Milk production risks in Latvia: challenges and solutions
2009
Rivza, B., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Economics | Rivza, S., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Economics | Rivza, P., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Information Technologies
The study shows the necessity and topicality of risk management in dairy sector in Latvia in connection with the changes in the economic situation and investments. In recent years, the EU funds as well as credit resources were extensively used for the modernization of the dairy sector; however, in the present conditions of recession the farms have problems with credit payments. In order to enhance the confidence about the farming stability and its development opportunities, it is advisable to assess risks. The assessment system of small and middle business risks has been worked out in Finland and is accessible on the Internet. It is necessary to develop the similar system for Latvian dairy sector as well. The case study within the present research focuses on the risk assessment in a dairy farm; such risk assessment diagram could be uploaded on the Internet for businesses as a simple and effective risk assessment tool.
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