In recent years, Estonia has experienced a true storm of price increases, hitting food prices particularly hard. While much of society initially viewed the idea of implementing a bank tax with skepticism, even major media outlets like Eesti Ekspress and Äripäev have recently acknowledged that the idea may indeed have merit.

Additionally, recent weeks have shown that the Center Party's proposal to reduce the value-added tax on food products to 5 percent could be a solution that alleviates the rising costs of daily life. Food is becoming a luxury item, and society is beginning to understand that the price of food is not merely an economic indicator but also a determinant of people's quality of life and social well-being.

People stealing food from grocery stores

The dizzying rise in prices has also led to an increase in crime, particularly theft. Representatives of various retail chains have admitted that shoplifters' interest in food and essential goods stems primarily from the fact that many people simply cannot afford to buy basic necessities. In 2024. This makes it difficult to believe that Estonia is a welfare state.

The constant price increases highlight the importance of local food. First and foremost, consuming Estonian products is crucial for the continuation of local agriculture. Estonian farmers and the food industry provide products with high quality and reputational value. Additionally, it must be recognized that local food production is economically significant: the sector creates jobs, generates revenue for the state budget, contributes to the vitality of local communities and helps preserve rural life.

A strong and independent local food production sector is also a key component of Estonia's security. Independence from the global food supply could prove critically important during times of economic turmoil. I understand that the price of Estonian-produced food differs significantly from that of foreign competitors on store shelves, but this disparity arises because our producers do not operate under equal conditions.

For example, compared to the Netherlands or Poland, Estonian farmers and food producers face more bureaucratic and legal hurdles. A key factor is undoubtedly higher input costs for fuel and electricity, along with higher taxes.

Another significant burden comes from European Union regulations. While some of these are recommendations for other countries, they become mandatory for us. Our officials and politicians often aim to be "more Catholic than the Pope," enthusiastically approving everything that comes from Brussels. This was evident recently in the Riigikogu European Union Affairs Committee, where coalition MPs uncritically nodded along to European climate goals. Rural people struggle to understand why we refuse to stand up straight and defend our interests.

Unfortunately, in recent years, the state has not actively worked to lower food prices. There has been no reduction in input costs for energy or the food industry, nor has there been any move to reduce VAT, which could help bring food prices down.

The Estonian government has remained passive despite food prices being one of the most pressing problems in daily life. Measures I would recommend as a farmer include lowering VAT on local food products from 22 percent to 5 percent. For imported food, a higher rate, such as 10 percent, could be applied. This would undoubtedly provide significant relief for both consumers and local producers.

Government has abandoned farmers

It is clear, however, that ensuring the quality and sustainability of local food production requires greater state support to enable growth and secure the food production sector's viability. Farmers are currently in a very difficult position, and no help appears to be forthcoming. One more bad year, and I dare to say that a third of producers will face existential economic hardship.

The issue is not just about food prices but also about the responsibility of the state and society to ensure affordable, high-quality food grown in our own country, on our own fields, by our own farmers. Reducing VAT is one solution, but it is not the only one. Investments in the food industry, infrastructure and support for local farmers are also needed to ensure that Estonia remains sustainable, competitive and food-secure in the global economy.

If the state continues to remain inactive, the rise in food prices may accelerate further, our farmers will cease operations and the market will be flooded with low-quality food products produced under favorable conditions abroad. Estonia must seriously consider how to ensure food affordability regardless of economic circumstances. Steps such as lowering VAT and reducing input costs are necessary. Every decision we make now will shape the future of our food and economic security.

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