Agricultural construction in Latvia: from a niche solution to export potential

agricultural construction in latvia from a niche solution to export potential

Agricultural construction in Latvia is gradually evolving from a conceptual idea into a practical and economically justified solution for sustainable building. Continuing the discussion launched by the Vidzeme Planning Region on agro-construction as a natural alternative to traditional building materials, the sector’s potential is becoming increasingly apparent not only in the local market but also in exports. This potential is particularly significant in the context of the European Union’s climate goals, zero-emission requirements for new buildings, and the urgent need to rapidly decarbonise the existing building stock. Although at the policy level in Latvia natural-origin building materials are mainly associated with wood (we discussed this topic more extensively in our previous article), European practice demonstrates much broader possibilities. The materials used in agro-construction — hemp, straw, reeds, flax, and hemp-lime — offer low embodied emissions, CO₂ sequestration, good thermal insulation, vapour permeability, and the ability to rely on local, renewable resources.

Best practice examples from Latvia

Several companies and initiatives are already operating in Latvia today, demonstrating in practice the viability of agro-construction solutions and their compliance with modern building requirements.

One example is the company FURE BioStone, which develops hemp-lime concrete solutions for new buildings and renovation projects. The company’s product, BioWall, is made from the porous core of hemp shives combined with a specially developed lime binder. This material combines low embodied carbon emissions with good thermal insulation properties, while also ensuring a healthy indoor microclimate and durability.

Meanwhile, NatureNest (SIA Hemp Eco Systems Latvia) specialises in building natural and healthy residential houses using the hemp lightweight concrete Nest Crete. The company’s experience shows that such solutions are competitive internationally as well — over ten years, projects have been implemented not only in Latvia but also in Lithuania, Estonia, Denmark, Germany, Belgium, Switzerland, France, Portugal, and Austria. This proves that agro-construction products carry real export potential while simultaneously contributing to a highly energy-efficient living environment that supports residents’ well-being.

Another important example in Latvia is the experience of the association “Salmu Māja” (Straw House), which uses industrially manufactured straw panels in construction. These panels, made from straw, wood, and clay, ensure high thermal performance, predictable quality, and fast installation. The association’s experience confirms that environmentally friendly construction can be carried out using modern construction speeds and technologies, while also improving building microclimate and aesthetic qualities.

Experience from the Baltic region

Similar solutions are being successfully developed in neighbouring countries as well. The Estonian company Kodukuubis offers straw panels, noting that their use is less labour-intensive than traditional drywall constructions and allows for significant savings in construction time. Such panels are increasingly used for insulating log buildings while preserving the natural indoor microclimate. The Lithuanian company EcoCocon has become one of Europe’s leading manufacturers of straw panels, exporting its products to several countries. The company’s panels consist of approximately 89% straw and 10% wood, with raw materials sourced from local farms near the factory. This approach creates a strong link between agriculture and manufacturing while reducing transport-related emissions.

Development opportunities for Latvia

Latvia has significant potential to develop the production of agro-construction products based on local agricultural crops. This would simultaneously help reduce emissions in the construction sector, create high value-added products for export, and strengthen regional economies. However, the decisive role in realising this potential lies with the public sector, particularly municipalities.

European city experience shows that targeted policy action can greatly accelerate the use of natural-origin building materials. For example, Amsterdam has introduced a requirement that part of new residential construction must be implemented using wood or other bio-based materials, while the Lille Metropolis in France is systematically working to reduce embodied emissions in construction by bringing together municipalities, industry, and research institutions.

A similar approach in Latvia — through municipal public procurement, pilot projects, territorial development conditions, and support for local companies — could serve as a catalyst for the growth of the agro-construction industry. In this way, agro-construction is not only an alternative building solution but also a strategic opportunity for Latvia to position itself in Europe as an innovative, climate-neutral producer and exporter of construction solutions based on local resources.

Author of the article: Jānis Butkēvičs

Image: Anita Austvika

About the project

The Agro Building Carbon (ABC) project is implemented within the framework of the INTERREG EUROPE 2021–2027 programme. The aim of the project is to improve regional policy instruments in order to create economic opportunities for the production of bio-based construction materials and the related value chain. This objective is to be achieved by learning from best practice examples concerning these materials and the support policies linked to them, particularly carbon sequestration certification.

For further questions:
Inguna Kucina, Project Manager
inguna.kucina@vidzeme.lv
+371 26598678

Prepared by:
Alise Seile, Communication Manager
alise.seile@vidzeme.lv
+371 26222334