How to invest in organic market in Ukraine? Leave an inquiry on [email protected] Experts predict that in 2012 to the Ukrainian market of organic products will come major players and big capital.
Small shops of eco-products and farmers, who sell through the Internet products of their labor, soon will feel strong competition.
In the perspective of the domestic organic market believed large investors. The growth of enviromental awareness, not only in the West, but also in ukraine in 2012 will be even more obvious. In addition, organic products are perceived as better.
If in 2008 the market volume of organic matter was estimated at $ 660 thousand, today it is $ 4-5 million a number of manufacturers of such products during this period increased from 92 to 142.
In March of this year, one of the largest Ukrainian agricultural companies – “Argo Dakor Holding” has announced its intention to grow organic crops, the price of which in Europe is for 40% higher than the usual wheat. This holding company plans to deliver products just in the EU countries. The market attracts investor’s profitability of organic matter in 40% and in high demand both domestically and in foreign markets. Large-scale investments inhibit only the absence of legislation.
Expensive health
Today, the organic market accounts for only 1% of products sold in Ukraine. In Europe, organic products occupy 6-7% of the market. The demand for organic products by consumers is growing rapidly: today it is much greater than the supply.
“People began to think more about their health. They were disappointed in the products that can be purchased in supermarkets, and are looking to buy quality food, “- says the chairman of the Association of Producers of organic products of Ukraine Basil Pindus.
Organics, usually bought by people wealthy and middle class: the price of these products is 50-80% higher than their inorganic counterparts. Experts explain the difference in price that producers of eco-products don’t use chemicals and fertilizers, so the yield of organic crops is lower than conventional plants. Expensive are also non-mechanical prossecing and storage products. The price may lay and other costs, like promotion of goods and insurance of non implementing.
If earlier the major problem for producers of organic products was distribution then more recently, these products are actively interested by supermarkets.
“There are no specialty stores that would offer only organic products – says Pindus. – This can be explained by the fact that there are little of such products. Therefore, on the shelves with organic products you can find its conventional counterparts. Pindus said that specialty stores can appear very soon. Prerequisite for this is enough: growing demand from customers and interest of this business segment will contribute to further growth of the market.
How to invest in organic market in Ukraine? Leave an inquiry on [email protected]
How to invest in organic market in Ukraine? Leave an inquiry on [email protected]
