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Purpose: The research is aimed at the mechanisms of solving the identified problems in the development of organic agricultural production against the background of the ongoing Russian invasion. Taking into account the need to increase the volume of such output in response to the demands of world markets, the development of state stimulation tools that have been tested in the EU to help achieve both the individual Sustainable Development Goals and to strengthen the components of Ukraine's economic security, which are currently under constant attack. Design/Method/Approach: Based on the data of the Research Institute of Organic Agriculture (FiBL), Diia Business, OrganicInfo, and World Bank, we used economic and statistical methods: average, relative values of dynamics, structure, coordination, Le Masne similarity index, Herfindahl-Hirschman concentration index, non-parametric criterion for assessing the tightness of the connection (Spearman's rank correlation coefficient) and graphically depicted the obtained results. Findings: Ukrainian organic production is characterized by imbalance and weak diversification. In 2021, 96.85% of the area of domestic crop production was allocated to the cultivation of grain and oil crops. In 2022, the volume of sales of organic products in the domestic market of Ukraine fell by almost half (-48%). Unlike in European countries, organic products are not a priority for retail trade in Ukraine. The hypothesis about the non-randomness of the correlation between the consumption of organic products and GDP per capita was confirmed: with a probability of 99.9%, there is a direct and strong (0.86) correlation between the indicators. Theoretical Implications: The work identifies the current problems of organic agricultural production and possible ways to solve them, in particular, based on state incentive mechanisms approved in the EU, the introduction of which will strengthen the economic security of Ukraine. Practical Implications: Calculations prove that the reorientation of the Ukrainian producer to the domestic consumer is not a solution to the problems associated with blocking the export of Ukrainian agricultural products until the level of GDP per capita is similar to European indicators. Originality/Value: The development of organic production is one of the priorities of the agricultural policy of the EU from the financial perspective of 2021-2027. It is a direction for realizing Ukraine's competitive advantages against the background of the ongoing Russian invasion. Research Limitations/Future Research: In further research, it is advisable to compare the development trends of Ukrainian organic production with European ones since this article focuses on internal problems. Paper Type: Empirical JEL Classification: Q01, Q14, Q18
Purpose: The research is aimed at the mechanisms of solving the identified problems in the development of organic agricultural production against the background of the ongoing Russian invasion. Taking into account the need to increase the volume of such output in response to the demands of world markets, the development of state stimulation tools that have been tested in the EU to help achieve both the individual Sustainable Development Goals and to strengthen the components of Ukraine's economic security, which are currently under constant attack. Design/Method/Approach: Based on the data of the Research Institute of Organic Agriculture (FiBL), Diia Business, OrganicInfo, and World Bank, we used economic and statistical methods: average, relative values of dynamics, structure, coordination, Le Masne similarity index, Herfindahl-Hirschman concentration index, non-parametric criterion for assessing the tightness of the connection (Spearman's rank correlation coefficient) and graphically depicted the obtained results. Findings: Ukrainian organic production is characterized by imbalance and weak diversification. In 2021, 96.85% of the area of domestic crop production was allocated to the cultivation of grain and oil crops. In 2022, the volume of sales of organic products in the domestic market of Ukraine fell by almost half (-48%). Unlike in European countries, organic products are not a priority for retail trade in Ukraine. The hypothesis about the non-randomness of the correlation between the consumption of organic products and GDP per capita was confirmed: with a probability of 99.9%, there is a direct and strong (0.86) correlation between the indicators. Theoretical Implications: The work identifies the current problems of organic agricultural production and possible ways to solve them, in particular, based on state incentive mechanisms approved in the EU, the introduction of which will strengthen the economic security of Ukraine. Practical Implications: Calculations prove that the reorientation of the Ukrainian producer to the domestic consumer is not a solution to the problems associated with blocking the export of Ukrainian agricultural products until the level of GDP per capita is similar to European indicators. Originality/Value: The development of organic production is one of the priorities of the agricultural policy of the EU from the financial perspective of 2021-2027. It is a direction for realizing Ukraine's competitive advantages against the background of the ongoing Russian invasion. Research Limitations/Future Research: In further research, it is advisable to compare the development trends of Ukrainian organic production with European ones since this article focuses on internal problems. Paper Type: Empirical JEL Classification: Q01, Q14, Q18
The article is a market study of the organic agricultural products. The aim of the article is to identify and substantiate the socio-geographical formation aspects of the market for organic agricultural products. The main material. The development of organic production is quite relevant today due to a number of clear environmental, economic and social advantages inherent in this field of activity. Global trends indicate rapid development of organic agricultural production as a system focused on minimal environmental impact, biodiversity conservation, compliance with standards for proper animal husbandry and production methods. Organic agricultural production plays an important social role, providing a specific market with goods for which consumer demand is constantly growing, at the same time, contributing to the development of rural areas. The authors have analyzed dynamics of the main indicators for organic production development in Ukraine and its state after the large-scale invasion. The paper considers the range of organic products sold in the domestic and foreign markets and the dynamics of exports. The authors have devised a system of approaches to the organic market development and factors influencing the development of organic production. Conclusions. The research shows that the market development of organic agricultural products remains one of the priorities of the agrarian policy in Ukraine. Despite the challenges of the wartime, the organic market is developing,its capacity is growing. The carried out analysis made it possible to identify the main benchmarks for a more dynamic development of organic production in Ukraine.
