To survive in today's competitive environment, companies must continuously develop and offer customers new products. To increase the probability of a successful business case of investing in the development of a new product, careful attention must be paid to risk analysis in terms of the present value of future potential income. The article considers an example of the research work of the Latvia University of Life Sciences and Technologies, in the framework of which a technical and technological project was developed to produce a new product, like Mediterranean anchovy, from cheaper Baltic sprats. The main goal of this work is to explore the application multi-factor sensitivity and fuzzy real option analysis to the valuation of new product development project. The multivariate analysis of the sensitivity of the financial model of the greenfield production project described in this article revealed the main risk groups, as well as their degree of influence on the assessment of the Net Present Value of the project by a potential investor. The use of Fuzzy Real Option Valuation made it possible to evaluate the project with uncertain parameters, as well as to calculate the potential upside from preliminary refinement of parameters to eliminate negative scenarios. The described approach is applicable to risk assessment of new food product development and allows investors to make a more informed decision about participation in such projects.

To survive in today's competitive environment, companies must continuously develop and offer customers new products. To increase the probability of a successful business case of investing in the development of a new product, careful attention must be paid to risk analysis in terms of the present value of future potential income. The article considers an example of the research work of the Latvia University of Life Sciences and Technologies, in the framework of which a technical and technological project was developed to produce a new product, like Mediterranean anchovy, from cheaper Baltic sprats. The main goal of this work is to explore the application multi-factor sensitivity and fuzzy real option analysis to the valuation of new product development project. The multivariate analysis of the sensitivity of the financial model of the greenfield production project described in this article revealed the main risk groups, as well as their degree of influence on the assessment of the Net Present Value of the project by a potential investor. The use of Fuzzy Real Option Valuation made it possible to evaluate the project with uncertain parameters, as well as to calculate the potential upside from preliminary refinement of parameters to eliminate negative scenarios. The described approach is applicable to risk assessment of new food product development and allows investors to make a more informed decision about participation in such projects.

In the market of the Latvia different wood surface coating materials suitable for use in outdoor conditions are offered, but available information on the efficiency of these against direct water exposure is insufficient. For structural timber building elements, such as glued laminated timber (GLT), the surface coating should be applied taking into account technological, visual or colour changes (ISO 7724:1984) and – last, but not least – economic aspects are considered. Wood surfaces coated with coating materials, such as varnishes, paints, etc. can stabilize some properties such as movement of moisture content, dimensional changes and attack by microorganisms and fungi. The changes in the moisture content of timber may influence such important parameters as mechanical properties and the total life time of the structural timber elements. A study has been conducted with the aim of assessing the efficiency of coating materials used for wood protection against water absorption. In this study, six different commercial coating products used for the treatment of spruce (Picea Abies L. Karst.) and pine (Pinus Sylvestris L.) samples were tested. The efficiency of different coating substances was assessed using two modified test methods according to the standards EN 382-2 (1994) and EN 927-5 (2006), determining the surface water absorption after immersion in water for 24 h and the dynamics of water absorption of the glued laminated timber for 696 h kept in water. As a result of the study, it has been ascertained that organic solvent-based commercial coating products are more efficient against short-term and long-term wood water absorption compared to oil-based coating materials.

In the market of the Latvia different wood surface coating materials suitable for use in outdoor conditions are offered, but available information on the efficiency of these against direct water exposure is insufficient. For structural timber building elements, such as glued laminated timber (GLT), the surface coating should be applied taking into account technological, visual or colour changes (ISO 7724:1984) and – last, but not least – economic aspects are considered. Wood surfaces coated with coating materials, such as varnishes, paints, etc. can stabilize some properties such as movement of moisture content, dimensional changes and attack by microorganisms and fungi. The changes in the moisture content of timber may influence such important parameters as mechanical properties and the total life time of the structural timber elements. A study has been conducted with the aim of assessing the efficiency of coating materials used for wood protection against water absorption. In this study, six different commercial coating products used for the treatment of spruce (Picea Abies L. Karst.) and pine (Pinus Sylvestris L.) samples were tested. The efficiency of different coating substances was assessed using two modified test methods according to the standards EN 382-2 (1994) and EN 927-5 (2006), determining the surface water absorption after immersion in water for 24 h and the dynamics of water absorption of the glued laminated timber for 696 h kept in water. As a result of the study, it has been ascertained that organic solvent-based commercial coating products are more efficient against short-term and long-term wood water absorption compared to oil-based coating materials.

