PROSPECTS FOR THE DEVELOPMENT OF THE ORGANIC MARKET IN UKRAINE IN THE CONTEXT OF THE EUROPEAN GREEN DEAL
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
The successful process of Ukraine's European integration is contingent on the rapid development of a new market segment: namely, organic products. This is regarded as a means of increasing the competitiveness of Ukraine's agricultural sector. Concurrently, the production of organic products assumes particular relevance when the state is expected to create conditions for the export of organic agricultural products to the EU. The article is aimed at studying the problems and prospects for the development of the organic market in Ukraine in the context of the European Green Deal. The methodological approach combines a comprehensive review of scientific literature, analysis of industry reports and case studies to assess the development of the organic market in Ukraine. According to the results of the study, Ukraine, following global trends, is gradually focusing on the development of various green sectors of the agri-food system, in particular, the production of organic agricultural products. The development of the organic market is based on organic farming. The area of land under organic farming in countries around the world is gradually increasing in parallel with the introduction of the latest technologies (sensor networks, control of soil moisture, soil temperature, CO2 levels, etc.). At the same time, the number of organic producers is growing both in Ukraine and around the world. Organic products are becoming increasingly attractive to both European and national consumers. In Ukraine, the organic segment of the market is actively developing, as evidenced by the positive dynamics of the agricultural sector. However, a significant share of organic production is carried out uncertified, often without proper regulation. This makes it difficult to monitor this sector, which is mostly composed of farms and private households. Over time, the integration of such farms into the monitoring network will become necessary in the process of formalising the organic market, as the lack of certification limits prices and economic returns. Despite the challenges, including a full-scale war, Ukraine has preserved its organic sector, diversified production and attracted new players to the organic market. Reaffirming its focus on European integration, Ukraine has identified the strategic adaptation of its national organic legislation to EU norms as a key priority. For Ukraine, as an EU partner country, the European Green Deal creates additional opportunities for the development of the organic market. In addition, the European Union supports farmers who implement organic practices through subsidy and financing programmes, which can be an incentive for Ukrainian organic producers. The study found that the domestic market for organic products requires the creation of a modern infrastructure. At the same time, the domestic market of Ukraine remains under the influence of unregulated pricing mechanisms, which leads to overpricing and lack of stable demand for organic products. Further research in this area should focus on the peculiarities of the formation and development of the organic market in Ukraine, in particular from the perspective of small businesses in the context of European integration.
How to Cite
##plugins.themes.bootstrap3.article.details##
organic products, conventional technologies, organic technologies, green economy, private households, costs, income
Bondarenko, V., Pokynchereda, V., Pidvalna, O., Kolesnyk T., & Sokoliuk S. (2023). Green Economy as a Prerequisite for Sustainable Development: Analysis of International and Ukrainian Experience. European Journal of Sustainable Development, Vol. 12, No 1, p. 221–234. DOI: https://doi.org/10.14207/ejsd.2023.v12n1p221
Brzezina, N., Biely, K., Helfgott, A., Kopainsky, B., Vervoort, J., & Mathijs, E. (2017). Development of Organic Farming in Europe at the Crossroad: Looking for the Way Forward through System Archetypes Lenses. Sustainability, Vol. 9(5), p. 821. DOI: http://dx.doi.org/10.3390/su9050821
Dudar, T. O. (2013). Theoretical Foundations for the Formation of Organic Agricultural Production in the Context of Environmental Greening. Sustainable Economic Development, Vol. 1, p. 191–195.
Eisinger-Watzl, M., Wittig, F., Heuer, T., & Hoffmann, I. (2015). Customers Purchasing Organic Food – Do they live healthier? Results of the German National Nutrition Survey II. European Journal of Nutrition & Food Safety, Vol. 5(1), p. 59–71.
Federation of Organic Movement of Ukraine. Available at: https://organic.com.ua/
Fedchyshyn, D. (2020). Theoretical bases of formation and development of agricultural organic production in Ukraine in modern economic conditions. Economics of Agriculture. Vol. 67. No 3, p. 939–953. DOI: https://doi.org/10.5937/ekoPolj2003939F
FiBL Statistics – European and global organic farming statistics. Available at: https://statistics.fibl.org/index.html
Galutskikh, N. A., & Didorchuk, I. L. (2024). Modern trends in the world market of organic products. Business Inform, No 2, p. 20–24. DOI: https://doi.org/10.32983/2222-4459-2024-2-20-26
Global Organic Area Grows More Than Ever Before. Available at: https://www.ifoam.bio/news/global-organic-area-grows-more-ever
Granovska, V. H. (2017). Mechanism of stimulating the development of enterprises in the organic sector: adaptation of global experience. Economy and Society, Vol. 9, p. 384–390.
Honcharuk, I., Yemchyk, T., & Tokarchuk, D. (2024). Efficiency of Digestate from Biogas Plants for the Formation of Bio-Organic Technologies in Agriculture. European Journal of Sustainable Development, Vol. 13, Issue 1, p. 372–388. DOI: https://doi.org/10.14207/ejsd.2024.v13n1p372
Honcharuk, I., Tokarchuk, D., Gontaruk, Y., & Kolomiiets, T. (2024). Production and Use of Biogas and Biomethane from Waste for Climate Neutrality and Development of Green Economy. Journal of Ecological Engineering, Vol. 25, Issue 2, p. 20–32. DOI: https://doi.org/10.12911/22998993/175876
Kaletnik, H. M., Palamarchuk, V. D., Honcharuk, I. V., Yemchyk, T. V., & Telekalo, N. V. (2021). Prospects for the use of corn for energy-efficient and ecologically safe development of rural areas: monograph. Vinnytsia: FOP Kushnir Y. V. Available at: http://socrates.vsau.org/repository/card.php?lang=uk&id=31069
Korniienko, S. I., & Rud, V. P. (2015). Main Provisions of the Sectoral Comprehensive Program "Vegetables of Ukraine – 2020". Vegetable and Melon Growing, Vol. 61, p. 17–33.
