This article is covering results of pre-commercial thinning, forest infrastructure and undergrowth harvesting field studies implemented in July, 2007 by Skogforsk and LSFRI Silava. A scope of the study was to estimate prime costs of biofuel production from small trees and to compare two types of harvester heads (Bracke C16.a and Ponsse EH25). The productivity in pre-commercial thinning expressed as trees per E0-h (effective hour) ranged between 53 (Ponsse) and 118 (Bracke) in the pine stand and 150 (Bracke) in the mixed spruce stand. In comparison the LVm3 (LV - loose volume) ranged between 9.9 (Ponsse) and 14.1 (Bracke) in the pine stand and was 13.0 (Bracke) in the mixed spruce stand. In the forest infrastructure (roadside ditches) harvesting productivity was 8.2 LVm3 E0-hE-1 for Ponsse and 12.5 LVm3 E0-hE-1 for Bracke. Productivity was economically insufficient in undergrowth removal, both in harvesting (Bracke) and forwarding (Ponsse) operations, respectively 1.1 and 2.6 LVm3 E0-hE-1. Prime costs of harvesting, forwarding, comminution and chip transport (50 km one direction) in pre-commercial thinning in calculation to LVL LVm-3 were 5.93 for Ponsse and 5.85 for Bracke. Prime costs in forest infrastructure in LVL LVmE-3 were 4.97 (Ponsse) and 6.36 (Bracke). Only Bracke was tested in the undergrowth, where prime costs were 37.55 LVL LVm-3. 'Environmental footprint' of biofuel production from small trees in terms of carbon (C) emissions ranged from 2.6 to 10.2 kg CLVmE-3, including road transport (50 km) to terminal.

The purpose of this article is to establish the social and/or economic impact of the implemented Cohesion Fund (CF) projects on development of regions of Latvia. Three tasks are addressed to achieve this goal - to study CF projects by regions; analyse distribution of funding by sectors of economy and their compliance with CF objectives; to draft recommendations for improving the absorption of funds and achieving the goals of the European Union (EU) regional policy. The article consists of three chapters, an introduction and conclusions. New scientifically grounded recommendations are developed for improving socio-economic impact of the CF in Latvia. The key recommendation relates to the EU involvement in dealing with problems of increase in costs, namely - by proving that the increase in costs affects several of the new EU member states or Community regions, the EC will have to take part in addressing the problem. Further assessment of the socio-economic impact of the CF on development of regions of Latvia requires additional research.

This article represents the results of the research project 'Forest energy from small-dimension stands, infra-structure objects and stumps' realized in cooperation between Joint stock company Latvijas valsts meži (Latvia's state forests), SKOGFORSK (The Forestry Research Institute of Sweden) and Latvian State Forestry Research Institute Silava. The article is covering issues related to the results of stump harvesting field study realized in November, 2008. A scope of the study was to estimate costs of stump harvesting and to evaluate working methods and influencing factors related to extraction of stumps. Better harvesting conditions (flat landscape and lack of stones in soil) led to increased productivity of stump extraction in Latvian trials (5.2 tdry (tdry - tons of dry mass) of stumps per effective hour (E0-h)) in comparison to average figures in Scandinavian studies. Load sizes of the forwarder ranged from 5.5 to 9.3 t which is about half of the maximum load of forwarder. Average productivity of forwarding was 6.3 tdry E0-hE-1. Productivity of stump transport (distance - 7 km) was 3.5 tdry E0-hE-1. Productivity of comminution was 10 tdry E0-hE-1. Prime cost of the stump harvesting, including extraction, forwarding, stump transport (7 km one direction), comminution and chip transport (50 km one direction) was 6.3 LVL LVmE-3 (LV - loose volume). 'Environmental footprint' of the stump harvesting in terms of carbon (C) emissions was 2.5 kg C LVmE-3 of wood chips at terminal. Stumps demonstrated considerably higher heat value (5.7 MWh tdryE-1 against 4.7 MWh tdryE-1 for the hog fuel from a slash).

Business activity of an enterprise is almost inconceivable without planning. Therefore today there are many discussions about the importance of activity planning of the enterprise and forecasting of the resources, necessary to reach the set tasks. For this reason the scientists and practicians offer to implement the budgeting system in the enterprises. This paper introduces the new budgeting model - Activity-Based Budgeting (ABB) model. It also contains the survey of advantages of this model and its applicability in theoretical aspect. The key objective of this paper is to present Activity-Based Budgeting (ABB) as an important means of planning and coordination of activity of the agricultural enterprise (or any other type of an enterprise). After performance of analysis of the main principles of Activity-Based Budgeting (ABB) model the reasoned conclusions can be drawn that application of this model in the agricultural enterprises could be the alternative means against the variable and changing economical and business conditions. It should be emphasized that contrarily to the traditional budgeting models; ABB can help to establish the connections between the incurred costs and the company processes. The paper contains ABB analysis based upon the scientific studies and the fragments of practical application of the model.

It has been shown in previous studies that transaction costs (TC) of agri-environmental policy measures often are very large both in absolute terms and as a share of payments. As agri-environmental policy measures make up an increasingly large share of agricultural policies, not least within the European Union, it is becoming ever more important to improve the knowledge about the factors determining the level of transaction costs. This paper investigates the TC determinants of one Swedish agri-environmental policy measure. More specifically, it aims to investigate if the level of TC is attributable to economic factors, such as pasture density and distances, or if political factors, such as lobby groups and political majorities at the county level, influence the costs. To evaluate if the results are robust with respect to alterations in model specifications, a version of the extreme bounds analysis is applied. Although initial results indicate that political parties influence the level of transaction costs, the extreme bounds analysis reveals that those results are fragile. It shows that five of the economic variables are robust with respect to model specifications, but none of the political variables is.

