LOCAL FOOD SYSTEM IN LITHUANIA

KLAIPĖDA
UNIVERSITY
LOCAL FOOD SYSTEM IN LITHUANIA
Indre Butiene
Klaipeda University, faculty of Health Sciences
Lina Sakiene
Klaipeda University, faculty of Health Sciences
Roze Perminiene
Klaipeda University, faculty of Health Sciences
Natalja Istomina
Klaipeda University, faculty of Health Sciences
Klaipeda, 2013
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UNIVERSITY
Content
Introduction ............................................................................................................................................2
1.
Common characteristics including common opportunities and threats in the production of local and
regional foods ..........................................................................................................................................3
1.1.
Average size (in hectares and animal heads) of the producer of primary local/regional food (LRF)
in Lithuania ..........................................................................................................................................3
1.1.
Data regarding types and amounts of LRF produced in Lithuania in 2011 ..................................4
1.1.1.
Livestock farming ..............................................................................................................5
1.1.2.
Milk ..................................................................................................................................6
1.1.3.
Production of dairy products.............................................................................................7
1.1.4.
Crop production................................................................................................................7
1.1.5.
Fishery ..............................................................................................................................9
1.2.
Distribution of Lithuanian food processing companies of small, mid and large-size (2011)10
1.3.
Main distribution channels of LRF ........................................................................................... 11
1.4.
Types of common labels and/or marketing systems (indicating that the food is locally
produced) ......................................................................................................................................... 12
1.5.
2.
3.
Trends (in last 5 years) in LRF production in Lithuania ...................................................... 13
Local cuisines in Lithuania, regional analysis ................................................................................... 14
2.1.
Restaurants serving LRF Lithuania (2011) .......................................................................... 14
2.2.
Benefits of serving of LRF in restaurants in Lithuania ......................................................... 15
2.3.
Types of meals made using LRF which are served in Lithuania .......................................... 15
2.4.
Opportunities and challenges accompanied with serving LRF at Lithuanian restaurant? .. 16
Local food producers’ perceptions of threats and opportunities in local food production ............... 17
3.2. Conclusions of strategic analysis of the agriculture of Lithuania: agricultural strengths,
weaknesses, opportunities and threats (SWOT) analysis. .............................................................. 18 4.
Local consumers’ perceptions of the benefits of local food............................................................. 20
References ............................................................................................................................................. 22
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Local food system in Lithuania
Introduction
Growing demand for food in the world, the need for the rational use of the available natural
resources and the much needed preservation for future generations, pressure Lithuania as a country to
reevaluate the role of agriculture and its importance. Agriculture and its production processing industry are
not only an important source of economic prosperity through offering the population high-quality food and
energy resources, but also has a significant impact on the Lithuanian countryside, as it is home to one-third
of the country's population. Through strengthening the agricultural production base and capacity of
infrastructure development, the rural population life is gradually improving. The country's agricultural
development has previously been driven by the European Union (EU) and national budget support. In 2011,
Lithuania's budget funds for agriculture and direct investment support, intervention, and other market
regulatory measures, peaked at 2.59 billion LTL.
In recent years the Lithuanian agriculture sector has undergone rapid structural changes. The
increase in average farm size and decreasing number of farms has been one of the main trends. Compared
from 2007 to 2011, the average farm size has increased from 11.0 to 13.8 ha. Contingent workers in the
agriculture sector, on the basis of the agricultural census and the structure data, fell from 173.6 to 143.4
thousand. Consequently, there have been changes in the structure of agricultural land - decline of grasslands
and increasing arable land. Although Lithuania is traditionally a land of livestock farming, it provides excellent
natural conditions and export markets for the further development of this branch. Nonetheless the number
of animals has recently rapidly declined. Decreasing labor demand in agriculture and emigration of young
people has unfortunately not bypassed the countryside. In 2011, 58% farmers and contributing family
workers were on average older than 50 years of age.
Unfortunately several negative trends are also apparent - emptying villages, abandoned farmland
and a rapidly declining employment in low-productivity farmland areas. These recent developments highlight
the need to re-evaluate agricultural problems, issues and achievements, in order to look for new and
alternative competitive advantages in the development sector.
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1. Common characteristics as well as common opportunities and threats
for the production of local and regional foods
1.1.
Average size (in hectares and animal heads) of the producer of primary local/regional
food (LRF) in Lithuania
Growing up in the average farm size and decreasing number of farms has been one of the main
trends. Compared to 2007, in 2011 the average farm size increased from 11.0 to 13.8 ha, and contingent
workers in the agriculture sector, on the basis of the agricultural census and the structure data, fell from
173.6 to 143.4 thousand.
Structure of farms by declared agricultural area in 2010
Country
Lithuania
Number of farms, thousands/ structure,
perc.
[0-2] ha
[2-5] ha
[5-10]
ha
[10-50]
ha
[50-100]
ha
100+ ha
Total no
of farms
Number,
thou.
