October 25, 2019. The first discussion of deputies and peat industry representatives on the unused potential of the industry and development opportunities in the Latgale region was held in Balvi region, at the external meeting of Latgale Subcommittee of the Saeima of Latvia.
Deputies of the Saeima (Parliament) Latgale Subcommittee discussed the development of the industry in Latgale Region on October 25, 2019. The external meeting of the Saeima Latgale Subcommittee was held in Balvi municipality, and it was the first discussion of deputies and peat industry representatives.
The discussion was attended by deputies of the Latgale Subcommittee of Saeima Commission for Human Rights and Public Affairs and the peat industry representatives – members of the Latvian Peat Association, including the company Laflora, as well as representatives of Balvi municipality. After the discussion, the deputies visited one of the largest peat production plants in Latgale – "Compaqpeat" in Briežuciems rural territory, Balvi municipality. Here the company has invested more than 5 million euros and employs up to 40 employees during the season.
Latvia is a country rich in peat resources, a peat super-state on a European scale, but these resources are not fully used for economic development, especially in the Latgale Region. Latgale is the richest region of Latvia in peatlands – 31% of all peat resources of Latvia are located here. However, of all areas, only 15% of the of Latvian peat extraction license areas are located here. Sustainable and smart development of the peat extraction industry – peat extraction, infrastructure development, construction of factories for peat products production – would provide socio-economic benefits to Latgale Region: provide revenues to local governments in the form of taxes and land rents; promote significant investments in the region, as well as promote employment. According to statistics, the average salary in peat companies exceeds the average salary level in Latvia. Given that the peat extraction process is slow and lasts for several decades in a single peat extraction site, these benefits are predictable in the long run.
Edmunds Teirumnieks, Chairman of the Saeima Latgale Subcommittee: “In all the Latvia's strategic planning documents, there is a talk about the most efficient use of local natural resources and also about the research about their use in perspective. Peat is one of the few natural resources (and also slowly renewable) that Latvia can be proud of. Peat resource extraction and export form a substantial part of total export balance of Latvia. It is very important to note that peat extraction and the substrate production industry have a very strong regional impact. That is, we are talking about the country's polycentric and regional development, because we are promoting local employment, which in turn includes unemployment reduction, people's choice of living in rural areas and paying taxes to municipal budgets. The long-term development of this sector must promote the creation of maximum added value for all groups of peat products and for the related economic activities – substrate production, plant propagation, sorbents, etc. In fact, it is a matter of developing the peat sector in cooperation between entrepreneurs, scientific institutions, municipalities, and other stakeholders.”
Uldis Ameriks is a member of the Council of the Latvian Peat Association and head of the peat extraction and processing company Laflora which is working in working in the Nīcgale Mire in Daugavpils municipality. He points out: “In order to give the necessary kick-start to the development of the peat sector, it is necessary to define mineral extraction and processing sector as a separate, important national economy sector in the state planning documents, and include it in the list of state sectoral policies. For example, the mineral extraction sector as one of the regional development aspects should be mentioned in the National Development Plan, and the Latgale Region should be highlighted here. Moreover, the National Climate and Energy Plan should support the extraction of peat for agriculture and forestry. Peat use in forestry and landscaping can contribute to climate change mitigation and emission capture, while horticulture is important for food needs. In regional development planning documents, peat sector should be planned as a sector to be developed together with horticulture and forestry. It is also important to avoid the planning of additional restrictions for potential peat extraction sites in the Latgale Planning Region.”
Entrepreneur of Balvi region, member of the board of SIA Balvi Flora Ivars Zaharāns: “In rural areas of Latgale Region, peat extractions companies are of the largest employers. At the same time, the industry is finally experiencing a shortage of skilled labor. When planning Latvia's economic activity, particular attention should be paid to maintaining and attracting labor force in rural areas, in order to maintain economic activity and population in rural areas. I also think that everyone has the right to live in their usual environment, and no one should change their place of residence due to unemployment. Solutions should be sought for using peat here in the region to create new jobs, such as promotion of nurseries of tree seedlings, ornamentals and vegetables. Also, the use of peat for bedding (litter for cattle) should be increased as peat adsorbs ammonia and thus promotes GHG-friendly livestock farming."
In the total export balance of Latvia, peat product export makes up 6,3 % of total exports, expressed in units of currency (EUR). 95% of the peat obtained in Latvia is used for agricultural and forestry needs. In Latgale Region, the peat currently is being extracted in 12 mires, in the area of 3763 ha; 11 peat extraction and processing companies are operating here, employing more than 430 employees during the season. About 30 million euros have been invested in the extraction and processing infrastructure. In total, there are peat deposits in area of 300,700 ha in Latgale. After excluding protected nature areas where peat extraction is not planned, as well as territories which are too small for economically viable peat extraction (below 30 ha), it can be concluded that the potential area for peat extraction in Latgale is approximately 107,000 hectares. Most, or 80% of mires in Latvia, including mires in Latgale Region, are owned by state (more than 60% in the possession of AS Latvijas Valsts meži) and local governments.
Ingrīda Krīgere, head of the Latvian Peat Association: In order to rationally use peat resources, peat extraction should first be planned in those peat deposits where extraction was started in the last century but was not completed, as well as in the areas adjacent to the existing extraction areas.
REFERENCE: Global demand for peat products is growing. Taking into account the availability of resources, Latgale Region has the potential for development; sustainable development of peat extraction in the region is possible by taking into account the environmental aspects and strict regulatory framework of the peat sector. Peat extraction is regulated by a strict legislative framework which determines both the selection of potential extraction territories and the necessary environmental impact assessment, as well as the extraction processes and the reclamation of territories after the completion of peat extraction.
Peat extraction is a traditional industry as peat has been extracted in Latvia since the 18th century. Today, peat is used mainly in horticulture – for growing plants and vegetables. Peat obtained in Latvia is used worldwide – 95% of Latvia's peat is exported. Last year, exports reached 176 million euros, or 6.3% of the country's total exports. In total, peatlands cover 10% of the country's territory. Of all Latvian peatlands, peat is being extracted in only 4%. Due to the favorable climatic conditions, the annual natural growth of peat significantly exceeds the extraction volumes. There are 63 peat extraction and processing companies in Latvia.
Currently, almost 3,000 people are employed in peat extraction and processing sector (during the harvesting season), mainly in the regions. On average, taxes are paid 19 million euros per year. 9600 peat deposits have been identified in Latvia. Of them, more than 500 deposits could be used for industrial peat extraction.
A study conducted by the research center SKDS shows that the attitude of the Latvian population towards peat extraction is positive or rather positive (72%), while 9% of the population have a rather negative or negative attitude, but 19% have no opinion.
