Laflora closes the 2019 peat extraction season by harvesting more than 105 thousand tons of peat, which is about one tenth of the total peat extraction volume in the country.
One of the largest peat extraction and processing companies in Latvia – Laflora located in Jelgava municipality – closes the 2019 peat extraction season by harvesting more than 105 thousand tons of peat, which is about one tenth of the total peat extraction volume in the country. The results of this season show a stable increase in peat extraction in recent years and it will allow to meet the demand of local and export markets for quality peat products until the next extraction season.
Laflora is dealing with peatlands management – peat extraction, processing and peat product production, as well as management of peatland areas. In Jelgava municipality, the company extracts peat in Kaigu and Drabiņi Mires with a total area of 1656 ha. There is also a peat production factory in Kaigu mire, where the company produces peat substrates for agriculture, horticulture and forestry, for both the local and export markets. Laflora is one of the largest taxpayers and employers in Jelgava municipality.
The company has expanded its operations; since 2017, peat is being harvested also in the area of 337 ha in Nīcgale Mire of Daugavpils municipality, where an average of 56 residents of Nīcgale rural territory and the surrounding area are employed. In total, investments in the establishment of a peat extraction site reach 1.73 million euros. In order to be able to process the peat obtained in Nīcgale Mire into peat products on the same site in Latgale Region, the company plans to build a peat processing factory in Daugavpils municipality in the coming years, thus creating additional jobs and revenues in Daugavpils municipality budget.
Peat extraction takes place only in the dry season; it is seasonal in nature. The peat extraction season lasts from April to the end of September. This year, a total of 105,547 tons of peat was harvested, of which 79,856 tons – milled peat and 25,691 tons – sod (block) peat. This is slightly less than last year, due to not so good weather conditions for peat extraction, but the trend shows a steady increase in peat extraction in recent years. This season is characterized by an increase in the amount of sod peat extraction (the process when peat is cut from the peat layer surface in pieces and dried in peatland), which can be explained by the acquisition of new extraction areas in Nīcgale Mire, which was prepared for peat extraction in a short time.
"We have obtained enough peat to meet the demand of the local and export markets for quality peat products by the next season. However, if we will be directly affected by planned changes in the state tax policy (the plan to increase the excise tax on diesel fuel and the natural resources tax), we will need to increase the prices of peat products”, says Uldis Ameriks, Chairman of the Board of Laflora.
Development of extraction infrastructure
To meet the increasing demand for peat products in Latvia and abroad, the company improves peat extraction infrastructure every year. This season, 1400 m of roads were constructed in peatlands; the creation of new peat extraction fields was started in all company’s managed peatlands, ensuring the stability of extraction volumes in a long-term.
Sustainable peat extraction with environmental responsibility
To make effective use of post-harvested peatlands and to reduce their impact on the environment, the company is actively working on the implementation of a reclamation or after-use program for these areas. In Kaigu Mire of Jelgava municipality, in cooperation with scientists and cooperation organizations, various studies have been implemented to search for innovative after-use scenarios of post-harvested peatlands. To generate "green energy", the implementation of Laflora wind park idea was started this season. An initial public discussion on the plan was held in July, 2019, and detailed research on the potential impact of the plan on the environment, the immediate surroundings and its inhabitants was started. At the beginning of next year, the residents of Jelgava municipality will be invited to a public discussion on the wind park idea.
Employs Jelgava residents
210 employees are permanently employed in the company. This year, as in other years, about 180 employees were employed additionally during the peat extraction season; mostly they were residents of Jelgava municipality and city, including about 50 school pupils who took the opportunity to gain their first work experience. During the last 15 years, this possibility has been used by more than 750 youngsters aged 16 and over in Jelgava municipality.
"Working in the peatland is a great opportunity to understand what responsible work means – in order to get quality peat, pupils help to gather roots from the peatlands and weed out the weeds, receiving a decent salary for their work. For good reason, every season there are pupils who want to work with us again”, says Uldis Ameriks.
The amount of taxes paid by the company is increasing every year, reaching 2.8 million euros in 2018. Its significant part consists of personal income tax payments to the municipalities of Jelgava city, Jelgava municipality and Ozolnieki municipality.
