Agricultural co-operatives in Estonia

1. Agricultural co-operatives in Estonia Indrek Rohtma Estonian Farmers Federation

2. Current situation in Estonia • There are about 100 agricultural co-operatives in Estonia (incl. 13 co-operatives in milk sector) • Biggest problem in co-operatives is that members do not know their rights and responsibilities • Estonian Farmers Federation and Central Union of Estonian Farmers have made some trainigs for co-operatives members, and will help farmers to co-operate in the future.

3. Current situation in Estonia • The aim of co-operatives in Estonia is to get more many from market, we like to say that from global market. • It is not easy for small country, thats why some co-operatives is looking forward to co-oprate with other Baltic countrys. • This is almost only way to fight against global companies in global market.

4. KEVILI • Kevili Agricultural co-operative • Kevili Agricultural co-operative unites rape and grain farmers all over Estonia and it is the largest co-operative of plant growers in the country. • The co-operative pursues a variety of activities: supplying members with production inputs, marketing grain and rape production of members, training of members. The object of the co-operative is to offer the best price to its members on production inputs and also on the production. • The co-operation was founded on 2005. It developed from Kesk-Eesti Õlikultuuride Ühistu, that was active since 1993. The first export sale, that estonian farmers had organized together, took place in the spring of 2008 when 4 000 tons of milling wheat was sent to Germany.

5. Kevili • As its stated on figure 1, Kevili Agricultural co-operative had 141 members at the end of 2009. Half of the members were located in Lääne-Virumaa and Viljandimaa. Members of Kevili use about 70 000 ha of the arable land in Estonia. • Production is sold both on domestic and foreign markets. Main foreign partners are Copenhagen Merchants and Latvian agricultural associaton LATRAPS. Sales of production has been constantly increasing. Of the harvest of 2008, 11 250 tons of rape and 36 850 tons of grain was sold through Kevili. • The ambition of Kevili is to compromise 50% of the Estonian plant-growing market and thereby to develop an all-Estonian association of agricultural undertakings and through joint supplies, marketing and training increase profitability of the operations of its members and sustainability of Estonian agriculture.

6. Talukartul • Commercial Association was founded in May 2000, the same year bought the central warehouse / storage facility in Järva County, Roosna-Alliku. The founders were 16 potatoe growers over Estonia, and led to the creation of a cooperative need to be packed, storage and distribution together. • 2009-2010 the Talukartul members are 10 largest potato growers who are located all over Estonia. • Talukartul financial year begins on 1 July and ends in the 30th June, which is best suited for potato cultivation in the circle. Talukartul is the greatestdepositor of potatoes and producing washed and packed potatoes. • End of financial year at 31. June 2010 the biggest customers at the annual sale are RIMI Foods (80%), Bambona (11%), other (9%). Food potatosales were about 16 million krones. Talukartul is representive of Solana, seed producer from Germany. A large part, sold in the market as certified seed potatoes, Talukartul members sold 100% of trough association. Jointly purchased the pesticides and fertilizers. Top seed customers are Baltic Agro Ltd, HansaPlant OÜ. Potato seed sales were approximately 2 million krones

7. Talukartul • The cooperative will work closely with researchers from the Institute of Land Cultivation and Jõgeva Plant Breeding Institute, the members making production tests and other studies on the fields. • The cooperative aims to cultivate large quantity required by the assortment and quality of food and seed potatoes. The varieties grown by the cooperative members is low in the eye, thin, smooth skin, good taste and durability. • Talukartul opened in the spring of 2009, in market Nõmme representative shop of its kind, aimed at raising consumer awareness of the varieties differ in its function. The author has a number of market development projects in the culinary industry. • Address: RoosnaAllikuJärvamaa 73 203 reg.nr. 10670581, No KMK. EE100617636 Tel. + fax. 38 95 424 tel. 53 029 729 info@talukartul.ee

8. Estonian Beef Breeders Association • At the end of 2008 there were 204 members. • Association dealing also with beef growers who are not members. • Members have the advantage of greater buying cattle marketing(+2 kr / kg more). • More than 400 growers selling trough association. Estonian Beef • Cattle Breeders' Society operates its owninterests of its members. • Association managersoganizing discussions with partners, all kinds of information daysand a variety of trainings for important issues.2008 was held in conjunction with partnerstour of Scotland, which was attended by50 people). • Cattle farmers are required to trainon topics such as carcass quality, assupplies of raw materials to ensure a uniformly highquality.

