1. Estonian Dairy Sector 2004
Tiina Saron, MBA
Estonian Dairy Association
managing director

2. Overall introduction
%
1996 1998 2000 2001 2002 2003 2004
Share of
milk
production
in GAO
27
28
29
31
31
28
30
Share of
milk
processing
in food
industry
26
28
28
30
27
26
32
Share of
milk in food
exports
33
32
28
25
22
20
22
Source: ESO

3. Milk production
th tonne
tonne
1400
per cow, EU
1200
per cow, EST
1000
7
6
5
800
total, EST
4
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
0
1993
0
1992
1
1991
200
1990
2
1975
400
1950
3
1925
600

4. Per Cent of Dairy Cows Living in Herds with the
Respective Size
Estonia
Denmark
100+
cows
72%
50-99
cows
7%
France
10-49
cows
60%
50-99
cows
49%
10-49
cows
14%
1-9
cows
7%
10-49
cows
24%
1-9
cows
0%
100+
cows
27%
1-9
cows
1%
100+
cows
4%
50-99
cows
35%

5. Herd structure
Herd size
2000
2002
2004
% herd % milk % herd % milk % herd % milk
1-10
68
10
64
7
62
6
11-50
21
14
24
13
25
12
51-100
3
6
4
7
4
6
101-300
5
27
6
28
6
27
301-600
2
22
2
23
2
25
601-900
0,3
9
0,5
10
0,6
10
901-1200
0,1
3
0,1
5
0,2
7
1200-
0,1
8
0,1
8
0,1
7

6. Milk quota
3000
2500
14000
production 2002
12000
quota
2000
10000
1500
8000
6000
1000
4000
500
2000
0
Estonia
Slovenia
Latvia
Slovakia Lithuania Hungary
Czech
Rep
0
Poland

7. Purchase of Raw Milk 2004
Division of Raw Milk Markte in 2004
(Dairy Association and Others)
Valio
7%
others
21%
Võru Juust
12%
Põlva Piim
7%
Estmilk Prod.
9%
Rakvere Piim
7%
E-Piim
17%
Saaremaa
5%
Tallinna PT
15%

8. Quality of Raw Milk 2004
Quality of Raw Milk
(% of delivered milk of respective grade)
6%
100%
80%
60%
32%
23%
14%
12%
grade I
10%
41%
43%
40%
20%
27%
17%
41%
58%
67%
71%
79%
83%
87%
3%
58%
88%
52%
38%
0%
1995
1996
1997
1998
1999
2000
2001
2002
2003
elite or
higher
grade
elite grade
2004
higher
grade

9. Price of Raw Milk, EEK/kg
Price of Raw Milk (EUR/100 kg)
40.00
35.00
30.00
Estonia
25.00
EU average
20.00
Latvia
15.00
Finland
10.00
5.00
0.00
1997
1998
1999
2000
2001
2002
2003
2004

10. Structure of the Dairy Industry
35 enterprises, 41 processing units
19 large capacity units
(process more than 2 mn litres of raw milk annually),
13 small capacity units ( less than 2 mn litres),
9 units do not use raw milk
5 co-operatives, they own 7 units
Foreign investment in 5 enterprises; which own 8 units

11. Production of milk products (th t)
Production of Dairy Products (th t)
90
700
80
600
70
500
60
50
400
40
300
30
200
20
ice cream
WMP
SMP
cheese
butter
100
10
0
0
1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
total

12. Consumption of milk products (by milk
value kg/per capita)
500
450
400
350
300
250
200
150
100
50
0
1990
2000
2001
2002
2003
2004

13. Consumption of drinking milk per capita
85
80
75
70
65
60
1996 1997 1999 2001 2002 2003 2004

14. Consumption of Milk Products (kg per
capita)
10
9
8
7
6
5
4
3
2
1
0
1996
2000
2003
2004
sour
milk
joghurt cheese
quark
sour
cream

15. Consumption in other countries
Consumption of Milk, Cheese and Butter in Europe in 2002,
kg per capita annually
milk
180
160
140
120
100
80
60
40
20
0
butter,
cheese
30
cheese
butter
milk
25
20
15
10
5
Lithuania
Greece
Estonia
Slovenia
Poland
Belgium
Czech Rep
Germany
Austria
Hungary
France
Netherlands
Denmark
Sweden
UK
Finland
Ireland
0

16. Trade of dairy products
Foreign Trade Balance (mio EUR)
50
0
agricultural
products
-50
-100
milk and milk
products
-150
-200
-250
-300
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

17. ………..cont
By Product Group
cheese and
quark
19%
butter and
other milk fat
27%
ice cream
4%
yoghurt
3%
other
2%
sour milk
products
3%
By Destination
skimmed milk
pow der
25%
w hole milk
pow der
17%
other
countries
14%
Netherlands
35%
Germany
18%
Italy
3%
Russia
3%
Latvia
4%
Finland
4%
Belgium
4%
Lithuania
5%
France
10%

18. Promotion
•Increasing trend everywhere - to encourage the
production of higer value added special and
traditional products (incl. emotional values)
Examples:
•“European Cookery” - Dutch project
•program “Estonian Food” (www.eestitoit.ee)
•campaign “Life originates from milk” (75%
financed by the state, 25% by the members of Estonian
Dairy Associataion)

19. In scope of campaign
9. 07 Milk Day in Imavere

20. …cont
billboards, print,
commercial etc.
participants:
• Eri Klas, conductor
• Eda Ines Etti, singer
• Gert Koovit, coach

21. …cont
Brochures about
nutritional value and
wholesomeness of milk
and dairy products

22. …cont
Workbook for kids

23. …cont
Conference in October “Life
originates from milk”
target group: pediatricians,
scientists, officials etc.
Topic - nutritional value of
milk