estonian agriculture, rural economy and food industry

ESTONIAN AGRICULTURE,
RURAL ECONOMY
AND FOOD INDUSTRY

STRUCTURE OF THE MINISTRY OF AGRICULTURE
AND ITS AREA OF ADMINISTRATION
Advisers to the Ministry
Minister
Advisers to the Minister
Secretary General
Deputy Secretary General
for Agriculture and Rural
Development
Deputy Secretary General
for Agro-Food and Trade
Department
of Rural
Development
Department
of Agriculture
Veterinary and
Food
Department
Department of Agro-
Food and Trade
Department
of Legal
Services
Department of
Public and
Foreign Affairs
Administrative
Department
Department
of Internal
Audit
Department of
Fisheries
Economics
Government agencies and their local offices
Plant Production
Inspectorate
+
15 regional offices
Border Service of
Plant Production
Inspectorate
+ 8 border
inspection points
Animal Breeding
Inspectorate
Agricultural Registers and
Information Board
+
15 regional offices
Veterinary and
Food Board
+
15 regional offices
Border Service of
Veterinary and
Food Board
+13 border inspection
points
Centres and laboratories
Jäneda Training
and Advisory
Centre
Animal Recording
Centre
Control Centre of
Plant Production
Veterinary and Food
Laboratory
+6 regional
laboratories
Research establishments
Estonian Research
Institute of
Agriculture
Jõgeva Institute of
Plant Breeding

Contents
1. What Estonia is like 3
Territory, population, climate, mineral resources, soils
2. Reforms have changed Estonian agriculture 7
Changes in agriculture after Estonia re-gained independence
Grain and dairy farms are most common
3. Trade is largest with European Union 11
and Baltic states
Russia is relatively modest trade partner to Estonia
Estonian consumers prefer domestic goods
4. Economic results of agriculture 13
Large agricultural enterprises are
efficient cereal growers
Number of animals and livestock production have
significantly decreased in ten years
5. Young people are interested in 19
agricultural higher education
The number of students in rural economy vocational educational
institutions could be greater
Agricultural producers are in need of advice
1

6. Forests are an important natural resource in Estonia 23
Age structure of forests is uneven; many spruce
forests are ready for cutting
Estonian timber industry is developing rapidly
7. Fishing is an important industry for Estonia 25
Estonia has 40 fishing ports
Export and import of fish and fish products
8. Food industry yields a quarter of the total industrial output 27
Dairy industry is the largest
Meat processing concentrates in large-scale enterprises
9. Measures taken to assure food safety 31
10. Rural enterprise is developing 33
Dairy associations are popular
Examples of enterprise
11. Different landscape types have been preserved in Estonia 37
Estonia endeavours to protect natural diversity
Editors: Ülo Kalm, Ants Laansalu
Front cover picture: Arne Ader
Photos: Ove Maidla, Kaido Haagen, Archives of the Ministry of Agriculture
Translator: Kadri Kivistik
Printed by KO Ofset
Väike Vanker 2002
2

1.
What Estonia is like
Estonia is a small country that borders on the Baltic Sea in the west and has
a number of small islands along its coastline. For thousands of years, the sea has
shaped the country’s climate and therefore the temperament and way of life of its
inhabitants, thus nurturing their diligence and composure.
3

1.
Facts about
Estonia
Territory
• Estonia’s territory is 45,227 km.
• Estonia has 14,421 Baltic Sea islands with a
total area of 4,130 km 2 .
• Estonia has 1,150 lakes with a total area of
2,015 km 2 .
• Estonia has 14,331 km 2 of agricultural land
and 20,155 km 2 of forest.
• Estonia has four national parks and 217
conservation areas occupying 12% of the
country’s entire territory.
Population
• The population of Estonia is 1.45 million.
Estonia has 47 towns and 207 parishes, and
is divided into 15 counties.
• The largest towns are Tallinn (440,000 inhabitants),
Tartu, Narva, Kohtla-Järve, and
Pärnu. More than one-half of the population
(1.01m) lives in towns.
• 31% of the population lives in rural areas.
4

1.
Climate
• Estonia’s climate is influenced by its close
proximity to the Baltic Sea and the intensive
cyclonical processes of the Atlantic Ocean.
Moderately cold winters, cool springs,
moderately warm and variably dry-to-rainy
summers and long autumns are typical.
• The annual average temperature is +5 °C.
July is the warmest month with an average
temperature of +16 °C to +17.5 °C, while
February is the coldest with an average temperature
of –3.5 °C in the western parts of
Estonia and its islands and –7.5 °C in the
eastern part of Estonia.
• There are 1600–1870 sunny hours a year;
the annual radiation balance for the territory
encompassing Estonia is 3500 MJ/m.
• The vegetation period (daily average temperature
above +5 °C) lasts from the
beginning of May until the end of
September, the duration of which is approximately
175 days.
• The annual average rainfall is 550–720 mm.
Rainfall exceeds humidity loss due to
evaporation.
• The average relative humidity in Estonia is
80%.
Mineral resources
• The most important mineral resources of
Estonia are oil shale, phosphorite, and peat.
• Estonian oil shale is regarded as being of the
world’s finest quality. Estonia’s oil shale
resource coverage areas are in the northeast
of the country, totaling approximately
6,000 km 2 . The largest single Estonian deposit
contains nearly 8 billion tonnes of oil
shale. Oil shale is primarily used as a fuel for
power stations (80%) and as raw material
for the oil shale chemical industry (20%).
• Phosphorite resources, which are located in
Under
water
6%
Land use 01.01.2001
Other land 17%
Forest land 45%
Arable
land 25%
Natural
grassland 7%
5

1.
the Rakvere deposit, were discovered in the
1970s. The estimated stock of the useful
component (diphosphorus pentoxide) is ca
700 million tonnes. To date, phosphorite
has only been excavated from the Maardu
deposit and is used for making single
superphosphate and phosphorite powder.
• Limestone and dolomite deposits are mainly
located and on its islands and in the
northern portions of Estonia. Limestone is
used as raw material for cement, lime burning,
construction stone and broken stone.
Dolomite is mainly used as a decorative
construction stone.
• Mineral sea mud and organic-rich lake mud
are used for therapeutic mud treatment.
The main sea mud deposits are in the
Haapsalu and Riga Bays.
• Mineral water is obtained from boreholes
in Värska near Lake Peipsi, and is sold as
bottled drinking water under the brand
name Värska.
• Next to Finland, Estonia is one the richest
countries in bogs; bogs occupy 24% of
Estonia’s land territory.
• Bog areas are rich in peat: peat deposits
cover 901,500 ha. The estimated peat stock
is 2.37 billion tonnes. The annual maximum
rate of peat use is 2.37 million tonnes
as established by a Government resolution.
Forty per cent of the extracted peat is
exported; the remainder is used as horticultural
fertiliser and as fuel for heating residential
buildings.
Soils
• Soil quality is assessed on a point basis that
is dependant on its fertility and technological
conditions. The average soil rating of
the total arable land in Estonia is 41 points.
• Soils above 50 points are regarded as good;
Estonia’s coverage of this soil type is
134,000 ha (12% of arable land). Soils of
average fertility (30–50 points) cover
837,000 ha (74.6% of arable land). Soils of
low fertility (less than 30 points) cover
151,000 ha (13.4% of arable land).
• The most fertile soils can be found in Järva,
Jõgeva, Lääne-Viru, and Tartu counties.
6

2.
Reforms have changed
Estonian agriculture
Agriculture has been an important sphere of activity and a source of income for
Estonians all throughout its history. Three major reforms having conflicting objectives
have affected Estonia’s agricultural activity within the 20 th century.
7

2.
Changes in agriculture after Estonia
re-gained independence
During the 20 th century, Estonia experienced
three significant political transformations, the
conflicting objectives of which had dramatic
impact on its agricultural activity:
In the 1920s, former manor lands were sold to
farmers as Estonia became independent for the first
time in history. Estonian agriculture began to
develop rapidly and Estonia became a considerable
agricultural producer in Europe.
At the end of the 1940s, forced collectivisation
was carried out in Estonia under the conditions of
Soviet occupation; land was expropriated from its
owners and made public, and farmers were forced
to work on collective farms.
At the end of the 1980s, as Estonia re-gains independence,
land that was unlawfully expropriated
during the Soviet occupation is returned to the lawful
owners. Farms are restored and larger agricultural
enterprises emerge as the result of the buying and
leasing of the privatised property of collective farms.
In 1988, even before Estonia regained its independence,
the Estonian SSR government adopted an
unprecedented decision to permit the re-establishment
of farms and enable the selling of machinery,
equipment, and vehicles to farmers.
The Farm Act was adopted in 1989 to provide
legal guarantees for the establishment and development
of farms.
The Land Reform Act was adopted in 1991.
Under this Act, land was returned to the lawful
owners and it was possible to privatise land by
pre-emptive rights or on general grounds. People
whose buildings were located on land subject to
privatisation were entitled to pre-emptive rights.
Since 1996 the restitution and privatisation of
land has intensified. By the end of 2001, 860,000
ha, or 71% of the agricultural land stock and
1.5 million ha of forest land had been entered into
the land register. Land reform is expected to be
finalised by 2003.
The Agricultural Reform Act was adopted in
1992. This Act established the grounds for the
liquidation of collective farms and the establishment
of new farms and agricultural enterprises –
private and public limited companies – on the basis
of their assets and land.
The assets of 360 previously collective farms
were used to establish 11,700 commercial farms
and 709 agricultural enterprises.
Relative share of agriculture
has decreased
As a result of reforms, the relative share of agriculture
in the gross domestic product decreased
from 15% to 3.3% during 1991–2000, while
employment in agriculture decreased from 15% to
5.2%. Due to structural changes, the employment of
TABLE 1.
Agriculture in the national economy
1992 1993 1996 1997 1998 1999 2000
Share of agriculture and hunting
in GDP (millions of kroons,
current prices)
1665,9*
2123,1*
2722,6
2779,5
2810,0
2584,2
2784,1
Relative share in GDP (%)
11,7
9,3
5,2
4,3
4,3
3,7
3,6
Employment in agriculture and
hunting (‘000)
114,6
91,9
52,1
44,8
43,5
38,2
31,5
Employment %
15,0
13,0
8,1
6,9
6,8
6,2
5,2
Export of agricultural products
(millions of kroons)
973,5
2498,6
3227,6
3391,3
3476,9
2589,9
3093,6
Relative share of export of
agricultural products (%)
17,5
23,5
15,2
11,5
9,9
7,5
5,8
* including forestry
(Source: Estonian Statistical Office (ESO))
8

