Prerequisites for the development and prospects of organic agricultural products market

Abstract

The study establishes the peculiarities and characteristics of how world organic agricultural market develops and functions. The factors of demand and supply of organic agricultural products are singled out. Specific factors influencing the price of organic products, which should take into account the differences in yield and productivity, the need for crop rotation, the risk of harvest loss and loss in storage, and the cost of R&D are also identified. In modern conditions, prices for organic products are higher than for traditionally produced agricultural products, but the demand for organic products increases, taking into account their impact on human health. The research provides the analysis of market indicators dynamics and levels of organic markets development in comparison with different countries. The influence of institutional systems development that guarantees the quality of organic products in different countries is identified. We discovered the conditions for the development of the organic products market and systematized them into the following groups: organizational and legal, financial and economic, technological and socio-psychological. We identified the prospective directions of the organic products market development, related to the financial mechanisms of investment improvements; strengthening the agricultural producers’ rights protection; ensuring food security; improving the system of customers’ information; and research conduction. We proved that a systematic approach to the production development on an investment-innovative basis, creation of an institutional environment, sustainable development of rural territories, development and implementation of strategies for the development of vertically integrated structures, taking into account territorial differentiation, is needed for the development of organic agricultural products market.