CERTAIN ASPECTS OF THE FORMATION OF ADDED VALUE IN THE INDUSTRY OF MEDICINAL PLANT FARMING

Keywords: added value, formation of added value, branch of medicinal plants, production of medicinal plants

Abstract

This study is aimed at overcoming the problem of the raw material orientation of the national economy of Ukraine in general and the medicinal plant industry, in particular, through the development of proposals for solving existing economic problems in the activity of medicinal plant producers. Accordingly, attention is focused on the prospects of this industry and the importance of the formation of added value in the context of the processing of medicinal, essential oil and aromatic plants is substantiated. This opinion is supported by a number of arguments, the main ones of which are the opportunity to improve the quality of plant-based medicines and reduce unemployment in rural areas, the ever-growing demand for products based on plant raw materials and the global trend of increasing the export of such products, the multifunctionality of these plants, a wide range of products, which can be produced using vegetable raw materials. The essence of the processing of medicinal plants and its main stages are revealed. It is emphasized that in the case of medicinal plants, additional value can be created even through direct minor processing. Successful examples of the development of medicinal plants (in the context of production and processing) and the formation of added value in this field at the level of small and large businesses are presented. The formation of added value in the field of medicinal plant cultivation in Ukraine is considered on specific examples, in particular, attention is focused on the production of herbal and fruit teas, which are products of processing plant raw materials. An analysis of the dynamics of the procurement of medicinal plants in Ukraine was also carried out. The chain of value formation in the field of production of medicinal plants in Ukraine and the main shortcomings of this process in today's conditions are outlined. The characteristic features of the value chain in the field of medicinal plant production in Ukraine are also determined: in particular, the fact that it is characterized by little vertical integration and practically does not have horizontal cooperation; supply chains are often very long and may include up to six or seven marketing stages.

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Mebrahtu Hishe, Zemede Asfaw, Mirutse Giday (2016) Review on value chain analysis of medicinal plants and the associated challenges. Journal of Medicinal Plants Studies, 4(3), 45–55.

Ndhlovu, P.T., Omotayo, A.O., Otang-Mbeng, W., Aremu, A.O. (2022) Commercialization Potential of Six Selected Medicinal Plants Commonly Used for Childhood Diseases in South Africa: A Review. Sustainability, 14, 177. DOI: https://doi.org/10.3390/su14010177 (accessed April 18, 2023).

Taghouti, I.; Cristobal, R.; Brenko, A.; Stara, K.; Markos, N.; Chapelet, B.; Hamrouni, L.; Bursi´c, D.; Bonet, J.-A. (2022) The Market Evolution of Medicinal and Aromatic Plants: A Global Supply Chain Analysis and an Application of the Delphi Method in the Mediterranean Area. Forests, 13, 808. DOI: https://doi.org/10.3390/f13050808 (accessed April 16, 2023).

Тhe future of high-value medicinal & aromatic plants (2022). Available at: https://www.solidaridadnetwork.org/story/the-future-of-high-value-medicinal-aromatic-plants/ (accessed March 16, 2023).

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Published
2023-03-28
How to Cite
Mirzoieva, T. (2023). CERTAIN ASPECTS OF THE FORMATION OF ADDED VALUE IN THE INDUSTRY OF MEDICINAL PLANT FARMING. Economy and Society, (49). https://doi.org/10.32782/2524-0072/2023-49-66
Section
ECONOMICS