NORD+ 2018 INTENSIVE COURSE RURAL DEVELOPMENT

The Role of Eco Farms in Regional Development A Case Study of Region in

Brynja Rán Egilsdóttir Erika Pipiraite Kelli Marie Jaama Taissiya Kryazhova

Vilnius, 2018 Table of contents

1 Introduction ...... 2 2 Description of the case study area ...... 3 3 Theoretical background and concepts ...... 5 3.1 Rural development strategies ...... 5 3.2 Ecological farms and local food markets ...... 6 3.4 Rural tourism and eco-farms ...... 8 4 Methodology ...... 10 4.1 Interviews ...... 10 4.2 Observations ...... 10 4.3 Analysis...... 11 5 Results of data analysis and discussions ...... 12 5.1 Eco- farming in Zarasai ...... 12 5.3 Cooperation between key actors in eco farming ...... 16 5.4 Opportunities for eco farms ...... 17 6 Conclusion ...... 19 7 Bibliography ...... 20 9 Appendixes ...... 22 9.1 List of interviews ...... 22 9.2. List of questionnaires ...... 22

1 1 Introduction

In recent years, green and silver economies have been gaining increased attention and level of importance as a response to climate change, population growth and ageing population. With emissions of greenhouse gases, pollution and energy sources as well as sustainable food production and health care for the ageing population becoming some of the acute issues facing the world today. Innovative solutions and implementation of new approaches are becoming more and more essential. In short, the green economy is related to sustainable development and aims for economic development while reducing environmental risks while the silver economy aims to tackle the challenges of an ageing population and develop strategies for growth and employment.

The NORDPLUS 2018 intensive course on rural development is appropriately centered around green and silver economies. As part of the course we conducted a case study in the municipality of Zarasai in North-Eastern Lithuania. By doing some preliminary research on the region we came to the conclusion that focusing on the green economy of Zarasai would be interesting as the region has an abundance of environmentally friendly local food production as most farms in the area are considered rather small-scale. We wanted to research what kind of role and purpose eco farms in Zarasai have as well as how they are connected to the local community and other factors that influence rural development in Zarasai. Therefore, our main topic of research is what role do eco farms have in regional development in Zarasai. To answer this question we formulated three assisting sub questions:

• What characterizes rural development strategies and policies in Zarasai? • Are eco farmers in cooperation with other stakeholders in the area? • What potential opportunities can be identified for eco farmers?

To answer our questions we conducted interviews with local farmers as well as representatives of the local government and the agricultural school in Zarasai. This report begins with a brief description of the case study area which is followed by theoretical background about rural development strategies in general and the place-based approach. A brief overview of eco farming and rural tourism in general as well as in the Lithuanian context. In the following chapter there is a description of methods used and the data collected. The methodology is followed by analysis of the interviews where the results are provided as well as being put into context with the theoretical background. In addition the conclusions, reference list and appendixes are provided.

2 2 Description of the case study area

Zarasai municipality is located in North-Eastern Lithuania, belonging into county. The municipality is situated in Aukstaiciai highland of the Baltic ridge. It is bordered by municipality from south, Utena municipality from west, and Rokiškis municipality from north- west, Latvian-Lithuanian border from north-east and has also a border with Belarus in east (figure 1). Zarasai municipality has the area of 1334 km², which is 18,5% of the country’s area (Statistics Lithuania, 2008). Zarasai region was formed on 20. June 1950 from 24 parishes of the former Zarasai county (Zarasai district municipality, 2012). Today there are ten elderships in the municipality, two towns - Zarasai and and , three townships - Antalieptė, and and around 800 rural settlements. The centre of the district municipality is Zarasai (Statistics Lithuania, 2008).

Figure 1. Location of Zarasai municipality in According to the data of Zarasai municipality's government, there are 17.429 people registered in the municipality at the moment, from whom 6.615 are living in the Zarasai town. The population has been decreasing considerably for the last 10 years, as the population in 2007 was about 25000 people. Like the whole country, Zarasai municipality is also facing aging problems. According to the statistics, more older people tend to stay in the region whereas younger generation is declining because of the migration to bigger cities which is caused by difficulties with finding jobs in the region. For 300 deaths there are only 100-120 births in the municipality (Statistics Lithuania, 2008).

The ethnic composition in Zarasai municipality is slightly different from the overall composition in Lithuania. Only 78,1% of the population are lithuanians and the next biggest ethnic group is russians, who account for 20,1% of the population. The share of rural settlement is also considerably larger in Zarasai municipality than in the whole country, as 56,4% of inhabitants live in rural areas compared to 33,5% in the whole Lithuania.

3 Zarasai region is mostly known for the nature. There are two regional parks in the district, Grazute and Sartai and over 300 lakes. The largest lake in Zarasai municipality as well as in Lithuania is Drūkšiai and three more district’s lakes are included in the top ten of the country’s largest lakes. The district is crossed also by 8 rivers. Because of the landscape and location, the forests and agricultural areas make also a big share of the total area of Zarasai municipality (figure 2) (Statistics Lithuania, 2008).

Figure 2 Land use in Zarasai municipality The nature resources have created great conditions for developing tourism and wellness services. In 2008 Zarasai town was awarded a status of the resort territory and in 2010 Zarasai district declared as the EDEN (European Destinations of Excellence) destination in Lithuania for aquatic tourism. In 2008 Zarasai was also named the first Lithuanian capital of culture (Zarasai district municipality, 2012).

