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.

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.

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.

Although poor use of contraceptives and high desire for children is characteristic of sub-Saharan Africa, this demographic challenge is more peculiar to more disadvantaged segments of the population like rural farmers. This study was designed to examine current use of modern family planning and fertility intention among women farmers of reproductive age in Ido and Ona-ara Local Government Areas of Ibadan, Nigeria. Using cross-sectional survey design, semi-structured questionnaire were administered via structured-interview to randomly and systematically selected 408 respondents. Chi-square was used to show significance of associations between pairs of variables. Contingency co-efficient was used to examine extent of significant associations. Results indicate that majority of respondents (77%) desired additional children, the mean number of children that respondents already have is 2.94±1.35 while mean fertility intention is 1.85±1.44. The proportion of current users of modern family planning is 45.6%. The use of oral pills (30.6%) is most popular among respondents. There is no significant association between current use of modern family planning and fertility intention among married and divorced respondents, among respondents in all the age sub-groups, and among respondents with no formal education or secondary education (p is greater than 0.05), but there is among respondents with primary and tertiary education (p is less than 0.05). The synergy between the use of modern family planning and fertility intention among women farmers in the study area is notable but requires significant progression. Having primary education and tertiary education is significantly associated respectively with lower and higher use of modern family planning in relation to fertility intention. Education is an important element of fertility dynamics among women farmers in the study area.

The change in the concept of urban agriculture has been driven by social, political and economic factors, changing the role of agriculture in the urban environment. From the second half of 20th century topicality and practices of urban agriculture are growing widely not only in social initiatives but also in scientific research (the number of articles in scientific databases has increased 18−30 times since 2000). Growing interest has identified various variations and tendencies in the interpretation of the concept of urban agriculture, having regard to the current United Nations definition that is broad, but in research works and case studies researchers adapt the definitions to the local characteristics and aim of the study, thus creating a number of risks in the interpretation of the concept, including limited possibilities for quantitative comparisons between studies. The aim of the article is to identify the historical development stages of the concept of urban agriculture and to determine the main research tendencies in its application. To achieve this aim, the method of monographic and descriptive analysis was used for theoretical discussion, analysis, synthesis and deduction − for information gathering, logical systematization and classification. As a result of the study, it was identified that the concept of urban agriculture is developed in three different stages − originally associated with the technical solutions of urban planning for providing food for city dwellers, it is currently developing in tendencies of different directions: analysis of agriculture’s role in urban areas (including mitigating climate change risks), classification of types of urban agriculture, opportunities for adapting innovations and technological solutions to urban agriculture, the place and context of urban agriculture for sustainable development in the circumstances of urbanization. Such in-depth research of the experience and impact of urban agriculture on sustainable development could increase dynamically due to environmental considerations, aspect of the circular economy, and new paradigms in planning urban and peri-urban areas.

One of the mechanisms for enhancing innovative processes in the industry is the application of the concept of the “four-link spiral”. In contrast to the 3-link spiral, this model as one of the most important components includes a “society”, acting as one of the actors of innovative transformations. Firstly, it is society that is the main consumer of innovative products being created and, thereby, establishes “requirements”, forming demands for the quality and parameters of future products; secondly, society, in turn, acts as the initiator and generator of innovations, forming the so-called “social capital” necessary for the implementation of directly innovative transformations. In this scientific work, the problems of the formation of a “smart specialization” strategy for the innovative development of the industrial sector of the national economic system based on the application of the four-link spiral concept are investigated. A system of quantitative indicators for assessing the innovative level of industrial development is presented. The experience of introducing the concept of a four-link spiral as a mechanism of innovative development of industry (on the example of the Republic of Belarus and the Russian Federation) is given. The aim of the article is to describe innovation processes in the Russian Federation and the Republic of Belarus and to develop an innovation transfer model.

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 employment of people with disabilities has multidimensional aspects − economic, social, legal, human rights, discrimination, psychological, ethical and responsibility aspects − with different actors involved representing various kinds of interests. The European Union Disability Action Plan and Strategy specifies the objective of promoting the employment of people with disabilities in the open labour market. The employment of such individuals is not only an economic issue, but also an issue of social inclusion, poverty reduction, equal opportunity and socially responsible employment. Effective and fair use of human resources for national economic development requires a variety of support mechanisms, including regulatory frameworks, the active involvement of local municipalities, and measures taken by state institutions. Because of the different issues and the various actors with different interests involved, an integrated way has to be considered to analyse the employment factors and employment opportunities for people with disabilities. The purpose of this study is to explore and substantiate the possible scenarios associated with promotion employment opportunities for people with disabilities in Latvia. The research methodology employed for this study is based on the Analytic Hierarchy Process, and expert interviews are used to analyse the interests of all involved parties, in order to determine the best possible scenarios as to how to stimulate employment for people with disabilities. As a result, three scenarios to promote the employment of people with disabilities were developed. Although the results showed slight differences between the three scenarios, experts believe that the optimal scenario for promoting the employment of people with disabilities is the one in which the EU participates.

The experiment was conducted to analyse the effect of fermented acid whey permeate on milk yield and composition in the lactating cows. Propionic acid bacteria and their metabolites have been used in the lactating cows feeding over decades, primarily to improve growth performance, feed conversation and milk production efficiency. Two groups of the lactating cows were arranged in the study: control group (n=50) and experimental group (n=50). Experimental group’s animals received 0.5 L of fermented whey permeate daily. Acid whey permeate was inoculated with the freeze-dried PS-4 (Propionibacterium freudenreichii subsp. shermanii, Chr.Hansen, Denmark) starter and fermented anaerobically for 48 hours at 20±2 ºC. Fat, protein, lactose and total solids concentration in acid whey permeate and fermented acid whey permeate was analysed by the standard methods, but propionic acid was detected by HPLC. Milk composition and quality indices were determined at the beginning of the study and each month during 6 months period. At the end of the study the feeding of fermented acid whey permeate was stopped, but milk composition and quality data were monitored additionally after one month. Milk fat, protein, lactose, total solids, urea concentration and somatic cell count were analysed by a near infrared spectroscopy. The variability in milk composition and quality data across trial was greater in the experiment group than in the control. Milk fat and somatic cell count were significantly different (p is less than 0.05) than other studied parameters in the experimental group cows’ milk. Milk yield and lactose concentration were tended to increase during feeding of fermented acid whey permeate in the lactating cows without significant differences between control and experimental groups. Fermented acid whey permeate as feed supplement improves energy metabolism for dairy cows which results in the higher milk yield and fat concentration.

The research paper presents the results of research on the situation and trends in the age structure of farm owners or managers in Latvia. The growing world population and the challenges caused by climate change make farmers reconsider their traditional farming practices. Therefore, scientists believe that the aging of farmers is a major obstacle to the sustainable development of agriculture and rural areas, as evidenced by the age structure of European Union (EU) farmers and other agricultural workers. Generation renewal is crucial for sustainable land management and food production. In 2018, according to statistical data, the share of agriculture, forestry and fisheries in total gross value added in Latvia was only 3.8%. However, these sectors were the main job creators and drivers of economic development in rural areas. Therefore, the aim of the present research is to assess trends in the age structure of farm managers and owners and the policy instruments applied in Latvia. The results of the research show that despite the policy instruments implemented in Latvia after its accession to the EU to support young farmers and promote early retirement of farm owners, the aging process of farm owners and managers occurs relatively fast. The median age of farm owners and managers in Latvia has increased from 53 years in 2009 to 57 years in 2019, which could hinder the development of the agricultural industry and prevent the new challenge of growing global food demand and the negative impacts of climate change from being tackled.