Large tracts of farmland, minimal labor costs and a sizable Russian marketplace next door are all present in Latvia. These presumptions have served as a crucial foundation for many producers who have invested in Latvian productive farms. Overseas investors must keep in mind that farming vacant land comes at a considerable expense. To have the output up to a reasonable level requires a lot of effort and money, and the absence of profit can be challenging to finance.
Since Latvia’s remote regions are still comparatively undeveloped, there are good commercial prospects for international producers. One can set up intense crop yields, which includes cattle raising in these regions, and produce goods for both domestic and international markets. Given the environmental cleanliness of Latvia’s remote regions, it is also reasonable to assume that the cultivation and export of high-quality natural foods to Western European nations will receive significant attention.
Guide on Latvian agriculture business
Take a chance to step out on faith if you’ve been wanting to launch an agribusiness business. If you are unfamiliar with agriculture enterprises and this field, there is no need to be concerned. The following six stages will help you launch your own agribusiness business.
- Specify your objectives.
A critical phase of launching any firm is developing the goals. You need to address a few important concerns before launching if you wish to succeed as an investor. The reason behind your passion for agribusiness, your financial objectives, hopes for the future, and the type of product you want to produce.
It will be simpler for you to decide on the path you want your firm to go on once you know the answers to the aforementioned questions.
- Specify your niche
Choosing whether you want to expand on already well-known and in-demand products or try something new is a crucial step that you must take. It is safest to stick with things that are already well-liked in the local market. Cereals, potatoes, fodder crops, and dairy products dominate Latvian agriculture. People who want to work in the agriculture industry but do not plan to grow any crops can choose alternative farm-related niches. They can handle equipment, tractors, kitchenware, and other farm-related products.
- Market research
After deciding what you intend to grow, it would be beneficial if you also had a solid understanding of your marketplace, customers, and rivals. This is why you must conduct an in-depth industry analysis to evaluate your corporate plan. Discover the most popular product categories, the seasonal harvests, and the average price range for the goods you intend to sell.
Include the rivals and their methods as well. After learning all you can from them, try to improve. Consider what is lacking in their offerings and then provide it to your clients.
Consulting the Latvian state agency of farming is a beneficial step in the data analysis procedure. In addition to assisting you with the regulatory processes, they will give you the most recent information about farming in the area.
- Select the most appropriate property
You may locate the ideal farmland once you’ve determined your farming business’s goals and marketing objectives. Furthermore, it would be better if you choose between leasing and purchasing land. Many young producers choose to lease land because it lowers investment risk. Find those who own acreage and rent out their land if renting is your preference. If you decide to buy land, you should think about areas with good water supply, good soil, and closeness to the market.
- Set up finance
You probably will look for financing for your farmland if you’re a rising businessman. When requesting funds for the first time, you must be reasonable. At first, you may not be able to obtain such money, so you’ll need to be cautious about the items you choose to buy rather than splurging on expensive agricultural gear.
- Register and obtain a license
You must establish your business with the Latvian Business Registrar after completing all necessary steps. The government of Latvia grants licenses for various types of agricultural enterprises. If you want to cultivate crops, you need to get water supply approval, a license for polluting operation, special approval for trade, and a permit for agricultural sale. If you intend to export your goods, you must first obtain a license from the Latvian Rural Support Service.
Other specialized licenses may also be required in certain situations. Obtaining a fertilizer permit or a permit to produce cranberries, for instance.
- Promote your farm operation
Every firm needs marketing to succeed. If you haven’t advertised your farm products in the first place, you can’t expect them to reach shoppers. By designing a logo for it, coming up with a memorable tagline, building a website, and running media ads, you can effectively promote your company.