The Ministry of Agriculture has asked the Ministry of Finance for 2.8 million euros from state reserves for dairy farmers.
The ministry said the additional aid would stave off a wave of bankruptcies, and would give the industry breathing space to find new markets and modify production, Maaleht reported.
The EU has already said it will help Estonian dairy farmers with 6.9 million euros.
The industry was hit hard when Russia implemented food import bans in the summer. The dairy industry was one to suffer the most as it produces a lot of raw material for dairy processing plants which export to Russia.
One large farm has already said it will downsize four-fold and 24 other farms could follow suit. Dairy herd numbers in Estonia could decrease by 8,000 by the end of the year, slightly below 10 percent of the entire herd.
Editor: J.M. Laats