Estonia's Dairy Industry Overview
Estonia's dairy industry is a cornerstone of its agricultural sector, characterized by substantial milk production and processing capabilities. As of 2023, Estonia has an estimated 86,000 dairy cattle, contributing to an annual milk production of approximately 800,000 tons. This production capacity allows Estonia to meet both national demands and export requirements effectively.
Milk Processing and Dairy Products
The processing capacity in Estonia is impressive, with around 750,000 tons of milk processed each year. This ensures that a significant portion of the milk produced is utilized within the dairy sector, maintaining a high level of efficiency. Cheese production is a critical aspect, with Estonia producing about 25,000 tons annually, contributing notably to both domestic consumption and export markets. Additionally, Estonia produces approximately 10,000 tons of milk powder and whey annually, showcasing the country's capability to diversify its dairy offerings.
Dairy Enterprises and Farms
Major dairy processing plants in Estonia include Valio Eesti, Tere AS, and E-piim. These companies play a crucial role in the industry's infrastructure, ensuring efficient milk processing and high-quality dairy products. Key dairy farms such as Väätsa Agro, Kõljala Põllumajanduse OÜ, and OÜ Vändra are instrumental in maintaining the industry's productivity and supply chain.
Export and Import Dynamics
Estonia is active in the international dairy market, exporting approximately 40,000 tons of dairy products annually, including cheese, milk powder, and whey. The country also imports around 15,000 tons of dairy products each year to meet specific demands. Estonia's exports to China, including €3 million worth of whey powder in 2022 and €1.4 million so far in 2023, might be affected by new tariffs. The updated Turkish register includes four Estonian companies, enhancing the competitiveness of Estonia's food sector globally.
Market Events and Price Trends
Recent observations in the Estonian dairy market show stability in raw milk prices compared to May 2023, with an increase noted compared to June 2023. Projections indicate a significant rise in milk prices by 2025, with an expected 20% increase, aligning with trends across the European Union. However, global milk price reductions are beginning to affect Estonian dairy products, with anticipated drops in local butter and cheese prices. Despite the global trend, cheese prices in Estonia remain high, with potential reductions expected in early 2026.
E-Piim, a modern dairy production center in Estonia, has filed for bankruptcy, impacting Latvian farmers and attracting global interest from potential buyers. Investments, including state funding, have been made in the facility.
Modified: 2026/02/22