What are the organizational and economic principles of organic farming in the context of sustainable development? Case of Ukraine
DOI:
https://doi.org/10.12775/EQ.2023.053Keywords
organic farming, coefficient of specification, sustainable development, labour productivity, crop production, climate impacts, profitability, product competitiveness, management, state enterprise, economic indicatorsAbstract
The development of organic agriculture is a long-term global trend; with different local factors that affect the development rate. Ukraine is one of the largest food suppliers in the world and this also applies to organic production. The evaluation of organic production at Skvyra Organic Research Station was conducted in 2015-2020 on 40 ha land; focusing on the economic performance of the enterprise and the specialization of production. The systematic approach and dialectical method of cognition were used to identify the key factors in the development of organic farming. The purpose of the study is an organizational and economic analysis of a state enterprise that is making a gradual transition from intensive to organic production, in order to determine the main principles that stimulate the development of organic production, and to overcome the challenges faced by the enterprise on the way to the introduction of organic production. The results indicate that the enterprise is profitable but does not operate up to its potential. The key issues were identified in the lack of focus on marketable crops, efficiency of labour, crop production, and management. The enterprise is negatively affected by the current legal framework and insufficient financial stability. The enterprises income consists of selling crops (i.e. cereals, legumes) and service-to-business (i.e. laboratory testing), with no state funding. Further results show the relation of the production and specialization with climatic, natural, biological and socio-economic factors. To improve the organisational and economic framework for the development of organic production, Ukrainian enterprises should focus on cost-effective products. Furthermore, competition between agricultural enterprises should support deeper specialization and production of competitive products, contributing to the profitability and economic stability of producers
References
Abebe G., Traboulsi A. & Aoun M., 2022, Performance of organic farming in developing countries: A case of organic tomato value chain in Lebanon. Renewable Agriculture and Food Systems 37(3): 217–226. doi:10.1017/S1742170521000478
Akram M.W., Akram N., Hongshu W. & Mehmood A., 2019, An Assessment of Economic Viability of Organic Farming in Pakistan. Custos e @gronegócio online. 15(1, Janeiro/Março): 141–169.
Andriychuk V.G., 2013, Economics of enterprises of the agro-industrial complex. K.: KNEU. 779 pp.
Azam M.S. & Shaheen M., 2019, Decisional factors driving farmers to adopt organic farming in India: a cross-sectional study, International Journal of Social Economics 46(4): 562–580. https://doi.org/10.1108/IJSE-05-2018-0282
Chygryn O., Treus A. & Isakov A., 2017, Organic Agriculture as a Perspective Branch of Ukrainian Economy. Mechanism of Economic Regulation N3: 16–35.
Dobrovolska O. & Espejo J.M.R., 2018, Ukrainian organic products market: State and prospects of development. Innovative Marketing 14(2): 41–49. https://doi.org/10.21511/im.14(2).2018.02
FiBL, 2022, The World of Organic Agriculture. Statistics & Emerging Trends 2022. https://www.organic-world.net/yearbook/yearbook-2022/yearbook-2022-key-data.html
Finley L., Chappell J.M., Thiers P. & Moore R.J., 2018, Does organic farming present greater opportunities for employment and community development than conventional farming? A survey-based investigation in California and Washington, Agroecology and Sustainable Food Systems 42(5): 552–572, https://doi.org/10.1080/21683565.2017.1394416
Home R., Indermuehle A., Tschanz A., Ries E. & Stolze M., 2019, Factors in the decision by Swiss farmers to convert to organic farming. Renewable Agriculture and Food Systems 34(6, December): 571–581. DOI: https://doi.org/10.1017/S1742170518000121
Koner N. & Laha A., 2021, Economics of alternative models of organic farming: empirical evidences from zero budget natural farming and scientific organic farming in West Bengal, India. International Journal of Agricultural Sustainability 19(3–4): 255–268, https://doi.org/10.1080/14735903.2021.1905346
Lavrov V., Grabovska T. & Ternowyi Yu., 2019, Methodology, mechanisms and tools for substantiation of socio-ecological and economic benefits from the implementation of organic production. Monografia viacerých autorov: Geo-management in organic agriculture.
