The paper deals with the evaluation of the impact of capital investments on the value added in Latvian dairy specialization farms on the basis of FADN data. The evaluation is carried out through analysing the current level of capital investments in Latvia and the link between capital and the net value added and its main components, based on the comparison with the EU leading milk producing countries. The analysis shows that the current level of capital investments is low in Latvia, especially in buildings and fixed equipment. Insufficient capital investments result in high intermediate costs, lower labour productivity due to large labour contribution in the total output, and also in considerably lower level of the value added, especially per AWU in Latvia.

The paper deals with the evaluation of resource price preferences and resource utilization efficiency in Latvian dairy sector that shows Latvian relative competitive position both in terms of producing competitive products for the market, as well as ensuring competitive salaries and a general rise in living standard for the employees. The evaluation is carried out through analyzing price levels of the main production resources and the utilization efficiency of these resources, based on the comparison with other EU countries. The efficiency indicators in Latvian primary milk production sector are considerably lower and despite resource price preferences the cost level per production value in Latvia is higher than in other countries. The analyzed resource utilization efficiency is low in Latvia also at the processing industry level, though the current price level of the main production resources helps to ensure competitive positions of Latvian dairy products. But considering large differences in compensation levels for labour force between Latvia and other EU countries, without increase in productivity, the situation is not sustainable in long-term.

Appropriate resources, availability of infrastructure, economic significance and food market forecasts determine the rationale for development of the dairy sector in the Baltic States. The sector is faced by significant economic problems; inter alia, production structure fragmentation, lack of investments and low labour productivity. Several sector's problems can be directly or indirectly solved by integration. Competition legal acts setting strict penalties directly and widely apply to integration processes, imposing a high level of legal risks on integrating parties. Thus, competition legislation forms a central framework limiting and guiding integration. As the subject has not been explored earlier, the author researched the Baltic dairy sector integration options at primary and secondary levels as influenced by the EU and Baltic national competition legislation and its implementation practice. Abstract-logical, monographic and interview methods have been used. The author concludes that law-compliant cross-border integration opportunities for the Baltic dairy sector exist to form larger integrated undertakings with higher market power. Reference to market shares in the competition legislation in countries with lower aggregate crude milk market sales puts the dairy sector participants at a disadvantage in case of integration processes resulting in smaller absolute size of the allowable integrated undertaking. Integration by agreements, decisions and concerted practices is appropriate for national level arrangements but is with limited applicability in the Baltic states cross-border integration at both levels of the dairy sector. In case of concentration, integration may be used to create cross-border integrated structures increasing concentration at every level of the Baltic dairy sector.

The objective of the research paper is to explore the competitiveness of Latvian dairy sector from the aspect of productivity and export indicators, as well as to examine some of the possibilities to improve the sector competitiveness. The authors explore the productivity and export indicators of Latvian dairy sector, and the link between productivity and export (within the EU context), as well as analyse the impact of farm investment support within RDP 2007 – 2013. Value added per labour unit has been chosen as the productivity indicator; suitable qualitative and quantitative research methods have been applied to the studies. Based on the introduced indices of relative position of dairy industry productivity and exports, dairy processing in Latvia has strong inter-branch position in the domestic food industry. However, the inter-country comparison shows that Latvian dairy processing is behind the EU average level, when its productivity and export volume are considered. It has been found that productivity and export of dairy processing are positively related; rather strong positive correlation also exists between productivity in dairy farming and dairy processing. Therefore, the development of Latvian dairy sector, which mainly depends on the development of exports, can be more successfully achieved by the increase in its productivity; and relatively the largest productivity gap to close is in the dairy farming in Latvia. The direct investment support effect on NVA/AWU of dairy farms is found to be significant and positive, indicating that farm modernisation support of RDP 2007 – 2013 has facilitated the improvement of overall dairy farm productivity in Latvia.

Advances in milk production and the expansion of dairy herds have increased the need for improved manure management and whole farm nutrient balance. It is well known in dairy management that the balanced feeding and holding technology is an important level by which milk production and milk composition can be modified. The objective of this study was to evaluate urea content and urea yield in different farms with different holding technologies. Four farms represent three cow breeds (Holstein Black and White, Latvian Brown, and cross breed XP). Individual cow milk samples (n=2740) were collected monthly from September 2009 to November 2010. Milk samples were analyzed for total protein, casein, fat, lactose, and urea content with instrumental infrared spectroscopy method. The average milk yield per cows in farms was significantly different (from 27.9 to 17.0 kg per control day). The urea content in cow milk was between 20.3 to 46.6 mg dLE-1. The average urea content in farms A, B and D was up to standard (from 15.0 to 30.0 mg dLE-1). In the farm C, average urea content ranged between 17.4 and 79.9 mg dLE-1, which indicated problems in feeding or management in the farm. It was established that milk urea content and yield significantly (p is less than 0.05) varied in farms with different dairy cow holding and feeding technologies. Urea content can be used to evaluate feed protein utilization in farms and predict environmental pollution.

