Improvement of the effectiveness of organic farming in Ukraine
-
DOIhttp://dx.doi.org/10.21511/ppm.15(3).2017.06
-
Article InfoVolume 15 2017, Issue #3, pp. 64-75
- Cited by
- 1395 Views
-
316 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
To improve the efficiency of organic farming, it is important to improve the management of agricultural enterprises (agrarian management). The research was based on the hypothesis that adequate provision with and the use of fixed assets, as well as the concentration of production, play a decisive role in improving the efficiency of organic farming. This makes it possible to minimize the cost of conducting environmentally safe agro-technical and biocenotic measures, as well as reducing specific production costs.
To identify the reasons that hinder the development of organic farming in Ukraine we conducted a survey of managers of 80 agrarian enterprises from different regions specializing in the growing and export of grain (including organic). 65% of the surveyed managers indicated that the reason for non-implementation of organic production was an expected increase in production costs and a decrease in profitability compared to the traditional production methods. The respondents mentioned the lack of logistics infrastructure as the second obstacle according to the intensity of its impact – 25.9% of responses.
It has been established that in Ukraine, in comparison with other countries, there is a negative tendency for companies to save money on expanded reproduction and improvement of production technologies. The analysis shows that in most countries organic farming is conducted mainly by small farms, while in Ukraine big farms are certified. In the conditions of the shortage of credit resources necessary for updating the material and technical base, monopolization of the market of organic seeds and systematic growth of prices on resources, big farms are the ones to increase the concentration of organic farming and the means to achieve the necessary efficiency of production.
- Keywords
-
JEL Classification (Paper profile tab)Q16, Q18
-
References31
-
Tables6
-
Figures2
-
- Figure 1. Restraints to the development of organic farming in Ukraine
- Figure 2. Dynamics of the area of agriculturall and occupied by organic farming calculated peroneenterprise in Ukraine, 2000–2015
-
- Table 1. The dynamics of the area of agricultural land, the number of producers and the volume of retail trade in organic products in Ukraine and in the countries of the world
- Table 2. Results of the survey of heads of agrarian enterprises in Ukraine regarding the main obstaclest of the realization of the principles of organic farming, 2017
- Table 3. The costs of growing 1 ton of winter wheat in organic and traditional agriculture in the US, Poland and Ukraine in 2015, US dollars
- Table 4. The area of agricultural land occupied by organic agriculture, calculated for one certificated enterprise in the world, 2015, ha
- Table 5. Dynamics of certified agriculturall and sand farms growing organic products in Ukraine, 2002–2015
- Table 6. Dependence of the profitability of growing of organic wheat on the efficiency of use of the main production factors, 2010–2015, US dollars
-
- Amelina, J. (2014). Risk management in the production of organic vegetable and berry products of closed soil, Economy. Management. Innovations, 1, 16-33.
- Antonets, S., Lukyanenko, G., Pisarenko, V., Pisarenko, P. (2017). System of organic farming in Ukraine. Agro technologies.
- Bertramsen, S. K., & Dobbs, T. L. (2002). An Update on Prices of Organic Crops in Comparison to Conventional Crops. Brookings: Economics Department, South Dakota State University. Economics Commentator no. 426.
- Boulay, A. (2010). Organic Farming: a Solution to Agriculture Crisis or a “New” Trend to Healthy Eating? Journal for Geography, 5(1), 125-134.
- Commodity Costs and Returns. United States Department of Agriculture.
- Dobrohodov, S., Anisimov, A. (2014). Efficiency of organic farming. Agricultural news, 1.
- Flaten, O., Lien, G., Koesling, M., Valle, P., Ebbesvik, M. (2005). Comparing Rsk Perceptions and Risk Management in Organic and Conventional Dairy Farming: Empirical Results from Norway. Livestock Production Science, 95, 11-25.
- Global organic farming statistics and news. FiBL.