4 3 Theoretical background and concepts

3.1 Rural development strategies

Rural regions in Europe are undergoing a period of rapid transformation due to restructuring of agriculture, depopulation and increased marginalization. Meanwhile urban areas are experiencing an increased concentration of population and employment. Shrinkage of rural regions is a part of a wider trend of territorial restructuring that is caused by changes in agricultural practices that are less labour intensive as well as migration from rural to urban areas by mostly young and well-educated people. The depopulation creates a discrepancy between supply and demand of services that result in difficulties for the public and private sector and subsequently decrease the quality of life and employment opportunities. This affects the attractiveness of a region and causes a downwards spiral of population decline with falling fertility rates and an ageing population. This has lead to shrinkage becoming the normal trajectory for many rural regions. Shrinkage in rural regions is the outcome of complex and vicious cycle of interrelated social and economic factors. Depopulation is a good indicator of shrinkage but is rather seen as a symptom of shrinkage rather than the cause of it (ESPON, 2017).

This transformation of rural regions is being spurred on by processes of globalisation and increased global inter-relatedness making places, goods and services increasingly interchangeable. As a result it has become difficult for many regions to maintain their distinctiveness. Policy makers are faced with the task of adapting the economy to lower population levels. To address this issue policy makers have different kind of objectives in mind for the development of rural regions. On one hand there are policies that focus on creating an economic advantage by relying on superior production performativity as well as innovation systems and the creative class. The main objective is to insure the competitiveness of a region with a focus on growth rather than development based on conventional capitalist ideas that nations, regions and cities have to be competitive to survive in the global marketplace. The discourse on this kind of transition and policy making has frequently narrowed in on how globalisation and the capitalist economy has produced this kind of placelessness that has created more monotonous landscapes and a lack of variety between places (Horlings & Marsden, 2014).

As a counterforce to the placelessness of globalisation and to improve sustainability new place- based approaches are being developed. In contrast to conventional sectoral or issue defined perspectives place-based development is a holistic, multi sectoral approach that aims to identify, utilize and enhance the unique natural, physical or human capacity present within a region. The role and meaning of place within rural development can be found in a variety of rural development research and can be seen in a shift to a territorial rather than a sector-based approach in rural policy development where place is seen as a dynamic factor in the process of social and economic developments of regions (Markey, 2010). Place-base approaches are based on re-territorialism that seeks to reverse the order of globalised food production and reconnect specific foods with specific places with a de-emphasis on a homogeneous agricultural market in favour of a more segmented and local market. This results in new linkages among different sectors, businesses and producers as well as consumers and markets. Agriculture has a multifunctional role in these strategies and is seen not only as an economic driver and food producer but also as in construction of identities and images of rural places, goods and services. Agriculture also is a provider of green space as well as maintaining landscape quality and creating a sense of place (Horlings & Marsden, 2014).

5 Place-based approaches can be helpful to combat problems relating to population decline and shrinkage as new ways of thinking are needed to face the problem. Accepting shrinkage and re-envisioning it not as a burden but a potential positive opportunity can help to reshape rural policies as well as investment decisions to re-grow greener, smaller and provide new openings to be innovative and to modernise local governance and public services making them more holistic, pro-active and place-based strategies. It is important to diversify the local economy by mobilising endogenous resources e.g. natural capital, local heritage, renewable energy or tourism. Shrinking can also offer regions with opportunities within the green economy and fostering ecosystem services. Natural green advantages present themselves due to less pressure on the environment, more green spaces and a decrease in pollution. This provides enhanced opportunities for promoting a reorientation of the local economy towards a sustainable development e.g with organic food production and eco-farms, promoting locally produced products as well as in tourism and cultural activities (ESPON, 2017).

3.2 Ecological farms and local food markets

Ecological farming is an alternative to traditional farming by combining modern science and innovation with respect for nature and biodiversity. This kind of production ensures both healthier farming and healthier food and protects the soil, water and climate. Ecological farming does not damage the environment with chemical inputs nor does it use genetically engineered crops. All nutrients required by plants are obtained from natural organic sources, applying crop rotation, pests and diseases are destroyed using natural organic substances and methods (Stravinskiene, Bajarunaite, 2011).

European Union agrarian policy also supports development of sustainable agriculture and development of nature friendly farming methods. In recent two decades, all over Europe the development of ecological farming has been very fast and there have also problems occurred in many countries. It’s the reason why only a small portion of farmers choose ecological farming. The main reasons are insufficient earnings from bio products production, unsuitable crop rotations, lack of expert knowledge, low consumption of bio products, low social image of organic farmers, High prices of bio products (Moudry & Hartl, 2018).

One of the most important agricultural businesses in Lithuania is growing of grain crops. Ecological farming is practiced mostly on an area of up to 30 ha of agricultural land. In Lithuania there are two organic farming organisations: 'Gaja' and 'Tatula' (figure 3), which includes activities, for instance, the organisation of eco fairs and markets. 'Tatula' organisation is more related to ecological farms. The EU organic logo, the Euro leaf (figure 4), is used, as well as the national logo (figure 5), which was adopted by the Minister of Agriculture. Green and white or black and white versions can be used. The main objective of the European logo is to make organic products easier to be identified by the consumers (Pilipavicius, 2012).

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Figure 3. Logo of the Tatula program. Figure 4. The European Union organic logo.

Figure 5. National logo of eco-farm in Lithuania.

Eco farming and organic food production goes hand in hand with local food markets. In recent years, interest towards locally produced food has increased rapidly among consumers, restaurants and kitchens and traders (Korhonen et al, 2017). People are more interested in the origin, freshness and unprocessed nature of food and because of the transparency and traceability characteristic of a short supply chain, they tend to start to prefer local food to the large scale production (Brown, 2003; Korhonen et al, 2017). Organic eco-farming and local food markets provide a growing market for producers in rural areas. Organic farming has an important economical role by increasing employment and creating new workplaces. Ecological farming is well connected to the environment- and landscape conservation and maintains biodiversity in an indirect way (Sarudi et al, 2003).