Kovalchuk S., & Kravchuk A. (2019). The impact of global challenges on "green" transformations of the agrarian sector of the Eastern partnership countries. Baltic Journal of Economic Studies, Vol. 5 No 1, p. 87–97. DOI: https://doi.org/10.30525/2256-0742/2019-5-1-87-95
Lohosha, R., Mykhalchyshyna, L., Prylutskyi, A., & Kubai O. (2020). Institutionalization of the agrarian market in Ukraine and European economic community: genesis, evaluation and analysis. Independent Journal of Management & Production. Vol. 11. No 8. P. 727–750. DOI: https://doi.org/10.14807/ijmp.v11i8.1232
Lohosha, R., Krychkovskyi, V., Moroz, Y., Kolesnyk, T. & Vakar, T. (2024). Methodology and Engineering of a Sustainable Market Model. European Journal of Sustainable Development. Vol. 13(1), p. 306–320. DOI: https://doi.org/10.14207/ejsd.2024.v13n1p306
Ministry of Agrarian Policy of Ukraine. Official Website. Available at: https://minagro.gov.ua/
Muller, A., Schade, C., El-Hage Scialabba, N. et al. (2017). Strategies for feeding the world more sustainably with organic agriculture. Nature Communications. Vol. 8. Iss. 1. Art. 1290. DOI: https://doi.org/10.1038/s41467-017-01410-w
The Law of Ukraine "On Production and Circulation of Organic Agricultural Products and Raw Materials" of September 3, 2013, No. 425-VII. Available at: http://www.zakon.rada.gov.ua/go/425-18
The Law of Ukraine "On Basic Principles and Requirements for Organic Production, Circulation and Labelling of Organic Products" of 27.05.2022 No. 2496-VIII. Available at: https://zakon.rada.gov.ua/laws/show/2496-19#Text
The Law of Ukraine "On Alternative Types of Fuel" of 11.11.2021 No. 1391-XIV. Available at: https://zakon.rada.gov.ua/laws/show/1391-14#Text
The Law of Ukraine "On Alternative Energy Sources" of 01.01.2023 No. 555-IV. Available at: https://zakon.rada.gov.ua/laws/show/555-15#Text
Organic Standard Official Website. Available at: https://organicstandard. ua/en
Organic fruits with the largest coverage in the crop insurance program. Agroportal.ua. Available at: https://agroportal.ua/news/mir/ssha-nazvano-organichni-frukti-yaki-zaymayut-naybilshu-ploshchu-v-programi-strahuvannya-vrozhayu
Palamarchuk, V., Krychkovskyi, V., Honcharuk, I., & Telekalo N. (2021). The Modeling of the Production Process of High-Starch Corn Hybrids of Different Maturity Groups. European Journal of Sustainable Development, Vol. 10(1), p. 584–598. DOI: https://doi.org/10.14207/ejsd.2021.v10n1p58/
Pantsyreva, H., Stroyanovskiy, V., Mazur, K., Chynchyk, O., & Myalkovsky, R. (2021). The influence of bio-organic growing technology on the productivity of legumins. Ukrainian Journal of Ecology, Vol. 11, No 3, p. 35–39. DOI: https://doi.org/10.15421/2021_139
Smart Argiculture Market Size, Share, Growth Report 2030. URL: https://www.zionmarketresearch. com/report/smart-agriculture-market
Shpykuliak, O., & Bilokinna I. (2019). "Green" cooperatives in the formation of an institutional mechanism of development of alternative power engineering in the agrarian sector of the economy. Baltic Journal of Economic Studies, Vol. 5, No 2. P. 249–255. DOI: https://doi.org/10.30525/2256-0742/2019-5-2-249-255
Shpykuliak, O. H., Bezhenar, I. M., & Bilokinna, I. D. (2023). Modern trends in the development of organic production in the agricultural sector and farms. Problems of modern transformations. Series: Economics and Management, Vol. 8. DOI: https://doi.org/10.54929/2786-5738-2023-8-04-04
The World Largets Market Research Store. Available at: https://www.researchandmarkets.com
Torres-Ruiz, F. J., Vega-Zamora, M., & Parras-Rosa, M. (2018). Sustainable Consumption: Proposal of a Multistage Model to Analyse Consumer Behaviour for Organic Foods. Business Strategy and the Environment, Vol. 27(4), p. 588–602.
Ukrainian companies will present organic products at an international exhibition in Germany. Available at: https://minagro.gov.ua/news/38-ukrainskykh-kompanii-prezentuiut-orhanichnu-produktsiiu-na-mizhnarodnii-vystavtsi-v-nimechchyni
Ukraine celebrates Organic Day with the European Union for the third time. Available at: https://minagro.gov.ua/news/ukraina-vtretie-vidznachyla-orhanichnyi-den-razom-iz-ievropeiskym-soiuzom
Yatsenko, O., & Ovcharenko, A. (2019). Global Organic Food Market: Insights, Challenges and Opportunities. LEMiMA 2019 (19-21 April 2019). Belgrade, Serbia 489–506. Available at: https://ir.kneu.edu.ua/bitstream/handle/2010/32669/Lem_19_2_489.pdf?sequence=1

This work is licensed under a Creative Commons Attribution 4.0 International License.