32,60
84,80
39,90
34,00
4,80
3,80
199,90
perc.
16,3
42,4
20,0
17,00
2,4
1,9
100
Structure of farms by declared agricultural area in 2011
Country
<5
ha
88,8
Number of farms, thousands/ structure, perc.
[5,1[10,1[20,1- [50,1[100,110] ha 20] ha 50] ha 100] ha 500] ha
36,3
20,6
12,2
5,1
3,8
All
Average
farms
Lithuania Number,
167,3
16,3
thou.
perc.
53,1 21,7
12,3
7,3
3,0
2,3
0,3
100
Ministry of Agriculture and Rural register (holding register), simplified direct payments system information data. Number
of agricultural entities in 2007-2011
Agricultural entities
Registered farmer farms, thou.
Agricultural companies and enterprises
Households, thou.
2007
101,0
586
125,3
2008
108,0
602
108,7
2009
107,0
632
103,2
2010
108,7
662
99,2
>500
ha
0,4
2011
111,1
734
94,0
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1.2.
Data of types and amounts of LRF produced in Lithuania in 2011
In the year 2011 the Lithuanian agricultural and food sector has been showing favorable trends.
Thanks to good weather conditions, production volumes have increased in many agricultural areas, thus
increasing the purchase prices further. In recent years, decreased consumption in domestic and foreign
markets have witnessed a significant recovery and upswing. As a result, the agriculture and related services
sectors have experienced a gross value added increase, at constant rate of 1.3% (based on preliminary data,
previously 2648.7 million LTL).
“Lietuvos žemės ūkis,” 2012
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1.2.1. Livestock farming
The livestock sector in Lithuania is an important agricultural element which supplys domestic
consumers with various livestock products. Livestock products account for roughly half of the agricultural
output. Of these, almost half is composed of milk production, and otherwise livestock and poultry meat. Only
a small percentage lies in egg, wool, honey, beeswax and other livestock production. Year on year the number
of cattle has gradually declined, but the supply of these products remains relatively high. During the analyzed
period (2007-2011), the highest reduction was detected in the number of cows. However due to higher yield
rates, milk was produced double the rate necessary to supply the domestic market. While a third of calves
are exported, beef production increased almost three-fold in comparison to the country's population
consumption rate. The rapidly expanding poultry farming sector, e.g. poultry has become the cheapest and
best selling variety of meat. Most of the country's population consumes pork, but in Lithuania only one third
of the total demand is grown up. Due to the lack of interest and promotion of strict environmental
requirements, pig loses decades held positions.
According to Department of Statistics, during the 2011 period, farm production of cattle and pigs
were considered to be only one-third of the previous 1990 levels. In 2011 compared to 1990, farmers and
family farms increased numbers of cattle by 14 %,while cow number have decreased by 3 %, pigs by 32%, and
the number of sheep and goats have increased by 45%.
Productions of livestock 2009-2011,(thou. t).
Livestock, slaughtered (l.w.)
Milk production
Egg production, mill, pieces
2009
272,0
1 791,0
853,4
2010
301,2
1 736,5
829,6
2011
309,8
1 786,4
773,7
Number of livestock and poultry in 2007-2011, (thou. t).
Kind of animal
Cattle
-of which dairy cows
Pigs
Poultry
2007
787,9
404,5
923,2
9874,8
2008
770,9
394,7
897,1
9107,5
2009
759,4
374,6
928,2
9308,7
2010
758,0
359,8
929,4
9466,3
2011*
752,4
349,5
790,3
8921,2
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Sheep
43,3
47,5
52,5
58,5
60,4
* Preliminary data of the Statistics Lithuania
Lietuvos žemės ūkis, 2010. Statistikos departamentas, 2011. ISSN 2029-2658
According to Department of Statistics, by the end of 2011 the number of cattle in Lithuania
increased to 752.4 thou. Cattle. While 46 percent of them included dairy cows, especially - Lithuanian Black
and White (66 %) and Lithuanian Brown (19 %). Butchery and crossbred cattle accounted for 14 percent.
The domestic market in 2011 realized 277.7 thousand tones of meat and meat products for an
equivalent of 1.9 billion LTL. Compared to the pre-crisis period in 2008, the market decreased by
approximately 15 percent and by value - 28 percent. There have been clear changes in the structure of
population consumption. Raw meat and poultry consumption has not diminished, but the consumption of
meat products was considerably lower at 50 %.
1.2.2. Milk
The dairy farm value of Lithuanian agriculture remains nonetheless high. In 2007 milk accounted
for 25.7 percent, and in 2010 up to 24.7 percent of total agricultural production. It is the largest agricultural
segment of the country economy. Nonetheless, the combination of sudden price fluctuations and unequal
conditions in the sale of milk, means that a significant number of small producers are paid less than the
purchase price, spawning a reduction in the number of small milk producers. This is why the number of 10 –
19 cows having farms decreased, although the overall number of milk producers increased in the prior years.