Consumers interest in local food is not the only driving force. Globalisation and climate change has already put a lot of pressure on the development of agriculture as food is increasingly transported around the world, which increases transport related pollution and emission and also produces a lot of waste in the form of packages (Lyons et al, 2004). Therefore the globalizing food system is becoming more and more questionable and relocalisation of some production lines of food supply can strengthen the sustainability of both production and consumption (Järvela et al, 2009). So in addition to the quality and origin of the food, local food is seen also environmentally and economically sustainable as it is produced close to its consumption. Therefore the reduction of environmental impacts of transportation is one of the main benefits in local food consumption (Edward-Jones et al, 2008).

7 In addition to quality aspects and price, ease of access to food is also crucial for consumers and poor accessibility is one of the main issues preventing the further growth of local food markets. At present, food transport is organized mainly by centralised, large-scale logistics companies which do not provide possibilities for the local market to develop. Companies with short value chain often face excessive logistics costs and the need for development. Small companies have also problems accessing the market because of the small supplied batches, weak supply reliability and often weak level of branding and lack of knowledge about potential customers (Korhonen et al, 2017).

One of the key factors for the growth of the local food sector is cooperation what could ease smaller producers to access larger markets. Cooperative structures will increase local food profitability (Korhonen et al, 2017). The solution might be the clustering of the producers, what means according to Porter (1998:199) creation of geographically proximate group of interconnected companies and institutions in a particular field, linked by commonalities and complementarities. Porter (1998) also emphasized the importance of social interaction and trust to form the social infrastructure which is essential for knowledge exchange to take place and which are also an essential part of the glue that holds clusters together. In food industry the main benefit of clusters are the mobility of the labour force and demanding consumers which stimulate knowledge creation and exchange (Lagnevik et al, 2003).

3.4 Rural tourism and eco-farms

In addition to the agriculture industry and eco farming, place-based approaches can also be practical for the development of rural tourism. Rural tourism is an umbrella term for all types of tourism that is related to the production and consumption of traditionally rural symbols, lifestyles and products embedded within rural spaces and has grown more popular due to increased interest from people in urban areas to escape to the countryside (Lane, 2009). Rural tourism is based on tourist services in rural areas, services that involve investors, tour operators and local government. These services include accommodation and local food, often with an emphasis on traditional local food (Maria-Irina, 2017). Rural tourism is one of the fastest growing areas of tourism as many tourists travel to escape from their daily routines and prefer a more personal and authentic experience over the conventional holidays that are provided by mass tourism (Ayazlar et al, 2015).

Rural tourism is centered around the economic and social development of rural areas. Rural tourism is a source of an employment and income for people living in rural areas and increased spending in the community and provides new opportunities and improves infrastructures. Rural tourism has been linked with preservation of nature, culture and traditional values as well as landscape preservation, expansion of agricultural and sustainable development and can serve as a motivation for innovation and entrepreneurship (Vytautas Snieška et al, 2014).

Modern tourism as well as popularity of rural tourism is being influenced by sustainable development that can be seen in growing number of a new kind of traveller. This new traveller is focused on social responsibility and positive impacts of travel. Travellers today are becoming more consumer conscious and are more aware of their social and environmental footprint. Travellers want to make responsible choices and are looking for sustainable and ethical offers. For both the public and private sector this new trend offers diverse new opportunities for tourism, especially rural tourism, to grow in the future (UNWTO, 2016)

8 Agro-tourism falls under the umbrella of rural tourism and is a form of rural tourism which activities are directly related to agriculture and is usually a secondary activity with agriculture being the farmers main source of income. Agro-tourism is also often considered to be part of ecotourism as both are related to natural attraction (Maria-Irina, 2017). Research has shown that strengthening the links between tourism and agriculture can offer numerous economic opportunities and can play a significant role in development of rural regions. Furthermore, links between tourism and agriculture can also provide further potential for sustainable development (Pjerotic et al, 2017).

In Lithuania, rural tourism has grown to be an important part of the tourism sector and helps promote growth of inbound tourism. Rural tourism infrastructure has improved as well as an increase in supply of rural tourism services as well as increased number of tourism farmsteads and their capacity has stimulated growth. Additionally, changes in rural tourism farmsteads spatial distribution have also had a positive effect on rural tourism in Lithuania (Baležentis et al, 2012). Lithuania was negatively affected by the 2008 economic crisis but since then the number of tourists visiting the country has grown steadily. In 2017 Lithuania received 1.55 million foreign tourists and 1.38 million local tourists who stayed at least on night. Lithuania is mostly visited by tourists from Belarus, Germany, Russia, Poland, , Ukraine, the UK, Estonia and Italy with additional increase of tourist from the USA (State Department of Tourism, 2018).

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4 Methodology

This case study is based on qualitative interviews and observations that were conducted during intensive fieldwork that took place between 29th - 2nd of May 2018. In addition to the data gathered through the interviews secondary data was also used during the research to help us stay well informed about the context of our research. The framework for the interviews as well as the theoretical background and the description of the case study area were based on data that was available online, in articles, reports and other publications.

4.1 Interviews

Semi-structured interviews with nine people in seven different interview settings was the main method of data collection in this research. The interviews took place at a variety of locations depending on who was being interviewed each time. A list of open endend question as well as potential follow up questions was created to serve as a guideline during the interviews. The question guide is included in Appendix X. All the interviews were conducted in lithuanian or russian to make sure that the interviewees were comfortable and could fully express themselves. The interviews were recorded and extensive notes were taken down during the interviews to help with translation and data analysis later. When the interviewing process was completed the notes were translated into english to assist with analysing the content of the interviews.

Our key informants during the research were representatives of the municipality, the advisor to the mayor of Zarasai and the head of the rural development division of the municipality. The interviewing process started of with an in depth, joined interview with the reprasentatives.. They provided us with general information about Zarasai that we were not able to acquire elsewhere as well as informing us about farming in the region, development strategies and the municipalities connection with eco-farming in the region. They also put us in contact with local eco farmers in the region who agreed to take part in the research. We visited four farms where we made observations and conducted in depth interviews with the farmers. Additionally we visited the Zarasai Agriculture School and interviewed a teacher as well as a joined interview with two students.