The impacts of the COVID-19 pandemic on national economies are characterized as the worst economic turmoil in recent years, as economic growth slowed to the level of the 2008 global financial crisis. At the end of 2019 and the beginning of 2020, economic growth surveys did not project that the novel virus could have a negative impact on economic growth. As a result of the rapid spread of the virus and the increase in the number of infection cases, national governments took strict measures to limit the spread of the virus, which led to a significant deterioration in the economic situation in all industries of the economy. Agriculture plays an important role in providing food to the country’s population, yet the pandemic made a negative impact on sales volumes and prices in the domestic and international markets. The research aims to assess the impacts of the pandemic on milk supply chains in Latvia and come up with solutions to stabilizing the situation in the dairy sector. The national restrictions to combat the pandemic also hampered the dairy sector concerning the sale of raw milk and finished products in foreign markets, thereby leading to overproduction and stockpiling of the finished products, price dumping and a significant decrease in milk purchase prices to or below the production cost level for many dairy farms. Although there is no indication that the pandemic would lead to a decrease in the numbers of livestock and farms or output in early 2021, it is too early to assess the overall impact of the pandemic on dairy farming, as uncertainty over the duration of pandemic restrictions is a major risk to farm survival. The operation of the dairy sector was stabilized by means of the support provided by the government, as well as the farms’ accumulated financial and feed resources. In order to identify future challenges for milk supply chains, the research performed an analysis of operational risks for milk producers and processors to identify the most important risks and design recommendations for their elimination. The longer there is uncertainty about the return of the dairy sector to pre-pandemic output levels, the more likely it is that the pandemic is going to lead to a decrease in the numbers of dairy livestock and farms.

The impacts of the COVID-19 pandemic on national economies are characterized as the worst economic turmoil in recent years, as economic growth slowed to the level of the 2008 global financial crisis. At the end of 2019 and the beginning of 2020, economic growth surveys did not project that the novel virus could have a negative impact on economic growth. As a result of the rapid spread of the virus and the increase in the number of infection cases, national governments took strict measures to limit the spread of the virus, which led to a significant deterioration in the economic situation in all industries of the economy. Agriculture plays an important role in providing food to the country’s population, yet the pandemic made a negative impact on sales volumes and prices in the domestic and international markets. The research aims to assess the impacts of the pandemic on milk supply chains in Latvia and come up with solutions to stabilizing the situation in the dairy sector. The national restrictions to combat the pandemic also hampered the dairy sector concerning the sale of raw milk and finished products in foreign markets, thereby leading to overproduction and stockpiling of the finished products, price dumping and a significant decrease in milk purchase prices to or below the production cost level for many dairy farms. Although there is no indication that the pandemic would lead to a decrease in the numbers of livestock and farms or output in early 2021, it is too early to assess the overall impact of the pandemic on dairy farming, as uncertainty over the duration of pandemic restrictions is a major risk to farm survival. The operation of the dairy sector was stabilized by means of the support provided by the government, as well as the farms’ accumulated financial and feed resources. In order to identify future challenges for milk supply chains, the research performed an analysis of operational risks for milk producers and processors to identify the most important risks and design recommendations for their elimination. The longer there is uncertainty about the return of the dairy sector to pre-pandemic output levels, the more likely it is that the pandemic is going to lead to a decrease in the numbers of dairy livestock and farms.

1991-2017 the Southeast coast of the Baltic Sea area, Lithuania, Latvia and Kaliningrad Region of the Russian coastal habitats was very intense, often chaotic variety of recreational facilities and areas of privatization and urbanization. These processes significantly influenced the character of the recreational landscape of Palanga, Jurmala and other resorts and coastal areas, as well as the expression of the urban structure and architecture of seaside towns, Ventspils, Liepaja, Giruliai, Melnragė, Karklė, Šventoji, Curonian Spit and other settlements. After a quarter of a century, some tendencies of the recreational environment and the evolution of the cultural landscape identity can be noticed. Recently, several projects for the improvement of recreational infrastructure and architectural environments have been implemented in Lithuania with the assistance of the European Union Structural Funds. Unfortunately, the results of the projects are not always positive. The planning of coastal settlements is often overlooked by good long-term planning experience. This article analyses the impact of changes in the quality of the Lithuanian recreational territorial system in the South-Eastern Baltic and the region’s recreational potential. Palanga resort areas dominated by architectural chaos and recreational quality of the environment tended to deteriorate, especially experts poorly assessed the central Basanavičiaus street. The changes in cultural landscapes are influenced by a whole range of methodological and practical factors: insufficiently effective research and modeling methods, unjustified privatization of state property, huge flows of individual automobiles, faults in the formation of recreational greenery. Based on the research of the recreational system of the coastal region of the long-term seaside, it can be concluded that in recent years the quality of the environment of many coastal zones of Lithuania has lost important qualitative components, deteriorated the quality of public spaces and increased urban and architectural chaos.