2.
rural inhabitants in agriculture and fishing has decreased
by 50%. However, employment in the third
sector, the services sector, has significantly increased.
Agriculture accounts for a small
share in GDP and export
As shown in Table 1, the relative share of agriculture
in the gross domestic product (GDP) had decreased
3.5 times since 1992 and the export of agricultural
products decreased threefold.
Rural employment is lower
In 1992, 51% of the rural working population was
employed in agriculture; the respective figure for the
year 2000 was 18% (Tables 2 and 3).
TABLE 2.
Number of employees
250000
200000
150000
100000
50000
0
Employment in rural areas and in
agriculture during 1991–2000
Total rural employment
Agriculture
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year
TABLE 3.
Rural employment during 1991–2000*
(annual average, ‘000)
Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Total rural
employment
237 300
226 300
207 500
201 100
177 500
176 200
177 100
183 500
181 000
177 400
Including agriculture
and hunting
128 900
114 600
91 900
75 900
55 500
52 100
44 800
43 500
38 200
31 500
* 1991–1996: persons aged 15–69; 1997–2000: persons aged 15–74
Sources: ESO publications “Labour Force 1998, 1999 and 2000”
9

2.
TABLE 4.
Number of agricultural enterprises as of 1 January 2001
Associations and state-owned enterprises
1994 1995 1996 1997 1998 1999 2000
1 013 983 873 854 803 734 680
2001
709
Agricultural ancillary enterprises
95
87
52
44
31
33
25
68
Farms
10 153
13 513
19 767
22 722
34 671
41 446
51 081
60 895
Average farm size
24,8
23,1
20,8
22,0
21,7
21,2
20,8
20,7
(Source: ESO annual publication “Agriculture 2000”)
TABLE 5.
Types of production
2000 Percentage of
total output
Total crop production
Grains
Oil crops
Legumes
Potatoes
Vegetables and
fruits, berries,
and others
100%
36,7%
1,4%
1,7%
25,3%
16,1%
18,8%
38%
TABLE 6.
Many small farms have emerged
The number of associations and state-owned
enterprises has decreased in the post-reform years.
The last state-owned enterprise was privatised in
2001. The number of agricultural ancillary
enterprises has also decreased. The number of
farms has grown, but farm size has decreased
(Table 4).
Grain and dairy farms are
most common
Agricultural holdings specialise in three types of
production: 45% of the farms engage in crop production,
21% in dairy farming, and 31% in mixed
production (crop and livestock production).
The most common crop type is grain, the output
of which accounts for 36.7% of total crop production.
Dairy farming is the most common area of
livestock farming, where milk products constitute
45.9% of the total livestock production.
Livestock
production
Bovines
Pigs
Sheep
Milk
Other
100%
10,1%
22,1%
0,2%
45,9%
21,8%
(Source: Ministry of Agriculture, using EUROSTAT methods)
62%
10

3.
Trade is largest with European
Union and Baltic states
Estonia’s trade policy has been liberal during the last ten years. Purchasing of agricultural produce by
the state stopped in 1991 and pricing was deregulated.
The open economy has implied greater opportunities as well as greater risks to the developing state:
Estonian domestic market prices are directly affected by price changes on the world market.
The purchasing prices of the main agricultural products increased after the country regained independence.
Although experiencing a downturn in 1997, higher prices returned again in 1999. Demand
increased on the domestic as well as the foreign market in 2000. In part, this was due to the favourable
world market situation, which also triggered a rise in producer prices. The purchasing prices grew by
44.9% for milk, 35.7% for pork, 9.4% for beef, 18.2% for wheat, and 11.6% for rye.
11

3.
Mark of
origin and
quality
Quality
Mark
3,00
2,50
2,00
1,50
1,00
0,50
0,00
30
25
20
15
10
5
0
Russia is relatively modest trade
partner to Estonia
While exports to Russia accounted for 44% of
Estonia’s foreign trade in 1994, it consisted of only
4% by the year 2000. This decrease is due to higher
basic import tariffs on Estonian products entering
Russia, which are set twice as high as those established
for its most favoured trade partners.
Exports to Estonia’s neighbouring countries,
Lithuania and Latvia have grown rapidly. While the
share of Estonian agricultural products exported to
these countries in 1994 was 15.6%, by the year 2000
it had increased to 39.4%.
The relative share of Estonian agricultural products
exported to European Union countries has continually
grown. Export to the EU accounted for
23.2% of the total agricultural exports in 1994, and
39.4% in 2000.
In July 1994 a free trade agreement was signed between
Estonia and Europe, which entered into force on
1 January 1995. The agreement enabled the marketing
of Estonian products in European markets with the favourable
conditions of 60% lower custom’s tariff rates.
The Europe Agreement signed in 1995 gave Estonia
the status of an associated country of the European
Union, resulting in wider access to EU markets. The
agreement also helped make Estonia more attractive
to foreign investors.
Fish and milk products are the major articles of
agricultural export, accounting for 39.4% and 24.7%
of exports in 2000.
The export of meat products also increased in
2000 when 99% of its pork was exported to Latvia
and Lithuania.
The import of agricultural and food products to
Estonia has also significantly grown. In 2000, the
amount of imported milk products was 44,000
tonnes, which accounted for 10% of the domestic
market consumption. Import of meat products in the
same year was 40,600 tonnes, which accounted for
46% of the domestic market consumption.
Import of grains and grain products amounted to
Milk purchasing price in 1994–2000 (EEK/kg)
1994 1995 1996 1997 1998 1999 2000
Dynamics of beef and pork purchasing prices (EEK/kg)
pork
beef
1993 1994 1995 1996 1997 1998 1999 2000
222,000 tonnes, consisting of one-third of the domestic
market consumption.
From 1 January 2000, customs duties were imposed
on agricultural and food products imported from
countries with which Estonia has no free trade agreement.
This was the first step toward changing the previously
liberal trade policy. However, as the relative
share of the countries affected by the new customs duties
is rather insignificant in total imports, the economic
effect of the customs duties was modest as expected.
Overall figures indicated the foreign trade balance
in 2000 as negative: imports substantially exceeded
exports.
Estonian consumers prefer domestic goods
The Estonian consumer prefers domestic products
over imports for three main reasons: price, traditional
tastes, and naturally cleaner raw materials.
Since 1994, in order to assess the position of
domestic products in the domestic market and consumer
preferences depending on product origin, the
Estonian Institute of Economic Research has conducted
surveys and performed research studies for the
Ministry of Agriculture. Results indicate that the
assortment of domestic goods available to consumers
has continually grown. The market shares of domestic
goods that have increased the most are of ice cream,
yoghurt, curds, boiled sausage and frankfurters,
smoked sausage, smoked meat, bread, and biscuits.
Competition between producers is tough in several
product groups, corresponding to more and more new
products being brought to the market.
In certain product groups (pasta, margarine, vegetable
oil, poultry meat), the local market has been
occupied by importers. Following the launch of vegetable
oil production in Estonia, many consumers
started to prefer domestic vegetable oil.
The Estonian food industry considers it necessary
to value domestic raw material, which is why the
Estonian Chamber of Agriculture and Commerce
developed the mark “Approved Estonian Taste” in
2000. The mark of origin is given to products of
100% Estonian origin which have successfully passed
laboratory and quality assessment. The requirement of
domestic raw material cannot be applied to all foods
(such as confectionery products), which is why the former
quality mark is also still in use.
179,5
130,8
Export of agricultural products in 2000,
in millions of kroons
64,1
275,5
249,3
942,4
1252
European
Union
Baltic States
Russia
Ukraine
EFTA
CEEC
Others
12

4.
Economic results of agriculture
Favourable conditions for field crop production and organic farming.
Land cultivation became the main activity and source of income for Estonians during the
Bronze Age, 1700–500 BC. Permanent fields and households engaging in land cultivation
emerged in the present territory of Estonia during the 5th century.
Grain export was an important part of the economy in the 17 th and 18 th centuries. In the
first half of the 20 th century there was an increase in the demand for meat; where after
cattle and dairy farming became the dominant. Today, there are 1.12 million hectares of
arable land, which is nearly one-quarter of the total land stock.
13

4.
TABLE 1.
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
(Source: ESO)
TABLE 2.
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Cereals
397000
418113
423104
375100
319505
304342
288780
326641
354057
321029
329347
Cereals
957,3
939,2
598,1
810,7
510,4
513,5
629,2
650,5
576,2
401,6
696,6
hanges in total crop area
When compared to 1990, the present total crop
area stands at a decrease of 27%. The relative area
used for cereals and feed crops has decreased,
while areas used for oil crops and legumes have
increased. The proportion of unused and uncultivated
land has also increased. Crop fields have
decreased due to the slow pace of land and agricultural
reform and also the economic difficulties
encountered by farms and agricultural enterprises
as a result of low market prices for agricultural
products. Many agricultural producers are not able
to acquire the needed new machinery due to the
lack of funds (Tables 1 and 2).
Increasing the cereals production
is on the agenda
Over the last ten years cereal production in Estonia
has decreased by 20%. This is chiefly thought to be
for two reasons. First, the domestic market price of
cereals has decreased as a result of cheap import
cereals, on which the importing countries have
paid direct or indirect export subsidies. The second
reason for Estonia’s decreased production is its
relatively small use of fertilisers and herbicides.
Legumes
100
100
400
400
700
3700
5800
8700
6367
2922
3892
Total crop area (ha)
Oil
crops
2600
2328
3808
1592
2840
6185
8739
8223
17584
24262
28 821
Vegetables
5200
5700
5100
4600
4400
4600
4200
3900
4200
3871
3 789
Total crop yield ('000 t)
Legumes
0,2
0,2
0,4
0,7
1,1
6,3
13,8
17,0
8,3
3,1
6,6
Oil crops
1,1
0,8
1,5
0,8
2,2
7,0
10,0
9,6
17,9
29,8
38,7
Potatoes
45500
52200
46300
42600
39900
36900
35300
35200
32600
31124
30 865
Vegetables
105,0
120,5
78,4
70,0
78,0
56,8
54,7
52,3
50,2
44,7
53,3
Feed
crops
665300
635200
627000
632200
566900
493900
515500
480800
446033
435191
412 797
Potatoes
618,1
592,1
669,1
538,6
563,0
537,4
500,2
437,5
316,7
403,7
471,7
Additionally, weather conditions in Estonia in
1998 and 1999 were unfavourable toward cereal
production.
Of cereals, the crop area for rye production has
decreased the most (60%). During the same time,
however, buckwheat production has begun in
Estonia, of which the total area is constantly
increasing. Buckwheat is a good honey plant and is
therefore preferred by beekeepers. Diet-food producers
have also started to value buckwheat. (Table
3, Figure 1).
According to expert assessment, Estonia’s
domestic market need for grains is 700,000 tonnes.
This value is inclusive of 152,000 tonnes of cereals
needed to feed 1.4 million people: 60,000 tonnes
of rye and 92,000 tonnes of wheat. In addition to
baking flour, 28,000 tonnes of cereals are needed
for groats and flakes. The feed crop demand, in
consideration of the existing number of animals is
450,000 tonnes.
Production of rye and wheat, the main cereals,
has become considerably smaller than is needed for
self sufficiency; importation of bread cereals has
therefore become necessary.
In 2000, Estonia joined the International
Convention for the Protection of New Varieties of
Plants (UPOV); as of 24 September 2000 Estonia is
the 46th member of UPOV.
In 2000, nine certificates for protected varieties
were issued to the Jõgeva Plant Breeding Institute.
There are currently a total of 36 protected varieties
in Estonia. Overall, 108 new varieties were added
to the Variety List in 2000.
Large agricultural enterprises are
efficient cereal growers
Grain production is the main activity in large farms
and agricultural enterprises. As can be seen from
Figure 1, large agricultural enterprises with more
than 100 ha of land produce 59% of all grains.
Small farms, where land used for cereal crops is up
to 10 ha, grow only 8% of Estonia’s grains.
The results of 108 test holdings primarily
engaged in plant production were analysed by the
Jäneda Training and Advisory Centre of the
Ministry of Agriculture in 1999. The average size
of the test holdings was 125 ha of arable land, of
which 75 ha were currently producing grains. The
average number of employees was 2.4 per farm;
the average area of land per employee was 51.8 ha
of arable land and 31.1 ha of crop. Labour use was
the most efficient in enterprises of 100-400 ha:
91.5 and 54.6 ha per labour unit.
Average cereal yields in test holdings were
1552 kg/ha in 1999 and 1924 kg/ha in 2000.
Of all grains produced, an average of 96.3%
was sold. In enterprises with 100-400 ha of producing
crop lands, 98% of the grains were sold; in
14