In 2003 an experimental model of the dairy waste water cleaning facility was equipped for cleaning the wastewater of the milk collection station. We examined the possibilities to destruct the organic pollutants present in the dairy wastewater in the sand filters of vertical and horizontal filtration. The pollution level of the dairy wastewater is from 2 to 4 times higher than that of the domestic wastewater. The dairy wastewater was cleaned following the procedure: cleaning in the aeration-flocculation system-cesspool-two stage sand-reed filter. The pollution of the wastewater leaving the cleaning facility never exceeded the allowable norms. The average BOD5 was 4 mg O2 LE-1 and the maximal value was 9.6 mg O2 LE-1. The investigation revealed that the horizontal sand-reed filter with the filtration path of 7 meters ensured cleaning of the dairy wastewater up to the allowable norms. The organic pollutants were cleaned with the efficiency of 97.2% after filtration through such a sand layer. In order to find out the possibilities of vertical filtration filters use for cleaning the dairy wastewater leaving the milk collection stations, we performed a modelled investigation. The wastewater cleaning efficiency in respect to BOD5 reaches 99.3% in these filters. The calculation according to the regression equation received showed that filtration through 0.6 m sand layer ensured successful cleaning of the wastewater up to the allowable norms. In such a vertical filtration filter the average BOD5 cleaning level was 20 mg O2 LE-1.

The aim of paper is a comparative analysis of on-farm greenhouse gas emissions across family farm types and farm size classes using FADN data in Lithuania. To achieve this, Lithuanian FADN data of 2014 were used for the analysis. The research draws on a sample of 1304 family farms. The methodology is based on an adaptation of the IPCC guidelines using Lithuanian emission factors from Lithuania’s National Inventory Report and the activity data of family farms derived from Lithuanian FADN. The GHG emissions were analysed per farm (t CO2eq farmE-1) and per hectare (CO2eq haE-1 of UAA). The research found out that the major sources of GHG emissions are related to the use of chemical fertilizers on farms comprising 52.6% of the total emissions from family farms. The performed analysis shows that GHG emissions per farm depended on the farm size and ranged from 63.3 t CO2eq farmE-1 to 479.6 t CO2eq farmE-1, on farm size class less than 30 ha UAA and from 500 ha UAA or over, respectively. The GHG emissions on family farms totalled 184.2 t CO2eq farmE-1 and ranged from 5.8 t CO2eq farm E-1 to 234.6 t CO2eq farmE-1, in the permanent crops farms and in the specialist dairying farms, respectively.

The objective of this article is to assess farm efficiency and productivity change in specialised large farms located in the region of Mazowsze and Podlasie during the years 2014 − 2016. For this, we used the non-parametric Data Envelopment Analysis (DEA) method and Malmquist index. Calculations were performed for three types of large farms classified as: field crop, pig and dairy. The study shows that mean technical efficiency of large field crop, pig and dairy farms amounted to 80, 75 and 70%, respectively. Technical inefficiency of field crop farms come mainly from scale efficiency, while of pig and dairy farms equally from pure technical and scale efficiency. It shows that inefficient management practices had an impact on farm performance. Therefore, in order to increase competitiveness of farms, an improvement of management practices is required. In the studied period the share of farms operating under increasing return was as follows: 67, 72, and 81%, respectively for field crops, pig and dairy farms. The improvement of efficiency of those farms could be achieved by increasing their size. The results indicate that 8% of field crops, 12% of dairy and 16% of large pig farms were operating under decreasing scale efficiency, which means that those farms were operating above the optimal scale. The increase in their efficiency could be achieved through size reduction. In dairy farms the average annual productivity growth of 2% was recorded. In pig farms the productivity reduction of 5.4% was observed. It was the result of a decrease in technological efficiency.

The objective of the studies was to evaluate the suitability of sand reed filter for the treatment of wastewater from milk collection post and on the basis of the studies performed to determine the minimal length of filtration path in order to reach the normative wastewater treatment level. In 2003, in Padargupiai village (Ariogala municipality, Raseiniai district) experimental treatment facilities for wastewater from milk collection post were constructed. As the pollution of such wastewater after pre-treatment (primary treatment) is 2 times higher than that of domestic wastewater, the filtration path in constructed wetlands was made 2 times longer (up to 10 m long). On the basis of the study results the dependence equations were made, with the help of which the amounts of the main pollutants contained in wastewater of milk collection posts were calculated, after the wastewater is filtered through the sand layer of different length. As calculations have shown, the treatment of wastewater from milk collection posts until the allowable rates depends on the constructed wetlands with the length of the filtration path of 7 m. The removal of organic pollutants, total nitrogen and total phosphorus from wastewater flowing through such media are 97.2%, 68.7%, and 91% respectively. The studies performed allowed to improve the calculations of the necessary area of constructed wetlands in order to reach the normative treatment level of wastewater from milk collection posts according to the index biochemical oxygen demand (BOD5).

The paper presents the results of investigations on wastewater formation and its treatment in constructed wetlands (CW) with horizontal flow. The investigations were carried out on a dairy farm in the period of 1995-2004. On farmsteads containing cattle sheds, the pollution of wastewater is 2-3 times higher compared with domestic wastewater. The largest amount of slowly decomposing organic pollutants is retained during wastewater filtration via a septic tank (62.7% according to CODCr). During wastewater filtration through a horizontal CW, the amount of retained organic pollutants biochemical oxygen demand (BOD5) and chemical oxygen demand (CODCr) is 93.6%. During wastewater filtration through CW, nutrients (Ntotal and Ptotal) treatment efficiency on the dairy farms, where Ntotal concentration is 101.0 mg lE-1, is one the average 61.4% of nutrient load, and 41.4% of P where Ptotal concentration is 21.5 mg lE-1. The analyzed wastewater treatment facilities (septic tank + CW) are distinct for their buffering capabilities. They are affective enough, however due to limited P removal processes in sustainable natural environment, additional P-removal means are to be used in wastewater treatment facilities arranged on dairy farms.