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RDP project database

Modernising a Large Scale Dairy Farm in Latvia

Summary

Two new farm stables (one for cows, one for calves) and two 5000 m3 slurry storages have transformed this farm to a modern 256 dairy cow enterprise. Milk production is up by 17%, 2 jobs have been created and waste management has been greatly improved

Background

The dominant sector in this region is agriculture, livestock and crop farming. Farm Vecsiljani was an old Soviet-era dairy unit with inefficient feeding, poor slurry storage and with constraints on increasing the herd size. The owners used EAFRD funding opportunities to transform the farm into a modern enterprise, attractive to work in for employees and owners alike.

Objective

The main aim of the project was to expand production, increase income and employment by replacing the dated farm stables and slurry storage with modern alternatives that greatly improve the efficiency of the enterprise. These objectives were pursued having in mind the adoption of environmentally friendly farming practices.

Main activities

Support for business planning to take the development from idea to reality was an important initial step. Advisory and consultancy services contributed greatly to this, including compliance with planning requirements. After this, contracting of the builders and equipment suppliers and project management were the main activities through to completion.

Results & Benefits

The new facilities have brought about a rapid increase of milk production (up 17%) and income, and two new jobs have been created in managing the increased stock numbers (total 18 now employed). Nitrogen evaporation to the atmosphere has been reduced considerably and groundwater quality is now much improved. Herd health is also much better. The enterprise is now a much more attractive place of work for employees.

Lessons learnt

Accurate financial analysis and planning is essential before proceeding with such a development, to ensure the proposal is viable and worthwhile. Thorough planning also helps secure investment finance to complement EAFRD funding, for example from a bank.

Project location and other information

Farm Veccsiljani, Vidzeme Region, Latvia

Region

Vidzeme

RDP Territory

Latvia

Total project cost (€)

161 672

EAFRD contribution (€)

62 872

National contribution (€)

17 964

Private contribution (€)

80 836

Contact name

Juris Sprukulis

Telephone

00 371 651 226 55

Languages for contact

Estonian

At a glance

Country

Latvia

Final beneficiary type

Individual farmers

Budget range

€100 000 - €500 000

Start date:

01/06/2008

End Date:

29/12/2009

Theme / Measure:

• Competitiveness of Agriculture & Forestry
• Restructuring, developing physical potential, and promoting innovation
• 121. Modernisation of agricultural holdings

Keywords:

Dairy sector, Livestock, Modernisation, Environmental impact

Last update

07/06/2011