While the increasing productivity of dairy cows milk production did not fall as significantly as the decrease in
number, but the purchased by Lithuanian dairy processors amounts of milk is not sufficient. Hence the
noticeable increase in the import of raw milk.
Almost all the milk is gathered from dairy cows. Goats' milk in 2010 covered just 0.2 % of all
produced milk and since 2007 has been steadily declining by relative physical weight. The majority of milk is
produced by farmers and family farms, but is being gradually increased by agricultural companies and
businesses through relative weight methods. In 2007 they produced 13.7 percent of milk and in 2010 - 16.2
percent.
Milk production and purchase in 2007-2011, (thou. t)
Indicators
2007
Milk
1936.6
production
Milk purchas e
2008
1883.8
2009
1791.0
2010
1736.5
2011
1754.0
2011 compared to 2007, %
91
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- natural
fatness
-basic
fatness**
1348.5
1375.6
1274.2
1278.3
1317.1*
98
1628.2
1660.8
1534.3
1540.4
1587.2
97
*4.14 % milk fat, 3.27 % protein
** 3.4 % milk fat, 3.0 % protein
Lietuvos ekonominė ir socialinė raida, 2011.Statistikos departamentas, 2012.
ISSN 1392–2874
Lietuvos žemės ūkis, 2010.Statistikos departamentas, 2011. ISSN 2029-3658
1.2.3. Production of dairy products
The Lithuanian dairy sector is dominated by three dairy processing company groups: SC „Rokiskio
cheese“, SC „Dairy stars“ and SC „Zemaitijos milk“. During the year of 2011, this group of companies received
approximately 63 percent of all dairy processing profit, 7 percent points lower than in 2010. In recent years
another dairy processing group „Vilkyskiu dairy“. incresed its activities. In 2011, as well as in 2010, the
company received a total of 10 percent dairy processing profit. Other dairy companies and their subgroups
are significantly smaller.
Lithuanians main dairy industry specialization includes cheese production. In 2011 compared to
2007, the amount of cheese production has increased by (23 percent). Production of fresh cheese, dry milk
and whey products further increased by 10 percent.
Production of main dairy products in 2011, (thou. t)
Products
Drinking milk
Sour milk, kefir
Yoghurt
Sour cream & mixes
Curd
Butter and other milk fats
Fresh cheese
Unprocessed cheese
Dried milk and whey products
Ice cream, mill. l
Canned dairy products
2011
102.6
33.9
14.6
28.3
26.5
8.7
24.8
46.8
39.2
18.1
21.5
2011, compared to 2007, %
105
96
84
106
123
71
110
89
110
74
98
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Gaminių gamyba,2007-2011. Statistikos departamentas. ISSN 1648–5777;
1.2.4. Crop production
Cereals
In Lithuania conditions for cereal plant growing are favorable. It is dominated by medium fertility
soils – originally from natural fertility soils similar to those of other countries in the surrounding region
(Poland, Denmark, southern Scandinavia and other). Although the duration of the growing season, average
temperature and country conditions are worse. This relative superiority of Lithuania is similarly compared to
neighboring northern countries. Grain shortage in the world and EU cereal markets promoted the country's
farmers to grow more grain crops, although the amount of production in Lithuania was growing more slowly
than for other crops. In 2011 grain crops sowed in at 54.1 percent of total crop area (2010 - 54.5, 2009 - 59.2,
2008 - 60.6, 2007 - 60.4 percent). Compared to 2010, in the year 2011 the cereal production capacity
increased by 2.8 percent and during the 2007 to 2011 period grew by 7.4 percent in the country. Cereal area
production increased by 7.2 percent during the period of 2007-2011 and legumes - by 13.5 percent. The
largest areas of cereal crops in 2011 were applied to wheat production - 51.7 percent, barley - 23.6, triticale
- 9.0 oats - 5.9, rye - 4.0, buckwheat - 2.6 percent.
Sugar Beet
Lithuania - one of the 19 EU-countries, produced sugar beets in 2011. During this period Lithuanian
based harvested sugar beets made up a minor 0.7 percent of all EU sugar beets harvests. Most sugar beet is
grown in Central Lithuania, where there are suitable soil conditions. Lithuania’s sugar beet acreage increased
from 16.9 per thousand ha in 2007 to 17.7 per thousand ha in 2011. While there were two companies to
whom the two sugar factories belonged: SC “Nordic Sugar Kedainiai” and SC "Arvi sugar”, both based in
Lithuania.
Potatoes
The Lithuanian potato crop, relative to other crops decreased during 2007-2011 Whereby in 2007
levels amounted to 3 percent and in 2011 only 1.8 percent of all annual crops. Country growers marginally
expanded potato production areas in 2011. Although the amount of potatoes was still 3.3 percent more than
in 2010, it was overall down by 28.4 percent in comparison to 2007. In Lithuania average consumption per
capita stood at approximately 92 kg potatoes in 2011, 3 % more than the previous year, but 4 % less than in
2009, when potato consumption was at its peak. Lithuanians consume 26 % more potatoes than the EU
average.
