The best fruit or vegetable is grown in one’s own garden. For those who believe that, but don’t have a garden, there are organic food producers.
Even though many Ukrainians are finding their finances scarce, the more expensive organic products are rising in popularity.
Following global trends, Ukrainians are willing to pay more for products grown without pesticides, fertilizers and synthetic additives.
But even with constant growth, the organic market in Ukraine is minuscule compared to other countries.
Ukraine’s 300 organic food suppliers together take only 1 percent of the country’s food market, while in Europe up to 10 percent of all consumed food is organic.
“We are sure that the segment of organic products will grow, and in Ukraine more than anywhere else because we have export potential. And the organic products are a priority in exports,” Olena Berezovska, head of the union of certified organic producers Organic Ukraine, said.
While their share is tiny, organic food producers got an endorsement from the Ukrainian government recently. Newly appointed Minister of Agriculture Taras Kutoviy called organic farming one of his ministry’s priorities.
“Ukraine has a great potential in this direction because we couldn’t apply intensive farming due to our poverty, so the lands are in appropriate condition,” Kutovyi said at a press conference in April.
A man holds organic dairy products produced by Ethnoproduct maker in Good Wine store in Kyiv.
Doing organic business
One of the 300 Ukraine’s organic producers is Ukrainian-Swiss agricultural company Ethnoproduct. It farms vegetables and dairy products for the domestic market and exports to the European Union.
Etnoproduct got its organic certificate in 2010, but it took three years to prepare 4,000 hectares of land in Chernihiv Oblast for the organic cultivation.
The farm has been applying humus, green manure, micro-organisms, non-modified crops instead of the more effective yet non-organic synthetic fertilizers, herbicides, pesticides, and, genetically modified seeds.
Now, the land hosts 1,000 cattle. The company produces milk, sour cream, yogurt, meat, sausages, vegetables and other food.
Ethnohouse delivers to 150 grocery stores, mainly in Kyiv, Kharkiv and Lviv.
One of the challenges is organizing a fast delivery: the organic products expire faster than the regular products. Organic milk, for instance, is good only for 72 hours.
After producing and delivering the products, there comes yet another challenge: winning the trust of a consumer. Ethnoproduct’s commercial director Andriy Nikolayuk says that Ukrainians are often incredulous about the “organic” label, being unsure that a package of organic milk is worth a few extra hryvnia.
“In Europe, we have the trust (of consumers), but not in Ukraine,” said Nikolayuk.
Organic vs. mass market
If a conventional producer wanted to try organic farming, he wouldn’t be able to do it right away. It takes three to five years to prepare the land for the organic farming after exhaustion caused by regular farming.
Sparing a field for five years means a cut in profits. Few are willing to make the sacrifice.
Berezovska compares traditional intensive cultivation of land with pesticides to a drug addiction because of how hard it is to switch to organic farming.
And even if a producer takes the risk of sparing a field for years, he faces the next challenge: distribution.
While traditional products are sold everywhere in Ukraine, the organic food is mainly distributed in the seven largest cities. The main target groups are mothers who want healthy food for their children and young women who think that organic food can improve their appearance.
Most Ukrainians can’t afford paying more for their food. When a bottle of organic milk costs Hr 25 and regular milk is Hr 15, the choice is obvious for them.
No domestic standards
Ukraine has never adopted standards for organic products. Ukrainian farmers use European ones. Certification body Organic Standard is the only agency regulating compliance, putting a green leaf symbol on a package for those who meet the standards. Other similar symbols and signs found on packages are marketing tricks, Berezovska said.
Despite Russia’s war against Ukraine, Russia is still the country’s main trade partner. Turkey, China and Egypt will continue being Ukraine’s main agriculture partners in the next couple of years.
Export potential
Richter Toralf, an expert from Ukrainian-Swiss project Organic Market Development in Ukraine 2012 – 2016, sees opportunities for Ukrainian organic producers in exports.
“Ukraine is one of the most popular countries for importers because it provides big volumes in one hand,” he said.
So far, organic farmers mostly export raw materials, namely animal feed, crops and berries to Europe. Processed food demands significant investment in production. But Liqberry, a company that makes paste from blueberry, cranberry, and cowberry, is one such processed-food manufactor.
Ukrainian producers need to promote their image in the West, where buyers have less trust in Ukrainian goods partly because of the low price, Toralf said. But with demand growing faster than local supplies, Ukraine has a chance, Toralf added.
Toralf said that the importers like to build trade relations directly “to see if they are really producing according to the organic standards. They come here, take pictures, check the soil, and then tell their buyers a story behind the product with these photos. This way, trust can grow.”
