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.

Performing biofuel use studies, a large number of parameters that characterize engine operation under different conditions and with different fuel mixtures have to be identified. The real driving conditions are usually simulated by driving cycles on a laboratory chassis dynamometer. There are two major categories of driving cycles: legislative and non-legislative. From the viewpoint of cycle formation there are also two ways. One is composed of various driving modes of constant acceleration, deceleration and speed, and is referred to as modal or polygonal. The other type is derived from actual driving data and is called as 'real world' cycle. There is a strong agreement among researchers that driving characteristics of each city are unique because of different vehicle fleet composition, driving behaviour and road network topography. It is therefore better to develop own driving cycles than using driving cycles developed elsewhere. The aim of this investigation is to develop driving cycles or models for dynamometer control software corresponding to peculiarities of Latvia. The procedure for cycle development and fuel consumption and exhaust emissions measurement was worked out. Using real driving data on the Jelgava streets, models simulating driving in different urban areas were constructed. The model quality was determined using vehicle driving parameters and fuel consumption measurement results from both the road and laboratory tests. Since the obtained data coincidence of all the parameters exceeded 98%, the elaborated cycles can be used for the biofuel use efficiency determination.

A lot of different EU directives and regulations set the targets to decrease greenhouse gas emissions, to increase the share of renewable energy, and to improve energy efficiency. Biofuel usage is directly linked to all of these problems. Since the first generation food-based biofuels should not receive public support after 2020, investigations of next generation biofuels are topical. Hydrotreated vegetable oil (HVO) is one of the most promising next generation biofuels in the near future. This article deals with the results of mathematical modelling to determine the main diesel engine operating parameters (power, torque and fuel consumption) running them on HVO and its blends with fossil diesel fuel. The modelling results of the car Opel Insignia 2.0 CDTi show that every 5% of HVO in fuel blend reduces maximum power and torque of around 0.38% while raising specific fuel consumption by volume of around 0.10%. Analyzing the most realistic scenario in the near future – 7% HVO and 93% fossil diesel blend, the predicted fuel consumption increase (0.14%) and power and torque decrease (0.54%) is inconsiderable for vehicle exploitation, and HVO seems to be a promising biofuel to replace biodiesel in fuel blends and to promote reaching the EU targets.

Sherbet with crunchy peanut chips could be classified as milk pomade. It is one of popular sweets in Latvia produced by Joint-stock Company Laima, which is one of the oldest producers of sweets in the Baltic States. Freshly made sherbet is soft and savoury but after several days’ storage at the open air gradually hardens, the product loses eye appeal, taste and becomes unmarketable. This problem limits the shelf life, so sherbet with crunchy peanut chips can be marketed only at the local market. The target of this study was to clarify the situation on the market in Latvia and to examine an issue of Latvian consumers’ awareness of milk pomade sweets – sherbet quality indicators, packaging and its presentation to consumers, as well as the sherbet market expandability. A questionnaire was developed – 800 respondents answered on the 14 questions – how well-recognized the milk pomade sweet – sherbet is, what the main features for this kind of sweets selection by consumers are, which quality indices are important for consumers. One of most important questions was to get know the consumers opinion about sweets, mainly sherbet possible packaging kind and the market turnover. Summarizing the questionnaire data, the response from consumers in Latvia was heartening – they like milk pomade candies. As a primary quality defect the hardness of sherbet was mentioned. Eliminating this main failing of quality, the demand of sherbet on the market could rise, as well the product marketing opportunities will grow.

The European Parliament and Council Directive 2003/30/EK ‘On the promotion of the use of biofuels and other renewable fuels for transport’ determines that pure or straight vegetable oil, produced from oil plants by pressing, extracting or comparable procedures, crude or refined but chemically unmodified, compatible with common engines, and corresponding to emission requirements, is also considered as biofuel. The biggest problems imposed by these conditions are directly associated with the carrying-out of the emission requirements, because when using vegetable oil as a fuel, usually increases the composition of the solid particles and nitrogen oxides in exhaust gases, that not only adversely affect the environment, but also is a serious threat to human health, and as a result trying to save the world from the global warming, human health continues to deteriorate. It is therefore necessary to carry out studies and find solutions to reduce harmful emissions from diesel engines when using vegetable oil fuel. For more qualitative and effective research on vegetable oil fuel emissions, the equipment for vegetable oil fuel testing has been developed. This equipment allows fast checking of theoretically proposed hypotheses and detailed calculations for vegetable oil fuel combustion processes and objective data acquisition. The equipment consists of the classic diesel engine adapted for work with vegetable oil and is equipped with several high-precision devices to get and store the measuring data. During pilot tests the optimal measuring modes (engine rotation frequencies, number and duration of repetitions) for further research are estimated.

