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TRENDS IN THE DAIRY SECTOR IN LATVIA
Abstract
Agriculture is an important sector of the economy in the European Union (EU) and milk production is one of the most significant agricultural sectors in Latvia. It has proven itself as the sector with stable development and future perspective. The purpose of this study is to analyse the dairy sector in Latvia and trends in its historical development and the future perspectives. To reach these purposes research tasks were set which helped to analyse the key elements of dairy sector in Latvia. This study allowed to conclude that although the number of dairy cows in Latvia has decrease over the last years this has not affected milk production as the productivity has risen. After joining the EU dairy sector in Latvia has changed - small dairy farms could not complete the new technological requirements and hygiene standards of milk production and left the business thus reducing the amount of dairy cows countrywide. The sector is also heavily influenced by milk price changes in the key markets in EU and EU support. However, dairy sector in Latvia is still the most important agricultural commodity production sector besides grain production.
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