Vegetables
In recent years the production area of vegetable crops in Lithuania stood at 14 thou. acres and
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accounted to approximately 0.7 percent of all agricultural crops. The year 2011 witnessed an increase of (1.4
%) in vegetable plantation in comparison to 2010 levels. 98.6 % of field vegetables were cultivated by farmers
and only 1.4 % by agricultural companies. Root vegetables (carrots, onions, beets and other) accounted for
52.3 %, cabbage - 23.2 % (of which 85.9 % white cabbage) of the total crop amount.
In comparison to 2010, total production in 2011 for the following vegetables increased
significantly: 49.3 % (757.1 tons) of sauerkraut, dried onion - 66.0 % (771.2 tons) and 14.3 % in tomato ketchup
(13.6 tons). The total amount of frozen vegetables and tomato juice produced in the past five years amounted
to255.7 tons. Products based on vegetable production remained the focus within the domestic market.
Crop production, (thou. t)
Grain crops
Rape
Sugar beet
Potatoes
Field vegetables
2009 m.
3 892,3
415,8
682,0
662,5
293,3
2010 m.
2 867,2
416,7
706,7
476,9
164,0
2011 m.
30303,9
484,3
877,8
587,7
287,6
Department of statistics
Fruit and berries
The gardening and berry sector is very much affected by varying weather conditions. Over the
past few years, this has led to a decrease in the level of yields. However, 2011 was a much more favorable
year to the industry, in terms of crop cultivation. Therefore collected fruit and berry harvest in 2011 stood at
60.3 thousand t, 16.8 % higher than in 2007 and even 37.0 % more than in 2010. Most of the 2011 fruit
harvests were accounted by apples, making a total of more than 81 %. Other fruit and berry harvest (pears,
strawberries, raspberries, black currants, and other) accounted for an average of 3 % of the sector's harvest.
Due to small gardening, berry farms and unfavorable climatic conditions, Lithuania did not manage
to grow an adequate amount of fruits and berries. Lithuanian production covers only a third or a quarter of
fruit demand. In Lithuania fruit consumption rates are one of the lowest within the EU region. According to
health organizations Lithuanians fruit consumption does not meet recommended rates, which stand at about
91 kg of fruit per year per adult. According to Eurostat, the majority of the Lithuanian citizen’s fruit diet
consists of citrus fruit – making up approximately 40 % of annual intake of fruits. Grapes and apples accounted
for one-tenth per capita of all annual consumption of fruits and berries.
1.2.5. Fishery
Lithuanian weather conditions are favorable in terms of the development of fisheries. The country
is rich in suitable water reservoirs. The Baltic Sea, with an ice-free Klaipeda port and direct access points with
the Atlantic Ocean and the further waters, creates good conditions for fishing.
Marine fisheries
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In 2011, Lithuania's Baltic Sea fleet caught 16.0 thousand tons of fish, of which about 98% - in the
Baltic Sea and on the coast a minor 0.3 thousand tons (2 %).
Fish catches* in the Baltic Sea in 2011, tons
Year
2011
Cod
3057
Baltic herring
2655
Sprat
9730
Flounder
456
Other
92
Total
15990
*Live weight
Lietuvos statistikos metraštis,2011.Statistikos departamentas, 2011. ISSN 2029-3631
Inland fisheries
In 2011, 4764 tons of fish was caught in inland water - 9.3% less than in 2007. More than half (69.0%)
of all inland fish were grown in aquaculture ponds. In 2011 natural inland water catches precipitated to 1,476
tons of fish, most from the Curonian Lagoon (77.1%), rivers (9.5%) and Kaunas Lagoon (4.7%). A relatively
small number of fish are caught in the lakes (2011 - 67.8 tons). Other water sources, especially lakes are more
important for recreational fishing.
Commercial fishing
20 aquaculture companies and about 100 farmers are breeding fish in artificial ponds. Aquaculture
ponds design capacity reflects a sales volume of 5.0 thousand fish per year. Lithuanian pond farming is
dominated by small companies. About 95% of production consists of carp. However, species of fish grown by
aquaculture companies is gradually expanding. Trout, sturgeon, catfish, pike, bream, trench, herbivorous fish,
salmon, sea trout and other species are being constantly cultivated. Most of the breeded fish are sold in the
domestic market.
1.3.
Distribution of food processing companies of small-size, mid-size and
largesize in Lithuania (2011)
In 2011, Lithuania had 844 food and beverage manufacturing companies. 24.3% of all businesses
were sole proprietorship. During 2007-2011 the total number of enterprises decreased by 8.8%, and sole
proprietorship - more than 41.8%.
