Organic Sector and Market Development in Ukraine
FiBL has been supporting Ukrainian organic producers in the conversion and marketing of their products for around 20 years. During this period, the organic area has almost tripled. Due to the war, the conditions for local organic producers have been difficult. Despite the challenges, FiBL continues to advise farms on agronomic issues and supports them in finding new distribution channels. Last December, two FiBL experts travelled to Ukraine to meet organic farmers and understand their needs in times of war.
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In December 2024, two FiBL experts travelled to Ukraine as part of the Quality Food Trade Programme (QFTP), funded by SECO to assess the state of organic production, processing, and marketing, and to provide recommendations for future support.
QFTP, currently in its Phase II, aims to promote sustainable trade and more and better jobs by strengthening the business competitiveness and capacities of small and medium enterprises (SMEs) in the organic and dairy sectors in Ukraine through direct and indirect support.
Recently, the ongoing war has placed great pressure on Ukraine’s organic sector, with some organic producers considering reducing or suspending their operations.
What are the main challenges?
- All operators are experiencing labour shortages between 10 to 30 percent of the workforce.
- Energy shortages are disrupting the daily lives of farmers. In addition, energy prices have more than doubled.
- Production costs have increased due to the devaluation of the Ukrainian currency.
- The conditions of export and domestic markets are getting more and more unfavourable.
- As the war enters its third year, financial resources have been depleted, making access to finance and financial support critical to maintain or invest in production capabilities and infrastructure. Operators are seeking grants and favourable loan conditions to sustain their operations, as current interest rates are around 20%.
In response to urgent needs, and as part of the SECO-funded project, FiBL provided an emergency loan of CHF 160,000 at the end of 2024, supporting around 40 organic farms, half of them run by women.
In the coming months, targeted support will be crucial to ensuring the sustainability of Ukraine’s organic sector. Efforts should focus on financial and technical assistance in production and market development.
More information:
- Quality Food Trade in Ukraine (SDC project information)
- Quality FOOD Trade Program (Project website)
- Despite the war, Ukraine holds strong as a Top 5 Organic Exporter to the EU (FiBL media release)
- Ukrainian organic agriculture will not be defeated by the war (FiBL media release)
- “The future of the Ukrainian organic market is at stake” (FiBL news)
- Podcast FiBL Collaboration
- Organic Agrifood Products (Diia.Business, Government of Ukraine)