The proposal made by a group of Estonian experts on Thursday to provide €15 million to a dairy processing plant project of E-Piim Tootmine AS is a big step toward enlivening the Estonian economy by means of the joint activity of milk producers, Minister of Rural Affairs Tarmo Tamm said on Friday.
The minister observed that an estimated 500 tons of raw milk is exported from Estonia daily and the cooperative processing facility to be established by milk producers would allow producers to provide greater value added to almost half of the milk produced in Estonia, provide significantly better prices and be more competitive on export markets.
As a result of the investment, a new and modern dairy processing plant will be built that will enable the Estonian dairy sector to better withstand market fluctuations in the future and ensure a more stable income for dairy producers, said the minister.
As the dairy plant would be set up in Central Estonia and it would employ a workforce of 100, the positive effect on regional employment and rural development in general should not be underestimated, the ministry added.
The opinion offered by the panel of experts at the agricultural registers and information authority PRIA will serve as basis for further actions by PRIA, after which a final decision is expected to be made by June 29 on co-financing the project of E-Piima Tootmise AS.
The €15 million in support of the establishment of the new dairy plant would come from financing set out under the Rural Development Plan for 2014-2020. The EU will provide 85 percent of the said amount and the Estonian government 15 percent. The measure, the target group for which Estonia has chosen the dairy sector, is in support of the implementation of large-scale projects in the processing and marketing of agricultural products. .
Estonia's milk output in 2016 totaled 783,200 tons.
Editor: Aili Vahtla