estonian agriculture, rural economy and food industry

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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
Page 1 and 2: ESTONIAN AGRICULTURE, RURAL ECONOMY
Page 3 and 4: Contents 1. What Estonia is like 3
Page 5 and 6: 1. What Estonia is like Estonia is
Page 7 and 8: 1. Climate • Estonia’s climate
Page 9 and 10: 2. Reforms have changed Estonian ag
Page 11 and 12: 2. rural inhabitants in agriculture
Page 13 and 14: 3. Trade is largest with European U
Page 15 and 16: 4. Economic results of agriculture
Page 17 and 18: 4. smaller enterprises (up to 40 ha
Page 19 and 20: 4. in ownership relations, a situat
Page 21 and 22: 5. Young people are interested in a
Page 23 and 24: 5. forestry, and processing of agri
Page 25 and 26: 6. Forests are an important natural
Page 27 and 28: 7. Fishing is an important industry
Page 29 and 30: 8. Food industry yields a quarter o
Page 31 and 32: 8. Concentration The concentration
Page 33 and 34: 9. Measures taken to assure food sa
Page 35: 10. Rural enterprise is developing
Page 39 and 40: 11. Different landscape types have
Page 41 and 42: 11. tion areas. The areas belonging
Page 43 and 44: MINISTRY OF AGRICULTURE STRUCTURE A

estonian agriculture, rural economy and food industry

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