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