Formation of organic products market in Ukraine

Tetyana Kundilovska
PhD in Technical Sciences, Associate Professor, Department of Expertise of Goods and Services, Odessa National Economics University, Ukraine, e-mail: tatiana.kundilovskii@gmail.com, ORCID ID: http://orcid.org/0000-0002-3545-7321

Natalya Zelenyanskaya
Doctor of Agricultural Sciences, Senior Research Worker, Deputy Director for Science and Innovation Activity, National Scientific Centre «Institute of Viticulture and Wine Making Named After V. Ye. Tairov», Ukraine, e-mail: znn2012@ukr.net, ORCID ID: http://orcid.org/0000-0002-9303-8686

Cite this article:

Kundilovska, Т., Zelenyanskaya, N. (2018). Formation of organic products market in Ukraine. Ed.: M. Zveryakov (ed.-in-ch.) and others [Formuvannia rynku orhanichnoi produktsii v Ukraini; za red.: M. I. Zvіeriakova (gol. red.) ta in.], Socіo-economic research bulletin; Visnik social’no-economicnih doslidzen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, Issue, No. 4 (68), pp. 137–147.

Abstract

The article formulates the basic properties of organic products that determine its safety, quality and enhanced nutritional properties. Data of agricultural enterprises number that are engaged in the cultivation of organic products in the regions of Ukraine are summarized, as well as information about land area, which certified in accordance with organic standards, is given. Analysis of organic products market in Ukraine is given and a steady trend towards its annual growth is shown (including by exports increasing, organic products consumption on the domestic market and partially, imports). The plant materials of organic origin data list are presented; specific data about countries-exporters of domestic raw materials are given. It was noted that the regulatory framework, adopted in Ukraine, will contribute to internal organic market development. The questions of organic operators’ distribution according to different differential features (territorial, organizational and legal form of business, activity sphere) are considered. It is shown that, on a territorial feature, most organic operators are concentrated in the South of Ukraine (Odessa, Zaporozhye, Kherson and Nikolaev regions), and 18 operators was registered in the Odessa region, which are certified according to European standards and engaged in crop production. The variety of sales sources of organic products in Ukraine are analyzed in general and the Odessa region, in particular. An organic products assortment analysis in Odessa supermarkets is paid attention. Different approaches to pricing for organic products are shown in retail chains, where products of organic origin are sold. The prospects of further researches in improvement sphere of organic products promotion strategy in the domestic market are substantiated.

Keywords

organic agricultural production; organic products; organic products market; organic operators; organic products sales channels.

JEL classification: Q100; Q500; P420; DOI: https://doi.org/10.33987/vsed.4(68).2018.137-147

UD classification: 338.432:338.439.5(477)

References

1. Kundilovska, T., Zelenyanska, N. (2016). Modern condition and development prospects of agricultural organic production in Ukraine [Sohodennia ta perspektyvy rozvytku orhanichnoho silskohospodarskoho vyrobnytstva v Ukraini], Visnik social’no-economicnih doslidzen’, No. 2 (61), s. 155–165 [in Ukrainian]
2. Maslak, O. M. (2016). Formation of organic agricultural products market in Ukraine [Formuvannia rynku orhanichnoi silskohospodarskoi produktsii v Ukraini], Hlobalni ta natsionalni problemy ekonomiky, Vyp. 10, s. 189–192, available at: http://global-national.in.ua/pro-zhurnal [in Ukrainian]
3. On the production and circulation of organic agricultural products and raw materials: Law of Ukraine, No. 425-VII, 03.09.2013 [Pro vyrobnytstvo ta obih orhanichnoi silskohospodarskoi produktsii ta syrovyny: Zakon Ukrainy, No. 425-VII, 03.09.2013], available at: http://zakon3.rada.gov.ua/laws/show/425-18 [in Ukrainian]
4. Proceedings of 2nd International Congress «Organic Ukraine 2018» [Materialy druhoho Mpzhnarodnoho Conhresu «Orhanichna Ukraina 2018»], available at: http://www.euroagrochem.com/organic-ukraine-2018 [in Ukrainian]
5. The World of Organic Agriculture Statistics and Emerging Trends 2018. Ed. by H. Willer and J. Lernoud, available at: https://shop.fibl.org/CHen/mwdownloads/download/link/id/1093/?ref=1
6. Federation of Organic Movement of Ukraine: site [Federatsіia orhanіchnoho rukhu Ukrainy: sait], available at: http://www.slideshare.net/Irkamelnyk/ss-43067917 [in Ukrainian]
7. Hranovska, V. H. (2017). Prospects for organic products market development in Ukraine [Perspektyvy rozvytku orhanichnoi produktsii v Ukraini], Ekonomika APK, No. 4, s. 31–40 [in Ukrainian]
8. Kharchenko, T. B. (2013). Prospects for organic products market development in Ukraine [Perspektyvy rozvytku rynku orhanichnoi produktsii v Ukraini], Ekonomika APK, No. 10. s. 37–41 [in Ukrainian]
9. The law on basic principles and requirements for organic production was adopted [Pryiniato Zakon pro osnovni pryntsypy ta vymohy do orhanichnoho vyrobnytstva], available at: http://www.minagro.gov.ua/node/26015 [in Ukrainian]
10. Richter, T. (2017). Ukrainian organic products in Western Europe [Ukrainska orhanichna produktsiia u Zakhidnii Yevropi], Orhanichna Ukraina: materialy I Mizhnarodnoho konhresu, 26–28 Sichnia 2017, Torhovo-promyslova palata Ukrainy, Kyiv, s. 20 [in Ukrainian]
11. Lahuta, Ya. M., Mykhailenko, N. V. (2017). Condition and prospects of organic products market development in the context of social responsibility of business [Stan ta perspektyvy rozvytku rynku orhanichnoi produktsii v konteksti sotsialnoi vidpovidalnosti biznesu], Prychornomorski ekonomichni studii, Vyp. 18, s. 79–82 [in Ukrainian]
12. Halashevskyi, S. (2017). Achievements and challenges 10 years. What was it? How is it? What trends do we feel? [Dosiahnennia ta vyklyky 10 rokiv. Shcho bulo? Yak ye? Yaki trendy vidchuvaiemo?], Orhanichna Ukraina: materialy I Mizhnarodnoho konhresu, 26–28 Sichnia 2017, Torhovo-promyslova palata Ukrainy, Kyiv, s. 26 [in Ukrainian]
13. Lopatynskyi, Yu. M., Kutarenko, N. Ya. (2014). Institutional distribution of organic operator in Ukraine [Instytutsiinyi rozpodil orhanichnykh operatoriv v Ukraini], Investytsii: praktyka ta dosvid, No. 13, s. 67–72 [in Ukrainian]
14. Godovenko, N. V., Kundilovska, T. A. (2017). Analysis of organic food products assortment, which presented in shopping malls of Odessa [Analiz asortymentu orhanichnykh kharchovykh produktiv, predstavlennykh v torhovelnykh merezhakh m. Odesy], Mynule, suchasne, maibutnie: proceedings of student conference, Odessa, No. 7, s. 126–130 [in Ukrainian]
15. Kutarenko, N. Ya. (2014). The distribution channels of organic products [Kanaly zbutu orhanichnoi produktsii], Tovary i rynky, No. 1, s. 26–36 [in Ukrainian]