Entities of the food industry in 2011
Production
Food products and beverages
Grain milling products and starch
Meat and meat products
Number of Number of
enterprises employees
844
41000
28
1245
159
8726
Sales in domestic
market, LTL mill
7341,5
298,2
1306,4
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Milk and dairy products
Preservation and processing of fish and fish products
Preparation, processing and conservation of fruit,
berries and vegetables
29
44
32
5526
4181
934
1903,2
256,1
100,1
Department of statistics
Largest food and beverage industry companies in Lithuania
No
Company
Main activity
1
AB “Kauno grūdai”
Combined feed and flour
2
AB “Pieno žvaigždės”
Manufacture of dairy products
3
AB “Rokiškio sūris”
Dairies and cheese making
4
AB “Krekenavos agrofirma”
Meat and meat products
5
AB grupė “Žemaitijos pienas”
Cheese and other dairy products
6
UAB “Švyturys - Utenos alus”
Beer production
7
UAB “Mars Lietuva”
Food production, food trade
8
AB “Kraft Foods Lietuva”
Confectionery manufacturing, trade
9
UAB grupė “Biovela”
Slaughtering, preparation
10
UAB “Marijampolės pieno konservai”
Manufacture of dairy products
Verslo žinios,2012
The number of Lithuania’s small food processing companies and farmers' workshops increased
recently. The spread of farmers' markets, shopping centers, setting up offices, where traditional products are
sold to small producers, simplified an opportunity to enter the market.
Lithuanian markets are the most common direct marketing tool, but recently mobile and weekend
farmers' markets have become more popular, in which users can directly buy food grown by the farmers.
Lithuania has a total of more than 100 markets. Otherwise, there are 19 markets in Vilnius, Kaunas - 6,
Panevezys - 3, and in the Kedainiai - 1 Farmers' Markets.
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1.4.
Main distribution channels of LRF
Local food producers can distribute their production locally in several ways:
•
Sell production in the market
•
Supply production to supermarkets
•
Sell production directly to customers, people, families
•
Supply production directly to restaurants/cafes
•
Sell production to food processing companies
There are potential opportunities for rural communities to participate in the food supply chain of
Lithuania, such as:
•
using a variety of market channels and tactics, such as marketing directly from the farm shops,
farmers' markets through the Internet and by using developed supply networks;
•
a diverse mix of new commercial opportunities;
•
selection of shorter transportation distances to the point of sale.
Integrated parties of the local food supply chain are often actively involved, not only in one, but
several chains. Farmers are proud of, and show an interest in eco-friendly products which they themselves
are often involved in, through the processing and marketing of their grown organic produce. This usually
means that farmers can inform customers about the products they buy, as well as offering a familiarization
of how the food they buy was produced and the benefits of sustainable food production. This is how
awareness among consumers is increasind and helps during the selection process in which food and drink is
consumed.
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Melnikiene,R. Lietuvos žemės ir maisto ūkis,2013)
1.5. Types of common labels and/or marketing systems (indicating that the food is
locally produced)
The main form of local food labeling is conducted through writing on the label that the certain
product is locally produced, indicating the region where the given food was produced and the name of the
land owner (sometimes with contact details). Typically there are given logos such as “has been produced
(made) in Lithuania”. Occasionally they are supplied with the exact geographical location indicated on the
product packaging. Ecological products are labeled with a certified in EU logo (often named “Euro-leaf”).
The three main supermarket chains (Maxima, Iki, Rimi) offer in their supermarkets separate food
sections dedicated to organic and local food products, supplied by farmers and family farms. Furthermore
they are distributed products with labels, for example „MAXIMA ekologica“. which indicates that the selected
assortments including foods are organic and can certify the origin with relevant certificates. More than half
of such organic products are sourced from certified local producers and the rest is imported.
There are also existing trademarks embodied by tradition and history which can be found in large
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markets and on local producer’s production labels. According to the national register, there are 5 names
registered with the word “traditional”, 14 – “antecedents”, “traditions of antecedents”, 17 – “bočių” (in
Lithuanian meaning grandfather, ancestor), 10 – “Grandmother’s”, “Granny”.
1.6.
Trends (in last 5 years) in LRF production in Lithuania
Changes in agricultural and food products trade in country market
The largest proportion of food and beverage production company’s sales in the year 2011, as in
previous years, was generated from milk, meat and various other products and beverages. Compared to the
previous years, there has been a witnessed 4% increase in sales of dairy products, and 1% point increase for
ready-made feed sales, 3% points drop in drinks and a 1% point decrease in meat products, fish and fishery
products, grain mill products and other food products sales. The Department of Statistics has further stated
that in the year 2011, harvested grain supply for Lithuania was 14% higher than in 2010. Almost the same
amount in 2010 consisted of the slaughter of animals and production of milk. The amount of purchased
agricultural production was nearly the same as in previous years. Otherwise cereal and potatos were
purchased in less amounts as farmers delayed sales and waited for more favourable prices. In 2011, an
average Lithuanian citizen consumed a total 72kg of meat and different meat products per year. Comparing
to the year 2010 – a 2kg increase in meat consumption levels. On average in most EU countries meat and
meat products are consumed in 25% more each year. Cereal consumption is currently decreasing in Lithuania.
