Latvia’s peat industry, a significant contributor to the nation’s economy and a key supplier to European horticulture, faced challenges last year due to unfavorable weather. Reduced peat extraction volumes led to price increases impacting growers, though the situation has since stabilized.
The Impact of 2025’s Poor Harvest
Peat harvesting in Latvia experienced a difficult season in 2025. By the end of August, extraction rates were around 30% of average, due to prolonged wet weather. This shortfall created a supply crunch and drove up prices for peat and peat substrates.
Guntars Dzērve, owner of “Augusta Zemenes” (August Strawberries) in Mālpils, explained that his farm mitigates price fluctuations by securing peat contracts a year in advance. Despite this practice, 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
Increased peat costs are part of a broader trend. Growers are also facing rising expenses for fuel, energy, and labor. Logistics costs, according to Dzērve, have increased by over 30%. Despite these challenges, the Stādu audzētāju asociācija (Seedling Growers Association) predicts that final seedling prices will not 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 competitive pressure from imported goods, limiting the ability of local growers to pass on all cost increases to consumers.
Adapting to a Changing Market
Latvian growers are focusing on efficiency and innovation in response to rising costs and environmental concerns. Dzērve emphasized maximizing yield from existing land and resources, aiming to “produce more from one seedling, more from one square meter” over the next three to four years.
This includes exploring recent biological preparations, adopting improved varieties, and optimizing growing techniques.
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% and pointed to geopolitical factors 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.
Frequently Asked Questions
Why did peat prices increase in Latvia?
Unfavorable weather conditions in 2025 led to a significantly reduced peat harvest, creating a supply shortage and driving up prices.
Are seedling prices expected to rise?
Whereas costs for growers are increasing, the Seedling Growers Association predicts that final seedling prices will not increase dramatically this season.
What is the Latvian peat industry doing to address sustainability concerns?
The industry is focusing on responsible peatland management, including sustainable harvesting, restoration efforts, and investment in renewable energy.
As Latvian growers navigate rising costs and a changing market, will a focus on efficiency and sustainable practices be enough to ensure the long-term viability of the peat industry?
