Gross economic effect of dairy sector in Latvia and other Baltic States
2009
Ozolins, J., Latvia Univ. of Agriculture, Jelgava (Latvia) | Veveris, A., Latvian State Inst. of Agrarian Economics, Riga (Latvia)
Implementation of special support measures and resolving its main problems with effective methods in medium-run may allow to maintain the dairy sector as a significant traditional element of the Latvian economy. It is important to know the gross economic effect of the Latvian dairy sector in order to take informed and rational support decisions. Authors have developed and approbated methods and by applying these have obtained new, unpublished data that characterize economic effect of the sector. The data have been analysed in Latvian and the Baltic States context. It is concluded that the dairy sector is significant to the Latvian economy mainly due to gross value added and especially because of its role in providing work opportunity. Authors call attention to reserves in gross value added growth per full time equivalent unit in the secondary production in all Baltic States. The data of the primary dairy sector level in turn indicate lower potential of growth that is evidenced by even a slight decrease in indicators of the comparatively more effective Estonian producer structure. Therefore, it can be expected that the weight of dairy sector secondary level in the dairy sector gross value added will increase. Authors point out certain possible solutions of the Latvian dairy sector's problems such as promotion of joint ownership structure. Main analysed indicators are gross value added at factor cost, use of labour in full time equivalent units and labour use effectiveness.
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