Rising oil prices, national security concerns, the desire to increase farm incomes, and a host of new and improved technologies are propelling the European Union to set the directive for the year 2010 – each member state should achieve at least 5.75% biofuel usage of all used transport fuel. The report on the progress made in the use of renewable fuels shows that the average Member State of the EU has achieved only 52% of its target, and biofuels’ share in 2010 will not raise much above 4%. The prices of different biofuels are still not able to compete with oil based fuel prices. One of the possible ways how to solve this problem is to optimize biofuel supply chains using different methods of systems engineering. The aims of this investigation were finding out appropriate simulation tools for biofuel supply chain modelling, development of rapeseed oil supply chains for different production types, and modelling the developed supply chains. As the result of software survey, two packages were chosen – AnyLogic and ExtendSim Suite. Modelling studies showed that rapeseed oil supply chain is very sensitive, because changing just single parameters in a short scale, the actual cost price of 1 litre of oil changes considerably. Comparing the fossil diesel fuel prices with rape oil actual cost from modelling studies, the use of oil as a fuel for farm machinery seems to be profitable. Analysis of costs distribution shows that the greatest part is composed by rapeseed growing expenses.

The study was accomplished in 2010. The applied research methods are based on the analysis of the studies by other authors, industry experts, statistic data and the (unpublished) information provided by the Latvian district heating merchant “xxx”. Spearman’s rank correlation coefficient was used for evaluating data regularity. In 2020 the energy produced from renewable sources (Directive 2009/28/EC) in total energy consumption in Latvia has to reach 40%. Such an objective can be achieved by promoting the use of biomass at cogeneration (CHP) plants, the potential of which is the district heat supply system. Wood as an energy resource in its structure accounts for only 25-30%; therefore, the primary condition is the introduction of modern technology which would provide the possibility to diversify energy resources. The calculations confirm that the realised amount of thermal energy indirectly affects profit; directly it is affected by the rate of thermal energy, so the structure of use of energy in heat supply enterprises is associated with lowering the cost of (restrictive) factors - the energy cost, specific production technologies, energy efficiency. Currently, the primary condition of heating companies is to find such energy resource(s) to ensure the approved schedule of temperature and thermal load. The next determining factor is the energy price. In assessing the factors that will affect energy usage in the future, the main strategic principle of energy consumption will be linked to limiting the growth or even reducing heat tariff, by realising optimal efficiency and minimal environmental pollution during energy transmission.

The production of innovative composition (high omega group fatty acids and antioxidants-carotenoids) broiler chicken meat and egg opportunities in Latvia was assessed. After feeding the poultry with feed enriched with fatty acids and antioxidants, broiler meat and eggs of innovative composition containing a higher amount of omega-3 (in meat by 1.7%, in eggs by 2.7%), omega-6 (in meat by 3.9%, in eggs by 3.2%) and carotenoids (0.44 mg kg-1 in meat and in eggs by 6.9 mg kg-1) when compared with the content of commercial products are obtained. Nutrition costs of innovative composition-based broiler chicken meat production are LVL 20 higher and nutrition costs of egg production are LVL 1.49 higher per 1000 units of output than in the standard version of the poultry feeding-stuff. The poultry farming production of an innovative composition, however, is economically profitable due to the higher rates of poultry productivity. In the case of an innovative composition-based yield the potential profit at the currently equal cost realisation of poultry meat and eggs is higher when calculating 293.47 LVL per 1000 broiler chickens and 5.52 LVL per 1000 eggs in comparison with commercial production.

Appropriate discount rate for forestry is still an issue for the forest economy. Therefore, it is significant to understand the importance of discounting, and how costs of forestry production process are valued. Forest regeneration and new stands tending costs are considered as investments; they are related to each particular stand. For that reason, the goal of this study was to compare how the value of this investment is growing at the bank deposit or 1 ha forest stand. The study examined the growth rate of two different tree species value with young forest stand establishment and tending investments depositing in the bank or the growth rate of compound interests. As discounting formula derived from a compounding formula, it would allow to find an appropriate discount rate for each timber species. High rates of compound interest cause a very rapid and unrealistic future value increase, while low rates cause slow value increase for a very long period represented by a common forest rotation; for that reason high discount rates used in forestry are not rational. Taking into account an income from intermediate cuttings, the value of timber species in comparison with the deposit significantly improves. Suitable discount rate determination in forest assessment is mainly determined by the species of wood productivity and cutting age. As it is hard to find two identical forest properties, each situation should be considered individually, taking into account and understanding the relationship between a growth rate of timber and compound interests, thus choosing an appropriate discount rate.

In recent years, farmers’ markets have become one of the most popular places for alimentary shopping. People searching for the alternative and healthier products often choose farmers’ markets instead of shopping centres. However, farmers’ markets face the same or even tougher competition than the conventional shopping places: farmers not only compete with powerful shopping chains, they have to compete among each other for every single customer. Therefore, customer loyalty becomes inevitable in this industry. Knowing the factors that lead customers to switch to another vendor becomes very important for consumer retention. The aim of the research is to determine the factors influencing customer switching behaviour in farmers’ markets in Lithuania. In order to reach the aim, the research was conducted in several stages: 1) the expert evaluation was provided to determine the factors influencing the customer switching behaviour that would be relevant to the industry; 2) a questionnaire survey regarding latter factors was provided; 3) the influence of the factors on customer switching behaviour regarding the different states of customer loyalty was assessed.