4.2 Observations

In addition to the interviews we made active observation during our visit with each of the interviewees and on the region in general by making notes and taking photos of the things we saw and heard that we thought was interesting. We wanted to do an intensive observation, which included listening, watching and discussing the results in a critical way together as a group. We paid a lot of attention on discussion with each other, as we thought that discussions would be essential for providing critical views from every group member that would be useful for the final analysis and written report.

We looked around the offices of the municipality and visited the tourist center and watched an introduction video about Zarasai. During our visits with the local farmers we walked around the farms and got to sample some of the products being made at the farms (e.g. honey, beaver meat and blackcurrant wine). We noted that all of the participants behaved differently while being interviewed. Some of them gave us short answers and talked only when answering our direct questions while others had stories to tell and talked freely so not as many questions were

10 needed to gather the information needed. In those instances the list of question function more as a list of topics and key concepts that we wanted the interview to contain.

4.3 Analysis

Another method, which has been used in the research project is the content analysis. Content analysis obtains data by observing and analysing the content or message of reports, interviews, letters etc. It involves systematical analysis, as well as observation, to identify the specific information content and characteristics of the messages (Denscombe, 2007). In this report the interviews were used as a base of content analysis.

11 5 Results of data analysis and discussions

5.1 Eco- farming in Zarasai

In Zarasai municipality there are around 3000 farms at the present. Most of the farms are rather small, the average is 3 hectares and the biggest farm is 500 hectares. Only 10% of over 12 000 ha of potential agricultural land is used in the region. In the municipality the farms are producing things like dairy and meat, honey from bee farms, vegetables, berries, snails, buckwheat, beans, barley and wheat. Most of the farms do not use any chemicals but only 32 of them have ecological farm certification. The certification is provided for 5 or 7 years and every year the farms need to go through inspection. Local eco-farms are growing mostly vegetables, fruits, berries, animals and bees. Most of the production goes to the local market, only the local ecological snail farm is exporting its production to St. Petersburg. Because of the poor fertility of the soil in the region, Zarasai is focusing more on small-scale farming and emphasizing more on the value of ecological and local products. Zarasai municipality also provides a program of changing the farming cultures and usage of soils so that the fields are used for growing cultures only one year after which the soil will have time to recover for one year. Ecological farms in Lithuania started gaining support when Lithuania became a member of the European Union in 2004. Since then, ecological farms have recived larger payments and the expansion of the has been widely promoted. The harvest of eco-farms is smaller than in regular farms but eco-products have a high demand. All the eco-farms in the region belong to an eco- farm association but many farmers that have the capacity to become ecological are afraid to do so because of all the requirements. However, in regions like Zarasai district is more popular to by products from local farmers which don’t have a certificate of eco-farming because of lower coast and locals know that they don’t use chemicals for growing products even though they are not eco-farms. Our research was partly based on data from the local farmers. Totally was arranged meetings with 4 farmers: 1. Blackcurrant farm 2. Dairy and beef farm 3. Bee farm 4. Meat farm In following paragraph it will be briefly given a description of each farm and basic information about their production. Blackcurrant farm The first farmer we interviewed has been a certified eco-farm since 2007. In his farm he produces blackcurrants (eco), strawberries (non-eco) and raspberries (non-eco). All in all farmer has 50 hectares of the land, from which he owns 43 ha and 7 ha is rented. The farm is a family business owned by him and his wife. They do not have any employees, their family members and relatives help mostly if needed. Their farm provides also a special service: there is a possibility to pick up berries for themselves and this way the price for berries is double lower.

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Figure 6. Blackcurrant farm in Zarasai Dairy and beef farm The second farm we visited produces milk and meat products. The farmer has 40 cows of which 20 are dairy cows. He also grows grain for their own needs. Totally the farmer has 70 hectares of privately owned land. The farm is also a family business, started after the restoration of independence of Lithuania in 1990 and is managed by wife and husband.

Figure 7. Dairy and beef farm in Zarasai Bee farm The third farm was a bee farm owned by a father and son. There are 210 houses for bees in the farm. From that amount 160 belong to the son and 50 the father. The farmers produce all kind of honey products. In case of this farm the size of land is not important, beekeepers don’t need many hectares of land. The size of farm depends on a number of bee’s houses. The farm was originally owned only by the father but the son joined the business in 2013. After two years of farming the became an eco-farm as he understood that the competition between non-eco bee’s farms is too high.

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Figure 8. Bee farm in Zarasai

Meat farm The last farm we visited was owned by a husband and wife. The farmer we interviewed and her husband are owners of eco-farm and rural tourism place. She is 71 years old. Her farm is also a family business. They have 150 hectares of own land, from which 45 hectares is an island. The farm produces mostly beef, which they are selling to factories, but for the last 2 years they are also selling cows to Poland, because they pay much more than local companies. The owner of the farm has got a lot of diplomas of getting the first places in competitions of farmers. The farmer also tries to connect ecotourism with farming. For example, every year in their island they have a cultural and national festivities, which are very popular among the Lithuanian population. The farmer makes also coffee of the oak tree, which she has in her farm, and in addition to selling it she also organizes degustations.

Figure 9. Meat farm in Zarasai

5.2 Rural development in Zarasai

The following discussion on rural development strategies in Zarasai is based on information gathered from a joined interview with representatives from the municipality as well as observations made during the visit and a review on available online information about rural development policies and programs that benefit the region. It was clear that rural development

14 strategies in Zarasai are centered around strengthening the tourism sector with an emphasis on nature and cultural heritage tourism. The municipality has not implemented a general rural development policy but rather a rural tourism policy for developing the region. The main goal is to further develop agriculture and tourism sector in the region. They want to build an image of the region as a beautiful, comfortable and cosy region that offers many different tourist attractions.

