At the end of last year, Trigon Capital head Joakim Helenius announced his intention to purchase agricultural producer Estonia Farmid. At the time, what was described as the largest deal in Estonia's agricultural sector ultimately fell through because the bank that had promised co-financing pulled out at the last minute, citing high risks, according to Helenius. Two months ago, after Helenius' deal collapsed, Infortar approached Estonia Farmid again and acquired a 96.6 percent stake in the agricultural company.

"One of our main goals has always been synergy, and we are constantly looking for it. In pursuing the green transition, we once again found our way back to agriculture. When we sell gas, it is still fossil energy, but biogas is truly green energy, and the primary source of biogas is manure," Ain Hanschmidt explained on "Esimene stuudio" regarding Infortar's interest in purchasing Estonia Farmid.

Agriculture is not a new sector for Infortar. Last year, the company acquired a majority stake in one of Estonia's largest dairy operations, located in Halinga, Pärnu County, which has been profitable thanks to its biogas production.

"Right now, together with Alexela, we own three biogas plants. Last year, when we visited the Halinga major farm, we decided to invest there specifically because of the manure. At the time, the farm had 1,800 cows and 1,800 young cattle. We saw potential to build a biogas plant there and begin producing biogas. A year ago, we bought the Halinga farm, and today we are already producing biogas," Hanschmidt said.

According to the businessman, the milk produced at Estonia Farmid is a valuable bonus for the biogas operation, as the dairy business is profitable.
"Milk was the cherry on top for us. We invested to obtain biogas, and it turned out that milk production is also highly profitable," Hanschmidt stated.

In Hanschmidt's view, Estonia also needs to establish its place in the international division of labor, as this would contribute to economic growth.

"When we look at agriculture from a food production perspective, we are located at a latitude where we can produce exceptionally well. Thirteen thousand liters of milk per cow per year," he added.

Hanschmidt also pointed out that the Halinga large-scale farm, acquired last year, produces very high-quality cheese from its milk, which he said is even exported to Italy. In his opinion, this adds significant value.

"There is also a major opportunity in agriculture right now because the European Union's agricultural policy is leading competitors, such as Denmark, to reduce farmland. We still have the opportunity to produce and supply food to all of Europe," Hanschmidt said.

The businessman also expressed hope that Estonia will continue to offer a favorable environment for doing business in the future.

"If we look back, Estonian cheese was a major export product across Europe during the first republic, as was Estonian bacon. I believe all of that will return. Another important point is the need to pay attention to the global turbulence currently affecting international trade. It seems to me that natural economies are making a comeback. Global trade no longer exists everywhere. Tariffs are in place, and the situation has changed completely, meaning that every country must take responsibility for its own defense and protect its people. Each country must produce its own energy and feed its own population," Hanschmidt said.

Hanschmidt sees a significant business opportunity in the purchase of Estonia Farmid, enabling Estonia to penetrate European markets with its products.

"We can no longer simply import goods. Our export market is the European Union. Because we are part of the EU, we can still export our goods to Italy, the Netherlands and so on. This is a tremendous opportunity, best illustrated by the fact that the average milk price used to be €200 per ton. The lowest was €130 per ton. This March in Estonia, the price reached €525 per ton. It has increased two and a half times," Hanschmidt said.

According to the businessman, the price is being driven up by a shortage, as there simply isn't enough milk.

"We are an ideal location for milk production, and we will find our place in the international division of labor. That will make us significantly more important to Europe and, as a result, enhance our security," Hanschmidt said.

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