- Gomiero, T., Pimentel, D., Paoletti, M. (2011). Environmental Impact of Different Agricultural Management Practices: Conventional vs. Organic Agriculture. Critical Reviews in Plant Sciences, 30.
- Hanson, J., Dismukes, R., Chambers, W., & Greene, C. (2007). Risk and Risk Management in Organic Agriculture: Views of Organic Farmers. Renewable Agriculture and Food System, 218-227.
- Karpenko, O. (2017). Organic Farming. Priorities 2017. Agro online.
- Kristiansen (2006), Organic Agriculture: A Global Perspective, in A. Taji, J. Reganold (ed.) CSIRO PUBLISHING, 482 p.
- Lansink, A. (2002). Efficiency and Productivity of Conventional and Organic Farming in Finland 1994–1997, Lansink A., Pietola K., Backman S. Social Science.
- Liebman, D. (2000). Crop and Weed Management in Low-external-input Farming Systems. Weed Research, 40, 24-47.
- Linker, H., Orr, D., & Barbercheck, M. (2009). Insect Management on Organic Farms.
- Lockeretz, W. (1981). Organic Farming in the Corn Belt, Lockeretz W., Sherer Georgia, Kohl D. American Association for the Advancement of Science, 211.
- Michelsen, J. (2002). Organic farming development in Europe – impacts of regulation and institutional diversity, in Darwin C. Hall, L. Joe Moffitt (ed.) Economics of Pesticides, Sustainable Food Production, and Organic Food Markets. Advances in the Economics of Environmental Resources, 4, Emerald Group Publishing Limited, 101-138.
- Mladenovic, J. (2016). Analtsis and Forecasting of Profit by Using Simulation Models for Growing Pea in Conventional and Organic Plant Production in Serbia, in N. Pavlovic, V. Ugrinovic, R. Pavlovic, J. Zdravkovic (ed.). Economics of Agricultures, 3, Emerald Group Publishing Limited, 985-995.
- Moudry, J. (2008). Major Problems of Organic Farming – Experience Transmission, in W. Hartl, E. Culdinova, J. Moudry, P., Konvalina, J. Sramek (ed.).
- Moudry, J. (2012). Major Problems of Organic Farming – Experience Transmission, in Hartl W., Culdunova E, Konvalina P, Sramek.
- Nemes, N. (2009). Comparative Analysis of Organic and Non-Organic Farming System: a Critical Assessment of farm Profitability Natural Resources Management and Environmental Department Food and Agriculture of the United Nations, 39 p.
- Offermann, F. H. Nieberg Profitability of organic farming in Europe. Institute of Farm Economics and Rural Studies. OTA. State of the Industry (2016).
- Philpott, T. (2015). Organic Farming is More Profitable Than Conventional.
- Piemental, D., Hepperly, P., Hansom, J., Douds, D., & Siedel, R. Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems. Bio Science, 55(7), 573-582.
- Requirements for certification of organic crop production. Organic Standard.
- Sanders, J. (2007). Economic Impact of Agricultural Liberalisation Policies on Organic Farming in Switzerland. PhD Thesis.Research Institute of Organic Agriculture. Forschungs institutfurbiologischen Landbau (FiBL), Frick, Switzerland.
- Sapogova, G., Kovalskiy, R., Popova, N. (2014). Management of the development of organic agriculture. Agrarian Scientific Journal, 9, 92-96.
- Shanker, D. (2015). Organic farming can Actually be more Profitable than Using Fertilizer and Pesticides.
- Slyva, J. (2016). How to switch to organic farming. Agribusiness today, 5 (324).
- Ulanchuk, V., Zharun, O., Sokolyuk, S., & Tkachuk, S. (2017). Investment needs assessment of Ukrainian agricultural enterprises. Investment Management and Financial Innovations, 14(1-1), 181-190.
- Watson, C., Atkinson, D., Gosling P., Jackson L., Rayns, F. Managing Soil Fertility in Organic Farming Systems. Soil Use and Management. 18, 239-247.