Economic and Socioeconomic aspects of Peat Extraction and Utilization

Ilze Ozola Despite the fact that peat extraction in Latvia takes place in a relatively small part of the total peatland area, about a third of the horticultural peat used in EU comes from Latvia. When these peat resources are exhausted this market share will be lost, and entrepreneurs will seek to transfer their activities to other countries, where peat extraction is much better supported. The aim of the article is to clarify the benefits provided by peat extraction. It describes peat extraction, processing and end-use of products derived from peat, peat export, the economic and socio-economic impacts of peat extraction, the replacement of peat and added value for peat, company ownership and turnovers, use of peat for energy and future challenges for peat industry in Latvia. The need for new mining areas, need to increase substrate production volumes, greater support for local entrepreneurs, minimizing the impact  of peat mining on the environment, peat replacement with other products, the use of peat for energy,  and  problems with the lack of staff  are discussed. These are problems that peat industry is facing today and will face in the future.