Many places in Latvia are cornfields cultivated by foreign farmers, and there are more projects for the establishment of farms and pig farms.
Latvia has large areas of fallow land, relatively low production costs and the large Russian market right next door. These assumptions have been an important starting point for many farmers, who have invested in Latvia and build modern and efficient farms. As a foreign investor it is important to remember that there are high costs of cultivating fallow land up. It takes much time, costs a lot of resources to get the production up at a fairly level and the lack of revenue can be difficult to finance. We suggest focusing on farmland that are already in a good crop rotation, but if you prefer to cultivate the idle land, there must be solid equity as basis.
Although Latvia is a member of the European Union, the local laws are somewhat different from those one is used to. Likewise; the documentation requirements from the authorities can be different from what one is used to. The most important thing before beginning to run a business in Latvia is to realize that it will be an operation in a foreign country.
Although Latvian law is in accordance with EU regulations and directives, then there are different laws current than one is used to in ones homeland. One experience also significant differences in the business traditions and mentality. Agriculture in Western Europe have evolved over hundreds of years, while Latvia only in the last two decades have returned to the market conditions. And it is impossible to avoid that it affects citizens' attitudes towards business and business culture. One must also assume that in Latvia - especially in agriculture – are lack of qualified workers, who are able to work with large modern machinery and technologies. This means that one has to invest time and energy into training of staff.
It is especially important to manage ones investments and projects. Farmers have typically high professional competences and great confidence in people, but in some cases lack of leadership skills. What the Latvians often need, is a role model for monitoring, making decisions and carry responsibility.
Farmer’s success story in Latvia can be explained by the fact that Latvia has many possibilities. First of all, one can buy land for a relatively good price. Secondly, one can achieve a higher yield if one has modern agricultural machinery and good management, because production and labour costs are relatively low in Latvia. Next, businessmen can feel safe about their investments because Latvia's has membership of both the EU and NATO.
In addition, one in Latvia can seek EU support for various development projects.
The business opportunities for foreign farmers are good because rural areas in Latvia are still relatively underdeveloped. E.g. one can for example establish intensive agricultural production, including cattle breeding, where one manufactures products both for local consumption and for export. One can also expect that the production and export of organic products of high quality for the Western European countries will be an important focus area, because rural areas in Latvia are ecologically clean.
Please find current agricultural farms for sale in Poland and Latvia.