What ban? Dairy and meat industries record huge profit growth (2)
Despite the Russian ban on food imports from Western nations from August, the Estonian meat and dairy industries have recorded huge profit increases.
The dairy industry, hardest hit by the ban, recorded a 393-million-euro turnover in 2014, slightly more than a year before, but profits increased to 18.8 million euros, a whopping 78.5 percent more than in 2013, Postimees reported.
Taavi Kand, of the Ministry of Agriculture, said the ban has been compensated for by the internal market and 19 new export markets for the dairy industry, adding that over half of the turnover came from exports and a strong showing in the first half of the year meant exports only decreased by 1.1 percent in 2014.
The dairy farm sector has been hit harder with many farms downsizing herds.
The meat industry, which was less severely hit, saw profits increase by 55 percent to 16.8 million euros in 2014, with turnover reaching 310 million euros. Exports grew by 38.4 percent to 42.4 million euros.
The meat industry has raw meat prices drop due to European-wide meat overproduction, leading to higher profit margins as meat products have not decreased in price in shops.