We must create conditions conducive to production and export of high-value-added products - Kulbergs

RIGA - We must ensure that it is profitable in Latvia not only to grow, but also to process and export high-value-added products, Prime Minister Andris Kulbergs (United List) emphasized following a meeting with representatives of the agricultural sector.

The Prime Minister’s communications advisor, Elina Sverna, told LETA that Kulbergs met this week with representatives of association Farmers' Parliament and Latraps agricultural cooperative, and also visited the pea protein production facility of ASNS Ingredient, currently under construction in Jelgava.

During the visit, the focus was on the competitiveness of Latvian agriculture, the rapid rise in production costs and fertilizer prices, the impact of the European Union’s climate policy, unequal competitive conditions within the European Union, as well as the need to develop the processing of local agricultural products in Latvia and create greater added value for them.

Kulbergs emphasizes that agriculture is not just one sector of the economy. "It is the guarantor of our food security, the viability of our regions, our exports, and a vital part of Latvia’s economy. If we want Latvian farmers to remain competitive in European and global markets even ten or twenty years from now, government policy must be predictable and focused on production, rather than constantly creating new obstacles," said the prime minister.

The ASNS Ingredient pea protein production facility in Jelgava is scheduled to begin operations in the first quarter of 2027. The future plant is expected to generate long-term demand for yellow peas grown in Latvia, which will be processed into high-value-added products - protein isolate and other protein products, starch, and dietary fiber.

During the Prime Minister’s meeting with company representatives, discussions focused not only on the project’s development and its significance for Latvia’s economy, but also the administrative and bureaucratic obstacles the company faces in implementing such an ambitious investment project.

According to Kulbergs, such projects very clearly demonstrate the direction Latvia should take. "If we can process barley grown in Latvia right here into a product with many times greater added value and sell it on the global market, the winners are the farmer, the entrepreneur, and the Latvian economy as a whole," he said. The prime minister also added that the government’s task is to ensure that the path to production for such investment projects is as fast and straightforward as possible.

Meanwhile, during his visit to Latraps, the Prime Minister met with Roberts Stripnieks, chairman of the cooperative’s board. During the conversation, they discussed the importance of cooperation in strengthening the competitiveness of Latvian agriculture, the situation in crop farming, rising production costs, the increase in mineral fertilizer prices, as well as the ability of our country’s farmers to compete in the European Union’s single market.

At the conclusion of the visit, Kulbergs visited Paugurisi farm, which has been operating in the agricultural sector for more than 30 years, growing rapeseed, legumes, and various grain crops. There, the prime minister met with Juris Lazdins, chairman of the board of Farmers’ Parliament; Maija Dzelzkaleja-Burmistre, vice chairwoman of the board; as well as farm owners Armands and Arturs Jankevics.

During the meeting, the farmers drew attention to the increasingly challenging competitive conditions in crop production. Specifically, compared to the previous year, prices for certain types of mineral fertilizers have risen by as much as 60 percent, driven by geopolitical conflicts, disruptions in supply chains, and European Union climate policy requirements.

At the same time, grain purchase prices remain relatively low, significantly reducing farm profitability. Additional pressure is being exerted by the European Union’s Carbon Border Adjustment Mechanism, which affects the costs of mineral fertilizers imported from third countries.

The discussion also covered the distribution of the European Commission’s emergency aid to the agricultural sector and Latvia’s opportunities to achieve fairer competitive conditions at the European Union level.

Concluding the visit, the prime minister emphasized that the Ministry of Agriculture, in cooperation with farmers’ organizations, needs to evaluate both short-term solutions to mitigate the rapid rise in costs, as well as long-term measures to strengthen the competitiveness of Latvian agriculture.

Kulbergs stated that Latvian farmers need more than just short-term solutions to weather each upcoming crisis. He emphasized that a long-term policy is needed that allows farms to invest and plan for development.

"This means less bureaucracy, fairer competitive conditions within the European Union, strong cooperation, and a much greater emphasis on processing products produced in Latvia right here in Latvia. Strong farmers and strong food production are also the foundation of a strong nation," the politician asserted.