Baltic Journal of Economic Studies (Dec 2024)
DEVELOPMENT OF ORGANIC DAIRY PRODUCTION IN UKRAINE: CURRENT TRENDS AND PROSPECTS
Abstract
The subject of the study is the current state of development of organic dairy production in Ukraine in the context of global and European trends. Methodology. In the preparation of the article, the following scientific research methods were employed: monographic method, scientific abstraction and generalisation, abstract and logical method, and methods of analysis and synthesis. The study's information base comprised economic indicators from the Eurostat database, the State Statistics Service of Ukraine, the FAO, data from industry associations representing dairy producers in Ukraine, and data from the authors' own scientific observations. The purpose of the study is to assess the current state and prospects for further development of organic dairy production in Ukraine, taking into account EU market trends. Research findings. Milk and dairy products are consumed by 80% of the world's population. In recent years, there has been a significant increase in demand for organic products produced using sustainable farming methods. The transition towards sustainability, which excludes the utilisation of chemical and synthetic substances, genetically modified organisms (GMOs) and inhumane practices in the rearing of farm animals, is a pressing necessity within the contemporary agricultural context. The countries currently leading the production of organic dairy products are the USA, Germany, Japan and Australia. The principal consumers of organic dairy products are the USA, China and the countries that comprise the European Union. Dairy products represent a substantial proportion of the organic food market in Ukraine, accounting for over 46% of the total. This sector shows considerable potential for further growth. Concurrently, the actual proportion of organic milk in the domestic market does not exceed 19%. Furthermore, the low proportion of organic farms and the low milk yield from cows on organic farms also constitute a significant challenge. The most rapid expansion of organic milk production occurred in the country's western regions. The most promising potential markets for organic dairy products in Ukraine are the domestic market, the markets of Eastern Europe and North Africa. The domestic market is of pivotal importance to the growth of organic dairy production. In order to evaluate the potential of Ukrainian companies entering the global market for organic dairy products, an organisational model has been proposed. In order to reach these markets, manufacturers must focus on stimulating demand, strengthening value chains and increasing the level of sustainability of production.
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