estonian experience in the formation of export strategy for dairy products
TRANSCRIPT
Estonian experience in the formation of export strategy for dairy productsRuve Schank, Ministry of Rural Affairs, Estonia
Tiina Saron, MBA
Estonian Dairy Association
Introduction. Foreign Trade Balance of
agricultural products 1995-2014
-400
-300
-200
-100
0
100
200
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
agricultural products dairy products
Self-suffiency by main products
139
150 153 156
142135 137
123 121128
132
156152
164 160 163
93
7469
74 7163
69
79 77 76 74 77 77 77 80 8476 77
8174
6662
69 73 74
91
110
89
114122 120
10098 99 95 94 95
8592
86 8983 87
100
0
20
40
60
80
100
120
140
160
180
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
milk meat cereals potatoes
Gross Agricultural Output, source:MoA
1995 2014
Milk production in Estonia, 1994-2015
211185 172 168 159
138 131 129 116 117 117 113 108 103 100 97 97 96 97 98 95 91
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
0
100
200
300
400
500
600
700
800
900
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
pro
du
cti
on
per c
ow
(1
00
0t)
tota
l p
ro
du
cti
on
(1
00
0 t
),
no
of
co
ws
(1
00
0)
number of cows
total production
production per
cow
Source: Estonian Statistical Office
Structure of dairy herds by milk production,%
19
3020 18 15.9 14.9 13.7 11.9 11
6149
54 5655.4 54.7
52.449 48
20 2126 26 28.8 30.4 33.9
39.1 41
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1994 2000 2006 2008 2010 2011 2012 2013 2014
601...cows
101...600 cows
1...100 cows
Dairy farm
Self-supply of milk and cheese, %
Estonian experience
• I 1991-1995 – restoration of independence, creation of own border regimes, reorientation of foreign trade from the east to the west
• II 1995-2004 – preparation for EU membership and fulfilling the preconditions, membership in international standard setting organizations (Codex Alimentarius, IPPC, OIE), WTO
• III from 2004 – today – EU membership, part of EU internal market, exports to third markets, application of EU export policies
I period: 1991 -1995• The restoration of independence, opening of the borders,
the abolition of restrictions in export and import, the reorientation of foreign trade from the east to the west.
• The reorientation of food standards and food inspection to international principles which was a basis for export, uniting with organisations that are relevant in international trade and set standards (Codex Alimentarius, OIE, IPPC)
• (Free) trade agreements, tariff quotas, search for importers in target countries.
,
Estonian standards 1994 International standards
•EVS-EN 13804:2002•Foodsuffs - Determination of trace elements - Performance criteria and general considerations
•EVS-EN 15851:2010•Foodstuffs - Determination of aflatoxin B1 in cereal based foods for infants and young children - HPLC method with immunoaffinity column cleanup and fluorescence detection
5/30/2016 12
Development of legislative process
Acts 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Veterinary Service ActPlant Protection ActFood Acthygiene requirements for food of animal
originhygiene requirements for food
food additives
labelling
residues and contaminants
Animal Breeding Act
Act of GMO-s Animal Treatment ActAnimal Welfare ActFeed ActIntra-community Trade Act
first release of act
second release of act
third release of act
...cont
• Formation of the Estonian Export Agency and Export Credit Fund
• Formation the Estonian Chamber of Agriculture and Commerce
• Quality labels “Approved Taste”
• The contest “The Best Estonian Food Product”
Quality labels Approved taste Approved Estonian taste
Perception of Swallow-label, source TNS Emor, % respondents
Perception of clover-label, source TNS Emor , % respondents
Preference of swallow-label, % out of respondents who have noticed that label, source TNS Emor
Preference of clover-label, % out of respondents who have noticed that label, source TNS Emor
Reliabilty of quality labels (swallow or clover), % out of respondents who have noticed the labels, source TNS Emor
Product development
II period: 1995-2004• Preparations for joining the EU•
• (Free) trade agreements, tariff quotas
• Joining with professional organizations, the exchange of information (EDA, ECOLAIT)
• A national program „Milk”•
• Participation in foreign fairs (Grüne Woche, Sial, Anuga, ….)
• Foundation of Enterprise Estonia in 2000
Estonian stand in Green Week
Estonian stand in Green Week
III period: 2004...• The joining with the EU - new possibilities
• Since 2005 state budget funded Market Development Grant:
promotional projects “Milk for Life”, etc.
Funding for taking part in international fairs.
• KREDEX – export crediting
• Taking part in EU-s promotion measures
• Estonian Dairy Sector Strategy 2020
• Development program “Estonian Food” 2015-2020
Conclusions and recommendations (1)1. There is no general national economic strategy and general
agricultural strategy in Estonia.
1. There is no separate strategic export promotion strategy but export of goods and services as a main priority is one of the main priorities in almost all strategic documents and development programs.
1. In order to develop and increase export appropriate measures and support schemes must be implemented.
2. Corresponding institutions must be created.
1. Schemes must be as simple as possible.
Conclusions and recommendations (2)
• 6. Gaining access to the export markets compliance of veterinary, phytosanitary and food safety requirements are essential (SPS-measures)
• 7. State institutions hold a vital role in the process of accessing new markets.
• 8. The export of agricultural products is a competition. The majority of the countries support their producers, a lack of support or the absence of support will leave producers in an unequally difficult situation.
Conclusions and recommentations (3)
• 9. The main role of the state is the development of export is creating a legislative framework that allows the development of enterprises and commerce.
• 10.When developing international trade relations the image of the state as a reliable partner is important.
• 11. Dialoge between the producers and state is needed.
HALLE, 2016
Thank you for your attention!