The capacity of organic food market of the Republic of Kazakhstan: the possibility of consumption by certain socio-demographic groups of the population

Abstract

In Kazakhstan, at the state level, international and public organizations, business companies and agricultural producers plan production of organic products and their promotion in domestic market. However, from economic point of view, without taking into account its real capabilities, it is quite difficult to reduce risks and possible losses. The goal is to calculate the potential volumes of Kazakhstani organic food products. Methods – due to the fact that there are no statistics on the consumption of environmentally friendly products and the likelihood of using most methods, the study is based on its use by certain socio-demographic groups of citizens. The assessment of the capacity of domestic natural food market in this work consists of a chain of successive actions. Results – taking into account the specifics of organic agriculture, consumers were identified, represented by the most affluent segments of the population and families with children, whose consumption level is close to the recommended scientifically based physiological norms. The assortment, price premium and consumer demand for organic products are also shown. Conclusions – market segment was calculated for various categories of environmentally friendly goods and the total potential capacity of the agricultural market, which amounted to 211.5 billion tenge. The data obtained can be used in the future when building a trajectory for the development of the internal market structure, drawing up strategic plans by central and local executive bodies, agricultural producers and other participants in market relations. State financial support for enterprises switching to organic production can be carried out in such forms as concessional lending, public procurement system, provision of subsidies, partial reimbursement of costs.