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RDP project database

Production of wood chips


The Latvian RDP allowed the Bogdani farm to diversify its source of income by supporting the purchase of a wood chip shredder. This new activity also helped to recuperate arable land by removing an excess of bushes on the farm territory.


The Bogdani farm grows grain crops and rape on some 122 ha of agricultural land and it also manages 58 ha of forest. Some areas of the land, and in the region at large, have been taken over by bushes. The up-side of this is that the farm had an opportunity to meet the increasing demand from local boiler houses for wood chips. So the Bogdani farm launched the production of wood chips as an alternative source of income to supplement its non-agricultural business activities in the rural area.


The project aimed to diversify the farm’s business through the purchase and use of a chip shredder. This would develop non-agricultural entrepreneurship and generate an alternative source of income for the farm.

Main activities

The main activity undertaken included the purchase of a chip shredder for making wood chips.

Results & Benefits

The business has generated an alternative income and increased overall sales. Local people benefit from a local source of fuel with cheaper and more flexible supplies, which facilitate energy production during winter.

Lessons learnt

Diversification means better risk management as the company benefits from various sources of income. And, as a spin-off of the business activity, the surface of arable land available has increased.

Project location and other information

Mārtiņi, Vecumnieki municipality, Zemgale, Latvia



RDP Territory


Total project cost (€)

17 544

EAFRD contribution (€)

5 947

Private contribution (€)

11 597

Contact name

Zigmunts Alekšūns


+371 29 330 743

Languages for contact


At a glance



Final beneficiary type

Individual farmers, Other

Budget range

< €20 000

Start date:


End Date:


Theme / Measure:

• Rural Quality of Life & Economic Diversification
• Rural economic diversification
• 311. Diversification into non-agricultural activities


Business planning, Wood, Farm diversification, Wood product

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