PECULIARITIES OF PRICING FOR ORGANIC PRODUCTS AND STATE SUPPORT OF ORGANIC PRODUCERS IN MARKET CONDITIONS OF UKRAINE

Keywords: organic products, pricing, strategy, premium surcharges, state support

Abstract

Considering the current ecological state of Ukraine, the usage of more environmentally friendly production methods, one of which is the organic production, is a necessity nowadays. However, taking into account all the differences between organic and traditional production, the risks of transition for the organic producers and the higher quality of the outcoming organic products, there is a need for state support of the organic producers and the use of pricing for organic products other than traditional one. In the process of research general scientific and special research methods were used. Considering the peculiarities of the formation of price increases for organic products in developed countries, grouping is used as a method of scientific research, and comparison is used to compare the experience of state support of Ukraine and foreign countries. The article outlines the features of pricing for organic products and considers possible forms of state support for organic producers. The article clarified the essence of two important concepts “organic farming” and “organic products”. The main points that should be taken into account when forming the price of organic products are described. The article emphasized on the importance of establishment of a premium surcharge is proposed, based on the considered experience of Switzerland, Great Britain and Germany. The importance of taking into account the strategy of the organic producer and the stage of the life cycle of the organic product in pricing is emphasized. The peculiarities of state support in foreign countries are considered and the need to increase the fees for certification of the organic production process for agricultural producers is emphasized. The article also describes the main regional initiatives to support organic production in Ukraine. The practical value of the study is to develop methodological approaches and recommendations for improving the pricing of organic products and state support for organic producers, which can be used and implemented in the activities of state and local governments and organic agricultural production.

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Published
2021-03-30
How to Cite
Hvozd, O. (2021). PECULIARITIES OF PRICING FOR ORGANIC PRODUCTS AND STATE SUPPORT OF ORGANIC PRODUCERS IN MARKET CONDITIONS OF UKRAINE. Economy and Society, (25). https://doi.org/10.32782/2524-0072/2021-25-22
Section
MANAGEMENT