УДК 338.43: 631.1

DOI: https://doi.org/10.36887/2415-8453-2020-4-10

Olena Viktorivna SMIHUNOVA
PhD in Economics, Associate Professor, Associate Professor of Department of Organization of Production, Business and Management, Kharkiv Petro Vasylenko State Technical University of Agriculture
Oleksandr Anatoliyovych ILIN
Applicant of the Department of Organization of Production, Business and Management, Kharkiv Petro Vasylenko State Technical University of Agriculture

JEL classification: Q13; Q16

Abstract

The transition to organic farming is a matter of time given the deteriorating environmental situation in the world. At present, Ukraine is one of the most powerful producers and exporters of agricultural products in the world, and the reorientation to organic agricultural production will strengthen and consolidate its position in the world market. Today, Ukrainian farmers specialize mainly in the production of organic crop products: wheat, barley, sunflower, corn for grain, etc., because the cultivation of arable crops is less expensive. Organic farming currently accounts for about 1% of agricultural land, which, however, puts Ukraine in seventh place in the world ranking of producers of organic cereals. The regions with the highest concentration of certified lands and certified operators are Kherson, Kyiv, Odesa, Cherkasy and Zaporizhia regions. Organic farming is a promising area of investment; its development is also facilitated by joint projects of domestic producers with foreign companies. Currently, Ukraine ranks second in the ranking of countries exporting organic products to the European Union, supplying the European market with about 80 categories of goods, including value-added agro-industrial products, whose presence on the world market expands prospects for increasing production. A review of analytical data showed that the share of organic products sold in the domestic market in 2019 was only 1.54%, which is primarily due to the low solvency of the population. However, there is a gradual expansion of the domestic market for organic products. One of the problems hindering the introduction of organic technologies in production is the limited working capital of farmers, because ensuring the environmental friendliness of production requires the introduction of additional operations and strict compliance with agronomic requirements. The interest of foreign companies in large batches makes it impossible to directly supply products from small enterprises. Therefore, we consider the creation of cluster formations to be a promising direction.

Key words: organic production, organic technologies, organic agriculture, grain, holding, cluster.

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The article was received 13.10.2020