During the period of 2007-2011 the yearly domestic consumption decreased by 10.2 % year on year. The
average citizen in 2011 compared to 2007, consumed 7.4% less cereals. the total population consumption
fund during this period decreased by 12.4%. According to Department of Statistics, in 2011 production of
sugar witnessed an (prepared or canned fruits and vegetables, flour, fruit and vegetable juices, confectionery
and cheese). While other produce such as fresh cheese, canned milk, natural mineral waters and aerated
waters production saw a production decrease.
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2. Local cuisines in Lithuania, regional analysis
2.1. Restaurants serving LRF Lithuania (2011)
At the beginning of 2012, the network of Lithuanian Responsible Restaurants and Suppliers was
created. LITHUANIAN RESPONSIBLE RESTAURANT AND SUPPLIERS (LRRS) is an open supply network of
Lithuanian restaurants. LRRS members undertake voluntary commitments related to the sustainable use of
raw materials in the restaurant business These include conditions such as quality, environmental policy,
communication and cooperation with the public. Within the network owned restaurants, customers can get
all the information regarding the restaurant andcafés used products, their ingredients, allergens, GMO use,
origin and method of preparation. Furthermore they can find information regarding all environmental policies
and actions concerning this issue.
•
The LRRS network was developed and promoted so that the food, accommodation and
entertainment part of the business would be responsible for, consumer, visitor, customer,
environment and society issues.
•
Exlusive network business features include transparency through clients who can regularly be
informed regarding the food they eat and how institutions contribute to the protection of the
environment and natural resources.
•
The number of network members is clearly on the increase. Until now there have been 18
members of restaurants/cafes in Vilnius, 3 – in Kaunas, 2 in Klaipeda, 2 in Siauliai, 1 in Panevezys
and 1 in Druskininkai.
One of the crucial restaurant responsible business principles include the notion that not less than
20% of products, from which the food is cooked, must be locally sourced. Meaning that it must be produced
in Lithuania and not have an organic product made up of less than 10%. The leaders of main institutions such
as the Responsible Restaurants network, highlight the lack of Lithuanian local raw materials, which entails
the potential production of high-quality food. Farmers hesitate to produce more local food as they fear that
it will not be effectively marketed. The mentioned network serves the purpose in bringing together farmers,
so that they can supply vegetables, dairy and meat products in large quantities and in regular intervals.
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2.2.
Benefit of serving LRF in Lithuanian restaurants
A recent study indicated that the typical Lithuanian restaurant visitor wants to eat fresh, exquisite
kitchen produced food, produced only from local products. Although joined LRRS network caterers are not
planned to receive any material benefits from this project, the intangable benefit includes a gradually
changing customer attitudes and respect towards the supply of healthy food in restaurants. Furthermore the
potential exists to achieve a higher profit margin through charging food at a higher price. For such initiatives
most important aim is increasing awareness - and activity rather than embeding formality and control. Thus
the Responsible Restaurant business initiative will remain a non-governmental organization.
2.3.
Type of meals made of LRF which are served in Lithuania
Despite the fact that there are a large variety of meals made by the LRF and served in Lithuania,
there are various recommended traditional food products, which consist of a large range of local food:
•
Bread
o Sweet curd cheese o Black rye bread
rye bread o Dried cheese
•
Meat products
o Grilled cheese o Scalded
o Curdled milk
o Butter
o Traditional Lithuanian sausage
o Dried sausage Fish products o Smoked sausage
Smoked bacon
o Dried fish o Smoked ham
Drinks
•
Milk/dairy products
Cottage cheese
o Kvass o Sour cream butter
Pastries
o Smoked eel o
o Sula o
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o Gingerbread mushrooms
o Cakes with bacon o
Christmas Eve cookies
o Donuts
2.4.
o Doughnuts o
Branch o Apple
cheese
Opportunities and challenges in serving LRF at Lithuanian restaurants?
Requirements for food production on farms:
•
Farmers can collect cabbage, cucumbers, juice and sell them or make them available to the public
catering companies. According to the SFVS Director, 2009 March 10. Order No. B1-117 Food
Processing requirements for non-animal food products
•
Farm-produced milk and dairy products farmers may supply directly to the consumers, shops,
marketplaces and catering companies, in accordance with the SFVS Director 2008. April 24. Order
No. B1-251
•
Under the requirements of the local market farmers can supply directly to the consumers, shops,
marketplaces in amounts of up to 50 kg caught fish, up to 100 kg (one-time catch) smelt.
•
Farmers holding up to 50 hens can sell chicken eggs on the marketsplace (such eggs are not required
to be labeled.) During the sales process, the eggs have to be marked with the farms name and
address).
•
Direct supply to consumers, shops, marketplaces, whereby catering farmers can supply poultry,
lagomorphs and meat produced, functions in accordance with the Bird and lagomorphs fresh meat
supply in small batches for the local market (Official Gazette, 2008, Nr. 153-5667).