4.
smaller enterprises (up to 40 ha), 93.1% of grains
were sold and the remainders were used for the
farms' own needs. The marketing opportunities are
better for large enterprises, as the production quantities
are larger. The average price paid to producers
for grains was 1.42 EEK/kg.
Analysis carried out by researchers of the
Estonian Research Institute of Agriculture shows
that grain production in Estonia is profitable at the
average producer prices (1500-1700 EEK/t) if the
yield is at least 4000 kg/ha. On smaller farms, production
costs can be cut by cooperating in machine
use or purchasing second-hand machinery.
Estonia covers its food potato demand
Potatoes are grown in Estonia mainly on small
farms and private residences, and to a lesser extent,
in larger agricultural enterprises (Table 4).
The area used for potato production has
decreased in recent years. Total area for potato production
in the year 2000 was 30,900 ha. The total
yield was 471,661 tonnes with an average yield of
15.6 t/ha. In the year 2001, the total area for potato
production decreased with a yield of 345,230
tonnes; the average yield was 16.1 t/ha.
The food potato demand (120,000 – 140,000
tonnes) is fully met. The seed demand for 30,000
ha is approximately 140,000 tonnes; industrial
potato demand is 10,000 tonnes, and 100,000
tonnes of potatoes is needed for starch production.
Oil crop and flax production
are developing
The crop area used for oil crops in 1990 was 1000
ha; in 1999 it was at 24,100 ha. A vegetable oil
plant was commissioned in Estonia in 1999, which
improved the marketing opportunities of rapeseed
and turnip rapeseed. A portion of both oil seeds
was exported to Finland and Denmark.
While in 1990 flax was grown mostly for fibre
production, more recently the focus has been
toward oil flax production. Fibre flax production in
Estonia is almost non-existent, which is primarily
because Estonian flax cannot compete on the market
with state subsidised flax from other European
countries, Latvia, and Lithuania.
Flax was sown in 2000 on 325 ha, of which 275
ha was oil flax, and only 50 ha was fibre flax.
Domestic horticultural products
are preferred in Estonia
The development of Estonian horticulture has been
influenced by the population's preference for
domestic quality fruits, vegetables, and berries.
Interest from foreign countries in Estonian
products has also increased.
Almost one-half of all horticultural products
produced in Estonia are grown in small gardens.
FIGURE 1.
12%
TABLE 3.
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Area under cereals (%) in size groups of
agricultural enterprises in 2000 (ha)
25%
(Source: ESO)
Rye
65 900
58 500
59 200
61 900
21 700
32 000
31 600
34 300
38 800
24 258
28 937
22%
8%
Winter
wheat
21 200
17 200
26 800
32 700
15 400
13 400
17 200
17 800
19 400
13 052
21 736
10%
23%
Up to 10 ha
10,1–50
50,1–100
100,1–300
300,1–500
Over 500 ha
Source: Review
2000/2001
Agriculture and
rural life
Areas under grains (ha)
Summer
wheat
4 800
7 000
16 700
17 600
18 800
25 200
28 700
33 100
47 400
53 062
47 233
Barley
263 700
284 800
268 200
218 100
217 900
186 500
148 000
165 700
166 800
153 955
165 672
Oats
33 400
42 300
41 700
35 700
36 100
38 500
49 000
54 400
61 000
60 976
53 345
Buckw
heat
0
13
4
0
5
42
80
41
57
63
493
Mixed
crops
8 000
8 300
10 500
9 100
9 600
8 700
14 200
21 300
20 600
15 663
12 531
15

4.
TABLE 4.
Total yield ('000 t)
800
700
600
500
400
300
200
100
0
(Source: ESA)
Suitable soils, relatively favourable climate, and
cheap labour enable the production of quality
horticultural products. Fruit and vegetable production,
as well as berry production, give small producers
(with less than 20 ha of arable land) a good
opportunity to develop enterprise in areas where
natural peculiarities are not suitable for large-scale
production (south-east and southern Estonia, areas
near Lake Peipsi, and the islands).
Large-scale horticultural and vegetable production
is still in the developing stage. Large investments
are needed in modern technologies, post-harvest
processing, and storage. Presently, only single
large producers are able to make such investments.
Total area for open field vegetables in the year
2000 was 3,900 ha with a total yield of 50,000
tonnes. Total yield included 1,300 ha of cabbage
(22,000 t), 700 ha of carrots (12,000 t), 600 ha of
food beet (6000 t), and 1,300 ha of other open
field vegetables (10,000 t).
Relating to the adjustment of production to
market needs and consumer preferences, research
was carried out to identify the available vegetable
varieties that had not yet spread to Estonia, their
suitability for local conditions, and the market
demand for these in Estonia. The results revealed a
demand for curled parsley, broccoli, and stalk
celery. The problem, however, is the high production
cost of these vegetables; their production
involves a large amount of manual work for which
the current the low market price does not cover.
According to expert assessment, the total area
for cold-frame vegetables in 2000 was 120 ha and
the total yield was 8,000 tonnes. The total area
included 52.7 ha for cucumber (4,000 t), 56.5 ha for
tomatoes (2,500 t) and 10.8 ha for other vegetables.
The total area of fruit trees and berry plantations
in 2000 was 11,900 ha according to expert
assessment. The total estimated yield was 28,000
tonnes, of which fruits accounted for 21,300
tonnes (8,450 ha) and berries accounted for 6,700
tonnes (3,450 ha).
Total yield and average yield of potatoes
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Total yield
Average yield
20
15
10
50
0
Average yield (t/ha)
In the year 2000, low-growth rootstock was
purchased from foreign countries for testing to
check their suitability for Estonia’s climate conditions.
Nurseries have started to grow rootstock to
propagate varieties suitable for fruit production. The
first apple plantations based on low-growth rootstock
were established in different regions in 2001.
Apple yields have been plentiful during recent
years and the market price for apples has been low.
Demand for drupes (plums, cherries) has been
stable and the yields have been satisfactory.
Demand for wild berries (cranberries, cowberries,
bilberries, brambles) has increased. Their
growing as crops has become a new branch of production
in the recent years. Exhausted peat
deposits, covering an area of ca 3000 ha in Estonia,
are suitable for cranberry production.
The production of sea buckthorn has begun to
spread in Estonia. The yields have been satisfactory.
The yield in Rõhu experimental station was 5 t/ha.
Extensive land improvement has
been undertaken in Estonia
A total of 730,000 ha of land have been drained in
Estonia; 649,000 ha by drainage systems and
81,000 ha by ditch systems. Polders have been built
on 7,900 ha and 10,500 km of roads have been
built in the course of land improvement work.
Land improvement systems require regular
maintenance in order to assure the drained areas do
not become too moist and eventually fall out of agricultural
use. The Ministry of Agriculture considers it
necessary to maintain 550,000 ha of drained land
when Estonia joins the European Union.
The maintenance of drainage systems is expensive;
Estonia has been aided in performing this
work by the World Bank and by organisations of
many different countries. During the last three
years, the World Bank loan has been used to
reconstruct the drainage mains and receiving water
bodies of drainage systems on more than
75,000 ha. The World Bank loan has not been used
to renew field drainage systems.
Since 1998, a land improvement and land
management pilot project has been implemented in
Estonia with support from Senter, an organisation of
the Ministry of Economic Affairs of the
Netherlands, and the Ministry of Agriculture,
Nature Conservation and Fisheries of the Netherlands.
The idea was generated in 1996 when the
World Bank loan project was launched. The project
provided for the reconstruction of land improvement
objects as well as the formation of land and
water associations.
The Dutch specialists recommended an
approach to the land use issues in a comprehensive
manner; use land re-allotment in conjunction with
maintenance of the improved land. Due to changes
16

4.
in ownership relations, a situation has emerged in
Estonia where one owner can own 2 to 15 or even
more separate parcels of land; however, it is very
difficult to make economic use of the land.
In 2000, reconstruction projects for 185 ha of
polders and 118 ha of sprinkled areas were prepared
in cooperation between the Estonian company
PB Maa ja Vesi and the Finnish company
Salaojakeskus Ry.
Until 1995, land improvement systems were
included in the balance sheets of the local land
amelioration bureaux. In the course of land restitution,
land improvement systems that were located
on the lands of owners, were granted to the
owners free of charge. Twenty-two per cent of the
drainage systems had been transferred to land
owners by the end of 2000.
It is more benificial for land owners to manage
the land improvement systems collectively as a
single system can cover the lands of several owners.
The first land and water association (LWA) was
founded in 1993. Since 1995, the state has supported
the foundation and activities of LWAs. One
hundred LWAs had been registered by the end of
2000. For improved efficiency, local unions and a
Federation of Land and Water Association have
been established.
Another problem of Estonian agriculture is the
acidity of soils. The estimated area of soils in need
of liming is 200,000–300,000 ha. Acidic soils need
to be limed every five years. In the prices of 2000,
the liming of one hectare cost 800–2,500 kroons.
The state supports liming of soils in an average
amount of 14–17 million EEK a year.
Transition to a market economy
changed the structure of livestock
farming
The reduction in the total livestock production in
1993–1999 was greater than the reduction in total
plant production. Due to transitioning to new market
conditions, the relative share of agriculture decreased
and brought about structural changes in livestock
production. The changes are also reflected in domestic
and foreign demand for foodstuff (Table 5).
The number of sheep and goats and the number
of bovine animals have decreased the most
over the last ten years: 78% and 65% respectively.
The negative effect is also apparent in land
use: Pastures and grasslands have fallen out of
use; they are covered with weeds and will
eventually overgrow with bushes.
Dairy farming is the main source
of income for agricultural holdings
Dairy farming is the main source of income for
agricultural holdings despite the fact that the total
yield of milk has decreased 1.6 times in the last ten
years. The total milk yield in the year 2000 was
629,000 t (1,093,000 t in 1991) (Figure 2).
The total milk yield has decreased due to the
decrease in the number of bovine animals;
however, yields per cow have increased since 1994
and continue to grow.
Yields per cow are improving partly due to the
remaining herds consisting of the best performing
cattle and milk producers having started paying
more attention to balanced feed rations and to the
quality of feedstuff, particularly silage production.
TABLE 5.
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
(Source: ESO)
FIGURE 2.
'000 tonnes
Bovines
708,3
614,6
463,2
419,5
370,4
343,0
325,6
307,5
267,3
252,8
Number of animals as of 31 December ('000)
Pigs
798,6
541,1
424,3
459,8
448,8
298,4
306,3
326,4
285,7
300,2
1400
1200
1000
800
600
400
200
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Milk ('000 t)
Sheep and goats
142,8
124,2
83,3
61,5
49,8
39,2
35,6
30,8
30,9
32,2
Horses
7,8
6,6
5,2
5,0
4,6
4,2
4,2
3,9
3,9
4,2
Yield per cow (kg/year)
Poultry
5 538,3
3 418,1
3 226,1
3 129,7
2 911,3
2 324,9
2 602,0
2 635,7
2 461,8
2366,4
5250
4500
3750
3000
2250
1500
750
0
kg/year
17

