Bankruptcy of E-Piim Affects Small Estonian Dairy Farmers

The bankruptcy of AS E-Piim, declared on March 11, has hit small dairy farmers in southeastern Estonia hard. The cooperative, which was the largest cheesemaker in the country, owes significant amounts to its suppliers. For instance, the Ivaski farm in Võru County is owed nearly €50,000, forcing them to send animals to slaughter to manage costs, according to owner Karmo Põder.

Klaarika Hirv, from the Kõrgemäe farm, reported an even larger debt of €60,000. The farmers have expressed little hope of recovering these sums, as E-Piim was their primary buyer. Efforts to find alternative buyers, such as Finnish dairy company Valio and Estonian producer Tere, have been unsuccessful.

Triinu Koor from Metsküla Piimamees also faces significant unpaid dues from E-Piim. Suggestions to mitigate the financial strain, including taking loans or selling farmland, have been deemed impractical by farmers.

The broader market has also been affected. Ole Musting of Külmsoo farm noted that milk processors are taking advantage of the situation by lowering milk purchase prices across the Baltic states.

The bankruptcy proceedings, managed by trustees Indrek Lepsoo and Olev Kuklase, will evaluate E-Piim's financial standing and explore potential asset sales. Despite the challenges, E-Piim's functioning factory and workforce present opportunities for recovery, with several companies showing interest in acquiring the business.