Over the past 20 years, the number of greenhouses in Latvia, both heated and unheated, has significantly declined. Farmers are struggling to compete with cheaper imported goods, reports Latvian Radio News.
At Kligeni farm in Cēsis, workers are harvesting the first cucumbers of the season, while tomatoes in nearby greenhouses will be ready by Easter. The farm employs over 100 people and produces more than 500 tons of cucumbers and around 1,000 tons of tomatoes each year. However, greenhouse manager Inese Raubiško-Reke says competition is fierce.
"Supermarkets prefer imported products because they are cheaper. It's hard to get our goods onto the market, as our prices are higher due to production costs. But we have to keep them at a level that allows us to sustain our business and pay our workers," she explained.
Energy costs significantly impact the final price of locally grown produce. According to Jānis Bērziņš, head of the Latvijas Dārznieks association, many greenhouse businesses have been forced out of the market due to high energy prices. Since 2003, the area of heated greenhouses in Latvia has halved, while unheated greenhouses have shrunk sixfold.
Bērziņš argues that state support is necessary, including co-financing programs and long-term loan guarantees of at least 10 years, to allow greenhouses to become profitable. He also calls for stricter control of imported produce, noting that last summer, a shipment of Russian cucumbers in Poland was found to contain pesticides.
Latvian vegetable producer Edgars Romanovskis echoes these concerns, citing energy costs and imports as the biggest challenges. However, despite the difficulties, he remains committed to expanding his greenhouses and making local produce more attractive to retailers.
To support domestic producers, Raubiško-Reke suggests the government reduce VAT on vegetables from the current 12% to 5% or even eliminate it entirely. "This could help our industry become more competitive," she said.
Source: rus.lsm.lv