The study of supply and demand of organic products in the European Union and Serbia

Abstract

One of the phenomenons that marked twentieth century is rapid technology progress. This process did not avoid food production and processing. Thanks to rapid development of technology, there has been a development of conventional food production, as well as appearance of genetically modified food. As a consequence of this trend, as well as the concern among some part of human population for their health, we had the return to natural food production in the form of the development of organic food production. One of the characteristics of organic food market in the European Union is the constant growth of demand for this product group, and insufficient quantities of organic products available in this market. These information led to the conclusion that organic food represents an opportunity for less developed countries, i.e. that countries like Serbia can manufacture and sale these products on the market with the highest purchasing power in the world - the European Union market. In this paper the characteristics of demand for organic foods in the European Union where presented, then it was explained in detail why are these products export chance of Serbia, as well as reasons why is the export of organic food from Serbia to the EU very low at the time being. At the end some recommendations that could help Serbia to increase export of organic product to EU countries were proposed.