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Organic production in Ukraine

published 04 February 2019 16:00

Domestic Market

Since state statistical authorities do not currently produce statistical reports on organic production, according to the Reform Support Team of the Ministry of Agrarian Policy and Food of Ukraine, the total area of agricultural land with organic status and transitional period in 2017 was about 289 thousand hectares (0.7% of the total agricultural land of Ukraine). At the same time, there were 504 operators in the organic market.

The largest number of organic market operators are in Kyiv, Kherson, Vinnytsia, Odessa, Zhytomyr, Kharkiv oblasts of Ukraine. The certified Ukrainian organic companies are of various size: from several hectares as in most EU countries, to several thousand hectares of arable land.

In 2017, the consumer market for organic products in Ukraine amounted to 29.4 million euros, and consumption per capita - 0.68 euros (for comparison: average European consumers spend on organic products 40.8 euros a year).

Today, the domestic consumer market for organic products in Ukraine continues to expand through major supermarket chains which are increasingly developing an attractive and image line of organic products. The main types of organic products that are produced and consumed in Ukraine are fruits, vegetables, grain crops, meat and dairy products, cereals and bakery products. The range of organic products includes more than 100 kinds of goods of Ukrainian origin.

The growth rate of domestic organic production is 5.5 times higher than in European countries, and almost 5 times higher than in the world.

Export

The export volume 2017 amounted to 99 million Euros. Ukrainian organic products were purchased mainly by the EU countries (the total amount was 95 million Euro.).

The largest consumer countries of domestic organic products are the Netherlands, Germany, Great Britain, Italy, Austria, Poland, Switzerland, Belgium, the Czech Republic, Bulgaria, Hungary, the USA, Canada, Australia and some Asian countries. The main export products are cereals, oilseeds, legumes, berries, fruits and wild plants. Sunflower cake, flour, sunflower oil, sunflower meal, apple concentrate, nuts and birch sap are also exported.

Improving legislation on organic production

On July 10 of this 2018, the Law of Ukraine «On the Basic Principles and Requirements for Organic Production, Circulation and Labeling of Organic Products» was adopted, which will be enacted on August 2, 2019.

The Ministry is working on the development of legal acts, adoption of which is provided for by the Law. There are 12 of them:

3 resolutions of the Cabinet of Ministers of Ukraine, which provide for approval of:

  • the order (detailed rules) of organic production and circulation of organic products;
  • certificationprocedure for organic production and/or circulation of organic products;
  • the procedure for maintaining the Registry of Operators, the Registry of Certification Authorities and the Registry of Organic Seeds and Planting Material.

9 orders of the Ministry of Agrarian Policy which provides for approval of:

  • state logo for organic products;
  • the list of substances (ingredients, components) that are allowed to be used in the process of organic production and allowed for use in the maximum permissible quantities;
  • requirements for the material and technical base and other infrastructure facilities necessary to perform functions of certification of organic production and/or circulation of organic products;
  • application form for inclusion in the Register of certification bodies
  • the procedure for accountability/reporting of certification bodies to the central executive body that ensures formation and implementation of the state agrarian policy, and to the central executive body that ensures formation and implementation of the state agrarian policy, regarding the issued certificates to them;
  • the procedure for considering appeals against decisions of certification bodies;
  • the procedure for keeping  the List of foreign certification bodies;
  • the procedure for confirming the special knowledge (skills) of the inspector of organic production and/or circulation of organic products in the field of organic production
  • the procedure, frequency of declaration and submission of consolidated materials on the volumes of organic products that is put into circulation by certification bodies of the central executive body, which ensures the formation and implementation of state agricultural policy, and the central executive body, which ensures the formation and implementation of state agricultural policy.

International Cooperation

The Ministry of Agrarian Policy cooperates with international projects aimed at the development of organic production, in particular with:

  1. The Swiss-Ukrainian project «The Development of the Organic Market in Ukraine» implemented by the Research Institute of Organic Agriculture (FiBL, Switzerland) with the financial support of the Swiss Confederation through the Swiss State Secretariat for Economic Affairs (SECO) (the project ended on December 31, 2018).
  2. Project «German-Ukrainian Cooperation in the Field of Organic Farming».
  3. The Office of Effective Regulation (Better Regulation Delivery Office – BRDO).

Project representatives are actively involved in the development of legislation in the field of organic production.

Furthermore, together with the Swiss-Ukrainian project «The development of the organic market in Ukraine» during 2017-2018 two trainings on EU legislation were organized and conducted with the participation of a representative of the Ministry of Agriculture and Rural Development of the Republic of Poland. Participants: the specialists of the central executive bodies and representatives of the organic sector.

Also in the framework of cooperation with the same project, a video about organic production «Organic in Ukraine» was created, which aims to popularize organic production in Ukraine among potential Ukrainian and foreign investors.

Together with the project «German-Ukrainian cooperation in the field of organic farming» during 2017-2018 five seminars on organic production were organized and conducted for 130 specialists from the head offices of the State Service for Food Safety and Consumer Protection and Regional state administrations departments for agro-industrial development.

Following the results of the meeting in December 2018, plans for cooperation in 2019 were agreed with the project «German-Ukrainian Cooperation in the Field of Organic Farming».