ІНСТИТУЦІЙНІ ЗАСАДИ ФУНКЦІОНУВАННЯ ВИРОБНИКІВ ОРГАНІЧНОЇ ПРОДУКЦІЇ ТА РОЗВИТКУ ЇХ КОНКУРЕНТНИХ ПЕРЕВАГ В УКРАЇНІ

Abstract

Organic production in Ukraine is gaining momentum every year and is becoming more and more popular among producers of agricultural products in the countries of the European Union. Ukrainian farmers striving to be on the European markets must meet the requirements of modern production trends. Such advantages of the production of ecologically clean food products as: care for the Planet and future generations, preservation of biodiversity, social responsibility of business, new ways of selling products at better prices for the producer, increasing the efficiency of production – encourage the owners of agricultural enterprises to switch to organic production. In turn, the development of a competitive environment for organic products is impossible without a high-quality institutional environment. The purpose of this study is to establish the main components of the institutional environment of producers of organic products in Ukraine and to determine their influence on the formation of competitive advantages. The article establishes that institutions are an integral component of the formation of competitive advantages of organic products. The main institutional foundations of the functioning of producers of organic agricultural products in Ukraine have been studied. These include formal institutions, informal institutions, sanctions for non-compliance with norms and rules, and organizations. The work analyzes the main legal acts regulating the activities of producers of organic products in Ukraine, briefly characterizes non-state public unions that popularize organic production and are a mandatory component of the institutional environment. Practical significance: the study shows that institutional foundations are an integral part of the activities of producers of organic products in Ukraine and are an element of ensuring their competitiveness. The study shows that the institutional environment is not sufficiently developed in Ukraine due to the lack of cooperation mechanisms between business and the state, the presence of outdated business methods and the imperfection of regulatory and legal support. These issues require detailed research in the future.