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Ukraine’s natural foods market experienced 100 percent growth in 2010

2 March, 2010 - 00:00
YEVHEN MYLOVANOV

The start of the 21st century marked an active shift from chemically-treated to natural foods. Natural foods mean that the farmer must not use pesticides, synthetic fertilizers, growth stimulants or genetically modified technologies when growing plants/crops and raising livestock. This has become a common practice in more than 140 countries, involving an area that exceeds 32 million hectares [1 hectare = 2.471 acres — Ed.], and the world natural foods market shows an annual five billion dollars growth.

The world’s leading natural foods suppliers include the United States, Argentina, Canada, Poland, Spain, Portugal, and Germany. Experts believe, however, that Ukraine will eventually become a worthy rival in the area. Below is an interview with Yevhen MYLOVANOV, head of the board, Natural Foods Federation of Ukraine.

How did the natural foods movement emerge around the globe and in Ukraine?

“There are varying views. Some believe that natural foods started being cultivated by our forefathers. However, chemicals and pesticides were not used towards the end of the 19th century simply because they didn’t exist. At the time all kinds of foods were considered to be natural. At present, we can grow plants/crops and livestock with or without producing genetically modified foods; in other words, with or without using chemicals, minerals or synthetic fertilizers. This means that natural foods have to be certified by a team of experts employed by an independent company.

“Back in the 1970s Ukrainian agriculture began to use more and more chemicals, a fact that party bureaucrats were proud of; to them this was proof of the industrialization of the agrarian sector and the road to better crop yields. As the years passed, scientists in many countries started noticing negative effects, such as allergies and diseases. These negative side-effects triggered an effort to find alternatives to chemicals. Europe was the first to head in this direction. The Austrian scholar Rudolf Steiner delivered his world-known series of lectures on biodynamic agriculture in 1924, stressing the noticeable decrease in foods quality due to the usage of man-made fertilizer. His Ukrainian colleague Yevhen Oksinsky (1856-1909), also warned against the use of mineral fertilizer. He worked in what are currently the Odesa, Khmelnytsky, and Kyiv oblasts, and stressed that this kind of ‘unnatural fertilizer’ was bad for people and the land. He also suggested ways to solve this problem. Naturally, at the time, the notion of organic farming was nonexistent. It would only emerge in the second half of the 20th century, when chemicals started being used on increasing scales in both agriculture and industry.”

Does this mean that Ukraine was one of the organic farming trailblazers?

“Yes – to a certain extent. A closer look at the archives shows that Ukrainian, Polish, Hungarian, and Russian landlords practiced organic farming. There are also references to such practice in the works of ancient Indian philosophers.”

Ukraine seems to have favorable conditions for organic farming, considering the fact that a great many local farmers simply can’t afford chemical and mineral fertilizer or pesticides. However, such foods are still relatively scarce in Ukrainian supermarkets. What do you think is holding organic farming back in Ukraine?

“One of the reasons is lack of public information about organic farming, its advantages for both farmer and consumer in regards to health and environmental issues. I’m personally convinced that the main reason [for progress in this sphere] was Ukraine’s first natural foods fair in Lviv, which attracted some 20,000 visitors. We’re planning to uphold this tradition in other cities. It’s high time we started cultivating consumers of natural foods.

“Another reason behind our underdeveloped organic farming market is the small number of [wholesale/retail] outlets. There are less than a dozen of these in Kyiv. Such outlets are only beginning to appear in Lviv, Ivano-Frankivsk, and Kolomyia.

“Also, organic farming must not be a subject limited to philosophically-minded farmers, people who are keenly aware of the importance of natural foods for man and the environment. Natural foods must have a guaranteed clientele, otherwise there is no way our farmers will produce hundreds of thousands of tons of such products. Without market demand, there will be no supply.

“Organic farming is held back by lack of government support. The bill ‘On Organic Farming’ is still being processed [by the Verkhovna Rada]. It envisages official certification of natural foods and grounds for budgetary contribution, as the state can only support legitimate business ventures financially. No organic farming business stands a chance without this bill being passed by parliament.”

Why is passing this bill taking so long?

“Our Federation isn’t aware of any resistance to the organic farming bill from the VR committees, parties or businesses. I believe it will be passed sometime in 2010 — contingent to continue peaceful work within our parliament. Should negative political developments take place, this and other bills may well be shelved.

“The organic farming bill will allow lobbying for central budget subsidies for duly certified natural foods, and will raise the standard of government awareness of organic farming. It will also provide additional levers to develop the domestic market.”

In the absence of official certification, there appears to be no Ukrainian organic farming market or legitimate suppliers.

“The actual situation is different. Ukraine currently has 12 European organizations entitled to certify natural foods in accordance with EU standards. Thus, any existing organic farming business can have its products duly certified, if they meet all legal requirements, including those of the DSTU System of Legal Standards of Ukraine, TU (Technological Standards), and if their business has a food hygiene certificate. Ukraine’s national certifying authority, known as the Organic Standard, also inspires hopes of lowering certification costs and allowing a greater number of farmers to start practicing organic farming.”

How would you assess Ukraine’s organic farming market in 2009 and its prospects?

“Ukraine had 249,000 hectares dedicated to organic farming at the turn of 2008; in early 2009, the number had reached more than 269,000 ha. There were 92 farming enterprises dedicated to organic farming in 2007, in 2008 there were 118. It’s hard to determine the share of natural foods in Ukraine’s food market. Our estimates point to less than 0.1 percent. Ukraine’s organic farming market was worth more than a million euros in 2009, compared to over 40 billion euros worldwide.

“I’m sure that Ukraine’s organic market growth in 2010 will exceed one hundred percent. Practically all regions of Ukraine have joined the organic farming process, especially the south, with its vast wheat fields, and oil-bearing and leguminous plantations, most of which are intended for export.”

Who is paying for Ukraine’s organic farming sector: foreign investors or local farmers?

“Foreigners are involved in the certification procedures, but we have few foreign inland investments; ninety percent of funding comes from Ukrainian businesses.”

What kind of natural foods can one actually buy in Ukraine?

“The list is expanding with each passing month. At present we have domestically made vegetable oils, cereals, frozen berries, pork, smoked meat, sausages, lard, fatback, canned stewed meat, and others. True, we lack poultry and eggs. Most Ukrainian farmers prefer grain-growing, with seventy percent of their organic farming output being exported, mostly to EU countries and North America. The rest is sold on the domestic market as conventional commodities (even though these products have been certified in accordance with international standards) because we lack production capacities. Some of these products are sold as duly certified natural foods.”

Organic farming is generally believed to be quite expensive. Is it possible to produce natural foods without spending more than when using chemicals?

“Given a professional approach, organic farming proves to cost 20 to 25 percent less, but we don’t have enough professionals in the field. By professionals I mean people who can organize the farming process to take advantage of the soil’s potential, crop rotation, crop interrelationships, natural means of combating pests, biological means of protection, and so on.”

How does Ukraine rank in terms of organic farming?

“Ukraine is placed 20th in terms of farmlands certified as capable of producing natural foods. Poland is 19th, while Russia, despite its considerable potential, is lagging far behind in the hundreds.”

How long do you think it will take the Ukrainian organic farming market to rival the European one?

“I believe that widespread domestic organic farming market will develop within a decade. Our current suppliers of natural foods have been matching rivals on the European market for over five years. Their European experience gives an indication on the potential progress of our domestic organic farming market.”

By Natalia BILOUSOVA, The Day
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