Estonia, Foodstuff, Legislation, Markets and Companies, Mergers and take-overs

Saaremaa Dairy Cooperative board member Mihkel Jürisson said that Estonian dairy industries don’t have the capacity to process all milk produced in Estonia now; around a fourth of the milk is thus sold to Lithuania. The Estonian dairy strategy prescribes an increase of milk production by a third by the year 2020 though, which is why there is definitely need for a new industry.

The current Saaremaa dairy industry would remain a regional production unit, Jürisson said. "It is important for us that 80% of the cooperative members who are small producers, could deliver their milk easily," he said.

A declaration that Saaremaa Dairy Industry and Dairy Industry E-Piim issued at the end of last year notes that in order to lower the marketing risks of the new dairy industry, an international milk marketing organisation could be temporarily included as the minority shareholder of the joint venture.

Other dairy cooperatives operating in Estonia are also welcome to become shareholders of the joint venture. Jürisson said that they don’t rule out cooperation with industries based on private capital either but only a cooperative-based organisation helps to ensure small milk producers shareholding in the common property.