Innovation, Agricultural Productivity and Sustainability in Latvia
Latvia, a member of the European Union since 2004, is a small, dynamic and open economy
that has successfully transitioned from central planning to a market economy. The
reforms undertaken have driven progress, although from generally low levels and at
a slower pace in agriculture than for the economy as a whole. This report examines
the conditions under which farms and businesses in the food and agriculture sector
in Latvia undertake innovation to become more productive and environmentally sustainable.
It identifies opportunities as well as challenges that need to be addressed. These
include economy wide skills shortage, emigration and population decline and urban
concentration of population and services. At the sectoral level, these include the
use of agricultural payments to support a large number of non-commercial farms and
the high level of unpaid farm labour. To meet these challenges, agricultural innovation
can be harnessed to improve the sector’s productivity, as well as the sustainability
and efficiency of the food system. This report provides a series of recommendations
that should allow agricultural policies to contribute to a well-functioning innovation
system that can meet the challenges that lie ahead.
Published on April 11, 2019Also available in: Latvian