When talking about the tourism sector there is an emphasis on both nature based tourism and agro-tourism and wanting to strengthen the connection between the two. The municipality has over 300 lakes and they want to utilize the diverse potential that they offer for tourism, including recreational fishing and water sports. They also have a lot of opportunities for growth of agro-tourism with many small farms that are mostly ecological in practice. They have no official agricultural policy in place but they said that the main goal is to create their own cooperative and support the production and branding of local food that would have its own signature that is recognizable to everyone.

When asked about the rural development policies in place and their focus, the representatives focused their answer on problems and obstacles standing in the way of rural development. The main issues that development strategies and policies in the region have to address is population decline and ageing population as well as lack of employment opportunities. The sessional nature of many jobs is also a serious problem. At the moment, the regional government is struggling to find a solution to these problems. The interviewees think that the region is not attractive enough for investors because of difficulties in attracting tourists and think that there is no need to invest in projects if there won’t be any visitors in the region.

However the municipality has been involved in many different programs and projects aimed at rural development. For an example, they have provided 10 multifunctional buildings in small towns that serve as libraries, community centers, outpatient clinics and art galleries. They have also opened up a pool, constructed an island in one of the lakes and improved local infrastructure. However most of the project they mentioned the municipality being a part of, most of them were related to tourism. They have been trying to further develop relation with the Latvia region. There is a highway that goes from Saint-Petersburg to Warsaw and according to new plans they want to make Zarasai the first Lithuanian destination for people traveling through Lithuania to Warsaw. They also have strong relations with Saint-Petersburg that they have been trying to maintain. Before the independence of Lithuania around 25 thousand tourists came from Saint-Petersburg to Zarasai every year. In Saint-Petersburg Zarasai is known for being an exporter of snails.

Regarding rural development projects and programs aimed at agriculture, most of them are at a national level. The municipality has recently been involved in starting up a local production of fry. There was a programme for development of eco-farms in 2014-2020 that has now been stopped. The program provided farmers with subsidies for ecological production but since the program has been stopped farmers are not as keen to turn to eco farming as they won’t get additional payment for it anymore. However, there is a program in place for new farm development for 2014-2020 that provides support for new farmers. The municipality helps to arrange all the documents needed to start a farm. Today there are 240 new farmers in Zarasai and every year 4-5 new farms are started. The representatives of the municipality put emphasis on wanting the region to be accommodating for new farmers. They have land available for agriculture and want people to come and start up small scale farming and possibly rural tourism activities and produce their own employment opportunities.

15 At first glance, rural development strategies and policies Zarasai seem to be sector-based approaches with the tourism sector being at the forefront of rural development. However, the interview with the representatives of the municipality revealed goals for rural development that can be described as place-based approaches even if the concept it self is not being used. They want to maintain their distinctiveness and create an image of the region that is unique and attracts tourists as well as potential farmers. Agriculture has a multifunctional role in rural development strategies of Zarasai as part of rural tourism and a part of a wider global trend of ecological food production and local food markets.

5.3 Cooperation between key actors in eco farming

From all the interviews it appeared that there is recognizable amount of cooperation between local farmers and other key actors. As the interviews were made with the farmers, representatives of the government and the agricultural school, the main connections we detected were therefore between the government, the school and the farmers. As expected, from the view of municipality, there is a lot of cooperation between the government and local farmers. According to the interviewee 1, they are making steps in order to help rural development as there are ten multifunctional communal houses in small towns all around the municipality, where there are different services available, for example library, community activities, out-patient clinic and art gallery. Interviewee 1 also pointed out that mostly all farmers participate in community activities and the government is also providing some help and advice for the farmers. Every eldership in the region has their own agriculture specialist who provide some consultation to farmers about agricultural questions. Municipality itself has also a rural development department, who organizes informational events and workshops. There are also national level activities for farmers, for example the municipality in cooperation with Lithuanian Farmers Union organizes every year a contest “The best farm of the year” and “The most beautiful farm”. In the municipality, there is also a program for new farmers development for 2014-2020 which provides support and helps to arrange all the documents for farming. A lot thanks to that program, every year 4-5 people become farmers in Zarasai. However, the farmers are not as optimistic as the government on the side of cooperation between them and the municipality. Interviewee 4 and interviewee 6 admit that the municipality is organizing some events for education and advertisement of the farmers, for example exhibitions, conferences about innovation and they are also organizing markets. Otherwise according to interviewee 4, the government does not provide any support to them, except a program called ‘Pusiau natūrinis ūkininkavimas’, through which the farmer received 15 thousand euros for buying machinery for starting the business. Interviewee 5 claims he does not have an open relationship and connection with the municipality, according to the farmer: “Municipality does not disturb the farm and the farm does not disturb the municipality.” However there is some financial support the municipality provides them, 50% of the money needed for starting the farm came from the municipality and they also have a discount on taxation payments. Similar situation is with the interviewee 7, the farmer received one tractor with the help of municipality but otherwise the farmer does not have any relationship nor receives any help from the municipality. Relationships between local farmers are slightly different subject. None of our four farmers have any official partnership with another local farmer. Though interviewee 4 and interviewee 5 both admitted that they are helping each other with the farmers nearby, but the partnership is not official and interviewee 6 also wishes he could cooperate with another farm someday. According to interviewee 7, in two years there will be realized a project according to which

