Porter’s Diamond of National Advantage. Latvia’s Agricultural Industry

Agricultural area:

Total agricultural area in Latvia is 2,47 million ha (38,3% of its total land area), of which 1 million ha are classified as arable land (76%).

Machinery and equipment:

machinery and equipment are old (reason of low productivity):
An average age of tractors is 16 years;
Less than 18% is youngest than 5 years;
Only 5% of all machinery have less than 6 years.
Most of buildings is built 50-60 years ago;
Low developmental level (technologies, production’s specialization).

New technoligies:

There is a tendency to follow to the west technological sample, but farmers do not have enought money to buy the new technoligies;
Support from World Bank and EU funds, so situation is getting better.

Capital resources:

High credit’s interest rates;
Possibility to attract investment from EU.…