Land use change has caught scientist’s attention all over the world and in the perspective of globalisation the pressures on agricultural land are increasing. However, the agricultural land abandonment is still evident. This phenomenon has no single definition and its driving forces are varying among different regions and countries. In this paper agricultural land is considered as abandoned while there is evidence of shrub and bushes on agricultural land according to the orthophoto and Estonian base map comparison. The aim of this paper was to test the impact of arable land plot spatial properties: plot area, ratio of arable land area in the surrounding of plot and plot compactness. General hypothesis is that brushwood will more likely occur on the arable land plots with poor spatial properties than on arable land plots with good ones. The study was conducted in 15 rural municipalities across Estonia. Results are showing some impact of the spatial properties on the arable land plots conversion into brushwood. In nine municipalities out of 15, there was an arable plot area without brushwood larger than plots with brushwood and the percentage of arable land area surrounding plots without brushwood was higher in other 9 studied municipalities. As expected, the uncompact arable land plots tend to have more likely brushwood on them than the compact ones. Study results show that the impact of plot area and the ratio of arable land in surroundings of plots on the conversion of arable land plots into brushwood need further studies.

The primary goal of public projects is to create social benefits for the community. The prepared public project usually has more than one option. In order to choose the most efficient option, it is necessary to take into consideration all social benefits. For this reason multi-criteria methods may be applied since they provide a possibility to assess quantitatively social benefits which are measured in many different quantitative and qualitative indicators. The problem of the research stems from a variety of social benefits indicators of public projects, the problematic establishment of their value and the need of their complex valuation. The paper presents a methodology for TOPSIS multi-criteria method adapted for the valuation of public projects in order to select investment option and the empirical research makes it possible to look at the problems of public project valuation from the practical approach. The research of the paper is aimed at revealing the advantages and limitations of TOPSIS multi-criteria method used for public projects valuation.

The article addresses the problem of social dimension measurement of for regional development. Authors’ discus approaches of definition of social dimension. There is some discord how social dimension could be understood in more broader or narrowed sense and how it is characterized in international and national social policy documents. Authors focus attention on contiguity of social dimension and social security. The measurement of social dimension demands multidimensional approach. The authors use theoretical analysis and document analysis, as well as analysis of statistical data on key elements of social dimension of regional development (differences of employment rate; GINI coefficient, and the number of people at risk-of-poverty threshold). The main conclusions are that social dimension is more or less covered in development planning documents, but the progress indicators are inadequate. Especially disparities in social dimension of regional development are formally addressed and closer analysis of key indicators shows necessity to elaborate both – policy instruments as well as policy progress measurement.

Promotion of non-agricultural activities in Latvian rural areas is highly important for diversification of rural economy due to decrease in agricultural and forestry employment. So far too little attention has been paid to this aspect. Although EAFRD is the only EU fund directly supporting rural development, only 14% of its public financing for projects in 2007-2013 was invested in non-agricultural entrepreneurship, half of this in financially demanding energy production projects. By total eligible accepted project expenses, approximately 60% of rural entrepreneurship projects were financed by EAFRD. ERDF was also important in which a smaller number of higher value investment projects was implemented. Although EU funds have some importance in activating rural entrepreneurship, so far the direct impact on creation of jobs and value added has been small. The impact could be increased by setting forth specific job creation requirements for the beneficiaries. It is also suggested to avoid supporting expensive projects which do not create a substantial number of jobs. In view of rural entrepreneurs improvements in entrepreneurial environment, including taxing policy are more important than direct support. It especially concerns operation of small companies. Development of small companies in rural areas is of high importance because in many territories there is no capacity and rationale to develop large projects.

Since 1990 significant structural changes have taken place in Latvia. First of all, it was the reestablishment of an independent state in 1991 and secondly - the accession to the European Union (EU) in 2004. Joining the EU provided free flow of goods, finances and individuals, a single system of legal acts as well as a trustful image of the state for foreign investors. In Latvia, 60% of the EU funds are allocated for agriculture and rural development, thus achieving the objective of producing food adequate for consumers’ purchasing power and ensuring agricultural commodities are available for their processing. Financial aid for primary industries also results in support for the whole society and other industries from which necessary resources and commodities are purchased. After joining the EU, the growth of the agricultural industry was observed owing to support payments. As a result of the EU policy, the size distribution of farms changed in Latvia, the output and exports of food increased as well as agricultural productivity rose. The research aim is to analyse the changes in and gains for Latvia’s agriculture after the accession to the EU. The following research methods were employed: the monographic and descriptive methods, analysis and synthesis and the logical and constructive methods.