16 there will be created small private factories where farmers nearby could produce sausages and meat by themselves as the prices in big combines are too expensive for the small farms. Three of our four farmers belonged also to an association, interviewee 5 belongs to LFU (Lithuanian Farmers’ Union), interviewee 6 belongs to Lithuanian Ecological Association which he thinks is the only association which does something reasonable and interviewee 7 belongs to Meat Association of Lithuania. According to the interviewee 2, the teacher of the agriculture school of Zarasai, there is also a lot of cooperation between the farms and the agricultural school. According to the teacher, some of the students come to study at the school because their families already run businesses in that sphere and they want to proceed the business. Also all the potential farmers should have finished some kind of courses of agriculture in the school. There are also signed contracts with the farmers so that students can practice in the local farms and the farmers will come and sit in the commissions for the exams of the students. According to interviewee 2, there is not much cooperation with specially eco farms, the teacher pointed out that there might open an opportunity to create contacts with one ecofarm in June 2018. In addition to connections with farmers, the school is cooperating with the government of the municipality as well. Interviewee 2 pointed out, that the school is really depending on the municipality and for example the reparation of the school was the very last thing the municipality financed. As expected, there are quite many connections between the key actors in Zarasai in the field of agriculture and ecotourism. In general, all of our examined parties, the government of the municipality, the agricultural school and the farmers, admit that there is some cooperation but the level of cooperation depends on the view of the actors. Understandably the government emphasizes their importance in improving agriculture and eco-farming, but as it comes out from the interviews with the farmers, the support is not as remarkable as the government wants it to be seen. However, the agricultural school seems to have an important part of the development of agriculture in the region as there is a lot of cooperation between the farmers and the school and also the government has supported the school a lot. 5.4 Opportunities for eco farms

From the interviews, our argument got confirmed that Zarasai municipality is focusing a lot on tourism in their region and according to the advisor of the major (interviewee 1), their aim is to create an image of Zarasai as a comfortable and cosy region for tourists to spend time with their families, friends and relatives. According to interviewee 1, the area is full of opportunities for agriculture tourism, which includes fishing, kayak riding, degustations and buying the local farmers productions. They want to develop rural agricultural structures and the whole tourism sector of the region and they are also trying to develop their own cooperative, local and branded product of the region which would be recognized by everyone. The municipality is welcoming family businesses to open and proceed in the region, so that people will create and produce working places for themselves. Interviewee 2 also confirmed the possible opportunities for developing agricultural based tourism or ecotourism in the region. According to the interviewee 2, the role of ecotourism is quite significant and the sphere is promising as the number of people who are interested in eco-tourism is increasing and they are also showing increasing interest in acquaintance with animals. The students of the school, interviewee 3 are also convinced that Zarasai district has a lot of free land for developing agriculture and eco- farming. According to the students, the school itself has also an ecological farm where students can practice and all the grown vegetables and fruits there are used for cooking in the school canteen.

17 All of the interviewed farmers were also agreeing in the importance of developing ecotourism rather than increasing their production in order to improve their financial capability. Interviewee 4, the owner of blackcurrant farm, is already producing wine for his friends and relatives. He has also acquired equipment for larger scale production and he is hoping to start producing in coming years. There is also a big opportunity for him to organize wine degustations which might be an efficient way to attract tourist and develop ecotourism in the area. Interviewee 7, the owner of the meat farm, is also developing ecotourism in her farm. The farmer owns the biggest lake island in Lithuania, where a lot of festivals, concerts and scout camps take place. In addition to meat, the farmer is also producing ecological coffee which she also sells to people and organizes degustations. The farmers are also trying to enter the international market. Interviewee 6, farmer of the bees, says they are already successful on international market and their honey products are sold for example in a shop “Lituanika” in England. Interviewee 5 is selling their animals to local firms which sell them further to Holland and Israel. Interviewee 7 is also selling her animals already to Poland, where people are ready to pay more than in Lithuania. According to her, it would help a lot if farmers would do everything by themselves – from growing animals until selling their production, because that way production would be more ecological and attractive to people so they would be ready to pay more. Interviewee 4, farmer of the blackcurrants is also worried about the low price of ecological food as there is not that big difference between ecological and non-ecological blackcurrant price and according to him, eco-farming is not really worth the effort that way. However, interviewee 5 has a bit more positive opinion, he admits that the completion would grow as farms become eco-friendlier, but in general it would be more profitable. According to the interviewee 1, the biggest problems with developing the tourism sector based on agriculture, is the decrease of the population as there is severe lack of jobs in the municipality, and also ageing. Contrary to interviewee 1, the farmer of bees, interviewee 6 was instead worried about lack of labour force in agriculture field. Another problem is the seasonality of the attractions, according to the farmers the biggest problem they are facing right now is the weather, as there has been a lot of rain which makes it difficult to harvest the crops at the right time. According to interviewee 5 and interviewee 7, a big problem is also very low price of meat and milk on the market, which makes it really difficult to compete with large- scale producers. In general, all of our interviewees were agreeing in the possible future of Zarasai in the form of ecotourism. The government sees a lot of potential in the field of ecotourism in Zarasai and they are doing also some progress in improving the situation. However, they are facing a lot of difficulties in the form of population decrease, aging and also dependence on seasonality in agriculture, but there are a lot of opportunities for them to improve the situation by marketing and advertising. The farmers are also already making steps towards focusing more on ecotourism rather than pure agriculture and with some improvement in cooperation between different actors, there are a lot of opportunities for rural development in Zarasai.