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•
Farmers can deliver fresh fruit and vegetables to catering companies, in accordance with "imported,
exported and supplied to domestic fresh fruit and vegetables markets in conformity with marketing
standards of the rules" (Official Gazette, 2011, Nr. 143-6732).
The crucial challenge in offering LRF to farmers, family farms and local food producers is to ensure an adequate
amount of supplies to the given network of restaurants.
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3. Local food producers’ perceptions of threats and opportunities in local food
production
In order to better clarify local food producers’ perceptions of threats and opportunities in local
food production, 3 key groups of producers have been identified: 1st group consisting of one of the largest
agricultural companies, 2nd the local food producers who sell their production in the markets and the 3rd group
which is made up of producers, who supply local food products directly to consumers. The questions were
presented to 6 responders: 2 producers from each group.
Main responses from large agricultural companies (68-82 employees, one representing livestock, the other –
crop farming):
-
Not satisfied with the Ministry of Agricultures approach in supportinglarge-scale farmers.
-
The new CAP project also includes financial incentives for large farmers to reduce direct payments for arable crops Investment in animal husbandry may restrict and suspend EU funds.
-
Technological production processes are complicated and require high precision and responsibility.
-
It is necessary to recieve initial financial support, even if there is additional support from EU funds in establishing a company..
There is a need to review legislative framework, through invites such as (Regfood projects) in order to facilitate broader discussions.
"It should be estimated how many people are working with us and how much each of them own in terms of acres and the output
of the amount of taxes we pay to the state”.
Main responses from local food producers, who sell their produce in the marketplace:
-
There is enough profit gained from local food production to support one family.
-
Cash register introduction to the marketplace further complicate work, in many instances through reduced profit.
-
The local food they produce embodies quality through natural and healthy growing Lithuania, thus satisfying the needs of the local
inhabitants.
Taxes for selling local produce are too high - the government and the market place owners both have to reduce taxes for small
family farmers.
In the marketplace the majority of production is sourced from small family farms.It is very difficult to offer their produce to
supermarkets because farms are unable to ensure a steady and adequate flow and supply of products.
Main responses from local food producers, who sell the production directly to consumers:
-
The profit is not fixed as the producers provide the consumers food directly. The produce is supplied directly to consumers’ homes
and working places.
-
The production consists of small amounts, thus producers are unable to sell effectively in the marketplace.
Small producers face various barriers in expanding their business.
Family farms are relatively small, meaning that they are unoptimistic that the following years will bring sufficient amounts of profit.
The provided food is traditional, natural and much healthier for adults and children especially. All the ingredients used in production
is sourced and made in Lithuania – the owners consume this food by themselves, so they can assure, that the quality of food is of
high quality.
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3.2. Conclusions of the strategic analysis of the agriculture of Lithuania: agricultural
strengths, weaknesses, opportunities and threats (SWOT) analysis.
1. There is an existing technical potential in terms of farm infrastructure and large crop farms
modernisation. As production capacity provides increased added value and export possibilities,
whilefarm economics complies with risk management principles.
2. The viability of small and medium-sized farms depends on the production originality and the ability
to process agricultural production on farms through directly passing it on to consumers without
intermediaries in areas where the farms are located. However, the financial resources of farms
adequaite for modernization or processing of agricultural production, having a pure value-added
increase is a insufficient aim.
3. Support from EU funds through financing is disadvantageous to the livestock farming sector - both
unfavorable to the newly emerging livestock farms and farmers who want to expand there livestock.
The decrease in the number of animals indicates a decline in farmers' interest in the development of
livestock farming. Livestock business, compared to the crop production is less attractive because it
needs more labor resources. Labor process is uninterrupted, there is no time not only to engage in
other activities, but also for recreation. Livestock farms create significantly
less income per 1 AWU (SD) than crop production. Environmental requirements are much more stringent
than that of the crop sector.
4. Cooperative development is not merely sufficient. Currently, cooperatives cover only a small part of
a small farm.
5. The food supply chain from farm to fork food industry and retail chains are very complex, so farmers
and consumers have little ability and authority to influence it directly. To meet the needs of
consumers and enhance the viability of small farms, the development of direct sales is necessary.
Strengths
1. Large farms have achieved a significant intensification of production and generate income that enables us
to continue the modernisation of production.
2. Large farms and cooperatives have created opportunities to export many of there products as an alternative
to the current production on the food industry.
3. Food processing industries are upgraded to meet EU requirements and specifications.
4. Lithuanian agriculture and food producers maintain a strong position in the domestic market.
5. Relatively, high milk, dairy products and grain export volumes. While meat exports are increasing as well.
Weaknesses
1. Low labor productivity and intensiveness of agriculture.
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2. Small and medium-sized farms are unable to compete with large farms on land acquisition and therefore
are not in a position to expand.
3. Small and medium-sized farms lack financial resources for investment in the modernization of farms and
new technologies.
4. Small and medium-sized farms have few assets and are therefore not in a position to acquire funds for
investment through co-financing support.
