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Estonian experience in the formation of export strategy for dairy products

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Expert Round Table - Best practices in export promotion: Experiences in Latin America, Europe and Central Asia

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Estonian experience in the formation of export strategy for dairy products

  1. 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. 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. 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. 4. Gross Agricultural Output, source:MoA 1995 2014
  5. 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. 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. 7. Dairy farm
  8. 8. Self-supply of milk and cheese, %
  9. 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. 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.
  11. 11. , 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
  12. 12. 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
  13. 13. ...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”
  14. 14. Quality labels Approved taste Approved Estonian taste
  15. 15. PerceptionofSwallow-label, sourceTNSEmor,%respondents
  16. 16. Perceptionofclover-label, source TNSEmor,%respondents
  17. 17. Preferenceofswallow-label, %outofrespondents whohavenoticedthatlabel,sourceTNSEmor
  18. 18. Preferenceofclover-label, %outofrespondents whohavenoticedthatlabel,sourceTNSEmor
  19. 19. Reliabiltyofqualitylabels(swalloworclover),%outof respondentswhohavenoticedthelabels,sourceTNSEmor
  20. 20. Product development
  21. 21. 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
  22. 22. Estonian stand in Green Week
  23. 23. Estonian stand in Green Week
  24. 24. 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
  25. 25. 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.
  26. 26. 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.
  27. 27. 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.
  28. 28. HALLE,2016 Thank you for your attention!

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