1991-2017 the Southeast coast of the Baltic Sea area, Lithuania, Latvia and Kaliningrad Region of the Russian coastal habitats was very intense, often chaotic variety of recreational facilities and areas of privatization and urbanization. These processes significantly influenced the character of the recreational landscape of Palanga, Jurmala and other resorts and coastal areas, as well as the expression of the urban structure and architecture of seaside towns, Ventspils, Liepaja, Giruliai, Melnragė, Karklė, Šventoji, Curonian Spit and other settlements. After a quarter of a century, some tendencies of the recreational environment and the evolution of the cultural landscape identity can be noticed. Recently, several projects for the improvement of recreational infrastructure and architectural environments have been implemented in Lithuania with the assistance of the European Union Structural Funds. Unfortunately, the results of the projects are not always positive. The planning of coastal settlements is often overlooked by good long-term planning experience. This article analyses the impact of changes in the quality of the Lithuanian recreational territorial system in the South-Eastern Baltic and the region’s recreational potential. Palanga resort areas dominated by architectural chaos and recreational quality of the environment tended to deteriorate; especially experts poorly assessed the central Basanavičiaus Street. The changes in cultural landscapes are influenced by a whole range of methodological and practical factors: insufficiently effective research and modelling methods, unjustified privatization of state property, huge flows of individual automobiles, and faults in the formation of recreational greenery. Based on the research of the recreational system of the coastal region of the long-term seaside, it can be concluded that in recent years the quality of the environment of many coastal zones of Lithuania has lost important qualitative components, deteriorated the quality of public spaces and increased urban and architectural chaos

The aim of the research was to find out an appropriate method of treatment of retention of fetal membranes (RFM) in cows for conditions of Latvia. Three protocols for the treatment of retained fetal membranes in dairy cows were evaluated in a field trial. Cows that retained the fetal membranes for more than 24 hours were assigned to three treatment groups. Group 1 – control group; group 2 – cows with RFM, which were removed manually, and cows were intrauterine treated with antibiotics; group 3 – cows with RFM, which were not removed, and cows were intrauterine treated with antibiotics, and group 4 – cows with RFM, which were not removed, and cows were not treated. In animals with a decreased feed consumption or milk production, body temperature above 39.5 °C, systemic therapy was applied with ceftiofur hydrochloride or procaine benzilpenicillin. In order to establish subclinical endometritis, all cows were histologically examined on the 42ⁿᵈ day postpartum (PP). Subclinical mastitis was diagnosed both in cows with RFM and control group cows. Results indicated that better reproductive results were in cows of group 2 and group 4. Actually, results indicated that treatment of RFM without intrauterine manipulation and parenteral treatment could be as effective as conventional treatment including RFM detachment and local antibiotic treatment.

The aim of the research was to find out an appropriate method of treatment of retention of fetal membranes (RFM) in cows for conditions of Latvia. Three protocols for the treatment of retained fetal membranes in dairy cows were evaluated in a field trial. Cows that retained the fetal membranes for more than 24 hours were assigned to three treatment groups. Group 1 – control group; group 2 – cows with RFM, which were removed manually, and cows were intrauterine treated with antibiotics; group 3 – cows with RFM, which were not removed, and cows were intrauterine treated with antibiotics, and group 4 – cows with RFM, which were not removed, and cows were not treated. In animals with a decreased feed consumption or milk production, body temperature above 39.5 °C, systemic therapy was applied with ceftiofur hydrochloride or procaine benzilpenicillin. In order to establish subclinical endometritis, all cows were histologically examined on the 42nd day postpartum (PP). Subclinical mastitis was diagnosed both in cows with RFM and control group cows. Results indicated that better reproductive results were in cows of group 2 and group 4. Actually, results indicated that treatment of RFM without intrauterine manipulation and parenteral treatment could be as effective as conventional treatment including RFM detachment and local antibiotic treatment.

