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How to Increase Wood Production in Balvi in a Sustainable Way

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How to Increase Wood Production in Balvi in a Sustainable Way NORD+ 2017 INTENSIVE COURSE RURAL DEVELOPMENT IN THE ERA OF GREEN AND SILVER ECONOMIES HOW TO INCREASE WOOD PRODUCTION IN BALVI IN A SUSTAINABLE WAY Authors: An Quang Kalle Vaimala Titas Muterlevičius Kārlis Bernāns RĪGA, 2017 1 Contents Contents .................................................................................................................................... 2 1. Introduction ........................................................................................................................... 3 2. Description of Balvi county .................................................................................................... 3 Forest industry in Latvia ........................................................................................................ 6 3. Theoretical framework .......................................................................................................... 7 Eco-economic strategies in the New Rural Paradigm’ in Europe .......................................... 7 Smart specialization .............................................................................................................. 8 4. Advantages of using wood products ..................................................................................... 8 Functional .............................................................................................................................. 9 Environmental Advantages ................................................................................................... 9 5. Research aims and questions .............................................................................................. 10 Methodology ....................................................................................................................... 10 Data sources and sampling .................................................................................................. 10 Interviews ............................................................................................................................ 10 Role of the research group in the interviews ...................................................................... 10 Analysis ................................................................................................................................ 11 6. Result ................................................................................................................................... 11 Municipality ......................................................................................................................... 11 Head of development and finance department Olga Siņica ............................................... 11 Director of North Latgale business and tourism center Inta Kaļva ..................................... 12 Balvi Forestry ....................................................................................................................... 12 Balvi professional secondary school .................................................................................... 13 Companies ........................................................................................................................... 13 7. Discussion ............................................................................................................................ 16 8. Conclusion ........................................................................................................................... 17 References ............................................................................................................................... 18 Appendices .............................................................................................................................. 19 2 1. Introduction Balvi is one of Latvia’s counties. It is located in north east part of Latvia, next to the border of Russia. Balvi county has around 12 900 inhabitants, and half of them live in counties biggest town Balvi, which is also the centre of municipality. As we look around the municipality, it is easily to see that a lot of territory can be considered as rural territories. So there is no surprise, that the main industries in this municipality are agriculture and forestry. There are many different size wood companies in this area. Some of them are small, only 1,2, or 3 people are working there, but there are also big companies, which have more than 50 employees. Most of the companies specialised in wooden object making, such as tables, stairs and wooden cabins. Municipality also tries to increase forestry role in the economic life. According to Balvi county sustainable energy action plan for 2014-2020, wood industry takes an important role in county future. As wood industry plays an important role to municipality life, it is important to investigate what kind of effects it makes to local people and economy. The main research question was how to increase wood production in Balvi county in sustainable way. It is planned to visit some municipality officers, to hear them point of view on forestry, also, it is planned to visit local wood producers, to hear that kind of problems or suggestions do they have. Also, we should consider sustainable economy – are there no harm effects on forests, if this municipality has so many wood producers? Are they keep forests undamaged? We spent 3 days in Balvi town, to get closer look at this issues. In that time we collected all the possible data. Also, we will do our own observation, to check what the real situation in forests is, are they hardly damaged? Or maybe there are no effects? Our research identifies three main obstacles of the wood production in Balvi county which need to be solved. (1) Lacking of co-operation among small companies which leads to the wasting of wooden leftovers (2) Lacking of high quality workers for local businesses (3) old equipment, factory facilities and bad infrastructure need to be upgraded. 2. Description of Balvi county Balvi county was created in 2009 consisting of ten parishes - Vīksnas, Kubulu, Balvu, Bērzkalnes, Lazdulejas, Vectilžas, Briežuciema, Tilžas, Krišjāņu, Bērzpils and one town – Balvi (Figure 1.). Balvi county is located in NE part of Latvia and bordered by Alūksnes, Viļakas, Baltinavas, Kārsavas, Rēzeknes, Madonas, Lubānas, Rugāju and Gulbenes counties. County is located 220 km away from Rīga, 80 km from Rēzekne, 150 km from Pskov (Russia) and 200 km from Tartu (Estonia). Centre of county is Balvi town which is regional level center. Total area of the county is 1044.5 km2. 41% of county territory is forests and 38% is used for agriculture (Balvi County Council, 2011). 3 Figure 1. Balvi county (Made by authors using Envirotech data base, GIS Latvia 10.2) Balvi town is the largest town of the County and more than a half of the county inhabitants live there. The largest parishes are Kubuli and Tilža (Figure 2.). The average population density in the Balvi county is 14.9 (inhabitant per km2) The Balvi town is part with the biggest density of county. The population structure of the county is mostly based on the settlements, with their centers spread evenly across the county. In these centers the population density can reach about 101 - 1000 people per 1sq/km. In the remote areas the density is much lower only 1-10 people per 1 sq/km. The areas with largest forests and swamps don't have any inhabitants. 4 607 Balvi town 386 949 Balvi parish Bērzkalne parish 262 Bērzpils parish 1314 6470 Briežuciems parish Krišjāņi parish 355 Kubuli parish 517 Lazduleja parish 723 Tilža parish Vectilža parish 442 663 Vīksna parish Figure 2. Population in parishes of Balvi county (Made by authors using CSB data 2017) In the last six years total population of Balvi county is reduced by 28 % from 17788 in the year 2000 to the 12688 in year 2016 (Figure 3.). 80% of population are Latvians, 16,8% Russians and other largest minorities are Belarusians and Ukrainians (CSB, 2017) Unemployment in Balvi county is 13,5% and it is higher than average unemployment in Latvia but it is close to average unemployment of Latgale statistical region. 20 % of unemployed persons are without job for more than year (State Employment Agency of Latvia, 2017). The average Salary of Balvi county are by 30% lower than average salary in Latvia (CSB, 2017). 19000 17000 15000 13000 11000 9000 7000 5000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Figure 3. Population changes in Balvi county during 2000-2016 (Made by authors using CSB data 2017) 5 Forest industry in Latvia The forest industry in Latvia consist of two parts forestry and woodworking. Woodworking industry largely depends on foresty. Latvia have the potential for sustainble development and incrase of rural employment, developing the forest industry and moving it to nature value protection and higher added value products. This will provide a contribution to employment, incomes and preservation of natural values in rural areas (state education development agency, 2012). According to the Central Statistical Bureau (CSP) and Latvian State Forests data forest areas are incrasing reaching 50.3% of the Latvian territory. Latvia is ranked fourth in forest cover ranking in European Union, making almost two per cent of EU forests. Based on the Ministry of the Agriculture rural development strategic plan the current forest lands trend gives expectations for the successful development of the industry both local and export markets (Latvian forest agency, 2015).
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