NORD+ 2018 INTENSIVE COURSE RURAL DEVELOPMENT The Role of Eco Farms in Regional Development A Case Study of Zarasai Region in Lithuania 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 Utena county. The municipality is situated in Aukstaiciai highland of the Baltic ridge. It is bordered by Ignalina 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 Dusetos, three townships - Antalieptė, Salakas and Turmantas and around 800 rural settlements. The centre of the district municipality is Zarasai (Statistics Lithuania, 2008). Figure 1. Location of Zarasai municipality in Utena county 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