Conceptual basis of the formation of the competitive potential of the production of organic products

Purpose. The aim is to substantiate, develop and test a methodical approach for assessing the competitive advantages of organic products in order to build and ensure the competitiveness of Ukrainian producers of organic products in domestic and foreign markets. Methodology / approach. The following methods were used: abstract-logical to determine the theoretical basis for the formation of competitive advantages of organic products; graphical to analyse trends in the formation of competitive advantages of enterprises; economic-statistical to characterise the state of the organic products market and identify the features of its development; mathematical modelling to determine the integral indicators of the competitive potential of organic products. The empirical part of the study was carried out using data collected during a survey of Ukrainian organic producers, selected in accordance with specific criteria. Results. A methodical approach to quantitative assessment of competitive advantages of organic products is developed, which includes stages of determining these advantages and the position of the enterprise in the market, as well as developing a strategy to ensure the competitiveness of producers of these products. It is based on determining the cost of production, profitability of production and sales, market share and product quality as the main indicators of competitive advantages. Based on a survey of organic product producers, the competitive environment was determined, and the main prerequisites and obstacles for the development of organic farming in Ukraine were identified. The results of the analysis of the yield, profitability, cost and prices of organic products of domestic producers indicate the presence of competitive advantages. A concept of the advantages of organic products has been developed, which will ensure the competitiveness of domestic organic products on the Ukrainian and global markets. Originality / scientific novelty. For the first time, a concept for the formation of competitive advantages for organic products has been developed, according to which producers of certified organic products operate in an open system characterised by close links between the institutional, socio-economic and natural-resource environments, taking into account the Sustainable Development Goals and the specific features of the country’s European integration development vector. Practical value / implications. The developed methodical approach allows organic producers to identify and assess their competitive advantages in order to improve their competitive status, build competitiveness, and increase economic efficiency. The results of modelling the integrated indicator of the competitive potential of organic producers make it possible to assess the overall level of this potential and its main components, as well as to compare enterprises and use the results of the analysis to identify strengths and weaknesses and areas for improving competitive potential.