Uman NUH | today: 05/22/2019

Logistic aspects in development of the global market for environmentally friendly foodstuffs

Author(s) Shkolnyi O.O., Doctor of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2018 issue Випуск №92. Частина 2
pages 88-98 index UDK 338.46: 339.5:631.95
Abstract Economic progress in the agro-industrial sector is closely linked to the use of modern means of production, intensive technologies and an increase in volumes of production. However, the public concern about the problems of the deterioration of the environment, quality of products and cases of illnesses after its consumption causes increased interest in the production of food produced by dynamically adaptive and ecologically balanced technologies with minimal usage of non-renewable materials and energy resources. Agriculture must offer food products that not only support livelihoods, but also improve the health of consumers; economically profitable for both producers and buyers of food; reflect quantitative and qualitative market demands; not to violate the natural balance; related to sustainable economic development. The need to address the urgent problems of mankind, in particular the problems of global warming, prompts the transition to technologies that would involve the usage of renewable resources and improve the environmental situation. Like the production of industrial goods, agriculture has a significant negative impact on the natural environment. Agribusiness should be oriented on the production of environmentally friendly products, in particular organic. Organic food can be supported by production activities without the use of chemical fertilizers, pesticides, genetically modified organisms, preservatives and other synthetic substances, in accordance with clearly regulated technologies, principles and rules for obtaining natural products. Organic products are characterized by ecologically safe raw materials and ingredients, which are provided by specific technological processes. Despite the fact that the highest levels of organic food consumption per capita have been achieved in developed countries, a significant number of its producers are located in other countries, which implies the need to develop appropriate logistics networks. The global market for organic food is characterized by positive dynamics, but its share in the global food market remains negligible. Strengthening the requirements of stakeholders (consumer groups, government agencies, investors, and entrepreneurial structures) necessitates logistical provision of the global organic food market. Supply of food to consumers is possible under the condition of coordinated logistical activities of business entities and strategic alliances. The vast majority of organic food importers are concentrated in Europe, which requires appropriate logistical support. European countries have different levels of supply in domestic eco-friendly food. The UK's decision to withdraw from the EU will influence the food flows within the European market. In order to protect organic food from contact with prohibited substances in logistics facilities, it is important to set up staff training and technological support. The process of transportation of environmentally friendly products through supply networks is accompanied by the use of various standards and rules that are applied in the countries participating in export-import relations. Clear identification of the origin of finished products and ingredients can help to avoid fraudulent schemes and falsifications, as well as to strengthen confidence in such food products. An important prerequisite for the functioning of global supply chains of eco-food is an efficient tracing system beginning from the original producer to the end consumer, which contributes to the support of global competitive advantages.
Key words ecologically oriented food products, ecologization in agribusiness, partners’ relations, global market, logistics and supply chain management.
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