4.
Size groups
… - 4
5 - 10
11 - 50
51 - 100
101 - 300
300 - 900
900 - …
TOTAL
Source: ARIB
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
There are still many small herds
The owners of small herds (4–10 cows) constitute
the majority of livestock producers (67.9%). Only
7.7% of livestock farmers own large dairy farms,
but the bulk of dairy cattle (nearly 70%) are kept
on large farms of over 100 cows (Table 6).
The number of small herd owners is constantly
decreasing due to the increasingly stricter requirements
that are imposed on farms and milk quality.
Small herd owners cannot comply with the
increased regulation as it requires large investments
in barn reconstruction and the acquisition of
modern milk production machinery.
Research carried out by the Estonian Agricultural
University and the Jäneda Training and
Advisory Centre in 1999 indicated that the three
major cost articles of milk producers are feedstuff,
labour and social tax, and fuel, which account for
70% of all production costs. The share of feedstuff
costs is larger in small herds (11–50 cows) and
smaller in herds of 100 cows. The same holds true
for fuel costs. Larger herds provide the opportunity
for more cost effective production of milk.
Pork is the main meat
produced in Estonia
TABLE 6.
Number of cows subjected to performance testing and herd size
TABLE 7.
Source: ESO
Meat
production
151,8
107,9
83,7
69,4
67,7
58,6
53,4
60,0
61,1
52,7
Number of herds
1 246
934
691
94
169
70
7
3 211
%
38,8
29,1
21,5
2,9
5,3
2,2
0,2
100,0
2 859
6 573
13 853
6 923
29 755
32 249
10 181
102 393
Meat production ('000 t)
Beef
52,0
45,4
42,6
31,0
25,8
22,1
19,0
19,3
21,7
15,4
Pork
75,2
50,1
34,7
30,5
35,4
31,7
29,5
32,4
31,3
30,3
Number of cows
Sheep and
goat meat
2,2
1,8
1,2
1,3
0,8
0,5
0,5
0,4
0,4
0,4
%
2,8
6,4
13,5
6,8
29,1
31,5
9,9
100,0
Poultry
meat
22,1
10,3
5,1
6,5
5,6
4,3
4,4
7,9
7,7
…
The main meat produced in Estonia is pork, which
accounted for 55% of the total meat production in
2000. Beef takes the second position with 28%, followed
by poultry meat, 16%, and sheep and goat
meat, 1%. The total meat production in Estonia
was 182,000 tonnes in 1990 and 51,000 tonnes in
2000; a reduction of 72%. One of the major reasons
for the decreased production was the substantially
decreased demand on the eastern market, as
well as the low purchasing prices on the domestic
market (Table 7).
Pork production fell sharply in 1993 and has
since remained relatively stable. The number of
pigs has remained around 300,000. The majority of
pigs, 85%, are kept in large agricultural enterprises.
Of pigs entered in the register of farm animals,
the majority are purebred Yorkshire pigs (42%) and
landrace pigs (24%), which are equal for their meat
qualities. Thirty-three per cent of the pigs are
cross-bred and their number is increasing. The
quality of pork has improved. According to performance
testing data, the lean meat content in the
pigs subjected to testing was 58% (the recommended
rate is 59-60%).
As from 1 July 2000 the European Union
adopted the decision to abolish pork export subsidies
and granted Estonia a customs-fee export
quota. Latvia also abolished its export restrictions.
These steps should stimulate pork export.
The low purchasing prices of beef have not
stimulated producers to fatten bovines for sale and
the majority of bull calves are killed at an age
younger than one month. Since the second half of
2000, the purchasing prices of beef increased, but
did not result in growing beef sales. However, the
interest of livestock farmers in beef cattle has
increased and production can be expected to grow
slowly.
The production of sheep meat has remained at
a level of 400 tonnes. The interest of processors
and traders in purchasing sheep meat is great,
because the export price of sheep meat is up to 92
EEK/kg.
The increased meat price has also stimulated
interest in sheep keeping, and the number of sheep
increased to 31,400 by the end of 2000.
Sheep farming in Estonia was also stimulated by
the ewe support that was introduced in 1999. As a
result, the marking and registration of sheep has
begun in order to assure the receipt of support for
sheep farming.
Poultry meat production in 2000 amounted to
8,100 tonnes, of which 75% came from Estonia's
largest poultry meat producer AS Tallegg.
Demand for poultry meat has increased in
Estonia. Although the poultry meat production of
Tallegg increased 13% in 2000, there is still ample
room for development before producers for the
domestic market can fully meet the demands and
the need for importing this type of meat reduced.
18

5.
Young people are interested
in agricultural higher education
Jäneda Training and Advisory Centre
19

5.
There is competition for entrance
into the Agricultural University
The Estonian Agricultural University admitted 863
students in the year 2000. Competition was one of
the toughest among universities. Four to five candidates
competed for each state-sponsored place in
the traditional agricultural areas of specialisation:
agronomy, animal husbandry, agricultural, and
enterprise engineering. Up to 15–16 candidates
competed for each state-sponsored place in the
utilisation and protection of natural resources and
landscape protection and maintenance.
The strategic development plans of the Agricultural
University (EAU) were formulated in
2000. The development plan also provides for the
preparation of specialists with higher education in
areas of specialisation such as landscape design,
environmental protection, sustainable use of
renewable natural resources, food quality and safety,
tourism, and socio-economic development of
rural areas, in addition to the traditional areas of
specialisation. A new structure of the university is
being built based on the development plan.
All curricula of the EAU have been accredited,
some of them conditionally (agricultural engineering
at all levels of study, master's study in agricultural
energetics, and doctorate study in water
management and rural engineering).
In order to modernise the study opportunities,
new subjects are added each year in the existing
areas of specialisation and new areas of specialisation
are also added. Since 1997, higher education
can also be obtained through distant learning, but
the students have to pay their own tuition fees.
In the year 2000, admission to master's and
doctoral studies also increased at EAU: 132 students
were admitted to master's study and 44 to
doctorate study. Research institutions, the advisory
From 2001, all areas of specialisation
required for rural
economy can be studied at Türi
Engineering and Rural
Economy School, including the
profession of a horse breeder.
system, agricultural schools, as well as state
agencies need specialists with a higher education.
The number of students in rural
economy vocational educational
institutions could be greater
School reform continues
Areas of specialisation directly related to agricultural
production are taught in nine vocational
educational institutions.
In 1997, the Estonian Chamber of Commerce
and Industry in cooperation with different associations
of employers/ employees, professional associations,
and ministries prepared a concept aimed
at developing the preparation of a competitive labour
force. The professional standard establishing
requirements for professional, social, and personality
qualification was approved in 2000.
The development and regular improvement of
the higher education curricula and different levels
of study on the basis of professional standards is
essential for bringing the content and quality of
teaching into compliance with the demands of the
labour market and the opportunities of the enterprise
environment. The basic requirements for
curricula have been established.
School farms are still present in four schools,
but insufficient state funding does not allow for
their modernisation. Considering the number of
students who desire to study agriculture, it is
reasonable to develop one or two practical training
centres in Estonia that specialise in plant and livestock
production.
Educational institutions teaching rural economy
professions admitted 123 students in 2000;
agricultural vocational educational establishments
admitted 161 students in the 2000/01 academic
year (the planned number was 331): 89 students in
home and farm economics, 72 in agriculture, 119
in horticulture, 106 in forest management, 122 in
fisheries and shipping, 49 in home and cleaning
services (including home economics). As a portion
of the graduates from vocational educational establishments
do not work in their area of specialisation,
vocational education covers less than onefifth
of the demand. It is estimated that 700–750
agricultural workers should
be prepared to enter the job
market on an annual basis. A
survey carried out among
agricultural producers favored
the approach that practical
skills should be acquired
in school before entering the
job market. For example,
areas of specialisation relating
to horticulture, fishing,
20

