ADVANTAGES OF COOPERATIVE INTERACTION IN THE PRODUC-TION AND EXPORT OF ORGANIC PRODUCTS

Abstract

Organic production is by far one of the most promising and cost-effective types of business, as the practice of Western countries shows that prices for organic prod-ucts are higher by 20–50%, and sometimes exceed 300% compared to traditionally grown products. This is driven by growing consumer interest in healthy, high-quality nutrition and environmental concerns. The bulk of organic production is sold in the highly industrialized countries of the world. In particular, about 90% of its total consumption comes from Western Europe and North America. Thus, in place of the existing agricultural model, «bigger and cheaper», a new model «better and safer» is coming. The gradual greening of the food market, and the ever-growing interest in the world in this type of produce, makes it possible for Ukraine to become an active participant in the competition on it. An obstacle to this is that small-scale producers with their own products remain outside the main supply chains of supply, both in the domestic and foreign markets. Therefore, the further promising direction for the development of the organic produce market is the creation of cooperatives that will unite organic small-scale farms. The purpose of the study is to prove the benefits of cooperation for organic producers based on analysis of the development of Ukrainian and world organic market. The main trends of organic production development in Ukraine and the world are investigated in the article, based on which the table of SWOT-analysis is formed. It is determined that organic production and export is a priority direction of development of agrarian sector of economy of Ukraine. An important factor that does not negate the obstacles to the development of this area is the cooperation of producers of organic products. A promising direction for the development of the organic produce market is the creation of cooperatives that will combine organic small-scale farms. The cooperation provides opportunities to create a proper procurement and logistical base, to agree on the production of homogeneous products, to form commodity batches of products, to ensure the systematic supply of products throughout the year.