Latvia’s Peat Industry Faces Price Volatility and Adapts to Climate Challenges
Latvia’s peat industry, a significant contributor to the nation’s economy and a key supplier to European horticulture, experienced a challenging period last year. Unfavorable weather conditions dramatically reduced peat extraction volumes, leading to price increases and impacting growers across the country. While the situation has stabilized, the industry is navigating a new landscape of increased costs and a growing focus on sustainability.
The Impact of 2025’s Poor Harvest
Last year saw a particularly difficult season for peat harvesting in Latvia. By the end of August, extraction rates were only around 30% of the average, due to prolonged wet weather. Although conditions improved later in the year, the initial shortfall created a supply crunch and drove up prices for peat and peat substrates – essential resources for horticulture and agriculture. This price surge directly affected nurseries and growers preparing for the spring planting season.
Guntars Dzērve, owner of the “Augusta Zemenes” (August Strawberries) farm in Mālpils, explained that his farm proactively mitigates price fluctuations by securing peat contracts a year in advance. “We agree on the price and quantity of peat a year ahead, which is common practice in our sector, and similarly for seedlings and fertilizers,” he stated. Despite this foresight, Dzērve noted a 30% price increase between the autumn of 2024 and 2025, with a further 5-10% anticipated for the 2026 season.
Rising Costs Across the Board
The increased cost of peat is just one piece of a larger puzzle. Growers are also grappling with rising expenses for fuel, energy, and labor. Dzērve estimates that logistics costs have increased by over 30%, adding further pressure on profitability. Despite these challenges, the Stādu audzētāju asociācija (Seedling Growers Association) predicts that final seedling prices won’t increase dramatically this season.
Andrejs Vītoliņš, head of the Latvian Seedling Growers Association, noted that simpler peat products without additives have seen the most significant price increases – a rise of 3 to 4 euros. He also highlighted the competitive pressure from imported goods, which limits the ability of local growers to pass on all cost increases to consumers.
Adapting to a Changing Market
Faced with rising costs and environmental concerns, Latvian growers are focusing on efficiency and innovation. Dzērve emphasized a shift towards maximizing yield from existing land and resources. “We are focusing on developing – producing more from one seedling, more from one square meter. That is the way forward for the next three to four years, to become more productive without increasing land area or the number of seedlings,” he explained.
This includes exploring new biological preparations, adopting improved varieties, and optimizing growing techniques. The focus is on increasing productivity rather than expanding operations.
Sustainability and the Future of Peat
Ingrīda Krīgere, a board member of the Latvian Peat Association, acknowledged the price increases but assured that peat remains available. She noted a price increase of approximately 50-60%. She also pointed to geopolitical factors impacting export opportunities, potentially keeping more peat within Latvia.
Latvia exports peat to over 100 countries, and its production accounts for 30% of the peat used in professional horticulture across Europe. The industry is increasingly focused on responsible peatland management, including sustainable harvesting practices, peatland restoration, and renewable energy projects.
Did you know? Latvia is a major exporter of peat, supplying a significant portion of the peat used in professional horticulture throughout Europe.
FAQ
Q: Why did peat prices increase in Latvia?
A: Unfavorable weather conditions in 2025 led to a significantly reduced peat harvest, creating a supply shortage and driving up prices.
Q: Are seedling prices expected to rise?
A: While costs for growers are increasing, the Seedling Growers Association predicts that final seedling prices will not increase dramatically this season.
Q: What is the Latvian peat industry doing to address sustainability concerns?
A: The industry is focusing on responsible peatland management, including sustainable harvesting, restoration efforts, and investment in renewable energy.
Pro Tip: Secure contracts for essential resources like peat and fertilizers well in advance to mitigate price volatility.
Explore more articles on Latvian agriculture and sustainable farming practices.
Subscribe to our newsletter for the latest updates on the Latvian agricultural sector!
