estonian agriculture, rural economy and food industry

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
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