The economy of grain production in Latvia | Graudu ražošanas ekonomika Latvijā
2010
Bugina, V., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Brakmanis, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics
The research aim is to perform an economic evaluation of grain production in Latvia. In Latvia almost a third of the area was sown with winter wheat (30%), while only a 2% smaller area (28%) was sown with spring barley in 2008. Spring wheat, oats, and mixed grains occupy 14%, 12%, and 10% respectively of total area sown with grains. In 2008 the total output of grains equalled to 1089 thousand tons in Latvia. The average yield of winter grains has increased from 3.59 tons per hectare in 2007 to 4.00 tons per hectare in 2008. Latvian grain producers can fully meet the domestic market demand for grain. The average purchase prices of grains have decreased from LVL 123.83 per ton in 2007 to LVL 100.06 per ton in 2008. Calculations of the profitability for production of winter wheat show that it is possible to gain profit also at the average yields of winter wheat in Latvia by increasing an area sown with winter wheat to 33.79 ha. However, the rate of profitability rises 8% at a winter wheat yield of 1 ton above the average yield in Latvia.
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