5.
forestry, and processing of agricultural products
are only taught in 1 or 2 specialised educational
establishments, which have practical training facilities
offering sufficient preparation for work in the
production sector.
Complementary and conversion training form
a part of vocational education in rural economy.
Training is provided by vocational educational
establishments, farm unions, and other interest
groups. A complementary training system and a
related database have been developed in the area of
rural economy.
Agricultural producers are in
need of advice
The agricultural producers' advisory system was
shaped in 1996 and its development continues.
In 2000, 2,021 producers used the advisory
service and concluded 2,357 contracts with consultants.
Seminars were held for 185 groups with a
total of 5,208 participants. A total of 183 agricultural
advisors have been attested since 1997.
The aim of the advisory service is to assist agricultural
producers by providing quality information
and for communicating state information and
information regarding the EU.
The state's role is to facilitate and finance the
advisory service. The developmental goals of the
advisory service are:
to develop and apply measures that are beneficial
for the whole society;
to prepare advisors with the necessary skills.
A centre coordinating the dissemination of agricultural
and rural economy information (PIKK) was
established in 2001 by the Ministry of Agriculture.
The centre will collect and process information that
is intended for rural inhabitants (including state
information). Applied researchers, trainers, advisory
services, a market information system, etc. will be
involved in the dissemination of information. The
ultimate goal of the center is that it be a useful link
between the state and the rural population.
From advisor to producer, from producer to
advisor. The advisory service is a link between scientific
research, state information, and active farmers
by which the needed information reaches the farmers
through advisors. Through the same capacity, the
problems of farmers and rural living reach state agencies,
as well as those responsible for education.
Farmers have Talutark. The Estonian Farmers'
Federation developed its own electronic computerbased
advisory system called Talutark. Talutark
regards a farm as a complete economic entity, in
which natural, technical, and financial resources
are used for production. The economic and natural
opportunities, in consideration of the limitations of
a farm can be taken into account in planning each
activity. Results can be measured and economic
efficiency can be assessed. Nearly one hundred
farmers and other agricultural producers have
begun to use Talutark programmes.
Different forms of advice
There are three forms of advising:
Individual advising; An agricultural producer
addresses an advisor directly. The state compensates
for a part of the cost of advice in the form of
advisory support. The sum of support as well as the
producer’s share in paying the price has increased
over the years. The price of advisory support per
farmer was 1,980 EEK in 1996, of which the producer
paid 10%. In 2000, the sum of support was
5,550 EEK and the farmer's contribution depended
on the cost of the advisory service: an advisory service
valued at up to 3,000 EEK is a 15% cost to the
farmer; an advisory service valued up to 6,000
EEK is a 50% cost to the farmer. Individual advice
is particularly useful to small producers; advisors
have become 'family advisors' for many of them.
Group advising; Group advising means special
training (in plant production, livestock production,
accounting, etc.) for certain groups of producers.
Information days introducing one or many successful
farms, in which a farmer shares his or her experience
and answers questions, are popular among
producers. Local farm unions are the most active
organisers of group advice.
Mass advising; This advisory activity is targeted
at a larger interest group and advice is disseminated
through typical media channels (radio, press, etc).
According to a survey carried out by the Institute
of Economic Research, the greatest source of information
about rural life and agriculture is the newspaper
Maaleht. Its web site contains an informational
feature, where a visitor can obtain well-formed information
regarding rural economy and related areas.
The Estonian Farmers' Federation publishes the
Dairy
specialists
graduate
from Õisu
Technical
School
21

5.
administers the European Union SAPARD programme
subsidies. The board is also responsible for maintaining
state agricultural registers and databases and
for processing and analysing the register data.
Rural economy specialists of county governments.
They organise group advising and the
financing of advisory projects and cooperate with
the Ministry of Agriculture.
Estonian Agricultural University
farming paper Hüva Nõu, providing practical
advice on animal nutrition, fertilisation of fields,
production of feedstuff, etc.
To assess the efficiency of advisory activities,
advice surveys are carried out among agricultural
producers. The advisory service is improved on the
basis of the survey results. Surveys indicate that in
comparison to other ways of gaining advice, the
advice received by an advisor is valued the most
and its price is seen as corresponding to the
information received.
Organisations relating to
advisory activities
Professional agricultural advisors have united in
the Estonian Association of Agricultural Advisors.
Farm unions. Professional advisors are
employed by each county’s farm union. They provide
advice to farmers who have received advisory
support, as well as to small producers who have
not received support. Advice contracts are concluded
and training days are held in farm unions.
Estonian Farmers' Federation. The federation
provides complementary training to the chairmen
of the county farm unions.
Associations of agricultural producers. County
associations organise training for their members,
large-scale agricultural producers (private and
public limited companies).
Jäneda Training and Advisory Centre. The
centre holds courses and training days, in which
nearly a thousand agricultural producers, advisors,
teachers of agricultural schools, etc. participate
every year. The advisory centre compiles and publishes
printed materials, advisory publications, etc.
Agricultural Registers and Information Board.
The board provides group advising in the area of
government of the Ministry of Agriculture, organises
the payment of agricultural and rural support, and
Research concentrates in the university
Transformations have also taken place on the
research directions during the last ten years. The
state research and development policy is implemented
and organised by the Ministry of Education.
The Ministry of Economic Affairs plays the
main role in innovation policy. Each ministry is
responsible for organising the necessary research
and development and the necessary financing in
their own area of government, as well as for
preparing national R&D programmes.
The central research institution in agricultural
sciences is the Estonian Agricultural University,
which a number of minor, formerly independent
agricultural research institutions have joined. The
Agricultural University has six faculties and seven
independent institutes. The university employs 311
researchers; research institutions administered by
the Ministry of Agriculture employ 76 researchers
(with an average age of 54 years).
The research institutions in the area of
administration of the Ministry of Agriculture are:
Estonian Research Institute of Agriculture
Teaduse 4, 75501 Saku, Estonia
http://www.eria.ee/
The institute studies the cultivation of agricultural
crops, plant diseases, the processing and storage
of crops, development and innovation, and
tests agricultural machines. The Agricultural
Mechanisation Institute merged with the Research
Institute of Agriculture in 2001.
Jõgeva Plant Breeding Institute
48309 Jõgeva, Estonia
http://www.jpbi.ee/
The institute engages in plant breeding of the
main crops grown in Estonia (cereals and legumes,
hay plants, potatoes, vegetables), maintenance breeding
of registered varieties, the production of breeders'
seed, and the preservation of genetic resources.
Control Centre of Plant Production
Teaduse 6, 75501 Saku, Estonia
http://tmkk.ee/
The Control Centre of Plant Production also
participates in research and development and
monitoring. The centre engages in research and
development in the area of good agricultural practice,
innovation, monitoring of the agricultural
environment, administration of the network of
experimental stations and laboratories.
22

6.
Forests are an important natural
resource in Estonia
Forests have been intensively used in Estonia for ages. As a result of cultivating
forest land and cutting timber, the forest area decreased to 59% in Livonia and
35% in Estonia by the year 1700. A more purposeful management of the forests
in Estonia began in the 18 th century. The oldest preserved forest management
plan dates back to 1795.
23

6.
27,4
8,2
At the beginning of the 20th century, the area of
forests in Estonia was approximately one million ha, of
which state forest accounted for 100,000 ha and private
forest for 900,000 ha. Private forests were divided
according to whether it belonged to a large owner
(manors, 900,000 ha) or a small owner (farmers).
When land reform was launched at the beginning
of Estonia's independence in 1920, the former manor
lands chiefly remained property of the state: the area
of state forests was 900,000 ha and that of private
forests was 100,000 ha. A change in ownership
brought about a change in land use. By 1940 the area
of forest land had increased to 1.4 million ha on
account of farm lands. The area of forests continued
to grow during the Soviet occupation, and by the
beginning of the 1990s, the area of forests amounted
to 2.2 million ha. About 200,000 ha of the new forests
have been planted, the rest have grown naturally.
State forests have been managed for over a hundred
years; private forests have only been managed in
part. Despite this, both types of forests are dominated
by coniferous trees, whose share is 66.9% in state
forests and 53.1% in private forests.
Age structure of forests is uneven; many
spruce forests are ready for cutting
The presently existing natural forests began to grow
70–80 years ago, which is reflected in the uneven age
structure of the forests. More than 60% of private
Division of forest
stock in private
forests
3,2 0,7
1,8 27,7
31
Division of forest
stockin state
forests
3,1 0,4
28,1 47,3
0,3
1,4
19,2
pine
spruce
black alder
grey alder
birch
aspen
others
spruce forests are older than 60 years; the area of
mature spruce forests may be up to 170,000 ha. Of
these, 100,000 ha with a total stock of 35 million m 3
urgently need cutting.
A national forestry development plan has been
prepared. Estonia joined forest protection programmes
in the 1990s. The Pan-European forest protection
programme is the most important one for Estonia.
Pursuant to the Estonian Forest Act, forestry is
directed by the state through the forestry development
plan. The development plan is prepared every
10 years and is subject to the approval of the
Riigikogu.
The state trains its forestry specialists. The provision
of higher education in the area of forestry
began in Tartu in 1920. Forest management, forest
industry, the use and protection of natural
resources can be studied at the Estonian
Agricultural University.
Vocational education in forestry has been provided
by the Luua Forestry School since 1948 and by
Tihemetsa Technical School since 1995.
Estonian timber industry is
developing rapidly
The scope of forest cutting has multiplied over the
last ten years, and timber industry has developed
together with it. The development of the forestry
and timber industry has been facilitated by the
availability of forests; an opportunity to earn from
the export of raw material, large investments, a
favourable customs regime, the development of
enterprise, and the development of experience.
Forest cutting has transferred to machine cutting; its
relative share is 25–33%.
Mechanical value-adding processing of timber
presently dominates, but chemical value-adding
would be more purposeful. Mechanical value-adding
processing consists of cutting, drying of sawn timber,
planing, and the manufacture of semi-finished
products and various timber boards.
The domestic cellulose production should be
developed. Presently, the Kehra paper factory is the
only paper manufacturing plant in Estonia, and uses
only 5% of the suitable raw material.
A significant part of timber and timber products
are exported. Export of timber and timber products
has increased every year and accounted for 15% of
the total exports in 1997. Estonian furniture manufacturers
have certain competitive advantages, owing
to cheap timber, cheap labour, and the small need for
capital investments due to the industry being largely
based on manual labour.
Furniture making accounts for 7% of the
country's industrial output, and the majority of furniture
made in Estonia (70%) is exported. Timber processing
yields 8% and cellulose and paper production
accounts for 1% of Estonia's industrial output.
24

7.
Fishing is an important
industry for Estonia
Since ancient times, fishing has been a vitally important activity for Estonians.
Fisheries began to develop more rapidly in the 18 th century when demand for
Tallinn sprats increased on the Russian market. There were about 40 sprat
processing enterprises in Estonia prior to WWI; their total output was 7 million
cans of sprats per year.
25

