The role of Ukraine in the European market of organic products supply formation

Economic Annals-ХХI: Volume 136, Issue 11-12(2), Pages: 15-18

Citation information:
Burlyay, A., & Hutsalenko, O. (2013). The role of Ukraine in the European market of organic products supply formation. Economic Annals-XXI, 11-12(2), 15-18. https://ea21journal.world/index.php/ea-v136-04/

Alina Burlyay
PhD (Economics),
Associate Professor,
Uman National University of Horticulture
1 Instytutska St., Uman, 20305, Cherkasy region, Ukraine
bur-alina@yandex.ru

Oksana Hutsalenko
Researcher,
The National Academy of Agrarian Sciences of Ukraine,
Kyiv, Ukraine
557555@ukr.net

The role of Ukraine in the European market of organic products supply formation

Abstract. Introduction. Safety and quality of food is an important problem in many countries today, and environmental safety of agricultural products becomes one of the main factors of its competitiveness on domestic and foreign markets. Organic agriculture provides balanced state of the ecosystem that is the key to sustainable economic and social development of society. Development of the organic products market in Ukraine is essential for the formation of organic products supply on the European Union market.

Purpose. The purpose of the article is to determine the place of Ukraine in the formation of supply of the European market organic products.

Results. In the world, organic production began to emerge in the 20s of the twentieth century. Since that time, the organic products markets have begun to develop rapidly in many countries. At the end of 2009, world areas under organic agriculture amounted 37.5 million hectares in more than 1.8 million certified organic farms, which amounted 0.9% of the total area of farmlands of 160 countries. In Europe, countries’ certified area under organic agriculture increased from 3.6 million hectares in 1999 to 9.5 million hectares in 2009 and amounted 25.3% of the world area that is occupied by organic production. Therefore, by this indicator European countries take the second place in the world organic agriculture after the countries of Oceania, which amounted 25.3%.

Over the researched period, the world market of organic products has increased almost in 4 times from $15.2 billion in 1999 to $60 billion in 2010, and it tends to grow annually on $4.753 billion.

In Europe, the market of organic products amounts $26 billion (EUR18.4 billion), including approximately $24.4 billion among the countries of the European Union, of which 72% are Germany, France, Britain and Italy.

Compared with the EU countries, development of organic agriculture in Ukraine is much slower. In 2012, there were 155 manufacturers that are certified as organic according to the EU regulation requirements. They manage on the area of 270 320 hectares, herewith they get higher yields with better quality than the average for the country. By the area of certified farmlands, in 2009 Ukraine was on 22nd place in the world, that shows a great potential of organic production in Ukraine. However, the proportion of certified organic farmlands in the total area of farmlands in Ukraine is only 0.7% and in the EU countries – 4.72%.

Conclusion. As a result of searching ways to harmonize relations between society and nature is the incipience and progress of the market of organic products. European countries long ago have identified a priority of organic agricultural products market, and Ukraine has significant natural and economic potential, which in perspective will become one of the most important subjects that will form the supply on this market.

Keywords: Market; Organic Products; Supply

JEL Classification: O13; Q17; Q57

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Received 05.10.2013