Social enterprises have positive effect on sustainable development, and they have become an important instrument for solving social problems (especially in rural areas), as the national and local governments alone cannot solve all such problems. To foster the development of social entrepreneurship, Latvia has introduced several support instruments for social enterprises, which include tax relief, privileged procurement contracts, grants, as well as non-monetary kinds of support. However, social entrepreneurs often point out that support from the national and local governments is insufficient, while the support instruments stipulated in the Social Enterprise Law are not widely used. Therefore, the aim of the research is to analyse national and local government support instruments for social enterprises in Latvia. The research found that the most important financial instrument fostering the development of social entrepreneurship in Latvia is a grant scheme administered by the Ministry of Welfare and the JSC Development Finance Institution Altum, which is available in the range of EUR 5000 to 200000 for investment and working capital. In the period 2017-2020, 94 social entrepreneurship projects with a total budget of EUR 6 million were supported, which could be viewed as significant financial support. In contrast, immovable property tax relief, exemption from enterprise income tax (on profits) and relief from this tax for several categories of non-business expenses are considered by social entrepreneurs to be an insignificant kind of support. There is also lack of experience and practice regarding the inclusion of social criteria in public procurement in Latvia.

Social enterprises have positive effect on sustainable development, and they have become an important instrument for solving social problems (especially in rural areas), as the national and local governments alone cannot solve all such problems. To foster the development of social entrepreneurship, Latvia has introduced several support instruments for social enterprises, which include tax relief, privileged procurement contracts, grants, as well as non-monetary kinds of support. However, social entrepreneurs often point out that support from the national and local governments is insufficient, while the support instruments stipulated in the Social Enterprise Law are not widely used. Therefore, the aim of the research is to analyse national and local government support instruments for social enterprises in Latvia. The research found that the most important financial instrument fostering the development of social entrepreneurship in Latvia is a grant scheme administered by the Ministry of Welfare and the JSC Development Finance Institution Altum, which is available in the range of EUR 5000 to 200 000 for investment and working capital. In the period 2017‒2020, 94 social entrepreneurship projects with a total budget of EUR 6 million were supported, which could be viewed as significant financial support. In contrast, immovable property tax relief, exemption from enterprise income tax (on profits) and relief from this tax for several categories of non-business expenses are considered by social entrepreneurs to be an insignificant kind of support. There is also lack of experience and practice regarding the inclusion of social criteria in public procurement in Latvia.

The economy of Latvia lags behind economically developed nations approximately fourfold in terms of labour productivity in the tradable sector, which is the key constituent of a modern economy, thereby affecting future sustainable development in the entire country, including the rural areas. The economic backwardness is characteristic of the entire Central and Eastern Europe. This is the heritage of a communist regime that lasted for about half a century and the economic system termed a (centrally) planned economy or a command economy. However, such a term for the communist-period economy is not correct, as it does not represent the purpose it was created for. Accordingly, the paper aims to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU. A planned economy that existed in all communist countries, with the exception of Yugoslavia, was not introduced to contribute to prosperity. It was intended for confrontation or even warfare by the communist countries under the guidance of the USSR against other countries where no communism regime existed, mostly Western world nations with their market economies. For this reason, it is not correct to term it a (centrally) planned economy or a command economy; the right term is a mobilised (war) economy. An extrapolation of a geometric progression for GDP revealed that during the half a century, Latvia as part of the USSR was forced to spend on confrontation with the West not less than EUR 17 bln. (2011 prices) or approximately one gross domestic product of 2011. The research aim of the paper is to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU.

The economy of Latvia lags behind economically developed nations approximately fourfold in terms of labour productivity in the tradable sector, which is the key constituent of a modern economy, thereby affecting future sustainable development in the entire country, including the rural areas. The economic backwardness is characteristic of the entire Central and Eastern Europe. This is the heritage of a communist regime that lasted for about half a century and the economic system termed a (centrally) planned economy or a command economy. However, such a term for the communist-period economy is not correct, as it does not represent the purpose it was created for. Accordingly, the paper aims to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU. A planned economy that existed in all communist countries, with the exception of Yugoslavia, was not introduced to contribute to prosperity. It was intended for confrontation or even warfare by the communist countries under the guidance of the USSR against other countries where no communism regime existed, mostly Western world nations with their market economies. For this reason, it is not correct to term it a (centrally) planned economy or a command economy; the right term is a mobilised (war) economy. An extrapolation of a geometric progression for GDP revealed that during the half a century, Latvia as part of the USSR was forced to spend on confrontation with the West not less than EUR 17 bln. (2011 prices) or approximately one gross domestic product of 2011. The research aim of the paper is to assess the effect of the communism period on the economic backwardness of the Central and Eastern European region of the EU.