1887

Innovation, Agricultural Productivity and Sustainability in Latvia

image of Innovation, Agricultural Productivity and Sustainability in Latvia

Latvia, a member of the European Union since 2004, is a small, dynamic and open economy that has successfully transitioned from central planning to a market economy. The reforms undertaken have driven progress, although from generally low levels and at a slower pace in agriculture than for the economy as a whole. This report examines the conditions under which farms and businesses in the food and agriculture sector in Latvia undertake innovation to become more productive and environmentally sustainable. It identifies opportunities as well as challenges that need to be addressed. These include economy wide skills shortage, emigration and population decline and urban concentration of population and services. At the sectoral level, these include the use of agricultural payments to support a large number of non-commercial farms and the high level of unpaid farm labour. To meet these challenges, agricultural innovation can be harnessed to improve the sector’s productivity, as well as the sustainability and efficiency of the food system. This report provides a series of recommendations that should allow agricultural policies to contribute to a well-functioning innovation system that can meet the challenges that lie ahead.

English Also available in: Latvian

Executive summary

In the past 25 years, Latvia has transitioned from central planning to a market economy. It joined the European Union in 2004 and the euro area in 2014. Latvia has been a member of the OECD since 2016. Today, as a small, dynamic and open economy, Latvia deploys a broad range of reform initiatives that have driven progress, although generally from low levels, in many of the areas that would nurture future innovation‑based economic‑growth. However, progress has been slower in agriculture and more needs to be done to equip this sector with a well-functioning innovation system, and a policy environment facilitating productivity and sustainability improvements.

English

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error