6 Facts About Ukraine's Organic Market

Ukraine is yet better known as a supplier of organic products to foreign markets rather than a consumer. Nevertheless, the domestic market for organic products is evolving and growing gradually. Ukrainians enjoy organic dairy products the most.

1. The organic market in Ukraine: small but competitive

In 2019, there was a slight increase in the number of operators in the Ukrainian organic market vs. in 2018. Head of Organic Standard Sergiy Galashevsky explains this by the fact that the country experienced a "berry boom" and a number of farmers withdrew from organic berry production.

The reduction in the areas certified for organic production in 2017 vs. the year 2016 is also connected with the fact that several major operators lost the status of organic producers.

The size of the internal organic market (excluding import) is estimated at 6.7 thou. t and UAH 590 mln in 2018. Moreover, more than half of the market is represented by dairy products, i.e. products of regular consumption, which can set market trends and stimulate the development of other organic products production.

2. Organic breakfasts are popular in Ukraine

Ukrainians give preference to healthy organic breakfasts. This is reflected in the structure of organic products sales in the country. Milk and kefir come first, while in the cereals group flakes dominate, namely oatmeal.

3. Exports of organic products in monetary terms is 6x higher from the domestic market size

Ukrainian organic products are very well received in Europe, which accounts for 83% of total exports. More than half of the export of organic products (in monetary terms) falls on corn, wheat, soybeans. These are the major crops for external supplies.

4. Approximately a quarter of exported organic products are delivered to the Netherlands for further reexport

The largest buyer of Ukrainian organic products is the world-famous trader the Netherlands, which obviously reexports commodities to other EU member states. In 2018, Switzerland ranked second in purchases of Ukrainian organic products. Previously, it ranked 5th-6th. The third position is held by the USA. Despite the fact that this is a distant market and it requires its own certificates, it is vast and significant for Ukrainian exporters. Italy mainly buys organic animal feed in Ukraine, Austria purchases pumpkin seeds.

5. Ukraine shipped 267 thou. t of organic products to the EU in 2018

Of the TOP 10 importers of Ukrainian organic products in the EU, four member-states (the Netherlands, Lithuania, Romania, Poland) are more focused on trade in these products, i.e. further reexport, and six states (Germany, Austria, France, Denmark, Italy, the UK) — on consumption.

6. Ukraine is the 4th largest supplier of organic products to the EU

Ukraine is the only country of the former Soviet Union to be among the TOP 10 exporters of organic products to the EU. At the same time, it outpaces the Dominican Republic in terms of supply volumes, which holds 3rd position.