MEASURE MEETING OF STANDARTDS IMPLEMENTATION IN LATVIA. Zane Bulderberga Irina Pilvere Latvia University of Agriculture

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1 MEASURE MEETING OF STANDARTDS IMPLEMENTATION IN LATVIA Zane Bulderberga Irina Pilvere Latvia University of Agriculture

2 Objective evaluation of results of the Rural Development Plan (RDP) Measure Meeting of Standards implemented in Latvia over the period

3 Hypothesis the investments provided under Measure Meeting of Standards have improved the conformity of agricultural holdings to the EU standards, especially in the field of animal production.

4 Assignments u Analysis of the nature and the main results of RDP Measure Meeting of Standards in Latvia. u Profiling and evaluation of the agricultural holdings involved in the Measure. u Analysis of the implementation indicators for different activities under the Measure.

5 Methodology The study samples represent 6% (462 projects) of all approved project applications in Latvia

6 Results and Discussion

7 Goal of RDP measure Meeting of Standards: ensuring of conformity of agricultural holdings to definite EU standards in the fields of consumer and environment protection, plant and animal health and animal welfare. Meeting standards in rural farms are very important after accession EU It will serve as promotion of achieving the required qualification to uptake the funding under the Rural Development Program of for further modernization of agricultural holdings

8 Funding for agriculture and rural development ( ) EAGGF Guaranty section Rural Development Plan Structural Funds European Regional and Development Fund European Social Fund EAGGF Guidance section Financial Instrument for Fisheries Guidance Single programming Document

9 Results of Measure The funding provision of the Measure is EUR 66 MLN: an important share (16%) of RDP financial provision. u The total amount of concluded contracts under the Measure Meeting Standards amounted to EUR , by 7 % exceeding the financing provision under RDP, u In Latvia support was granted to agricultural holdings - represent 9.3 % of all commercial agricultural holdings. u 8278 project applications were received out of which 94% or 7800 were approved u

10 Profile of the Holdings Involved in the Measure u Land Area Farmed: varies from 2.5 ha to 641 ha, 49 ha on the average. The agricultural land constitutes on the average 77.5% of the total land area belonging to holdings; u Agricultural Animals: 99% holdings keep agricultural animals, 43%-keep pigs, 29% poultry, mostly hens.

11 u Finance Indicators of Agricultural Holdings Receipts from animal production constitute about 39% of farm income on the average. Although agriculturists project increase of costs as the result of inflation in 63% of farms, despite that the available cash or surplus in 59 % of holdings. The support amount:eur EUR The average scope of projects is EUR The financial support provided by the Measure makes up 44% of the farm income. The amount of the financing received by the holdings under the Measure is EUR 147 or LVL 103 per 1 ha. The amount of financing acquired through this Measure is 1.4 times lower that on the average in Latvia.

12 Meeting EU Standards in the Holdings

13 Distribution of activities in the holdings analysed, % Welfare of agricultural animals 29% Manure storages 1% Calf hutches 4% Farrowing pens for shows 1% Milk hygiene 65%

14 Distribution of projects within the Activity Milk Hygiene, % Shifting of pigs 9% Purchase of milk cooling equipment 37% Renovation Reconstruct of milk ion of milk cooling cooling premeses premises Constructio n of milk 1% 6% cooling premises 10% Purchase of milking equipment 37%

15 Total and Average Funding of projects under Activity Milk Hygiene, thousand EUR /EUR Total average per project Shifting of pigs Purchase of milk cooling equipment Purchase of milking equipment Construction of milk cooling premises 19 Reconstruction of milk cooling premises Renovation of milk cooling premeses EUR thousand EUR 8000

16 Conclusions I u The Measure Meeting of Standards has improved the conformity of holdings to the EU standards thus providing for continuation of production and operation on the market of these holdings. u Over the period of project implementation the income has increased for half of the participating holdings, for almost two thirds of the holdings in their turn the cash surplus has increased.

17 Conclusions II 462 holdings analysed within the study have involved themselves in different Activities to achieve compliance with the relevant EU standards: u For adjustment of the water supply system to the EU standards, 26 curb-wells and 140 artesian wells have been set up in holdings for the total amount of 763 thousand. EUR, the offset amount for setting up one location of the water source has been 1423 EUR and 5691 EUR respectively. u The adjustment of the water supply system for agricultural animals has taken place in 211 holdings catering for bovine animals, goats, sheep and pigs. The installation the pressure pump, trunk water main, secondary water main, and drinkers have costed 102 thousand EUR or 483 EUR per farm on the average. u 53 of the analysed holdings have set up adequate calf hutches for the total amount of 63 thousand EUR, 1188 EUR per holding on the average.

18 Thank you!