Currently one of the hottest local governments’ issues on the agenda of the government of Latvia is the elaboration of new improved local government finance equalization system, which is an important integral element of the implementation of regional development policy. Local government finance equalization is affecting development capacity of any territory, including rural territories. The purpose of the article is to highlight and discuss in academic society the finance equalization issues that affect the rural municipalities and work out proposals for the new system. The study does not cover all local government finance equalization system’s elements, but gives attention to three – importance of the equalization for rural local governments – municipalities (novads); revenue sources, that are necessary to include in the equalization system; criteria for calculation of local governments’ expenditure needs.

Quality of information about cost structure of farm is of high importance when making management and production process improvement decisions. Aggregating and analyzing production process cost information by correct and unified methodology provides possibility of evaluating the structure of expenditures. Moreover, it is possible to identify most important cost positions and get perspective on production process. By collecting and processing data using unified methodology it is possible to conduct comparing evaluation between different farms. This is done to identify the most and less efficient farms, their work methods and cost structure. When developing unified methodology, it is essential to take into account that different farms might use different production systems and structure. When creating revenue and expense calculations, it is essential to receive accurate data. Good quality data is fundamental for receiving good quality and usable results. Precise data accounting is another important factor that ensures good quality of cost calculation. Precise accounting decreases number of cost allocation coefficients used for allocation of cost positions and thus decreasing effect of assumptions on unit production cost calculation. Fixed cost allocation by its nature to divide all costs by farm specializations is the most challenging when calculating unit production cost. In order for calculations to be of good quality, precise data on use of assets, specifics and intensity of farming is necessary. By identifying these indicators it is possible to create maximally precise calculation of unit production cost of beef.

The fastening pace of life is changing Lithuanians’ nutrition habits and the following change turns to be the most favourable for the development of fast food industry. The attitude has a very strong meaning for consumer behaviour. The attitude determines the obtainment and loyalty of consumer product and service. It is significant for marketing specialists to identify the components, which form positive attitude towards service or products. The availability of food is increasing; however, there emerges a lot of fast food, the consumption of which the aggressive advertising is promoting a lot. As in all fields, as well as in the industry of fast food, there are people, who support the following business and there are some against it. The following attitude might be determined by different components, which shape one’s attitude. The research problem: what are the attitude components and how do they evidence in the selection of fast food in Lithuania? The article aim is as following: after having investigated the consumer attitude components to identify their impact on Lithuanian consumer attitude towards fast food. The research object: the impact of Lithuanian consumer attitude on the selection of fast food. For the research completion, the methods of questionnaire survey were applied. The gained research outcome has disclosed that the selection of fast food in Lithuania is determined under hedonistic consumption although, there is present the expression of the cognitive information process between the components of cognition and behaviour.

The purpose of the research is to evaluate the technologies, available to the Latvia’s sector of fish processing and their utilized capacity, as well as to identify the factors influencing production process, providing recommendations for development and improvement of further policy of the sector. The author evaluated availability and utilized capacity of production technologies in the Latvia’s sector of fish processing, considering the analysis of financial indicators of the made investments, production capacity load and fish processing companies. In view of economic theory, the factors, influencing the production process of Latvia’s sector of fish processing, were defined. As a result of analysis, the author established that the development of production of Latvia’s fish processing sector is to a great extent influenced by the availability of human resources, raw materials and investments, as well as undertaking. For further development and policy planning of the sector it would be advisable to take into account these factors, influencing the production process of Latvia’s sector of fish processing and their changes. The formed combinations of indicators may be used in scientific researches on establishment of production technologies availability and their utilized capacity, and identification of factors, influencing the production process; they may facilitate researches for its calculation and importance, as well as may assist the institutions involved in the fisheries’ policy formation to work more successfully and improve the common policy in the field.

Purchasing local products has become a popular trend both in Latvia and in the world; yet, no single definition is available regarding what may be regarded as local products. The term local product is interpreted based on the distance between the producer and the consumer, administrative and political theories, social factors and personal opinions. Food systems refer to a full cycle from production to sales, whereas local food systems, which are regarded as an alternative to the global food system, are characterised by a short distance between the producer and the consumer, which increases mutual trust between the parties engaged. Besides, it has been found that local food systems are considered sustainable and local communities benefit from them economically, environmentally and socially. Local products are sold through traditional channels – food products are marketed through wholesale and retail networks – and through those popularising local products – short supply chains and direct sale channels – when products are purchased directly from the producer. The present research gives a summary and a short description of such sale channels. An essential role in increasing the sales of local products is also played by the public sector, as local products are purchased through municipal public food procurements. Even though the EU legislation stipulates that municipal public procurements may not require bidders to supply only local products because it contradicts the principles of free trade in the EU, yet, food products produced in the local region are preferred if sustainability criteria are integrated in procurement requirements.