9. Estonian Beef Breeders Association • The Company has developed atrademark "Eesti Lihaveis" and live animalsjoint distribution system. Estonian-ACBViancoLtd. has been arranged through the meat of cattlethe logistics of collecting all over Estonia. Meatis realized at the age of 12-24 months. • Every year held beef breeders visitations in Baltic countries (every year in different countries),organized and attendedexhibitions. • Educators for Estonian beef production arefrom Switzerland, Finland, Sweden,Ireland, Scotland and other European countries.The main experience is from the Swiss:"VIANCO AG", who will also be active today tocooperate with the Estonian Beef Breeders Association.Marketing of live animals in Estonian- through the ACB Vianco LLC (the company was established in 2005. InSwitzerland, Italy and Estonia in cooperation with partners) toAS Rakvere Meat Processing Plant, which will sale under trade mark "Eesti Lihaveis“. Contacts: • Eesti Lihaveisekasvatajate Selts • Leino Vessart • tel 51 31 569, karitsu.oppetalu@mail.ee • Eesti Tõuloomakasvatajate Ühistu • Tanel Bulitko, tel 51 08 253 • Estonian-ACB-Vianco OÜ • Janek Mustmaa, tel 50 51 392

10. Viru Meat Association Produceing of pork Processing of pork Realization of pork Feeds and supplements Joint actions Aretuse 2,Märja 61406,Tartumaa E-mail: virulihayhistu@virulihayhistu.ee www.virulihayhistu.ee

11. Aiavili • Founded in 16.03.2010 a. Vana- Karistes, Halliste parish, Viljandi county. Cooperatives started with three families, two person each. • What united them is gardening and producing vegetables. • Goals: • Combine representation of horticultural products and joint members. • Joint purchasing of accessories needed for the production, processing and marketing. • Finding realization and direct marketing opportunitiesfor products. • To promote domestic horticultural products consumptsion and producing. • Association making trainigs for members: “Liftime learning“. • Initiates, promotes and carries out joint projects. • Collaborates with other organizations, the public - and private parties. • Develop economic activities that it is necessary to achieve its statutory objectivesRepresents the association members to protect their interests and demands • MTÜ AIAVILI • Vana- Kariste küla  EKE-2                                                                                      • Viljandi 69506 • +372 5205 403

12. Eesti Mahe • I founded 2003. As profit association Eesti Maheliha; (Estonian organicmeat) • Since beginning of 2007 new name: Profit association Eesti Mahe. ( Estonian organic) • More then 100 member all over Estonia. • Cooperative have 5 partnerships: meat, Milk, grain, fruit- and vegetables, honey and tee. • We work everyday that products from our members can be on the market, and people can by organic food.

13. Eesti Mahe • In supermarkets like, Selver, Rimi, Prisma, Konsum, We are selling trough wholesale company Rigual. • For introducing our products we have participated in many fairs. • In 2010 have been major mareting grouth. • Producers ton´t have to worry for realization, all marekts have • find by oganization. • Advantage of cooperative is that goods coming from many • members, and our partners can be sure that ordered goods will • be in market in time. • Problem is that producers have bad storage conitions. At the • moment the logistics are complicated, because small amount of • goods coming from one producer and distance between them • are long, ant it makes logistic very expensive. Homepage: www.eestimahe.ee

