Latvia’s agriculture, food production, forestry and fisheries sectors are currently operating in an environment where both market and competitive conditions and climatic conditions are changing. This calls for a more careful assessment of how to operate more efficiently, create greater added value, cooperate and produce what the market needs, while also reducing risks. Liene Jansone, Deputy State Secretary for Sectoral Policy and Market Development at the Ministry of Agriculture, emphasises that EU funding should also be viewed as a tool for growth rather than an end in itself.
Although the CAP Strategic Plan currently sets the priorities for the development of Latvia’s agriculture and food production and provides support mechanisms to achieve these objectives, the key question is not whether funding is available, but what can be achieved with it to make a company or farm stronger in the long term. “EU support funds are a supporting instrument, not a resource to be obtained first and only afterwards think about what to do with it,” Liene Jansone emphasises.
The situation and development opportunities vary across agricultural sectors, so there is no single solution that would work equally well for everyone. It is important for each sector to understand where it wants to go, what is hindering its development and what solutions are needed to become more competitive. At the same time, it is important to remember that one link in the chain cannot shape its future without taking the others into account. The development of producers, processors and retailers is interlinked, so the sector should be viewed as a whole rather than as the sum of its individual parts.
For grain producers, it is particularly important to consider the way forward – how to maintain competitiveness and increase the value of their products. Grain production has long been one of Latvia’s most stable agricultural sectors, but the situation has become particularly challenging in recent years. The sector has been affected by the shocks caused by Russia’s war, changes in global markets and the climatic conditions of recent years.
Liene Jansone highlights poultry farming and sheep farming as positive examples. “The poultry sector has developed a very strong strategy and is increasingly looking beyond the Latvian market to the Baltic market, while sheep farmers are investing in breeding, research and knowledge to produce higher-quality products more efficiently and sell them at a better price.”
Significant changes are also needed in the way we look at markets, as competitiveness means being able to operate without losses under real market conditions and at prevailing prices, rather than relying on support. It is therefore not enough simply to produce a product and then look for a buyer. It is becoming increasingly important to understand before production begins what the specific market demands, what quality is required and what price can be obtained for the product.
This is particularly important for the dairy sector, where Latvian companies need to seek new export markets and consider how to create products with greater added value. Liene Jansone emphasises that it is not possible to operate successfully in global markets in the long term on the assumption that consumers will adapt to what Latvian producers offer. Producers and processors must be able to adapt their offer to what a particular market wants.
A good example is the Latvian company “Rāmkalni”, which has also found its niche in foreign markets. However, export success usually does not follow after a single visit to an international trade fair. “A potential buyer needs time to become convinced of a company’s stability and its ability to ensure a reliable supply of products over the long term,” Liene Jansone notes. Export development is a long-term process, not a one-off activity.
The ability to cooperate is no less important than the efficiency of individual companies. Smaller farms, in particular, may find it difficult to independently provide the volume, quality and regularity of supply required by the market.
By joining forces, it is possible to achieve a scale that would be much more difficult for individual businesses to reach – whether by selling products, purchasing production inputs on more favourable terms, or jointly organising storage, primary processing, processing and logistics. This can help create greater added value.
Positive examples can be seen in the fruit sector, where producers are joining producer organisations and, for example, establishing shared storage facilities. This makes it possible to ensure that products are available in shops throughout the season. In the poultry sector, meanwhile, larger companies are encouraging smaller farms to diversify their activities and become part of a common production and marketing chain, Liene Jansone explains.
Cooperation is not limited to bringing several farmers together. Dialogue throughout the value chain is equally important – between producers, cooperatives, processors and retailers. Producers need to know what quality and volume of products will be required for processing and by the market, while processors need to know that they can rely on a stable supply of locally produced raw materials of the required quality. This type of cooperation helps create greater added value in Latvia.
In food production, one of Latvia’s challenges is the share of locally produced food in consumption. According to an analysis of data by the Ministry of Agriculture, more than EUR 50 million, for example, leaves Latvia through school catering because imported products are used, even though Latvia could produce many of these products itself. This makes not only the competitiveness of producers important, but also consumer choice and cooperation between farmers, processors and retailers. “The Ministry of Agriculture has created the slogan ‘Our Own Product – Our Own Strength’ and encourages producers, cooperatives and processors to use it to speak to consumers with one voice. By choosing a local product, our money stays in Latvia, strengthens the national economy and contributes to strengthening health, education and security,” says Liene Jansone.
Science, data and the practical application of knowledge also play an indispensable role in agricultural growth, particularly in today’s changing environment. Soil analysis, selecting the most suitable varieties, more precise fertilisation and practical research can help not only increase productivity but also reduce costs. “This is clearly demonstrated by the experience of one farm: by analysing the soil and purposefully changing its farming practices, the farm managed to ensure that wheat previously suitable only for animal feed met food-quality requirements. Improved quality also means a different product price and greater opportunities to sell,” Liene Jansone explains.
This approach – understanding one’s situation, setting a development objective and choosing the most appropriate solutions – will become increasingly important for the development of Latvian agriculture. Funding, knowledge, cooperation and technology are tools, but growth starts with a clear understanding of where a sector or farm wants to go and what needs to be changed to achieve that objective.
AGRICULTURAL GROWTH PLAN 2026–2036
Objective:
To increase agricultural output and productivity, increase GDP by 2 percentage points and, within 10 years, bring Latvia’s agricultural output per hectare up to the level of Finland – from EUR 971/ha in 2026 to EUR 2,256/ha in 2036.
This can be achieved by:
increasing productivity;
improving competitiveness;
strengthening cooperation throughout the value chain;
improving risk management.
Information campaign on the Jauns.lv portal aimed at promoting the CAP Strategic Plan (CAP SP) and the Common Fisheries Policy Programme.
