Ukrainian gardening market trends under globalization

Abstract

Despite the fact that horticultural production has long history in Ukraine, national market is still going through its formative phase. Amid constant shocks in the political-economic system of the country – dismantling of central planning system, price liberalization, and great disparities between prices for industrial products and agricultural, military armed hostilities and occupation on the part of Ukrainian territory – once highly profitable horticultural industry suddenly turned into loss-making one. National gross production substantially decreased, horticultural production mostly shifted to small farms. The volume of fruit exports is drastically reduced, planting areas are rapidly declining and rates of reproduction of perennial plants dropped to a critical level. In Ukraine in the last decade individual farms became major producers of fruit and berries with share combined around 83%. However, Ukraine can soon become a full player in the European market of horticultural products. This is due to several factors: geographical location of Ukraine; favourable climate conditions for different fruits and berries; low labour cost and low probability of wage increases in the short and long term; potential to increase supplies to the European export markets after the entry into force of the Association Agreement with the EU; organic production of horticulture which development occurs rapidly in Ukraine.