The article substantiates the potential of organic production for sustainable development of rural areas in Ukraine. The author identifies organic farming as a key tool for promoting economic growth, preserving natural resources, and restoring ecosystems, which are essential for addressing environmental, economic, and social challenges. Specifically, it has been proven that organic farming contributes to increased biodiversity, the restoration of soil fertility, and the reduction of water pollution levels, which are crucial for achieving sustainable development goals. The paper proposes a range of promising directions for the development of organic production in Ukraine. It has been determined that rural areas face numerous challenges, including an aging population, youth migration, weak infrastructure, and low levels of investment. Organic production could serve as a means of overcoming these challenges by creating new jobs and increasing the income levels of local communities. The author highlights that the growing demand for organic products, both in Ukraine and abroad, opens new economic opportunities for farmers. The article provides statistical data demonstrating the dynamics of the global organic market's growth and its impact on Ukraine. Specifically, in recent years, there has been an increase in the area of land dedicated to organic farming, although the pace of development remains uneven due to the influence of military actions and other socio-economic factors. The ecological benefits of organic production have been clearly defined. It has been proven that abandoning the use of chemical fertilizers and pesticides reduces the negative impact on ecosystems and helps restore natural resources. Organic farming, through the implementation of sustainable agro-technologies, can enhance resilience to climate change and reduce soil erosion. As a result of the research, the necessity of enhancing state support for the organic sector has been identified, particularly through the implementation of subsidy programs and the development of infrastructure for the sale of organic products. An important aspect is raising public awareness about the benefits of organic products, which would stimulate demand and encourage farmers to adopt organic farming methods. Key aspects of achieving the Sustainable Development Goals (SDGs) have been analyzed, particularly in the context of the impact of organic production on environmental, economic, and social components. The article thoroughly examines the achievement of indicators set for Goal 2 – «Zero Hunger and Agricultural Development» and Goal 15 – «Life on Land.» In particular, attention is drawn to Indicator 2.3.3, which concerns the share of agricultural land under organic production. Despite challenges caused by economic and military factors, this indicator has shown positive growth dynamics in Ukraine, contributing to food security and increasing the resilience of agro-systems to climate change. Regarding the indicators of Goal 15, the achievement of Indicator 15.3.4 – «Restoration of Degraded Lands and Soils» has been analyzed in detail. It has been proven that the implementation of organic farming contributes to the restoration of soil fertility, the reduction of erosion, and the decrease in the use of chemical substances, positively impacting the state of natural ecosystems. The article presents data showing a gradual increase in the area of land dedicated to organic farming, despite reductions in some regions due to military actions. The article emphasizes that to achieve the target SDG indicators, it is necessary to implement innovative technologies in agriculture and promote the development of organic farming, which has already demonstrated its effectiveness in terms of biodiversity conservation and the restoration of degraded lands. The types of organic products suitable for cultivation in different regions of Ukraine have been developed and proposed, taking into account the climatic and soil characteristics of the territories, as well as the existing experience in rural communities regarding the cultivation of specific agricultural crops. It is argued that the paths to achieving sustainable development indicators through the development of organic production include comprehensive state support measures, educational programs, and the stimulation of cooperation among farmers to ensure the ecological and economic sustainability of rural areas. The conclusion is substantiated that the development of organic production in Ukraine is a crucial element of the sustainable development strategy for rural areas. It contributes to solving a range of social, economic, and environmental problems, ensuring ecological stability and economic development in rural areas.
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