Region

The Pierīga region is located in the central part of Latvia. It is a predominantly urban region surrounding the capital city of Latvia (Rīga), which gives farmers access to an area with a higher density of customers with higher purchasing power. Strong interaction between Rīga and surrounding Pierīga region territories – in terms of flows of people and human resources, goods including food products, capital – forms the backbone of Pierīga’s business environment. Consequently, it has good infrastructure and access to both the capital and many regional market towns. This has enabled many farmers to adopt the direct marketing of their products.

The region is diverse in terms of socio-economic and environmental conditions. Agriculture plays a relatively minor role in the regional economy of Pierīga. Farmland occupies 26% of the land area with an average farm size of 28 ha. The main enterprises are cereals, dairy farming, and pig breeding. In 2017 the share of value-added by agriculture, forestry and fishing was only 3.7%.

Study focus

The case study explored the many forms of direct marketing in the Pierīga region to determine the diversity and roles of agricultural advisors in farmers’ decision-making regarding this specific form of innovation.

Farmers’ markets and other forms of direct marketing – selling products without intermediaries – are major distribution channels for small farmers and food processors in Latvia. This way of reaching consumers shows signs of retro-innovation. It involves a mix of traditional knowledge and skills, whilst requiring a constant influx of new insights and techniques that allow farmers to adapt to changing circumstances and make use of recent developments. Many factors contribute to the successful uptake of such innovations, and the availability of advice from various sources is an integral part of their adoption.

The full report (in English) is here

Partner and responsible person contact

Baltic Studies Centre

Emils Kilis, emils.kilis@gmail.com

Lessons learned

1. The direct marketing of farm products is a continuously evolving practice in Latvia that combines old and new knowledge. It involves a broad spectrum of marketing, organisational and technological innovations, including e-commerce, logistics and other services.
2. The case study showed that successful direct marketing relies upon applying knowledge obtained both formally (e.g. from advisory organisations) and informally (e.g. via peer-to-peer learning). Therefore, the lack of traditional advisory organisations is a less significant issue than in more technical aspects of agriculture, thereby allowing it to develop in Latvia despite the limited institutional support.
3. Familiarity with successful examples, appropriate material and infrastructural conditions, use of social networks, and familiarity with the practice are essential factors for stimulating the uptake of innovative new forms of trading in short food supply chains.