Factors of increasing production efficiency in the Latvian nursery sector | Latvijas stādaudzēšanas nozares ražošanas efektivitātes paaugstināšanas faktori
2008
Leimane, I., Latvian State Inst. of Agrarian Economics, Riga (Latvia) | Krievina, A., Latvian State Inst. of Agrarian Economics, Riga (Latvia) | Svilans, A., National Botanical Garden, Riga (Latvia)
The approximate value of the production of Latvian nursery sector is LVL 4.1 million (including forest trees) equalling to 0.8% of the output value of the whole agricultural sector in producer prices. So far the competitiveness of Latvian nursery products has been determined by the deficit of plants and comparatively cheaper costs of the main production resources, as the productivity indicators in Latvia showing the efficiency of the use of production resources are remarkably lower than in the countries of reference. But it should be taken into account that the prices of production resources will inevitably increase approaching the rate observed in other European countries. Besides the competition at the nursery stock market of Latvia will increase alongside with the growth of the total market capacity both in Latvia (2.5 times by 2015) and its neighbouring countries, the evidence of which is already increasing import of plants, mainly from the Netherlands, Germany and Poland. Consequently, increasing the production efficiency of the sector is an important prerequisite for maintaining further competitiveness of the sector, which can even determine the ability of existence of the whole domestic nursery sector. At present the key task is restructuring of the sector to medium-size farms focused on the wholesale market. The main proposals for increasing production efficiency include the implementation of technologies saving human resources, extending the labour season as well as decreasing the impact of nature conditions. The improvement of knowledge of the people working in the industry on arrangement of commercially efficient production is also vitally important.
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