7.
Estonia has 40 fishing ports
In 1999, 83,000 tonnes of fish were caught in the
Baltic Sea and 3,900 tonnes were caught in inland
water bodies, in addition to this, 37,400 tonnes
were caught in deep sea fishing. Estonia has 40
fishing ports; the fishing fleet consists of 258 ships,
including 23 in deep sea fishing. According to the
data of the Veterinary and Food Board, 107 enterprises
operate in Estonia in the field of fish processing
and production of fish meat products.
Twenty-seven enterprises and 13 cold-storage ships
have been approved by the European Union.
The fish industry employed 4,200 persons in
2001, which accounted for 5% of all people working
in the processing industry.
Of the fish caught and fish products made,
90% is exported, including 34% to European
Union countries.
The main products are canned fish and fish preserves.
In the first half of 2001, companies
belonging to the Estonian Fishing Association produced
33,063.4 tonnes of fish food products.
Canned fish and fish preserves accounted for the
majority of these. Smoked sprats in oil and fish in
tomato sauce were the most common canned fish
products (Figure 1).
Export and import of fish and
fish products
In terms of quantity, the greatest export article is
frozen fish, but in monetary terms, canned fish
takes first place. Cans are exported mainly to the
eastern market and CEEC markets. Filleted fish is
exported to the western markets (Table 1).
There are 25 operating fish farms. At present,
25 professional fish farms whose main income is
derived from fish operate in Estonia. Rainbow
FIGURE 1.
Cans and preserves 63%
Other products 24%
TABLE 2.
Production of fish products in 2001 (%)
297
43
340
Fish farming production (t)
Species 1993 1994 1995 1996 1997 1998 1999 2000
Salmon
trout
Carp
Total
278
136
414
278
30
308
194
61
355
227
trout farms take the fist place (12 farms), followed
by carp farms, and a few farms produce population
material for the restoration of fish resources. Three
or four crayfish farms being established, and there
is one eel farm.
Besides these numbers, there is a large number
(approximately 100) small fish farmers, each of
which produces a few hundred kilograms of fish a
year.
Seven species of fish (salmon, salmon trout,
brown trout, whitefish, pike, pike perch, tench)
and crayfish were bred for the restoration of fish
resources, which activity is financed from sums
received for the sale of fishing rights (Table 2).
28
255
Filleted fish 5%
285
23
312
Breaded
products
4%
Surimi
products
4%
147
30
177
* Data of Fisheries Department of the Ministry of the Environment
313
47
360
TABLE 1.
HS
code
0301
0302
0303
0304
0305
0306
0307
1604
1605
Export of fish and fish products, exclusive of customs warehouses, and
import for free circulation on the domestic market in January–June 2001
export
import
Product group
Live fish
Cooled fish
Frozen fish
Fish fillets
Dried,
salted, and
smoked
fish
Crustaceans
Molluscs
Canned fish
Canned
crustaceans
Unit
T
T
T
T
T
T
T
T
T
Quantity
0,1
806,9
37117,9
2651,4
19786,4
186,4
5,4
23306,9
56,0
Amount
(EEK '000)
17,2
41387,2
122331,8
247906,1
100174,3
5760,8
128,7
492472,0
7726,2
Unit price
(EEK '000)
118587
51289
3296
93501
5063
30905
24020
21130
137861
Quantity
6,6
10154,2
10377,0
2010,9
104,2
255,7
10,7
1066,2
34,0
Amount
(EEK '000)
1541,5
74701,2
68298,5
59899,5
4349,1
12273,1
698,3
24127,1
2713,0
Unit price
(EEK '000)
232835
7357
6582
29787
41722
47996
65423
22629
79608
Trade Bureau of the Ministry of Agriculture
26

8.
Food industry yields a quarter
of the total industrial output
The food industry yields 25% of Estonian industrial output and employs nearly
20% of all people working in the processing industry. Food industry accounts for
about 3% of the gross domestic product and 5% of total export.
27

8.
Dairy industry is the largest
Dairy industry accounted for 28%, the meat
industry 15.8%, the fish industry 15.3%, the
beverage industry 21.5%, flour and cereals production
0.7% and bread and baker's wares 8.7% of
the total food industry in 2000.
Investments
The food industry has made substantial investments
in the improvement of processing conditions and
production efficiency in the recent years. Great
attention is now being paid to the health of the consumer
and the related improvement of food safety.
About 300 million EEK was invested in the
non-current assets of the food industry in 2000. As
from 1 January 2003 the Food Act will enter into
force in full and this implies that food handlers
continue to be required to make great investments
in food safety assurances. Enterprises have to invest
mainly in order to comply with the general and
special requirements of food safety. General
requirements include requirements for production
buildings, facilities, walls, ceilings, floors, and the
dressing rooms of employees. Special regulations
cover the requirements for equipment and means
of handling.
Investments made in compliance with special
requirements so far show that enterprises do pay
the necessary attention to product safety as well as
product quality.
When compared to other areas of agricultural
production, relatively greater foreign investments
have been made in the food industry. The main
investments in 2000 were made in the dairy
industry. Foreign investments in beer, meat, and
bread production have already been made in
previous years. The fish industry has proved to be
less attractive for foreign investors.
TABLE 1.
Millions of kroons, % 1994 1995 1996 1997 1998 1999 2000
Total food industry output
(millions of kroons)
6 513 7 554 8 534 10 903 10 802 8 433 8727
Meat and meat products
Fish and fish products
Milk products
Flour and cereals
Ready-made feedstuff
Baker's wares
Beverages
1 382
627
1 195
51
363
507
890
1 221
1 156
1 368
62
361
606
1 091
1 241
1 039
1 883
79
292
756
1 54
1 237
1 492
2 260
91
246
929
1 566
1 454
2 055
2 983
87
351
984
1 806
1 533
1 938
3 022
103
412
995
1 721
1380
1349
2435
58
299
759
1874
Employment in the food industry (% of total
employment in the processing industry)
23.8
24.6
23.7
24.4
24.5
21.5
19,9
Export of food industry (millions of kroons)
Relative share in total export (%)
2 028
12.3
1 496
7.1
1 977
7.9
3 543
8.7
3 735
8.2
2 417
5.6
2392
4.4
28

8.
Concentration
The concentration of enterprises varies across
branches of the food industry. The most concentrated
is the beer industry, where the four major
breweries account for 97% of total sales. The meat
industry is also fairly concentrated: the four major
industries yield 80% of total sales. The milk
industry is so far less concentrated: four major
enterprises only account for 40% of the total sales
of this branch of industry.
Concentration can be expected to increase in
the fish, meat, and milk industries in the forthcoming
years. One of the reasons for this is the
stricter food safety requirements: smaller industries
are not able to make the necessary investments to
comply with these requirements. On the other
hand, competition between enterprises toughens
both in regard to finding markets and market
penetration. As major enterprises prove to be
stronger in competition, smaller industries should
merge with large-scale industries.
Best Estonian Food competition
The Best Estonian Food competition has been held
annually since 1994, its initiator and organiser is
the Estonian Association of Food Industries. The
goal of the competition is to encourage entrepreneurs
to develop new products and improve product
quality. The competition is also a channel for
introducing products to consumers and trade enterprises
and to shape a positive attitude and trust
toward domestic food and the food industry.
A total of 627 products from 91 enterprises
have participated in the seven competitions held so
far. Since 1999, export potential has been assessed
alongside the novelty and healthiness of the competing
products. Eighty-seven products from 24
enterprises participated in the competition in 2000;
27 products were assessed as being suitable for
export.
The packages of products that have won the
competition bear a special label, which has been
granted to 97 products so far. Milk products have
won the Best Estonian Food competition the greatest
number of times. According to the data of the
Estonian Institute of Economic Research, 55% of
buyers are familiar with the Best Estonian Food
mark.
Meat processing concentrates in
large-scale enterprises
There are presently many small meat processing
enterprises in Estonia. As it is difficult for small
enterprises to comply with food safety requirements,
the meat industry is concentrating and
undergoing structural changes. As a result of this
process, up to 30% of the presently more than two
FIGURE 1.
40%
30%
20%
10%
0%
FIGURE 2.
30%
25%
20%
15%
10%
5%
0%
Share of food industry in industrial output
37,7%
31,6% 32,8%
28,9%
27,2% 26,9%33,4%
27,8%
25,1%
1992 1993 1994 1995 1996 1997 1998 1999 2000
Milk
Structure of food industry sectors in
the food industry total output
Beverages
Meat
Fish
Bread and
baker’s wares
1999
2000
Other
29

8.
hundred meat enterprises are likely to survive.
In 2001, there were no meat processing enterprises
in Estonia fully complying with food safety
requirements, but the four major enterprises had
already complied with 90% of the requirements
applicable in the European Union. According to
the assessments of entrepreneurs themselves,
investment needs are the greatest for taking the
slaughter industry into compliance with food
safety requirements. Investments will significantly
decrease as the meat industry concentrates and
specialises.
Large-scale enterprises already
dominate in the milk industry
There are presently 48 milk enterprises in Estonia,
including 21 high-capacity and 17 low-capacity
enterprises. Eleven of them have been approved by
the European Union as fully conforming to the EU
requirements.
Milk industries bought 408,700 tonnes of
milk in 2000, which is 3.5% more than in 1999.
The bulk of it, 82%, was purchased by 8 enterprises.
Of the milk purchased from producers in 2000,
83% was elite or high grade milk, fully conforming
to food safety requirements. First grade milk
accounted for 15%. The average fat content of
milk was 3.9%. The quality of raw milk has
consistently improved.
The portion of milk not sold to the industry is
used by dairy farmers as animal feed or for selling
on the market (Figure 3).
Export to the European Union
As of 2001, the following milk enterprises were
certified as conforming to food safety requirements
and acquired the right to export their products to
the European Union: AS Tapila Laeva Meierei, AS
Põlva Piim, AS Rapla Dairy, TÜ E-Piim Põltsamaa
and Järva-Jaani dairies, AS Võru Juust, AS Rakvere
Piim Annikvere Department, AS Saaremaa Liha- ja
Piimatööstus, Tori-Selja Piimaühistu, Tallinn
Piimatööstuse AS, and Tallinna Külmhoone AS Ice
Cream Factory.
Considering the investments made, the utilisation
of processing capacities, and the division of the
raw milk market between enterprises, the majority
of the needed investments have been made. Investments
will continue in improving production efficiency,
modernising by-processes, and complying
with environmental requirements (Figure 4).
FIGURE 3.
FIGURE 4.
Raw milk quality
Distribution of raw milk between milk products
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
43%
41%
1995
Elite or high grade First grade
17% 14%
27% 23%
32%
79% 83%
67% 71%
58%
1996 1997 1998 1999 2000
Full milk products
31%
Pasteurised
milk
9%
Other (powders, ice
cream, canned milk)
10%
Butter 36%
Cheese
14%
30

9.
Measures taken to
assure food safety
The harmonisation of the Estonian Food Act and the food safety requirements
that are applicable in the European Union, and its subsequent passing by the
Riigikogu resulted in the reorganisation of the work of supervisory agencies dealing
with food safety, and the adoption of new regulations and acts.
31