The aim of the paper is to show the general trend of consumption in the Baltic countries. The member states of the European Union attach great importance to the well-being, health and the promotion of healthy lifestyle. In order to be able to make decisions on the future plan of action, COBEREN (Consumer Behaviour Erasmus Network) carried out a project with an aim of studying the food consumption habits in the European Union countries. The obtained results show the consumer habits of each participating state, although not on the regional level. This study will look at the consumption habits in the Baltic countries and find out the nature of consumption in those three states. The statistical method – analysis of variance – was used to analyse the COBEREN data. The main conclusion is that consumers of the Baltic countries do not differ greatly in their consumption habits.

Europe is the number two producer of beer worldwide. However, the quantity of beer sold in Latvia in the last decade did not increase considerably, and the average quantity of beer consumed per capita rose very slowly. Even though beer consumption was stable in Latvia, the quantity of beer supplied to the market was approximately three times greater than the quantity of the other kinds of alcoholic beverages combined, totalling about 15 million dekalitres. Besides, in recent years in Latvia the segment of craft beers tended to increase, which became increasingly popular in Western Europe and the number of small breweries sharply increased there. In Latvia, the number of small breweries increased at a slower pace, therefore, the research aim was to examine the factors influencing the development of small breweries in Latvia. The research found that most of the breweries in Latvia qualified for the status of small brewery, the output of which did not exceed 50 000 dekalitres per year. Although small breweries produced craft beers, yet their performance and development were considerably influenced by the activity of the large breweries and the purchasing power of consumers. Small breweries positively influence the beer drinking traditions of Latvians, which can contribute to the stable development of the small breweries. Small breweries have their competitive advantages in the market, which is due to the quality and assortment of their products, as well as they perform extra economic activities that contribute to their recognition.

The productivity and its performance is one of the core topics of economics studies. The growth of productivity is an indicator of competitiveness, as well as a possible way to achieve economic growth and wellbeing. After joining the EU, the agriculture of the Baltic countries faced increasing competition of the EU Single Market, while having relatively lower productivity indicators. Since 2004, significant structural changes have taken place in the agriculture of the Baltic countries, and it is a topical question whether these changes and overall trends in the agricultural sectors of the Baltic countries have facilitated to increase productivity. Therefore, the objective of the study is to evaluate the productivity growth of the main production factors and the total factor productivity growth in the agriculture of the Baltic countries between 2004 and 2015, in relation to the changes in the use of the production factors. The paper focuses on the value added as output, and land, labour and capital as individual inputs to obtain partial productivity measures. The evaluation of TFP is based on the Index number approach, where TFP growth is a ratio of the Output index to the Input index. The calculations and analyses show that since 2004 both the agricultural output and value added have increased in the agriculture of the Baltic countries, and also productivity performance has improved.

Potato sector is one of the competitive areas of the European Union (EU) agriculture. Although Eurostat declared that in 2015 Lithuanian share in the EU-28 harvested production was modest and composed only 0.7%, according to Food and Agriculture Organization of the United Nations (FAOSTAT), this crop remained on the list of top 10 commodities by net production value in Lithuanian agriculture. However, over the past decades the Lithuanian potato sector survived undesired transformations. The aim of this paper is to analyse the changes of the main indicators, related to the potato sector, and vertical price transmission among the chain of potatoes in Lithuania. The conducted research indicates the most important development trends of the potato sector and applies econometric techniques to investigate if there is any long-run relationship between the farm and retail prices of potatoes for the period of 2010 to 2016. Although the statistics show the shrinking production and domestic consumption of potatoes in Lithuania, the analysis of the vertical price transmission does not provide evidence of market inefficiencies. The Johansen cointegration test confirms the existence of a long-run relationship between the farm and retail prices, while the Granger causality test shows that there is a bidirectional causality between the examined series. The M-TAR model does not provide evidence of the farm and retail price asymmetry in the long run.

Currently public services become more and more significant in procurement of daily activities of each inhabitant and the entire society. Therefore optimal solutions of the regulatory issues are the topic of the day. Objective of the article is to analyse regulatory systems of the provision of water and waste water utilities in Latvia and in other countries, to draw conclusions derived from the analyses and put forward suggestions for the choice of the most appropriate regulatory system in the local governments of Latvia. The hypotheses advanced in the study have proved that each country may use its own discretion when selecting the regulatory system for water and waste water utilities.