Why organic production is profitable. The economic benefits of organics: facts and real advantages
Organic farming is not just about the environment or healthy eating. It is also an economic strategy that allows farmers to reduce costs, increase the added value of their products, and enter premium markets. Global experience proves that farms that invest in soil health and sustainable practices achieve higher profitability in the long term.
1. Reducing chemical costs
Organic production excludes the use of synthetic pesticides and mineral fertilizers, which allows reducing the cost of production by switching to local organic fertilizers, biopreparations and natural means of protection.
The rise in world prices for chemicals makes the organic model even more profitable, especially for small and medium-sized farms.
A study (2019) showed that replacing some of the chemicals with biopreparations in corn and buckwheat provided higher profits and crop stability.
Source: https://ageconsearch.umn.edu/record/293989
It also reduces the risk of weed and pest resistance, which often forces farmers to increase the doses of chemicals. Organic technologies form a sustainable agroecosystem that “works by itself,” without constant human intervention.
2. Premium price in the market
The demand for certified organic products is growing both in Ukraine and worldwide. Consumers are willing to pay more for a guaranteed pure product with full control of the production chain. Organic products usually have a price 20-200% higher, depending on the crop and the market.
An analytical review of the development of the organic sector in Ukraine confirms that farmers with certification have significantly better chances of entering EU markets.
Source: https://economyandsociety.in.ua/index.php/journal/article/view/4460
The premium price also reduces the risk of market fluctuations: organics hold their value better even during periods of crisis. This makes the business more predictable and attractive for investment.
3. Stability and long-term investing
Organic farming stimulates the accumulation of humus, the development of biodiversity and the restoration of soil structure. Over time, this ensures crop resilience to weather fluctuations, reduces losses from erosion and drought. Organic methods allow to reduce dependence on expensive resources and market fluctuations.
FAO confirms in a large meta-analysis: sustainable approach + agrodiversification → increased farm incomes and ecosystem services. https://www.fao.org/4/Y4137E/y4137e01.htm
The restored soil acts as capital, reducing farm costs year after year. This creates a financial model in which fertility increases naturally without significant investment.
4. Competitiveness in the EU market
The European market strictly regulates food imports. Products without an organic certificate have almost no chance of reaching retail chains or processing companies.
In contrast, a certified product gets the green light for export and can be included in long-term contracts.
Analytics from the Kyiv National Economic University indicate that “organics” is one of the most promising niches for the agricultural sector of Ukraine.
https://vz.kneu.ua/archive/2019/20.09
The European consumer highly appreciates Ukrainian products if they have quality confirmation. Therefore, certification is not an expense, but an investment in access to a market that is growing every year.
Case study: how a farm can increase profits
- The farmer refuses chemicals → switches to biological products.
- The cost of production decreases, the soil becomes more fertile.
- The harvest is leveling out and field degradation is halted.
- The farm undergoes certification → receives the Organic label.
- The product is sold at a higher price → there is an opportunity for export.
- The soil improves its fertility every year → profits increase.
This scenario is confirmed by dozens of real farms that have increased their margins by 1.5–3 times within 2–4 years of switching to organic. The effect is especially strong in regions with depleted soils.
What does the Organic Standard certificate give you — and why is it important?
1. Standards guarantee
A certified farm undergoes regular audits, inspections and testing. Controls cover fertilizers, pesticides, seeds, cultivation and storage technologies.
This guarantees the buyer that the product meets EU requirements and international IFOAM standards.
The certification system ensures traceability of the entire process, which is critical in the global market. The consumer receives transparent information about the origin of the product.
2. Consumer trust
The certificate is proof that the product is grown without synthetics, without GMOs, without chemical preservatives.
The buyer receives a guarantee of safety, environmental friendliness and stable quality.
The level of trust in organic labeling is significantly higher than in marketing labels such as “eco” or “bio” without confirmation. This stimulates repeat purchases and expands the segment of loyal customers.
3. Access to external markets
Without certification, access to the EU or US markets is effectively blocked. With a certificate, the opposite is true: it opens up the possibility of cooperation with chains, processors, and traders.
Exporting organic products often provides farmers with foreign exchange earnings, which stabilizes business during crisis years.
4. Transparency and traceability
Every stage of production is checked: from field preparation to packaging. This minimizes the risks of counterfeiting and guarantees the consumer the honesty of the manufacturer.
Additional sentences:
For today’s buyers, traceability is a key factor in choice, especially in the baby food and healthy food segments.
5. Possibility of sustainable development
The organic farming model reduces the risks of soil degradation, increases their adaptability to climatic stresses, and builds a positive reputation for the farm.
Additional sentences:
In the long term, certified farmers gain greater financial stability and access to grants and environmental programs.
Why is this good for the farmer and the consumer?
- For a farmer and producer of organic agricultural products (fertilizers, crop protection products, equipment), it is an investment in future fertility and the opportunity to earn more without environmental risks, renewing ecosystems used in a symbiotic format.
- For the consumer, it is a guarantee that the product is clean, safe, and grown responsibly, which is a contribution to strengthening and supporting a healthy lifestyle.
- For businesses, this is an “entry ticket” to the EU market, where the organic sector is growing every year, as well as support for sustainable domestic agriculture.
It is also a way to strengthen your reputation and create a unique brand – because organic products often have a story to tell the buyer. For
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