The Ministry of rural development (agriculture) Estonia said the growth of dairy production in the country by 4% in 2016 to 217 thousand tons.

However, the dairy industry is in crisis. In 2010, value added in the dairy sector reduced, due to a noticeable decline in exports and, as a consequence, falling of efficiency of the industry. The income of milk producers dropped by 5.1% to 318,8 million euros.

Investment in the sector reached 16-year low at 10.8 million euros. The fall of investment for the year amounted to more than 30%.

Purchase prices for milk in Estonia fell by 33% due to a sharp fall in external purchasing prices — with the same 41 cents to 25 cents per liter (down 40%).

The representative of the agricultural Department of the country Taavi Kand expect that 2017 will be a turning point for the negative trends in the industry. According to him, the milk producers of Estonia intend to sharply increase investment in the industry in the next five years, up to 40-60 million euros. This will help them and the state program of development of rural life, allocating for these purposes of 15 million euros.

One of the ways out of the crisis – even greater consolidation and integration of dairy hozaitsva Estonia due to the absorption of smaller. Officially, the industry employs 25 manufacturers and farms. However, more than 70% of all dairy products in the country generate only five of them.

Photo: ok.ru