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Prerequisites for the development and prospects of organic agricultural products market

Author

Listed:
  • Alina Proshchalykina

    (Bohdan Khmelnytsjyi National University of Cherkasy, Ukraine)

  • Yevhenii Kyryliuk

    (Bohdan Khmelnytsjyi National University of Cherkasy, Ukraine)

  • Iryna Kyryliuk

    (Bohdan Khmelnytsjyi National University of Cherkasy, Ukraine)

Abstract

The study establishes the peculiarities and characteristics of how world organic agricultural market develops and functions. The factors of demand and supply of organic agricultural products are singled out. Specific factors influencing the price of organic products, which should take into account the differences in yield and productivity, the need for crop rotation, the risk of harvest loss and loss in storage, and the cost of R&D are also identified. In modern conditions, prices for organic products are higher than for traditionally produced agricultural products, but the demand for organic products increases, taking into account their impact on human health. The research provides the analysis of market indicators dynamics and levels of organic markets development in comparison with different countries. The influence of institutional systems development that guarantees the quality of organic products in different countries is identified. We discovered the conditions for the development of the organic products market and systematized them into the following groups: organizational and legal, financial and economic, technological and socio-psychological. We identified the prospective directions of the organic products market development, related to the financial mechanisms of investment improvements; strengthening the agricultural producers’ rights protection; ensuring food security; improving the system of customers’ information; and research conduction. We proved that a systematic approach to the production development on an investment-innovative basis, creation of an institutional environment, sustainable development of rural territories, development and implementation of strategies for the development of vertically integrated structures, taking into account territorial differentiation, is needed for the development of organic agricultural products market.

Suggested Citation

  • Alina Proshchalykina & Yevhenii Kyryliuk & Iryna Kyryliuk, 2019. "Prerequisites for the development and prospects of organic agricultural products market," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1307-1317, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1307-1317
    DOI: 10.9770/jesi.2019.6.3(18)
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    References listed on IDEAS

    as
    1. Svetlana Ivanova & Artyom Latyshov, 2018. "Sustainable entrepreneurship: agrarian policy in South Korea," Post-Print hal-01857436, HAL.
    2. Svetlana Ivanova & Artyom Latyshov, 2018. "Sustainable entrepreneurship: agrarian policy in South Korea," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(4), pages 748-760, June.
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    Cited by:

    1. Bilous, Svitlana & Kyryliuk, Yevhenii & Kyryliuk, Iryna & Proshchalykina, Alina & Stachowiak, Zenon, 2021. "Scenario forecasting of consumption of main organic livestock products in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(3), September.

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    More about this item

    Keywords

    organic products; organic agricultural products market; certification; agro-industrial sector; factors of demand and supply; organic market size;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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