Estonian experience in the formation of export strategy for dairy productsRuve Schank, Ministry of Rural Affairs, Estonia

Tiina Saron, MBA

Estonian Dairy Association

Introduction. Foreign Trade Balance of

agricultural products 1995-2014

-400

-300

-200

-100

0

100

200

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

agricultural products dairy products

Self-suffiency by main products

139

150 153 156

142135 137

123 121128

132

156152

164 160 163

93

7469

74 7163

69

79 77 76 74 77 77 77 80 8476 77

8174

6662

69 73 74

91

110

89

114122 120

10098 99 95 94 95

8592

86 8983 87

100

0

20

40

60

80

100

120

140

160

180

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

milk meat cereals potatoes

Gross Agricultural Output, source:MoA

1995 2014

Milk production in Estonia, 1994-2015

211185 172 168 159

138 131 129 116 117 117 113 108 103 100 97 97 96 97 98 95 91

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

0

100

200

300

400

500

600

700

800

900

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15

pro

du

cti

on

per c

ow

(1

00

0t)

tota

l p

ro

du

cti

on

(1

00

0 t

),

no

of

co

ws

(1

00

0)

number of cows

total production

production per

cow

Source: Estonian Statistical Office

Structure of dairy herds by milk production,%

19

3020 18 15.9 14.9 13.7 11.9 11

6149

54 5655.4 54.7

52.449 48

20 2126 26 28.8 30.4 33.9

39.1 41

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1994 2000 2006 2008 2010 2011 2012 2013 2014

601...cows

101...600 cows

1...100 cows

Dairy farm

Self-supply of milk and cheese, %

Estonian experience

• I 1991-1995 – restoration of independence, creation of own border regimes, reorientation of foreign trade from the east to the west

• II 1995-2004 – preparation for EU membership and fulfilling the preconditions, membership in international standard setting organizations (Codex Alimentarius, IPPC, OIE), WTO

• III from 2004 – today – EU membership, part of EU internal market, exports to third markets, application of EU export policies

I period: 1991 -1995• The restoration of independence, opening of the borders,

the abolition of restrictions in export and import, the reorientation of foreign trade from the east to the west.

• The reorientation of food standards and food inspection to international principles which was a basis for export, uniting with organisations that are relevant in international trade and set standards (Codex Alimentarius, OIE, IPPC)

• (Free) trade agreements, tariff quotas, search for importers in target countries.

,

Estonian standards 1994 International standards

•EVS-EN 13804:2002•Foodsuffs - Determination of trace elements - Performance criteria and general considerations

•EVS-EN 15851:2010•Foodstuffs - Determination of aflatoxin B1 in cereal based foods for infants and young children - HPLC method with immunoaffinity column cleanup and fluorescence detection

5/30/2016 12

Development of legislative process

Acts 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Veterinary Service ActPlant Protection ActFood Acthygiene requirements for food of animal

originhygiene requirements for food

food additives

labelling

residues and contaminants

Animal Breeding Act

Act of GMO-s Animal Treatment ActAnimal Welfare ActFeed ActIntra-community Trade Act

first release of act

second release of act

third release of act

...cont

• Formation of the Estonian Export Agency and Export Credit Fund

• Formation the Estonian Chamber of Agriculture and Commerce

• Quality labels “Approved Taste”

• The contest “The Best Estonian Food Product”

Quality labels Approved taste Approved Estonian taste

Perception of Swallow-label, source TNS Emor, % respondents

Perception of clover-label, source TNS Emor , % respondents

Preference of swallow-label, % out of respondents who have noticed that label, source TNS Emor

Preference of clover-label, % out of respondents who have noticed that label, source TNS Emor

Reliabilty of quality labels (swallow or clover), % out of respondents who have noticed the labels, source TNS Emor

Product development

II period: 1995-2004• Preparations for joining the EU•

• (Free) trade agreements, tariff quotas

• Joining with professional organizations, the exchange of information (EDA, ECOLAIT)

• A national program „Milk”•

• Participation in foreign fairs (Grüne Woche, Sial, Anuga, ….)

• Foundation of Enterprise Estonia in 2000

Estonian stand in Green Week

Estonian stand in Green Week

III period: 2004...• The joining with the EU - new possibilities

• Since 2005 state budget funded Market Development Grant:

promotional projects “Milk for Life”, etc.

Funding for taking part in international fairs.

• KREDEX – export crediting

• Taking part in EU-s promotion measures

• Estonian Dairy Sector Strategy 2020

• Development program “Estonian Food” 2015-2020

Conclusions and recommendations (1)1. There is no general national economic strategy and general

agricultural strategy in Estonia.

1. There is no separate strategic export promotion strategy but export of goods and services as a main priority is one of the main priorities in almost all strategic documents and development programs.

1. In order to develop and increase export appropriate measures and support schemes must be implemented.

2. Corresponding institutions must be created.

1. Schemes must be as simple as possible.

Conclusions and recommendations (2)

• 6. Gaining access to the export markets compliance of veterinary, phytosanitary and food safety requirements are essential (SPS-measures)

• 7. State institutions hold a vital role in the process of accessing new markets.

• 8. The export of agricultural products is a competition. The majority of the countries support their producers, a lack of support or the absence of support will leave producers in an unequally difficult situation.

Conclusions and recommentations (3)

• 9. The main role of the state is the development of export is creating a legislative framework that allows the development of enterprises and commerce.

• 10.When developing international trade relations the image of the state as a reliable partner is important.

• 11. Dialoge between the producers and state is needed.

HALLE, 2016

Thank you for your attention!