Analysis of Production and Sales of Organic Products in Ukrainian Agricultural Enterprises

Abstract

As organic farming gains more popularity across the world, it is important to discuss the underlying trends of its development in Ukraine, who is an important agricultural producer. Organic farming may have lower environmental pressures—therefore, we seek to identify the major trends in the production and sales of the organic agricultural products in Ukraine. In this study, data on the production structure, costs, and selling prices from Ukrainian enterprises are analyzed. Conventional and organic enterprises are contrasted in order to identify the possibilities for the development of organic agriculture in Ukraine. Our results suggest that enterprises that use organic farming in Ukraine tend to produce higher output per hectare, as opposed to those engaged in conventional farming. However, labor profitability remains low in labor-intensive organic farming, especially in larger companies, and organic products remain a low percentage of Ukraine’s agricultural exports. This calls for further study into the development of organic production and consumption in the domestic market, as well as the implementation of appropriate certification practices in order to ensure the growth of organic exports.