JEL classification: O13; Q16
The article deals with the theoretical and practical aspects of the organic market development in Ukraine in view of the retrospective dynamics and current trends of the world and domestic markets. In particular, the author has thoroughly investigated the significant potential in organic farming due to the presence in Ukraine of almost 50 % of the world’s black earth reserves.
The necessity to use the principles of organic farming is substantiated, especially in the context of compensation for the exhaustion of land resources in Ukraine due to the intensification of agriculture, since the use of organic fertilizers gradually increases the content of humus in the soil, and therefore increases its productivity.
In addition, the main reasons for the lack of implementation pace of organic production principles and practices, including low market solvency, are analyzed, with only 20 % of domestic organic production remaining in the domestic market and most of it being exported.
Studies of global and local organic markets were conducted to identify specific traits, dynamics and attempts to predict the development of key parameters in different regional markets in order to determine Ukraine’s place and prospects in this market. The market conditions of organic products on the world, European and Ukrainian markets are analyzed. The features of the assortment, the distribution between the regions, the dynamics peculiarities of development in different regions of the world and Ukraine are highlighted. In the course of the study the analysis technique of dynamics series and retrospective analysis were used. The conducted analysis of the world and European markets for organic agricultural products shows the significant dynamics and realization prospects of a wide range of products in these markets. Due to the fact that Ukraine has low logistical costs for the potential export of products to the European market and low cost of organic products due to low labor costs, as well as the potential of land resources, we consider that the export of organic products to the European market is promising. The analysis of the internal market for organic products shows little dynamics due to low purchasing power. Therefore, the development of the domestic organic agricultural sector is seen in the study of the foreign market and export orientation. The results of the study are of practical value to producers and other participants in the Ukrainian organic market for forming their own production program, adjusting the production orientation and the range of products produced.
Keywords: organic market, organic production, organic agriculture, world market, marketing research, conjuncture, export, import.
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The article was received 15.12.2019