Feb 19 • 13:38 UTC 🇪🇪 Estonia Postimees

Three Support Measures Available for Dairy Producers Affected by E-Piim

Dairy producers facing difficulties due to temporary payment delays at E-Piim can access three support measures through the Rural Development Foundation in Estonia.

Dairy producers in Estonia are currently facing challenges due to temporary payment delays from the dairy company E-Piim. In response to this situation, the Ministry of Rural Affairs has aimed to ensure the continuation of milk production by offering viable options for affected producers to manage their temporary cash flow issues. The Rural Development Foundation (MES) has introduced three specific measures to assist these farmers during this challenging period.

The first measure involves loan guarantees provided by MES to help producers secure financing from banks, especially in cases where collateral is insufficient. This guarantee can cover up to 80 percent of the loan obligation, with potential amounts reaching up to 2.5 million euros per entrepreneur, depending on the specific transaction. This financial support aims to ease the burden on producers and help them maintain their operations while they navigate through these payment delays.

Additionally, MES offers a working capital loan specifically meant to alleviate the financial strain caused by temporary cash shortages. This loan can provide up to 400,000 euros per entrepreneur, ensuring that dairy production can continue without significant interruptions. These measures highlight the government's proactive approach in supporting the local dairy sector amid economic challenges, thus helping to stabilize the industry in the region.

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