- Estonia experienced three periods in the formation of its dairy export strategy: (1) 1991-1995 focusing on reorienting trade and meeting international standards, (2) 1995-2004 preparing for EU membership and joining trade organizations, and (3) 2004 onward capitalizing on EU membership and developing promotional programs. - Key developments included establishing quality labels, participating in international fairs, and implementing national strategies and export support programs to develop products and access new markets while complying with regulatory requirements. - The document recommends developing a clear export promotion strategy, institutions to support exporters, and maintaining dialogue between producers and the state to foster a reliable trade environment.

1. Estonian experience in the
formation of export strategy for
dairy products
Ruve Schank, Ministry of Rural Affairs, Estonia
Tiina Saron, MBA
Estonian Dairy Association

2. Introduction. ForeignTradeBalanceof
agriculturalproducts1995-2014
-400
-300
-200
-100
0
100
200
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
agricultural products dairy products

3. Self-suffiency by main products
139
150 153 156
142
135 137
123 121
128
132
156 152
164 160 163
93
74
69
74 71
63
69
79 77 76 74 77 77 77 80 84
76 77 81
74
66 62
69 73 74
91
110
89
114
122 120
10098 99 95 94 95
85
92
86 89
83 87
100
0
20
40
60
80
100
120
140
160
180
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
milk meat cereals potatoes

4. Gross Agricultural Output,
source:MoA
1995 2014

5. Milk production in Estonia,
1994-2015
211
185 172 168 159
138 131 129 116 117 117 113 108 103 100 97 97 96 97 98 95 91
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0
100
200
300
400
500
600
700
800
900
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
productionpercow(1000t)
totalproduction(1000t),noofcows(1000)
number of cows
total production
production per
cow
Source: Estonian Statistical Office

6. Structure of dairy herds by milk
production,%
19
30
20 18 15.9 14.9 13.7 11.9 11
61
49
54 56
55.4 54.7
52.4
49 48
20 21
26 26 28.8 30.4 33.9
39.1 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1994 2000 2006 2008 2010 2011 2012 2013 2014
601...cows
101...600 cows
1...100 cows

7. Dairy farm

8. Self-supply of milk and cheese, %

9. Estonian experience
• I 1991-1995 – restoration of independence, creation of own
border regimes, reorientation of foreign trade from the east to
the west
• II 1995-2004 – preparation for EU membership and fulfilling
the preconditions, membership in international standard
setting organizations (Codex Alimentarius, IPPC, OIE), WTO
• III from 2004 – today – EU membership, part of EU internal
market, exports to third markets, application of EU export
policies

10. I period: 1991 -1995
• The restoration of independence, opening of the borders,
the abolition of restrictions in export and import, the
reorientation of foreign trade from the east to the west.
• The reorientation of food standards and food inspection to
international principles which was a basis for export, uniting
with organisations that are relevant in international trade
and set standards (Codex Alimentarius, OIE, IPPC)
• (Free) trade agreements, tariff quotas, search for importers
in target countries.

12. ,
Estonian standards 1994 International standards
•EVS-EN 13804:2002
•Foodsuffs - Determination of trace
elements - Performance criteria and
general considerations
•EVS-EN 15851:2010
•Foodstuffs - Determination of
aflatoxin B1 in cereal based foods for
infants and young children - HPLC
method with immunoaffinity column
cleanup and fluorescence detection
5/30/2016 12

13. Development of legislative process
Acts 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Veterinary Service Act
Plant Protection Act
Food Act
hygiene requirements for food of animal
originhygiene requirements for food
food additives
labelling
residues and contaminants
Animal Breeding Act
Act of GMO-s
Animal Treatment Act
Animal Welfare Act
Feed Act
Intra-community Trade Act
first release of act
second release of act
third release of act

14. ...cont
• Formation of the Estonian Export Agency and Export Credit
Fund
• Formation the Estonian Chamber of Agriculture and
Commerce
• Quality labels “Approved Taste”
• The contest “The Best Estonian Food Product”

15. Quality labels
Approved taste Approved Estonian taste

16. PerceptionofSwallow-label,
sourceTNSEmor,%respondents

17. Perceptionofclover-label,
source TNSEmor,%respondents

18. Preferenceofswallow-label,
%outofrespondents
whohavenoticedthatlabel,sourceTNSEmor

19. Preferenceofclover-label,
%outofrespondents
whohavenoticedthatlabel,sourceTNSEmor

20. Reliabiltyofqualitylabels(swalloworclover),%outof
respondentswhohavenoticedthelabels,sourceTNSEmor

22. Product development

23. II period: 1995-2004
• Preparations for joining the EU
•
• (Free) trade agreements, tariff quotas
• Joining with professional organizations, the exchange of
information (EDA, ECOLAIT)
• A national program „Milk”
•
• Participation in foreign fairs (Grüne Woche, Sial, Anuga, ….)
• Foundation of Enterprise Estonia in 2000

24. Estonian stand in Green Week

25. Estonian stand in Green Week

26. III period: 2004...
• The joining with the EU - new possibilities
• Since 2005 state budget funded Market Development Grant:
promotional projects “Milk for Life”, etc.
Funding for taking part in international fairs.
• KREDEX – export crediting
• Taking part in EU-s promotion measures
• Estonian Dairy Sector Strategy 2020
• Development program “Estonian Food” 2015-2020

27. Conclusions and recommendations
(1)
1. There is no general national economic strategy and general
agricultural strategy in Estonia.
1. There is no separate strategic export promotion strategy but
export of goods and services as a main priority is one of the
main priorities in almost all strategic documents and
development programs.
1. In order to develop and increase export appropriate
measures and support schemes must be implemented.
2. Corresponding institutions must be created.
1. Schemes must be as simple as possible.

28. Conclusions and recommendations
(2)
• 6. Gaining access to the export markets compliance of
veterinary, phytosanitary and food safety requirements are
essential (SPS-measures)
• 7. State institutions hold a vital role in the process of
accessing new markets.
• 8. The export of agricultural products is a competition. The
majority of the countries support their producers, a lack of
support or the absence of support will leave producers in an
unequally difficult situation.

29. Conclusions and recommentations
(3)
• 9. The main role of the state is the development of export is
creating a legislative framework that allows the development
of enterprises and commerce.
• 10.When developing international trade relations the image
of the state as a reliable partner is important.
• 11. Dialoge between the producers and state is needed.

30. HALLE,2016
Thank you for your attention!