18 6 Conclusion

The research took place in Zarasai region and the aim of the research was to identify opportunities for developing green economy of the region. The research followed the idea of searching the answer for the main question: what role do eco farms have in regional development in Zarasai? After the interviews and the observations we were to admit that more attention is put into developing tourism in the region rather than agriculture. However, according to the interviewees there is also a lot of possibilities to connect these two fields and develop ecotourism in the region. Zarasai region is very interested in creating the opportunity for visitors to try local farmers productions in their recreation areas, while tourists travel through the region and there has already made some progress in the form of supporting the farmers and organizing relevant events. Although only 32 of the farmers in Zarasai have a certificate of having an eco-farm, all of our interviewees admitted that in local conditions almost all of the farmers are growing actually ecological food. Therefore, we conclude from our research that eco farms have an important role in rural development in Zarasai and every year they are becoming more and more attractive. Although it was not mentioned directly, the municipality is trying to implement place-based strategy on developing the tourism sector in Zarasai, which is essentially their best opportunity considering the natural environment and the distant location from bigger cities in Lithuania. The municipality is also facing declining population and ageing due to which they are trying to use measures to gain new inhabitants in the region in the form of welcoming new entrepreneurs and family businesses. One of the measures is also trying to mobilize different sectors in the region and having them work together as could be seen in rural tourism and eco- agriculture. The municipality is making therefore a lot of important steps in order to help the rural development in Zarasai. The cooperation between different key actors in the region is however not on a level it would be the most efficient. According to the government a lot of support is given to local farmers, programs are going on and many projects will start in future time, but from the farmers views the cooperation is not as sufficient it should be. In addition to educational and marketing events, only small discount of taxations and for some occasions also financial support for starting the farm is provided. However, there is efficient cooperation between the agricultural school and the farmers, but the network between local farmers themselves should be improved. For the future of eco farms in Zarasai it is important to create further links between tourism and agriculture in the region as it can play a significant role in the development of municipalities. Local food production is the primary role of eco-farms in the region but most of the farmers we interviewed wanted to expand their business into tourism as well. Some good policies and strategies are needed to have a clear plan of action for the development of the region as well as a good marketing strategy. From our point of view after visiting the region we can see that it offers a lot of potential for rural tourism and eco farming.

19 7 Bibliography

About the district (2012). Zarasai district municipality web page. Used 29.04.2018. http://www.zarasai.lt/index.php

Ayazlar, G & Ayazlar, R.A. (2015). Rural Tourism: A Conceptual Approach. In Avcıkurt, C. (editior), Tourism, Environment and Sustainability. Sofia: St. Kliment Ohridski University Press.

Baležentis, T., Kriščiukaitienė, I., Baležentis,A. & Garland, R. (2012). Rural tourism development in Lithuania (2003–2010) — A quantitative analysis. Tourism Management Perspectives (2), pages 1-6. https://doi.org/10.1016/j.tmp.2012.01.001

Brown, C. (2003). Consumers’ preferences for locally produced food: A study in southeast Missouri. American Journal of Alternative Agriculture, 18(4), pp 213-224. Country report - Lithuania. (2012) Used 01.05.2018. www.organic-europe.net/country-info Denscombe, M. (2007). The Good research Guide For Small-scale Social Research Projects. Berkshire: Open University Press. pp 206 Edward-Jones, G., Mila i Canals, L., Hounsome, N., Truninger, M., Koerber, G., Hounsome, B., Cross, P., York, E. H., Hospido, A., Plassman, K., Harris, I. M., Edwards, R. T., Day, G. A. S., Tomos, A. D., Cowell, S. J., Jones, D. L. (2008). Testing the assertion that ‘local food is the best’: the challenges of an evidence-based approach . Trends in Food Science & Technology, 19(5), pp 265-274. ESPON. (2017). Shrinking Rural Regions in Europe - Policy brief. Used 29.04.2018 https://www.espon.eu/rural-shrinking European Urban and Regional Studies, 21(1), page 4-20. Greenpeace 2015. Ecological farming: The seven principles of a food system that has people at its heart. 2015, Amsterdam. Horlings, L.G. & Marsden, T.K. (2014). Exploring the “New Rural Paradigm” in Europe: Eco-economic Strategies as a counterforce to the global competitiveness agenda. http://cf.cdn.unwto.org/sites/all/files/pdf/global_report_transformative_power_tourism_v5.co mpressed_2.pdf

Järvelä, M., Jokinen, P., Huttunen, S., Puupponen, A. (2009). Local food and renewable energy as emerging new alternatives of rural sustainability in Finland. European Countryside, 1(2), pp 113-124. Korhonen, K., Kotavaara, O., Muilu, T., Rusanen, J. (2017). Accessibility of local food production to regional markets – case of berry production in northern Ostrobothnia, Finland. European Countryside, 9(4), pp 709-728. Lagnevik, M., Sjoholm, I., Lareke, A, Ostberg, J. (2003). The dynamics of innovation clusters: A case study of the food industry. Cheltenham: Edward Elgar. Lane, B. (2009). Rural tourism: An overview. The Sage handbook of tourism studies. Page 354-370. DOI: 10.4135/9780857021076.n20.

20 Lyons, K., Burch, D., Lawrence, G., Lockie, S. (2004). Contrasting paths of corporate greening in Antipodean agriculture: organics and green production. In Jansen, K. & Vellema, S. (Eds.). Agribusiness & Society, pp 91-113. New York: Zed Books. Maria-Irina, A. (2018). Nation Branding and Tourism. Case Study: Coratia. Enterprises in the Global Economy. https://www.researchgate.net/publication/324063013_Nation_Branding_and_Tourism_Case_ Study_Croatia Markey, S. (2010). Primer on Place-Based Development. Used 29.04.2018. http://cdnregdev.ruralresilience.ca/wp- content/uploads/2013/03/primerplacebaseddevelopment-markey.pdf Moudry, J,. Hartl, W,. Cudlinova, E,. Konvalina, P,. Šramek, J,. Major problems of organic farming - experience transmission. University of South Bohemia, pp 1-3. Pjerotic, L., Delibasic, M., Joksiene, I., Griesiene, I., Georgeta, C.P. (2017), „Sustainable Tourism Development in the Rural Areas”, Transformations in Business & Economics, Vol. 16, No 3 (42), pp.21- 30. Porter, M. (1998). On competition. New York: HBS. Sarudi, C., Szakály, Z., Máthé, A. & Szente, V. (2003). The Role of Organic Agriculture in Rural Development. Agriculturae Conspectus Scientificus, 68 (3), pages. 197-202. From http://www.agr.unizg.hr/smotra/pdf_68/acs68_35.pdf Silverman, D. (1997). Analysis methods. Qualitative research: theory, method and practice. London: SAGE. pp 30. Snieškaa, V., Barkauskiene, K. & Barkauskas, V. (2014). The impact of economic factors on the development of rural tourism: Lithuanian case. Social and Behavioral Sciences (156) pp. 280 – 285. From https://ac.els-cdn.com/S1877042814060091/1-s2.0- S1877042814060091-main.pdf?_tid=39358c04-2f54-48fd-a2b2- e226ebd263e6&acdnat=1525267934_ff9c1824ce807940343cd8d660e18692

