Mar 18 β€’ 19:48 UTC πŸ‡ͺπŸ‡ͺ Estonia ERR

E-Piim's debts have put farmers in a difficult situation

Farmers who sold milk to the bankrupt E-Piim are struggling financially, prompting cooperative members to propose selling a subsidiary in Latvia to ease their monetary troubles.

The bankruptcy of E-Piim has severely impacted local farmers in Estonia, particularly those who relied on the cooperative for their income. Since September, these farmers have faced a serious financial strain as E-Piim has not paid them for their milk sales, leading them to tighten their belts while trying to meet tax obligations and repay loans. During a recent meeting in Paide, members of the milk producers' cooperative suggested selling their milk processing plant in Jaunpils, Latvia, to alleviate their cash flow challenges.

One farmer, Ennu Nurk, who operates a herd of 70 dairy cows in the TΓΌri municipality, expressed his frustration over being owed a sum that exceeds five months of his revenues. The outstanding debts from E-Piim amount to around 120,000 euros, which have placed Nurk and his peers in precarious positions concerning their finances. Although he managed to sell some forest land and old machinery to cope momentarily, he now finds himself unable to invest in new equipment or take on additional loans, highlighting the dire situation many farmers are experiencing.

The issue raises concerns about the future of dairy farming in the region, with farmers calling for government intervention to ensure they receive their overdue payments. Many fear that without immediate action, their financial stability will only worsen, jeopardizing not just their livelihoods, but also the broader agricultural community in Estonia. The proposed sale of the Latvian plant may provide a stopgap solution, but many farmers are looking for more sustainable measures to secure their future.

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