Vydavateľ: Európsky inštitút ďalšieho vzdelávania, Podhajska, Slovensko, p. 125–149.
Liu X., Pattanaik N., Nelson M. & Ibrahim M., 2019, The Choice to Go Organic: Evidence from Small US Farms. Agricultural Sciences 10: 1566–1580. doi: 10.4236/as.2019.1012115
Łuczka W. & Kalinowski S., 2020, Barriers to the Development of Organic Farming: A Polish Case Study. Agriculture 10, 536. https://doi.org/10.3390/agriculture10110536
Mirela T.S., Danica G.T. & Marica P., 2019, Organska proizvodnja u Republici Srbiji – ekonomski aspekti. Ekonomija: teorija i praksa 12(3): 88–101. DOI: 10.5937/etp1903088T
Raimondo M., Caracciolo F., Nazzaro C. & Marotta G., 2021, Organic Farming Increases the Technical Efficiency of Olive Farms in Italy. Agriculture 11, 209. https://doi.org/10.3390/agriculture11030209
Sadowski A., Wojcieszak-Zbierska M. & Zmyślona J., 2021, Economic Situation of Organic Farms in Poland on the Background of the European Union. Problems of Agricultural Economics No 2(367): 101–118. https://ssrn.com/abstract=4047998
Sapkota B.K., Subedi A.P., Tripathi K.M. & Dhakal S.C., 2021, Economics of Organic vs Inorganic Rice Production: A Case of Chitwan District of Nepal. Journal of Nepal Agricultural Research Council 7(1): 109–121. https://doi.org/10.3126/jnarc.v7i1.36933
Schader C., Heidenreich A., Kadzere I., Egyir I., Muriuki A., Bandanaa J., Clottey J., Ndungu J., Grovermann C., Lazzarini G., Blockeel J., Borgemeister C., Muller A., Kabi F., Fiaboe K., Adamtey N., Huber B., Niggli U. & Stolze M., 2021, How is organic farming performing agronomically and economically in sub-Saharan Africa? Glob. Environ. Chang. 70, p. 102325. https://doi.org/10.1016/j.gloenvcha.2021.102325
Seena Radhakrishnan A.R., Suja G. & Sreekumar J., 2022, How sustainable is organic management in cassava? Evidences from yield, soil quality, energetics and economics in the humid tropics of South India. Scientia Horticulturae Vol. 293. https://doi.org/10.1016/j.scienta.2021.110723
Sharma M. & Pudasaini A., 2021, What motivates producers and consumers towards organic vegetables? A case of Nepal. Org. Agr. 11: 477–488. https://doi.org/10.1007/s13165-021-00354-2
Singh N., 2018, Economic and Environmental Aspects of Organic Farming: Evidence From India. Global Journal of Business Research 12(2): 83–90. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3241639%0Ahttp://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v12n2-2018/GJBR-V12N2-2018-8.pdf
Ti G.S., Uzei J.P., Fibl J.L., Miller D., Crea F.V., Ti J.C., Weisshaidinger R., Boku R.B., Boku A.M., Luke H., Isara E.G. & Isara P.F., 2020, Understanding & improving the sustainability of agro-ecological farming systems in the EU Deliverable Report 3. 4 : Report on Key Barriers of AEFS in Europe and Co-constructed Strategies to Address Them. 773901.
Vladlenov D., 2020, Theoretical and Scientific Approaches To the Problems of Modern Economy, [in:] Theoretical and Scientific Approaches to the Problems of Modern Economy. https://doi.org/10.46299/isg.2020.mono.econ.one
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Olena Dobrovolska, Tetiana Grabovska, Vitaliy Lavrov, Yuri Ternovyi, Marek Jelínek, Hynek Roubik
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Stats
Number of views and downloads: 621
Number of citations: 0