14. EPIKO - the umbrella co-operative in dairy sector • About dairy associations in Estonia • Total annual milk production in Estonia is 680 thousand tons, altogether there are 970 enterprises - quota holders. Year 2010 June 30th – the total number of cows was 97 thousand whereas in year 2008 the total was over 100 thousand cows. 30-40% of the milk produced is to be exported, that is the volume exceeding domestic consumption. In favourable market conditions the export goes smoothly but that is not the case in the conditions of economic slow-down and the biggest sufferers are milk producers (farmers). In order to minimize the negative effects on farmers coming from the volatility of the markets and guarantee the stability of production and normal income, we call upon farmers’ cooperation. • Co-operative forms of doing business are widely spread throughout the milk production (farms) in Estonia. Circa 80% of the milk is sold to dairy industries through different co-operative forms. The main problem is cooperatives’ weak position with regard to the industries and their weak market power. The contracts signed leave a lot to be desired and are unfavourable for the producers. In order to strengthen the market position of the producers and gain larger economies of scale, the forming of new sale-cooperative-system is underway, i.e. centralizing the existing cooperative units (dairy societies), with the aim to stand for the interests of the milk producers and guarantee their sustainability.

15. Commercial association named EPIKO (TÜ), the members of which are most of the active dairy societies, was established in 2008. The aim of EPIKO is to create a new system of cooperation in milk production sphere, which is the kind of umbrella organisation and we do not aim to destroy the existing dairy societies. Main activity is bulk purchase and selling of raw milk, buying services from dairy companies and marketing of dairy products. This kind of joint sale results in larger economies of scale which enables the producers to gain better position in price negotiations, and the growth of volume guarantees the stability for both milk producer and dairy company. The joint system enables us to increase the volumes of supplies (e. g. fertilizes) and gain economic efficiency. One of our strategic objectives is to set up our own dairy production unit (industry). • There are 12 regional dairy societies, 3 stock companies (AS) and 1 share company (OÜ) as the members of commercial association EPIKO so far. Our members produce 60% of raw milk in Estonia. • The member organisations of EPIKO are of the opinion that the market of raw milk in Estonia should be more concentrated, as it is in the Nordic countries. The law on competition § 13 stipulates, that the concentration of raw material is contracted to max 40% of the whole market.

16. We are in the initial phase of creating a brand of our own and starting product development. In cooperation with Estonian biggest dairy industry, AS Tere, a new product “Eesti piim” (Estonian milk) in plastic bag package was launched and the consumers welcomed it warmly. One of the aims of the project was to draw attention to the insensibly low price of raw milk (at that moment 5-6 kroons per litre. The price in a shop was 7.50. The presentation of the new product took place on the 3rd of September and it was on sale some days later. • With view to cooperation development, numerous meetings, seminars and discussion sessions have been held on the county level, included the enhancing of the awareness of producers and discussing the implementation of MAK measures (support of producer groups and development). EPIKO continuously calls upon its members to cooperate in order to secure the stronger position of farmers, under free market conditions, and EPIKO does its best to help the farmers to collect more money from the market. • Looking back, we must say, our strategy has been the right one. The equality of treatment is guaranteed, i.e. all the members of the cooperative get the same price for the milk of the same quality. Dairy plants have more respect towards milk producers and their cooperatives. And there is still a long way to go regarding cooperation and negotiating better bulk purchase prices.

17. E-piim • Põltsamaa Dairy was founded in 1910. Its years of tradition and favourable location in a thriving agricultural region have formed the basis of its successful operations in the milk processing industry. • PõltsamaaMeierei, JärvaJaaniPiimandusühistu and ÜhistuHaimrePiim make up the E-Piim dairy cooperative and have worked together since 1997. The cooperative is open to members who are milk producers. • The commercial production of cheese in Estonia began more than one hundred years ago. The cheese produced here is characterised by its locally sourced ingredients, chief among them, of course, being milk. Estonian cheese production therefore has its roots in local milk producers. The main goal of the cooperative is to guarantee its members profitable production. • At present the cooperative has 260 members, with milk supplied by more than 400 producers. Cheese is produced in Põltsamaa using milk supplied by Estonian producers. This means that Põltsamaa Eesti Juust is true Estonian cheese. • PÜ E-PiimVälja 4, 48105 PõltsamaaPhone: +372 776 2200Fax:  +372 776 2201epiim@epiim.ee

18. We hope that this kind of conferences will help us understand the meaning of co-operatives betveen the Baltic states and what kind of steps we need to take to work together

19. Thank you! Indrek Rohtma Estonian Farmers Federation Tel: +372 604 1783 Mob: +372 56 938 775 E-mail: indrek@taluliit.ee Skype: indrekrohtma