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European Union – Basic development trends in organic farming

Аннотация:

The processed paper is focused on the analysis of basic development trends in the European Union’s organic farming during the period 2005 – 2011. The main paper’s ambition is the identification of basic trends in the following areas: the organic land development, the number of organic farms and the value of organic market development. Paper is also identifying the existing differences among individual EU countries in area of organic farming development. The specific part of the paper is also devoted to the relationship existing between organic farming development and agricultural subsidies/supports in individual EU countries. On the basis of results coming from the analysis it is possible to say that during the analyzed time period organic farming and organic products’ market recorded the significant growth in the EU. The size of organic farmland increased significantly and also the number of producers increased. The significant organic farming growth was recorded in majority of analyzed countries. In this case it should be emphasized that high growth of organic farming size was recorded especially in the new EU countries. In general it is evident that organic farming represents a specific market niche in the European agricultural market. Its development is connected especially with the new consumption trends and also with the growth of individual countries’ economy and especially with the growth of income per capita in individual countries. The growth of organic farming is stimulated especially by the demand side of economy than by government subsidies. The conducted analysis proved much higher correlation and elasticity of organic farming sector on changes in economy than it is in the case of government expenditures.

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