Feb 19 • 19:23 UTC 🇪🇪 Estonia ERR

The state is looking for ways to assist dairy producers in difficulty

The Estonian government is seeking ways to assist dairy producers facing financial difficulties due to issues within the cooperative E-Piim.

The Estonian government is actively exploring solutions to support dairy producers who are struggling financially, primarily due to the money problems faced by the dairy cooperative E-Piim. Minister Erkki Keldo mentioned the possibility of using funds from the Rural Development Foundation to provide loans or guarantees to farmers, potentially alleviating their financial burdens. He expressed skepticism about the ability of dairy producers to recover all their debts through bankruptcy proceedings.

E-Piim Tootmine recently filed for bankruptcy, with debts to dairy producers amounting to approximately 30 million euros. Peep Peterson, the head of E-Piim's parent company, highlighted that just over half of this debt is owed to members in Estonia and Latvia, while the remainder is owed to larger foreign dairy producers. The specifics indicate that about 15 million euros is owed to both groups, with approximately eight million euros of that total being liabilities to Latvian dairy producers.

E-Piim is crucial to the Estonian dairy industry, processing up to 1,000 tons of raw milk daily, with the majority of its products destined for export. Maintaining production at E-Piim is deemed vital not only for the company's future but also for the stability of the wider dairy sector in Estonia and its export capabilities.

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