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Latvia National Report (WP 2 - Deliverable 2.2)

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Latvia National Report (WP 2 - Deliverable 2.2) Latvia National report (WP 2 - Deliverable 2.2) Authors: Mikelis Grivins, Talis Tisenkopfs, Anda Adamsone-Fiskovica, Sandra Sumane Baltic Studies Centre April 2018 H2020-SFS-2014-2 SUFISA Grant agreement 635577 This project has received funds from the EU’s Horizon 2020 research and innovation programme under Grant Agreement No 635577. Responsibility for the information and views set out in this report lies entirely with the authors Table of content List of Tables and Figures .................................................................................................. 6 List of Acronyms and Abbreviations .................................................................................. 7 EXECUTIVE SUMMARY ........................................................................................... 8 1 INTRODUCTION ............................................................................................. 24 General characterisation of agriculture in Latvia ............................................................ 24 Methodology ................................................................................................................... 27 Report structure .............................................................................................................. 28 2 MEDIA CONTENT ANALYSIS ........................................................................... 29 2.1 Conditions and sub-conditions ................................................................................ 29 2.2 Farmers’ strategies .................................................................................................. 37 2.3 Conceptual frames .................................................................................................. 43 2.3.1 Neo-classic ....................................................................................................... 43 2.3.2 Economic sociology ......................................................................................... 44 2.3.3 Political ............................................................................................................ 45 2.3.4 Neo-institutional .............................................................................................. 46 2.3.5 Transition (niche) ............................................................................................. 47 Conclusions ...................................................................................................................... 47 3 LATVIA’S CASE STUDY A: DAIRY ..................................................................... 48 3.1 Case study introduction and context ...................................................................... 48 3.1.1 Dairy production in Latvia ............................................................................... 48 3.1.2 An introduction to the region .......................................................................... 51 3.2 Policy and regulatory conditions ............................................................................. 52 3.2.1 EU milk production quotas .............................................................................. 52 3.2.2 Russian embargo ............................................................................................. 53 3.2.3 Public support measures ................................................................................. 54 3.2.4 Lobbying .......................................................................................................... 57 3.2.5 Manure storage requirements ........................................................................ 58 3.2.6 Organic farming ............................................................................................... 59 3.2.7 Promotion of milk consumption ...................................................................... 60 3.2.8 Quality standards............................................................................................. 62 3.3 Market conditions ................................................................................................... 64 3.3.1 Price and income volatility .............................................................................. 64 2 3.3.2 Access to internal markets .............................................................................. 65 3.3.3 Access to external markets .............................................................................. 67 3.3.4 Land market regulation ................................................................................... 69 3.3.5 Cooperation ..................................................................................................... 70 3.3.6 Knowledge and advice ..................................................................................... 72 3.3.7 Human resources ............................................................................................. 73 3.3.8 Hidden economy ............................................................................................. 74 3.3.9 Access to finances............................................................................................ 75 3.4 Key issues identified in the literature, media and interviews ................................. 76 3.5 Dairy sector in Latvia – focus groups and workshop ............................................... 80 3.5.1 Dairy farming ................................................................................................... 81 3.5.2 Policy and management .................................................................................. 81 3.5.2.1 Subsidies .......................................................................................................... 82 3.5.2.2 Trade liberalisation .......................................................................................... 83 3.5.3 Dairy supply chain ........................................................................................... 84 3.5.3.1 Cooperation ..................................................................................................... 84 3.5.3.2 Processors ........................................................................................................ 86 3.5.4 Markets and development .............................................................................. 87 3.5.4.1 Niche markets .................................................................................................. 87 3.5.4.2 Access to finances............................................................................................ 89 3.5.5 Resilience ......................................................................................................... 89 3.5.5.1 Farm succession ............................................................................................... 91 3.5.6 Table 6. Understanding dairy farmers institutional arrangements ................. 92 3.5.7 Figure 8. Understanding dairy farmers’ institutional arrangements, diagrammatically ............................................................................................................. 95 4 LATVIA’S CASE STUDY B: WHEAT ................................................................... 96 4.5 Case study introduction and context ...................................................................... 96 4.5.1 Wheat production in Latvia ............................................................................. 96 4.5.2 An introduction to the region .......................................................................... 99 4.6 Policy and regulatory conditions ............................................................................. 99 4.6.1 Public support measures ................................................................................. 99 4.6.2 Lobbying ........................................................................................................ 101 4.6.3 Greening requirements ................................................................................. 101 4.7 Market conditions ................................................................................................. 103 3 4.7.1 Infrastructure................................................................................................. 103 4.7.2 Access to internal market .............................................................................. 104 4.7.3 Access to external market ............................................................................. 105 4.7.4 Land market ................................................................................................... 106 4.7.5 Producers’ cooperation ................................................................................. 107 4.7.6 Knowledge and advice ................................................................................... 109 4.7.7 Human resources ........................................................................................... 109 4.7.8 Hidden economy ........................................................................................... 110 4.7.9 Access to finance ........................................................................................... 110 4.7.10 Produce quality .............................................................................................. 112 4.8 Key issues identified in the literature, media and interviews ............................... 113 4.9 Grain sector in Latvia – focus groups and workshop ...........................................
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