9.
According to the plan for
the reorganisation of the
supervisory agencies that
was prepared by the committee
set up at the Ministry
of Agriculture, the Veterinary
and Food Board supervises
1,340 food handling
enterprises, including
826 enterprises handling
non-food products, which
have been transferred from
the area of supervision of
the Health Protection
Inspectorate.
Control samples taken in the course of supervision
are analysed in laboratories authorised for
that purpose.
Seventeen laboratories hold the rights of authorised
laboratories, which perform all the necessary
control analyses of foodstuffs: from determining
food ingredients and nutritional value to testing for
the presence of pathogenic micro-organisms.
The authorising of laboratories ensures the
objectivity of supervision and that analysis results
can be compared with the respective indicators of
other countries.
The Estonian phytosanitary supervisory organisation
was restructured in 1998 and two independent
institutions were established: the Plant
Protection Inspectorate (PPI) and the Control
Centre of Plant Production (CCPP).
The laboratories of the CCPP are supplied with
modern equipment and testing methods conforming
to the European Union requirements. Training of
the personnel continues.
The CCPP is comprised of the following units:
Seed control laboratory, accredited by the Seed
Testing Association at the end of 2000 and
conforming to the EU requirements;
Cereals and plant production laboratory,
analysing the quality of concentrated fodder, raw
material of feedstuffs, cereals, cereal products, oil
crops, vegetables, and potatoes;
Contaminants and residues laboratory, analysing
pesticide agents, pesticide residues, mycotoxins,
trace elements and toxic elements in plant products;
the laboratory participates in pesticide residues and
mycotoxins monitoring programmes;
Agrochemistry laboratory, performing chemical
and technical analyses of mineral and organic
fertilisers, growth substrates and field soils;
Plant health control laboratory, performing
analyses for identifying plant diseases and pests
subject to quarantine;
Viljandi Variety Protection Centre with experimental
stations in Saku, Võru, and Tori. The
Variety Protection Centre acts in compliance with
OECD and UPOV requirements.
Estonia was free from dangerous animal diseases
in 2000.
Estonia was free from infectious animal diseases
designated as especially dangerous – the A-list
diseases.
Bovine herds were free from foot and mouth
disease, BSE, tuberculosis and brucellosis. There
were single cases of enzootic bovine leucosis, which
did not affect the general leucosis-free status of
herds. The national disease prevention programme
for ensuring the disease-free status of bovines in
artificial insemination continued.
Pig herds were free from foot and mouth
disease, classical swine fever, brucellosis and other
dangerous diseases.
Sheep and goat herds were free from brucellosis
and other dangerous diseases. Maedi-Visna antibodies
were detected in 277 sheep (of the 1,288 sheep
studied). The disease was not clinically diagnosed.
Poultry flocks were free from fowl plague and
Newcastle disease.
Rabies was detected in 130 animals, chiefly wild
animals (the number of domestic and farm animals
was 36).
Due to the disease-free status, no damages
occurred and no restrictions were imposed on trade
in animals due to diseases.
A framework of disease prevention measures
was established by the Infectious Animal Disease
Control Act and the necessary infectious animal
disease legislation was entered into force in 2000.
In 2000, the Border Service of the Veterinary
and Food Service detained 744 shipments of goods
at border inspection posts in the course of supervision.
The main reason for detention was the noncompliance
of the accompanying documents of the
goods to the applicable requirements. Meat and
meat products and fish and fish products were the
main products being detained; 4,077 tonnes of
goods were returned to the country of origin due to
non-compliance of the goods or the accompanying
documents to requirements, as well as non-compliance
with transportation requirements. In terms of
volume, more than a half of the returned goods
originated in Russia.
32

10.
Rural enterprise is developing
Many small producers of grains or livestock products are not able to modernise
production, are therefore not competitive, and will be forced to close down
production operations and seek other forms of rural enterprise.
33

10.
TABLE 1.
Form of enterprise
Agricultural, hunting, and forestry undertakings by legal
form in 1996–2001 (as of 1 July)
1996 1997 1998 1999 2000
2001
Private enterprises
State-owned enterprises
Municipal enterprises
Co-operative associations
General and limited partnerships
Private limited companies
Public limited companies
Commercial associations
Sole proprietors
52
15
3
664
34
418
1 344
-
-
42
15
2
579
29
301
1 158
-
-
34
10
2
439
17
169
755
-
-
-
-
-
-
25
1 674
292
225
6 497
-
-
-
-
24
1 796
265
234
9 391
-
-
-
-
28
1776
240
232
10259
Other enterprises
TOTAL
56
2 586
43
2 169
20
1 446
1
8 714
1
11 711
1
12536
Source: enterprise register and commercial register data
According to the data of the central commercial
register, 12,536 registered undertakings operated
in the area of agriculture, hunting, and forestry in
Estonia in 2001. The bulk of them were sole
proprietors (10,259), private limited companies
(1,776), and public limited companies and commercial
associations (472). The number of operators
in agriculture is decreasing, while the number
of those engaging in non-agricultural activities is
increasing (Tables 1 and 2).
On the order of the Ministry of Agriculture, the
Institute for Rural Development conducted a
survey of non-agricultural enterprise in Tartu and
Jõgeva counties in 2000. Wholesale and intermediation
trade turned out to be the prevailing new
activities (12.5% of undertakings), followed by
retail sales and repair of commodities and home
appliances (11.9%), timber processing (9.3%),
building (6.9%), and guest house services and
catering (4.9%).
Despite economic difficulties, rural entrepreneurs
are optimistic and eager to act. The survey
showed that they expected a more favourable taxation
policy, more enterprise-friendly legislation,
subsidies encouraging enterprise, and favourable
loan terms from the state.
In November 1998 the EU pre-accession pilot
project (SPP) was launched, aimed at supporting
the financing of specific investment projects such as
development of non-traditional agriculture, reprocessing
of agricultural products by producers themselves,
and the launching or development of rural
tourism. The greatest number of investments was
made in rural tourism, production of berries, flax,
aromatic and medicinal herbs, rapeseed, as well as
in the agricultural processing industry.
It is characteristic that in finding new activities,
the rural population itself shows greater initiative
than local governments do. A nation-wide network
of tourism farms has been formed on farmers’ own
initiative. The production of original furniture, log
cabins, consumables for machinery, and forged iron
products has been launched; other activities include
local marble and limestone processing for building
elements, pheasant, ostrich and wild animal farming
in farm zoos, growing of aromatic herbs, hunting
tourism, beekeeping, organising of river canoe trips,
mushroom production, making of musical instru-
TABLE 2.
Agricultural, hunting, forestry, and fishing associations and companies
in 1996–2001 (as of 1 July)
Form of enterprise
1996 1997 1998 1999 2000
2001
Cooperative associations
Commercial associations
Private limited companies
Public limited companies
General and limited partnerships
TOTAL
735
-
427
1 544
34
2 740
636
-
306
1 310
29
2 281
473
-
172
857
17
1 519
-
244
1 843
342
33
2 120
-
253
1 964
313
32
2 562
-
250
1914
276
36
2476
Source: enterprise register and commercial register data
34

10.
ments, development of alternative energy, glass
making and fur animal keeping. Women have
founded handicraft societies making various
handicraft products and marketing them to tourists.
Dairy associations are popular
The most active associations are dairy associations,
which have taken over about one-fourth of the
total purchasing of raw milk and can pay their
members higher prices for milk than large dairy
processors can.
The best-known commercial association is
E-Piim, which was able to invest 20 million EEK in
the Põltsamaa cheese industry in 1999 for the
acquisition of modern equipment. The association
received a 16 million EEK loan from the German
state investment fund. E-Piim is owned by 325 milk
producers.
In total, there were 88 applicants for cooperative
economic activity support in 2000, which represented
108 projects with an aggregate budget of
80.4 million EEK. Support was granted to 42 projects.
Seven projects were concerned with cooperative
trade, purchasing, and sales networks and
operative market information; six projects were
related to cooperative milk processing, six concerned
horticulture, apiculture and berry production,
five were related to the production and primary
processing of grains and potatoes, and four
were concerned with machinery associations.
Examples of enterprise
Fur animal farming. The farming of valuable fur
animals in Estonia began in 1925 when the first
four pairs of silver foxes were brought from
Canada. By the end of Estonia’s first period of
independence, there were 60 fur animal farms in
Estonia with 10,000 animals.
During the Soviet period, large scale fur animal
farming continued and by 1992 there were 12 major
fur animal enterprises producing 38,000 silver
fox pelts, 76,000 blue fox pelts, and 187,000 mink
pelts a year. In addition to fox and mink, many
farmers raised nutrias on their home farms and sold
their pelts at the market.
At the beginning of the 1990s, fur animal
farming started to decrease, the trend of which has
only recently begun to reverse. Other fur animal
breeds raised in European countries, which yield
quality fur that can be marketed on international
auctions, have been introduced to Estonian fur animal
farms. In 2001 there were more than 10,000 silver
foxes and more than 46,000 blue foxes in
Estonia’s five major fur animal farms that belong to
the Fur Animal Breeders Association. Additionally,
there are more than 32,000 minks on one farm.
Several farms raise fur animals on a smaller scale. As
fur prices have gone up in the recent years, furs have
become one of the most successful agricultural
export articles.
A new developing trend in Estonia is chinchilla
farming. The fur of this animal is highly valuable, but
farming requires great care and strict compliance
with requirements. Investments pay back after ¾ of
35

10.
a year. More than 100 chinchilla farms have emerged
in Estonia and the first lots of furs have been
sold through the international Copenhagen auction
centre. The farmers of this fur animal breed have
formed the Estonian Chinchilla Breeders Association
and the Estonian Chinchilla Breeders Union.
Fishing tourism
Estonian fish farmers discovered a new way of selling
domestic fish in the form of fishing tourism. The
non-profit association Estonian Fishing Tourism
that was founded more than three years ago now
unites 86 fish farmers. Demand for the service exists,
as natural water bodies have lost a lot of their fish
resources due to over fishing and pollution.
There are three types of fishing facilities in
Estonia at present: First, there are fish farms, which
exclusively engage in fishing tourism of mainly
trout fishing from ponds. They are usually situated
in accessible areas; secondly, former Soviet fish
farms, which engage in both fishing tourism as well
as the breeding of young fish for sale to other
tourism farms; thirdly, fishing tourism farms,
which also provide accommodation services and
grilling or smoking of fish caught on the spot. The
number of such farms is the largest in southern
Estonia, where fishing tourism farms are located in
naturally scenic places. Crayfish farming has also
begun and crayfish catching will be available to
tourists on tourism farms in the forthcoming years.
Mushroom farming
Mushrooms are becoming an increasingly popular
food. They are not only eaten during the autumn
period of mushroom picking. In countries like
China, Japan, and Korea, fresh and dried mushrooms
have been used since ancient times. They
are also used to produce powder, tablets, and tea.
The therapeutic qualities of mushrooms are well
known and have been used for medicinal purposes
for more than a thousand years in China.
China’s mushroom output in 1988 was more than
4 million tonnes.
In Estonia like in other European countries, the
first mushrooms that were commercially produced
on farms were meadow mushrooms. During the last
decade, the farming of oyster mushrooms as valuable
food mushrooms has complemented meadow
mushroom farming. Oyster mushrooms are popular
because plant production and timber industry waste
can be utilised as a growth substance. For example,
two young agronomists established a mushroom
farm in a livestock barn that was built in the Lääne-
Viru County during the Soviet period, and use chaff
as the growth substance for oyster mushrooms. The
farm intends to increase its oyster mushroom output
to 50 tonnes a year. The mushrooms are chiefly sold
to the major food stores of Tallinn, as well as to
restaurants. The young farmers Diana and Arno
Pärna also founded the first association of mushroom
farmers, the commercial association Eesti
Seen, which other major mushroom farmers have
also joined.
Research is currently being conducted in order
to start growing another more valuable food mushroom,
shiitake, and plans have been made to start
cultivating other more rare medicinal mushrooms
in Estonia, thus following the example of other
countries. Estonia has research staff who can advise
mushroom farmers, as well as sufficient resources
of growth substances and unused buildings that are
suitable for mushroom growing.
36

