Factors and incentives of development of the organic segment of agrarian production in the world’s countries

Yurii Kyrylov, Viktoriia Hranovska and Viktoriia Krykunova

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 7

Abstract: The purpose of the article is to identify a system of factors which predetermine and stimulate organic production under the conditions of different countries that allow defining the main directions and prospects of development of this segment of the Ukrainian economy. Research methods. In the research process the following scientific methods have been used: statistical, comparative, and graphical for an assessment of the state of organic agriculture in Ukraine and in the world’s countries. Research results. The scale of the organic production in the world and by countries, as well as the main indicators (area, production, consumption, number of operators, capacity of the market, etc.), characterized by positive dynamics, have been analyzed. The advantages and benefits of organic practices at the macro and micro levels have been explored. The countries of the world have been grouped according to factors of development of the analyzed segment of economy and peculiarities of the government policy concerning organic production have been studied. The tools of support for organic production have been classified according to the criteria of their impact on the demand for organic products, its supply, or both elements of the market mechanism. The trends of organic agriculture in Ukraine have been highlighted. It has been found out that the growth of external demand has currently the decisive stimulating effect that determines the high investment attractiveness of organic farming. The scientific works of domestic and foreign scientists, data of the “Organic Standard”, Eurostat, the World Bank, and other sources stand for an information base of the research. Elements of scientific novelty. The factors of development of the organic production in Ukraine have been identified. It has been demonstrated that the implementation of competitive advantages in the global organic products market has to be combined with formation of the domestic market and model of “organic” consumption. It will stimulate environmentally responsible production practices and produce additional positive effects in the field of rural incomes and rural development. Practical significance. State of the organic segment of agrarian sector of Ukrainian economy and prospects of its development have been evaluated from the point of view of economic, environmental and social advantages. Tabl.: 1. Figs.: 3. Refs.: 28.

Keywords: Sustainability (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411550

DOI: 10.22004/ag.econ.411550

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