José Manuel Recio Espejo

The development of the organic market in the world requires conducting a research on the problems that accompany this process. Such studies are becoming more popular and apply not only to organic products market at the global level, but also at the local level. In order to identify global problems, the state and trends of the organic products markets in the USA, Germany, France, Britain as the biggest national markets were analyzed on the basis of the data characterizing the state of organic products market in Ukraine and in the world, provided by the Research Institute of Organic Agriculture (FIBL) and the International Federation of Organic Agricultural Movements (IFOAM). The research of the state and trends of the Ukrainian organic market and agricultural production development was conducted, and using the SWOT analysis methodology and the principles laid out in the PEST analysis, its strengths and weaknesses, opportunities and threats were identified. Within each element, social, environmental, economic and financial constituents have been grouped, providing a possibility to understand which factor is determining in terms of sustainable development. It enabled to make a conclusion that the Ukrainian market remains small in size, entailing significant risks, first of all, for producers, as its further development requires a significant all-round support from the state both from the financial point of view and from the point of view of active promotion of sustainable development ideas and education of the population on the importance of consuming quality products, taking care about their health and, as a result, contributing to the improvement of the environment.

In most countries of the world, realizing the sustainable development concept has caused a lively discussion in the scientific environment regarding the mutual influence of the economic growth and the environmental health. Is the economic growth even possible without environmental damage? The answer is still unknown. Research studies both confirm and refute this interaction. The U-shaped curve (Environmental Kuznets Curve) hypothesis is the most popular in this regard. Scientists from different countries analyze the impact of the economic climate on the environmental health taking the hypothesis into account. At the same time, these studies use gross national income as a base indicator, which reflects only the economic dimension of the research, but does not consider the depletion of natural capital on the path of economic growth. The purpose of this study is to identify the factors that have the most significant impact on the adjusted net savings in Ukraine and a number of selected countries, and also take into account the agrarian sector development, which is important in terms of substantiation of the expediency of a significant increase in natural agricultural production in the Ukrainian agrarian sector. The paper presents the results of constructing a model based on World Bank data for the period from 2009 to 2017, for Ukraine and 13 other countries that are neighbors of Ukraine and belong to the lower middle-income group. From the list of indicators provided by the World Bank to characterize the state of the environment in the world, 13 indicators are chosen that most fully characterize the situation in the selected countries. Based on the analysis of the panel data formed, the result is that agricultural land (% of land area), energy use per capita (kg oil equivalent), and agricultural productivity (value added per worker) have the most significant impact on the adjusted net savings. With that, the first two indicators show a positive impact, while the third one has a negative impact, indicating that the increase in productivity in the agrarian sector of the economy results in the environmental deterioration. All this allows us to conclude about the necessity to introduce natural agroproduction technologies in order to improve the environment, especially considering the fact that in Ukraine, the share of the agrarian sector in GDP increases every year.

Financial support for the agrarian sector is the priority of economic policy in many countries of the world, as it plays a key role in achieving the goals of sustainable development, in particular poverty reduction, food security, environmental improvement, including reducing CO2 emissions, reducing water pollution, etc. In the main, the financial support for the agrarian sector of the various countries is multi-channel and combines budget financing and financial market opportunities. At the same time, for many countries, including Ukraine, the issue of the ratio of these sources of financing and their influence on the development of agricultural production remains unresolved. The analysis of budget financing has shown a lack of stability in the implementation of financial support programs for the agrarian sector of Ukraine, which affects the financial sustainability of enterprises and their ability to attract market financing. In the article, using the structural modeling, the necessary amount of financing for the agrarian sector was determined through budget financing, bank lending and agro-insurance. The results of the calculations showed that the actual size of bank lending to agrarian enterprises is significantly lower than the simulated values. At the same time, budget financing creates conditions for ensuring financial sustainability of agrarian enterprises and encourages them to use bank lending, while increasing budget financing reduces the need for agro-insurance operations, which is a negative consequence of its use.

Realization of agricultural production complying with the sustainable development principles has resulted in a separate direction – organic farming. Its big difference from all other economy sectors is in its dependence on the natural and climatic conditions. Therefore, agricultural production has a dual nature, namely it depends on the environment health on the one hand, and, on the other hand, directly affects this health through the use of technologies that can both improve and substantially worsen the environmental situation. The institutional support for the organic farming is of great importance. This issue is relevant for scientists from countries, where organic farming is actively developing. In Ukraine, this is also a topical issue. The paper presents a conceptual framework of institutional support for the organic farming development, which includes elements such as state regulation, self-regulation, objects and subjects of organic farming, as well as an organic product market. Legal, informational, infrastructure and financial directions of ensuring the development of organic farming are also defined. The essence of each element is revealed. The main indicators of the organic farming development in Ukraine are analyzed, i.e. the organic farming areas, their proportion in agricultural lands, the number of producers, the volume of the organic market, the volume of organic consumption per capita, as well as the share of domestic organic land in the world's territory. A correlation analysis based on data from the largest world market of the USA made it possible to determine the factors that have the greatest impact on the development of the organic agricultural sector. The number of organic producers is statistically significant, and the share of land in the organic farming does not have a significant impact on the organic product consumption. At the same time, this can be seen from the point of view that the more producers will offer their products, the more saturated the market will be, and therefore the level of the organic products coverage can be greater.