11.
Different landscape types have
been preserved in Estonia
As about one-half of the Estonian territory is forests, nearly a quarter is covered by bogs, there are
many lakes and watercourses and arable land forms a third of the territory, a number of different
landscape types have formed as a result. A relatively late switch to intensive land use and the prevalence
of manual labour in agriculture until the last quarter of the previous century have contributed
to their preservation. Although extensive land improvement was carried out during the Soviet period
and attempts were made to drain marshes and bogs, large areas of wetlands, wetland woods,
meadows covered with scattered trees, and other landscape types have still survived. This is why one
can find landscape types in Estonia that no longer exist in other European countries.
37

11.
Rich biodiversity
When compared to other regions of the same latitude,
Estonia's flora and fauna are one of the
world's richest in species. In Estonia there are nearly
5,000 plant species and 3,500 species of mushrooms
and fungi, 11,000 species of invertebrates,
and 500 species of vertebrates. Besides other factors,
the great biodiversity owes to the great percentage
of natural landscapes and the survival of
traditional land usage, as well as the preservation of
semi-natural communities. There are often more
than 50 plant species to be found within a single
square metre of a meadow that is covered with
scattered trees (puisniit).These areas are one of the
semi-natural communities. The plant community
richest in species is the Vahenurme puisniit in
Pärnu County, where 74 plant species have been
counted in a single square metre. Such areas are
home for a large number of different insects and
snails and they are a stopping and resting place for
migrant birds.
The impact of human activities on the formation
of semi-natural communities is significant. The
appearance and values of such communities have
come to be, and have survived, owing to the
Estonians' sustainable use of nature. Other seminatural
communities in Estonia include limestone
terrains; coastal, valley flat, and marshy meadows;
and pastures covered with scattered trees.
Estonia endeavours to protect
natural diversity
While the diversity of Estonian landscapes was
threatened during the Soviet period by intensive
land improvement and agriculture, and the resulting
pollution, now a new danger has emerged: The
danger lies in the overgrowing of cultivated land,
and the disappearance of sea views and semi-open
landscape types in coastal areas and on the islands.
Four goals have been set to preserve landscapes
and wildlife:
conservation of semi-natural communities;
protection and preservation of valuable species
and habitats;
preservation of the cultural landscape of the
region, taking into account the historical landscape
structure and the existing elements of the landscape;
protection and preservation of historical and
cultural heritage.
Landscape and nature conservation areas have
been established to preserve and protect the diverse
landscapes of Estonia, of which activities are continuing.
Twelve per cent of the country's territory
was covered by conservation areas in 2001. In the
year 2000, the government ratified a programme
for setting up a Natura 2000 network. Natura 2000
is a network of European Union nature conserva-
38

11.
tion areas. The areas belonging to the network need
not always establish a strict conservation regime or
ban all human activities. In each area of Natura
2000, the habitat types and habitats of species are
protected for which the area has been designated.
The Natura 2000 network includes nature conservation
areas and bird sanctuaries. But conservation
of the areas alone is not enough. Valuable agricultural
landscapes and the habitats of birds and animals
are preserved when economic activities use
natural resources in a sustainable manner.
Support is available for land
maintenance
Since 1996 the farmers of Matsalu nature conservation
area are paid for producing hay for grazing
animals on the coastal and bottom-land meadows.
This way, the diversity of nature is preserved and
the rural development of the area is also supported.
Another method of paying subsidies is the agriculture
environmental programme, which is aimed
at preserving the landscape and biological diversity
of agricultural land. Environmental subsidies are
paid on the principle that an agricultural producer
assumes a long-term (at least five year) obligation
to shift to environmentally-friendly production.
The producers are compensated for income foregone
and for the additional expenses incurred due
to such activities. The agriculture environmental
programme has been in preparation since 1997.
The programme was launched in part in 2000
(including in respect of organic farming).
The agriculture environmental programme
consists of four action plans:
environment-friendly economy;
additional measures (organic farming, local
endangered breeds and varieties, natural diversity,
establishment of ponds and wetlands);
maintenance of discarded, overgrown agricultural
land;
training and sample projects.
The objectives of an environmentally-friendly
economy, which is the first priority of the action
plan, are:
preservation of natural and semi-natural
communities and valuable landscape elements, protection
of objects of historical and archaeological
interest, and improvement of the visual appearance
of landscapes (articulation of fields larger than
20 ha by strips of perennial plants);
establishment or preservation of strips of perennial
plants on the edges of fields adjacent to
non-arable land;
conservation and restraint from damaging
natural and semi-natural communities and valuable
landscape elements and objects of historical and
archaeological value;
cutting grass on clear land not in agricultural
39

11.
use at least once a year in order to improve the
appearance of production holdings, and ensuring
the maintenance of the territory of such holdings.
To enhance biodiversity and the diversity of
landscapes, the establishment of ponds and wetlands,
the restoration and maintenance of stone
walls, and the establishment of strips of bushes of
different species are supported.
In 2001, a project was launched for managing
semi-natural communities nationwide and for supporting
the majority of the activities under the agriculture
environmental programme in two pilot
areas (Lümanda and Kihelkonna parishes in
Saaremaa). Land owners were paid land maintenance
support for a purposeful management of
semi-natural communities in a total amount of 19
million EEK from the budget of the Ministry of the
Environment.
The plans for 2002 under the agriculture environmental
programme include the payment of support
to the agricultural producers of ca 40 parishes
for maintaining lands not used in agriculture and
for applying good plant production principles.
Preparations will be made in 2002–2003 for
applying the 7 th SAPARD measure in the pilot areas
and for implementing the agriculture environmental
programme nationwide.
In organising the studying, protection,
maintenance, and restoration of semi-natural communities
in Estonia, the Ministries of Agriculture
and the Environment have been greatly assisted by
nature conservation and environmental protection
organisations such as the Estonian Nature Fund
and the Estonian Seminatural Community Conservation
Association; the Ecological Technologies
Centre cooperated in the preparation of the
environmental programme.
40

MINISTRY OF AGRICULTURE STRUCTURE
Advisers to the Ministry
Minister
Secretary General
Advisers to the Minister
Deputy Secretary General
for Agriculture and Rural
Development
Deputy Secretary General
for Agro-Food and Trade
Department of
Rural Development
Bureau of
Infrastructure
Bureau of Rural
Policy
Bureau of Rural
Entrepreneurship
Bureau of Research
Education and
Extension
Department
of Agriculture
Bureau of
phytosanitary
Bureau of
Intervention
Bureau of
Enviroment
Bureau of Animal
Husbandry
Bureau of
Information and
Income Policy
Bureau of
Cultivation
Veterinary and
Food Department
Bureau of
Inspection
Bureau of
Food Safety
Bureau of
Veterinary Service
Bureau of breeding
and animal welfare
Department of
Agro-Food and
Trade
Bureau of
Trade
Bureau of Agro-
Industry
Bureau of
Alcohol
Department of
Legal Services
Department of
Internal Audit
Department of
Public and Foreign
Affairs
Bureau of
Public Relations
Bureau of Foreign
Relations
Department of
Fishery Economics
Administrative
Department
Bureau of
Budgeting
Bureau of
Informatics
Bureau Office and
Management
Bureau of Personnel
Bureau of
Accounting
Bureau of Public
Property
Administration

MINISTRY OF AGRICULTURE REPUBLIC OF ESTONIA
39/41 Lai Str.
15056 Tallinn ESTONIA
Telephone: (+372) 6256 101
Fax: (+372) 6256 200
E-mail: pm@agri.ee
www.agri.ee
PLANT PRODUCTION INSPECTORATE
2 Teaduse Str.
75501 Saku
HARJU COUNTY
ESTONIA
Telephone: (+372) 671 2602
Fax: +(372) 671 2604
E-mail: plant@plant.agri.ee
www.plant.agri.ee
ANIMAL BREEDING INSPECTORATE
2 Teaduse Str.
75501 Saku
HARJU COUNTY
ESTONIA
Telephone: +(372)672 8883
Fax (+372) 672 8883
E-mail: anne.emmus@breeding.ee
www.breeding.ee/inspektsioon.php
AGRICULTURAL REGISTERS AND
INFORMATION BOARD
3 Narva Road
51009 TARTU
ESTONIA
Telephone: (+372) 7 371 200
Fax: (+372) 7 371 201
E-mail: pria@pria.ee
web.pria.ee
VETERINARY AND FOOD BOARD
3 Väike-Paala Str.
11415 TALLINN
ESTONIA
Telephone: (+372)605 1710
Fax: (+372)621 1441
E-mail: vet@vet.agri.ee
www.vet.agri.ee
BORDER SERVICE OF VETERINARY AND
FOOD BOARD
3 Väike-Paala Str.
11415 TALLINN
ESTONIA
Telephone: (+372)605 6888
Fax: (+372)605 6887
E-mail: piir@vet.agri.ee
www.vet.agri.ee
JÄNEDA TRAINING AND ADVISORY CENTRE
Jäneda
73602 JÄRVA COUNTY
ESTONIA
Telephone: (+372) 38 98275
Fax: (+372) 38 38198
E-mail: onk@janeda.ee
www.janeda.ee/jonk/index.html
ANIMAL RECORDING CENTRE
48A Kreutzwaldi Str.
50094 TARTU
ESTONIA
Telephone: (+372) 7 387 700
Fax (+372) 7 387 702
E-mail: keskus@reg.agri.ee
www.reg.agri.ee
CONTROL CENTRE OF PLANT PRODUCTION
6 Teaduse Str.
75501 Saku
HARJU COUNTY
ESTONIA
Telephone: (+372) 672 9112
Fax: (+372)672 9113
E-mail: info@tmkk.ee
www.tmkk.ee
VETERINARY AND FOOD LABORATORY
3 Väike-Paala Str.
11415 TALLINN
ESTONIA
Telephone (+372) 621 1453
Fax: (+372) 621 1453
E-mail: lab@vet.agri.ee
www.vetlab.ee
ESTONIAN RESEARCH INSTITUTE OF
AGRICULTURE
13 Teaduse Str.
75501 Saku
HARJU COUNTY
ESTONIA
Telephone: (+372)604 1854
Fax: (+372) 604 1961
E-mail: arvi.kallas@mail.ee
www.eria.ee
JÕGEVA INSTITUTE OF PLANT BREEDING
1 Aamisepa Str.
48309 JÕGEVA
ESTONIA
Telephone: (+372) 77 66 901
Fax: (+372) 77 66 902
E-mail: jogeva@jpbi.ee
www.jpbi.ee
ESTONIAN AGRI-BIO CENTRE
10 Rõõmu Str.
51013 TARTU
ESTONIA
Telephone: (+372) 7 339 717
Fax: (+372) 7 339 717
E-mail: eabc@eau.ee
www.eau.ee/eabc