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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 13:27

Financial cost of Russian import ban on Estonian producers up to 150 mln euros

BC, Tallinn, 09.09.2014.Print version
The fresh analysis of the Estonian Market Research Institute (EMRI) indicates that due to the Russian ban on imports, Estonia needs to find new markets for production in the financial volume of up to 150 million euros, LETA/Public Broadcasting reports.

Although the exports that are directly under export ban form 75 million euros a year, indirect effects add around a similar amount.

 

Indirect effects cover raw material and products that were exported to EU partners, but which, in turn, were exported to Russia.

 

EMRI director Marje Josing said that the most painful financially for Estonia is the ban on exports of cheese, which accounts for 27 million euros.

 

The volume of fish and fish products is 15 million, and cancelled milk and dairy exports are in the same range.

 

Indirect effects come largely come from the fact that, for example, the Estonian dairy sector exports large amounts of raw milk to Lithuania, where it used to be exported to Russia after being manufactured into cheese.

 

"The cheese market is the most vulnerable. For example of the whole world cheese exports, Russia accounted for 11%," said Josing.

 

Josing said that the current crisis provides food for thought to businesses who have not distributed risks between markets, especially regarding finished products.

 

"We have not been able to get established at the Nordic market, the German market. Out of convenience, raw material-focused exports have been continued. This is simple business, but in a crisis situation, it is even more difficult to go into new markets," she said.

 

In the long term, the agriculture and food industry have good prospects as a branch of economy, Josing said. "The world food market is a growing, evolving and high-demand market. One-time excesses and crises do not affect the long term perspective."






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