Strategic Directions of Forming a State Mechanism to Stimulate the Development of Environmentally Sensitive Agribusiness

Анотація

The purpose of the article is to develop conceptual foundations for the formation of a state mechanism to stimulate the development of environmentally sensitive agribusiness in Ukraine. It is emphasized that organic production in other countries receives significant state support. In addition, farmers view growing organic products as a factor that reduces risks and stabilizes prices for end products. Still, every country has its own specific features of providing state support. In some regions of France, subsidies can be obtained to cover the costs for certification and inspection, whose volume also varies from region to region. In addition to subsidies, producers of organic agricultural products can also apply for a tax credit. France has a method that compensates for the farmers’ losses from their transition to organic production, both in terms of individual costs and the profit margin. In the United States, the Agricultural Services Agency (FSA) funds the conversion of a farm to organic production and reimburses all the expenses associated with that production. Specific examples of state support for organic production in China, Thailand, Sri Lanka are given. In Ukraine, state support for environmentally friendly production is suggested to be grounded on three key blocks. Firstly, it should expand the demand and thus support consumers. Secondly, the state should design a support mechanism for producers. Thirdly, a separate set of issues should include strategic measures to shape the image of organic products in the market. For each set, specific measures have been identified that can be implemented by the government. It is suggested to divide ecologically oriented products into two groups: green products, which are produced without using chemicals; and certified organic products. The necessity to develop green tourism in Ukraine is also emphasized.

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