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Porter’s Diamond of National Advantage. Latvia’s Agricultural Industry
Total agricultural area in Latvia is 2,47 million ha (38,3% of its total land area), of which 1 million ha are classified as arable land (76%).
Machinery and equipment:
machinery and equipment are old (reason of low productivity):
An average age of tractors is 16 years;
Less than 18% is youngest than 5 years;
Only 5% of all machinery have less than 6 years.
Most of buildings is built 50-60 years ago;
Low developmental level (technologies, production’s specialization).
There is a tendency to follow to the west technological sample, but farmers do not have enought money to buy the new technoligies;
Support from World Bank and EU funds, so situation is getting better.
High credit’s interest rates;
Possibility to attract investment from EU.…
- International Trade in Latvia, Poland and European Union
- Porter’s Diamond of National Advantage. Latvia’s Agricultural Industry
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