organic products have been identified. Trends in the development of organic agriculture in the conditions of the coronavirus crisis caused by the COVID-19 pandemic have been disclosed. The tendencies of localization of production and consumption of organic food products, as well as accelerated development of individual regional markets of organic products have been indicated. The specifics of the development of organic agricultural production in the EU, USA and Ukraine, as well as the specifics of the development of the infrastructure of the organic products market in these countries, have been analyzed. The commodity structure of the modern market of organic food products has been analyzed. The features of the current stage of development of the global system of organic certification and locally-oriented quality assurance systems for organic products have been disclosed. Selected instruments have been identified to increase demand for organic products and to support environmental objectives in accordance with the principles of organic agriculture.


Originality. Theoretical approaches to the analysis of current trends in organic agricultural production in the context of increased competition in the world market and the coronavirus crisis caused by the COVID-19 pandemic have been further developed. The author’s approach is based on a complex consideration of the mutual influence of the trends of globalization and localization (regionalization) of production and consumption of organic agricultural products (organic food).


Conclusion. The latest statistics suggest that recent years have been successful for global organic agriculture. Over the past 20 years, the area of organic agricultural land has grown more than sixfold. In 2019, there were 72.3 million hectares of organic agricultural land, including transitional areas. Ukraine occupies the 20th place in the world by the area of organic agricultural land 467.980 thousand hectares. Most of the world’s organic arable land was used to grow grains (5.1 million. ha), in particular rice, followed by green arable feed (almost 3.2 million. ha), oilseeds (1.7 million. ha), legumes and vegetables. In 2019, organic food and beverage sales reached more than 106 billion euros. The countries with the most capacious organic markets are the U.S. (44.7 billion euros), Germany (12.0 billion euros) and France (11.3 billion. euros). The US accounts for 42% of the world’s organic food market, the European Union for 39% (EUR 41.4 billion), China for 8.0% (EUR 8.5 billion). The highest per capita consumption of organic products is in Denmark (344 euros), Switzerland (338 euros) and Luxembourg (265 euros). Exports of organic products from developing countries are based on raw materials, while developed countries export a large proportion of processed manufactures. The COVID-19 pandemic has had a good impact on the organic sector. As the buyers care more about their health and seek healthy food, organic products have proven to be the best for consumption in a pandemic. Demand for fresh organic products increased significantly in 2020, as consumers continue to shift to a healthy lifestyle. In the post-pandemic period, traceability and transparency in organic food supply chains will increase, consumer behavior will change and the importance of online organic retail will increase.

Article Details

Section
Статті
Author Biographies

Іryna KYRYLIUK, Bohdan Khmelnytsky National University of Cherkasy

PhD (Economics), Associate Professor

Olena TERENTIEVA, Bohdan Khmelnytsky National University of Cherkasy

PhD student

Kateryna HERASHCHENKO, Bohdan Khmelnytsky National University of Cherkasy

Master student

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