Economic assessment for the production of starch potatoes on farms in Latvia
2016
Dobele, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development | Vitols, M., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics and Social Development
Growing potatoes has long traditions in Latvia; yet, potato production is fragmented due to the traditional pattern of consumption of potatoes, as the crop is used as food and feed. Uses of potatoes in industrial processing change with the development of science. The most important component of potato is starch, the composition of which depends on variety and growth conditions. The area cropped with starch potatoes totalled 494 ha in Latvia in 2014, which accounted for only 1.8% of the total potato area in the country. The organic starch potato area considerably increased, reaching almost 50% of the total starch potato area in 2014. The production of starch potatoes by farms in Latvia is economically efficient under stable and correct farm management, reaching a margin of safety of more than 80%. However, farm size does not determine the economic efficiency of starch potato production. The research aim is to examine economic indicators for the production of starch potatoes by farms in Latvia. To achieve the aim, the present research analysed the economic indicators of three starch potato farms: Aloja Agro Ltd, Burtnieku Grauds Ltd and the farm Piekalnes, which are located in the region of the only starch potato processing company in the Baltics – Aloja Starkelsen Ltd.
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