“Role of small producers in the valorisation of food products

– obstacles and opportunities for 2007 / 2013”

Enn SOKK, Head of the Trade and Agro-Food Department
Estonian Ministry of Agriculture

Nowadays, the globalisation of markets is inevitable. In supermarkets the products come from
all over the world. Nevertheless parallel to mass production, some smaller producers can find
opportunities for niche products. The situation is in fact quite specific in Estonia, because of
the small population the taste of Estonian people has not much influence on international
products, which means that local producers can find market opportunities by adapting their
products to the specific Estonian taste.

Niche market is primarily local, focused on high quality and organic raw materials. +15% of
organic demand in 2004 (present level is less than 5%). There is also a need for products for
people with health problems and allergy.

There is some support to help farmers in order to invest to produce adequate products. Alas,
most of the applications don’t meet the requirements, reducing the total amount effectively
spent. The Estonian Chamber of Commerce and dairy companies and professional
organisations have developed campaigns to promote local products, particularly in favour of
Estonian milk.

Regional associations can also help improving the marketing of products.

But there is also a need to increase the purchasing capacity of people because organic
production is more expensive. Lower price give an advantage to foreign big companies.

The Estonian Food Programme was developed by the Estonian Minister of Agriculture to
improve competitiveness and to inform consumers on the quality of Estonian food. There is
now a need for information on this programme: a conference is held on the 19 th of October on
this theme.