1. Estonian Dairy Sector 2006
Tiina Saron, MBA
Estonian Dairy Association
managing director

2. General information
%
1996 1998 2000 2001 2002 2003 2004 2005 2006
Share of milk
production in
GAO
27
28
29
31
31
28
30
Share of milk
processing in
food industry
26
28
28
30
27
26
32
30,3
28,2
Share of milk
products in
export of
foodstuffs
33
32
28
25
22
20
22
19,7
17,5
Number of
enterprises
28
41
44
38
38
41
42
40
38

3. Number of cows, milk yield, total milk
production
1400
7
1200
6
1000
5
800
4
600
3
400
2
200
0
no of cows
total
per cow
228 224 187
162 169 159 147 131 129
112 113 109
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2006
1
0

4. Number of cows in herds, %
Lehmade arv karjades, % 1994-2006
70
60
50
1...10 lehma
11...100
101...600 lehma
600...lehma
40
30
20
10
0
1994
2000
2003
1994
1997
2000
2003
2006
6,2
6,8
9,3
7,3
4
11...100 cows
11,5
15,7
20,5
20,4
19,2
101...600 cows
65,4
60,3
51,3
52,7
53,7
600...cows
16,9
20,8
18,8
19,6
23,2
Herd size
1...10 cows
1997
2006

5. Milk production in herds, %
Piimatoodang erinevates karjades, %
kogutoodangust, 1994-2006
70
60
50
40
30
20
10
0
1994
1...10 lehma
1997
2000
11...100 lehma
2003
101...600 lehma
2006
600...lehma
1994
1997
2000
2003
2006
7,4
7,2
9,9
6,4
3,2
11...100 cows
11,1
15,7
20,2
18,8
16,5
101...600 cows
61,3
56,7
49,1
52,1
54,3
600...cows
20,1
20,4
20,8
22,6
26
1...10 cows

6. Milk Quota
•Total amount of quota for 2006/2007 was 646 th tons
•633 th tons of the delivery quota and
13 th tons of the direct sales was allocated for
2006/2007.
•Delivery quota was fulfilled by 93,6% and direct sales
quota by 57,4%
•1525 quota owners

7. Raw milk market, 2006
Toorpiima turujaotus 2006
Teised
31%
Saaremaa
5%
Rakvere Piim
6%
Maag Põlva Piim
2% Tootmine
5%
Valio
23%
Tere
14%
E-Piim
14%

8. Quality of raw milk, 2006
10% 6% 3%
100%
90%
80%
70%
32%
27% 23%
3,70%
17% 14% 12%
grade I
43%
41%
58% 57%
60%
50%
40%
30%
20%
58%
67% 71%
88%
79% 83% 87%
elite grade
52%
41%
38% 39%
10%
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
0%
19
elite or higher
grade
higher grade

9. Raw milk price, EEK
6
Raw Milk Price, EEK/kg natural weight
5
4
3
Estonia
2
EU average
1
Latvia
Finland
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

10. Raw milk price, EEK
Raw Milk Price, EEK/kg, 1st half- year
4,50
4,00
3,83
4,00
3,83
3,87
3,50
3,00
2,75
2,50
2,00
2003
2004
2005
2006
2007

11. Market management
•861 tons of butter was sold to intervention in 2006
•886 tons of butter was sold out of intervention in 2006
•Marketing support was granted for 10 tons of butter
and 34 tons of cream
•60,8 mln EEK was paid for export refunds
•School milk programme - 76,8% of target group is
covered

12. Structure of the Dairy Industry
• 32 processing enterprises with 38 processing units
• 29 enterprises use raw milk
• 8 farm- dairies
• foreign investments in 6 enterprises, which own
8 processing units

13. Development of enterprises 1989-2006
300
Dairies
Meat companies
250
200
150
100
50
0
1989 1992 1996 2000 2003 2004 2005 2006

14. Consumption of milk products (by milk
value kg/per capita)
500
450
400
350
300
250
200
150
100
50
0
1990
2000
2001
2002
2003
2004
2006

15. Consumption of drinking milk, kg/per
capita
90
80
70
60
50
40
30
20
10
0
1996
1997
1999
2001
2002
2003
2004
2005
2006

16. Consumtion of cheese, kg/per capita
Juustu tarbimine, kg inimese kohta
7
6
5
4
juust
3
2
1
0
1996
2000
2003
2004
2005
2006

17. Consumption in other countries
Consumption of Milk, Cheese and Butter in Europe in 2002,
kg per capita annually
milk
180
160
140
120
100
80
60
40
20
0
butter,
cheese
30
cheese
butter
milk
25
20
15
10
5
Lithuania
Greece
Estonia
Slovenia
Poland
Belgium
Czech Rep
Germany
Austria
Hungary
France
Netherlands
Denmark
Sweden
UK
Finland
Ireland
0

18. Trade of dairy products, mln EEK
2000
1000
0
-1000
-2000
-3000
-4000
-5000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
agricultural products
milk and milk products

19. Export of dairy products (EU and 3rd
countries), 2006
Piimatoodete väljavedu, mln EEK
3500
3000
2500
2000
1500
1000
500
0
1995
1997
1998
1999
EL-15
2000
EL-10
2001
Venemaa
2002
2003
Teised
2004
kokku
2005
2006

20. Promotional campaignes 2005, 2006,...
Life originates from milk

21. Estonian Milk Girl, 2004,
2005,2006,2007

22. Piimast algab elu

23. Thank you for your
attention!