5. Sluggish agricultural activity of subjects in the economic diversification process.
6. Lack of cooperative development.
7. Large concentrations of farms in most of the food and retail industry.
8. Underdeveloped direct selling methods for agricultural and food product.
Threats
1. EU direct support decoupled from production and crop production has become economically more viable
than livestock farming.
2. The emigration of young people from rural areas will consequently decrease the working-age population.
Hence, agricultural producers will feel the effect of a shortage of labor and gradual rising costs of labor.
3. Increasing environmental laws and regulations could have a negative impact on farmers' profitability.
Facilities
1. With increasing incomes and changing consumer trends in the field of nutrition, Lithuanias preference for
organic, high-quality and locally sourced products - means that it is more than likely that that the
consumption of these given products will increase.
2. Advanced technology and innovation in agriculture will enable efficient farming and effective
environmental problem solving.
3. Information technology applied to agricultural production methods facilitates more efficient production
and sales processes, creating further opportunities for direct sales strategies.
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4. Local consumers’ perceptions of benefits of local food
The survey was carried out using a web tool on the website www.manoapklausa.lt, where the questionnaire
was placed.
Descriptive statistics of respondents: total number of respondents 103, male 13, female 90, mean age
33.2 years.
1.
Are you familiar with the concept of local food?
If yes: Where do you buy it (e.g., farmer’s shop, street market, restaurant, grocery store,
supermarket, etc.)?
The answers to the first question „Are you familiar with the concept of local food” distributed:
yes - 47 (46.1%), no - 20 (19.6%), I have heard something, but I have insufficient information - 35 (34.3%).
Respondents who replied with „Yes“ chose various answers: in the local farmer’s shop – 51 (24.4%),
directly from farmers – 46 (22%), on the street market – 20 (9.6%), grocery store – 23 (11%),
supermarket – 57 (27.3%), other (mostly local market) – 12 (5.7%).
2.
What do you associate with local food? (e.g., radius of 50 km, short distance, etc.)
Produced in the area and from the locally cropped products where person lives, at about 50 – 200 km
radius.
3.
What are the characteristics of local food?
There are a wide variety of answers, but they can by summarized: safe, healthy, fresh, traditional, clean,
ecological, natural, qualitative, tasty
4.
What do you think about the quality of local food? (e.g., freshness, tastiness, traditional production,
etc.)
Fresh 83
Tasty 65
Healthier
82
Quality preserved for many years 16
Have more negatyve aspects (contaminated, unclear origin) 5
Other 5
Total number of answers
256
32.4%
25.4%
32%
6.3%
2%
2%
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103 respondents, most common answer is "Fresh".
5.
How important is it to you to buy local food?
Very important
Important
Not important
6.
53 52%
43 42.2%
5.9%
6
Has your attitude to local food changed over the last 5 years?
Has changed – 61 (59.2%), and has not changed – 42 (40.8%)
7.
Are you willing to pay more for a local food product as compared to with conventional food? Yes - 56
(54.9%), no – 25 (24.5%), does not provide a great importance – 21 (20.6%)
8.
How much of your total budget goes towards buying local food?
There are a wide variety of answers, ranging from 12 to 50 percent of total budget.
9.
How much of your food budget goes to buying local food?
There were a wide variety of answers, ranging from 10 to 90 percent of food budget.
10. How much trust do you have in food which claims to be local?
Yes, I trust
62 60.2%
No, I do not trust
16 15.5%
Have no opinion
25 24.3%
11. Should there be special "labels" facilitating the identification of local food? There was clear attitude
identified in answers:
Yes
89
No
8
No opinion
87.3%
7.8%
5 4.9%
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References
1.
Lietuvos Respublikos žemės ūkio ministerjia. Available at: < http://www.zum.lt/>
2.
Lietuvos žemės ūkis, 2012.
3.
Lithuanian Department of Statistics. Available at: < http://www.stat.gov.lt/>
4.
Melnikienė, R., 2011. Lietuvos žemės ir maisto ūkis. Available at:
<http://www.laei.lt/?mt=leidiniai&straipsnis=479&metai=2012 >
5.
Melninkienė, R., 2013. Dėl Lietuvos nacionalinės žemės ūkio strategijos po 2013 metų įgyvendinant žaliosios
knygos ,,Lietuvos kaimo ateitis” prioritetus.
6.
Mikelionytė, D., Lukošiutė, I., Petrauskaitė, L., 2010. Tiesioginių žemės ūkio ir maisto produktų pardavimų
skatinimas, atsižvelgiant į vartotojų prioritetus, p.22.
7.
Oficialiosios statistikos portalas. Available at: < http://osp.stat.gov.lt/rodikliai53 >
8.
Plenarin, O.J.I., Komisija, E., (2011) Regionų komitetas, p.1-6.
9.
Verslo
žinios,
2012.
Didžiausios
maisto
ir
gėrimų
pramonės
bendrovės.
Available
at:<
http://laikrastis.vz.lt/index.php?act=mprasa&sub=article&id=51564 >
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