The Main Tendencies in the Development of Ecologically Oriented Business in Ukraine and Worldwide

• Main Author: Нerasymenko Yuliіa S.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-11-01
• Series: Bìznes Inform
• Subjects: organic agriculture; organic market structure; structure of acreages under organic crops; export of organic products
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-11_0-pages-83_88.pdf

The article is aimed at assessing the main tendencies in the development of ecologically oriented business in Ukraine and in certain regions of the world. The major tendencies in the development of ecologically oriented business both in Ukraine and worldwide are researched. The production of organic products in the world for 1999–2018 was analyzed in terms of acreage, production volumes and structure. It is emphasized that the growth rate of this market is very high in all analyzed indicators. Global organic products market volumes in 2017 amounted to USD 97 billion, compared to USD 15.2 billion in 1999. In view of the volume of consumption per inhabitant, the leaders were Switzerland (USD 325), Denmark (USD 315) and Sweden (USD 268). In Ukraine, the amount of consumption per capita was less than 1 US dollar. The largest markets in absolute terms were the USA and the EU countries. The structure of the organic market of different countries was studied, as well as the leaders in the consumption of organic products were identified. It is specified that the structure of the organic products market in each country has significant features. Thus, in Norway, a significant proportion belongs to baby food products (33.1%), while Germany has the widespread consumption of organic bread and bakery products (8%), and eggs (21.0%). It is underlined that the vast majority of organic products produced in Ukraine are exported (EUR 104 million in 2018). In Ukraine during 2002–2017, acreages under organic crops grew at a high rate (from 164.4 thousand hectares to 420 thousand hectares). However, in 2018 there was a decrease in these areas to the level of 309.1 thousand hectares, although the number of enterprises engaged in production increased from 375 to 501. It is concluded that further development of the organic products market is possible only if the level of incomes together with the State support of producers increase.