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Zarasai district municipality (2008). Statistics Lithuania. Web page. Used 29.04.2018. http://regionai.stat.gov.lt/en/utenos_apskritis/zarasu_rajono_savivaldybe.html

21 9 Appendixes

9.1 List of interviews

Interviewees Date/ Data Time

1 Advisor of a mayor and the 30.04.2018 Representatives of the government Head of the the Rural 9.30 AM Development Division of the Municipality

2 Agriculture School Teacher 30.04.2018 Teaches 3 disciplines: 1.Health and safety of workers; 2. 2.00 PM Agriculture (gardenings, floristics, how to grow vegetables etc. BUT nothing connected with animals); 3. Physics

3 Two students of Agriculture 30.04.2018 Students are in their final year of Zarasai agriculture School 2.40 PM school

4 Local farmer 1 30.04.2018 Stasys Juozapavicius; Blackcurrant farm, since 2007; 4 PM 50 hectares of the land

5 Local farmer 2 01.05.2018 Algirdas Lekaveckas; Meat/ milk farm, since 1990; 70 10.00 AM hectares of own land

6 Local farmer 3 01.05.2018 Laimonas Galvonas; Bee farm, since 2013 7.00 PM

7 Local farmer 4 02.05.2018 Onute Vidrickiene; Meat farm, own farming since 1990; 10.00 PM 150 hectares of land

9.2. List of questionnaires

Questions for the advisor to the mayor and the head of the rural development division of the municipality. Topics and key concepts: The changing population Image of Zarasai Rural Development policy Agriculture in Zarasai Eco-farming

22 Relationship with local farmers Vision for the future.

• General questions about Zarasai: To start of with we would like to ask you some general questions about the municipality.

o How many people live in Zarasai?

o Has the population changed in recent years?

o How are you counteracting the ageing population problem?

o Are you experiencing a population decline? Why do you think that is?

o What kind of image would you want people to have of Zarasai?

o What kind of image do you think people have of Zarasai?

o What is your future vision or goal for the municipality?

• Rural development in Zarasai

o What are the main issues in rural development in Zarasai?

o What actions have you taken to help rural development?

o Have you implemented a rural development policy? What is the focus?

o Do you have a strategy to further sustainability or develop a green economy?

o in the municipality? If yes, what is focus, if no do you think one will be implemented in the future?

• Agriculture in Zarasai

o What type of agriculture is conducted in the municipality?

o Do you know how many farms are located in the municipality?

o Can you tell is what is being produced and how much of it?

o How important is agriculture for the region? Is it a big part of the economy of the region?

o What type of market is the agriculture in the region relying on (local, national or maybe international?)

o Do you have an agricultural policy, what does it focus on?

• Eco-farms and sustainable agriculture.

o What do you think of organic production within agriculture in Zarasai?

o Do you believe there are opposing views on eco-farms municipality? Maybe within the administration of the municipality or the local public?

o Are there many eco-farms located in the municipality that you know of?

o What are your views on organic production being economically feasible for

o the region?

23 o What do you think of furthering the development of eco-farms in the region and increasing the number of eco-farms?

• Role and relationship of the municipality and the farms.

o Can you describe your relationship with local farmers?

o Are there any local institutions that work directly with farmers?

o Are there any national incentives that you know of that help farmers?

o Can you tell us about the role of farmers for the community in Zarasai?

o Do you provide any kind of support for local farmers? If yes, in what way, if no, would you like to be able to provide support for local farmers?

o Do you provide any support for potential new farmers that want to start farming in the region? Would you like to?

o Do you work with the Zarasai Agricultural School?

• Future vision for agriculture What is your future vision for agriculture and the green economy in Zarasai?

Questions for the Zarasai Agricultural School

o Can you tell us a little bit about the school and your role in the school?

o How many students do you have?

o Why are you located in Zarasai?

o Where are the students from? Are they local?

o Can you tell us where previous students are working? Do they generally stay

o in Zarasai?

o What kind of programs do you provide the students with?

o Do you have courses about eco-farming?

o What are your views on eco-farming and organic production?

o Do you emphasize somehow the importance of eco-farming, sustainability or organic production?

o Does the municipality support your activity? Do they provide the school with any funds?

o Do you cooperate with local farmers?

o What kind of cooperation do you have?

o How about with local eco-farms?

24 Questions for local farmers o Can you start of with telling us a little bit about yourself and your farm or your o position/job at the farm? o What do you produce and how much of it? o How many hectares of farm land do you have (is it owned land or rented?) o How many owners does your farm have? o When did you start working as a farmer and why? o Has the production of the farm changed over time? Why? o How many employees do you have? Where do the come from? o Do you offer any other services? o What kind of technology/machinery do you have? o How did you acquire it or finance it? o Where do you sell your products? (local, national, international market?) o Who are your main customers? o Do you have a partnership with another farm or any businesses? o Does the farm or you belong to any association? o Would you describe the farm as an eco-farm or organic? o Would you like to move into that kind of production? Do you think it would help the farm or harm it? o Can you describe your relationship with the local government/municipality? o Do you feel they are providing support for farmers in the region? o What do you think would help your farm? o What are your main challenges right now?

25