organic production,
trends in organic production,
agrarian policy,
domestic market
The Program of Ministry of agrarian policy can be used mostly by small niche manufacturers
The Executive Director of the Federation of organic movement of Ukraine Andrey Konyashin told about main trends in organic production.
"Holdings are interested in organic production with the purpose of export of products abroad. And we talk about organic raw material that is generally cereals, pulses and oilseeds. This does not mean that holding companies will be engaged in processing and supplying the domestic market. Companies that have large land bank, want to transfer part of their production to organic standards," — said the expert.
He said organic production is high-margin area; it includes niche export-oriented products. In addition, it concerns the effective use of the land, in 2016 Ukraine exported grain for 8 billion euros and the market for organic products only in Germany is estimated at 8 billion euros.
"Exporting raw materials, we deplete soil and do not receive the proper economic effect. But production of value-added products and cultivation of organic products have to be developed," — said the expert.
Regarding the proposal of the Ministry of agrarian policy on the auction of land under organic production, Andrey Konyashin said that this is only a draft that has not been adopted yet.
"We are talking about a small area up to 2 hectares, so we cannot say that this program will concern a large number of manufacturers. But it's a great idea for small farms that want to be engaged in viticulture or berry farming. These are the niches that can be taken by small businesses to fill the domestic market with organic products. This can be interesting to the entrepreneurs because it implies less rent," said he.