SIGNIFICANCE OF COOPERATION FOR THE DEVELOPMENT OF ORGANIC AGRICULTURE

Abstract

The purpose of the article is to study the impact of the basic principles and benefits of the development of cooperative movement on the development of organic agricultural production, as well as to determine the role of cooperation in the development of organic entrepreneurship. Methodology. The author has used the methods of analysis and synthesis, the method of statistical grouping and comparison, induction and deduction, structural and functional approach to solve the problems and achieve the goals. The study is based on the comparative analysis and synthesis of scientific literature. Results. Organic food is increasing in popularity. The growing demand is mainly attributable to consumer concerns about negative implications of conventional agriculture for human health and the environment. Organic agriculture has a great potential to neutralize a negative impact of agricultural intensification on the environment. The article describes the concept and analyzes the current state of cooperation in agriculture. It is found that during the period under the research, the number of registered cooperatives has increased by almost 45%. The concepts of organic agriculture and organic production are clarified. The dynamics of agricultural lands engaged in organic production and the number of certified organic farms in Ukraine are studied. It is indicated that the consumption of organic products in Ukraine is much lower than in the European countries and the United States. The advantages of introducing a cooperative movement in the field of organic agriculture are identified. Being part of a cooperative helps small farms to be able to produce enough to generate profits and ensure their substance, which is an opportunity to compete with larger companies. Risks arising in the process of establishing organic cooperatives are outlined considering the international experience. It is concluded that efficient organic farming cooperatives can support local and export markets, stimulate production efficiency and promote local logistics. Practical implications. The advantages of consolidation of enterprises and entrepreneurs in the field of organic agriculture on the basis of cooperation can be used for the development of state programs to support the cooperative movement in organic farming. Value/originality. Views on the organization of production, processing and logistics activities of organic agricultural producers through the introduction of cooperatives have been expanded.