Food and Beverage

By production volume, food processing is the largest industry sector in Estonia, which constitutes the main field of activity for nearly 600 enterprises and the output of which forms nearly 30% of the output of the entire manufacturing industry. The production of the sector is mainly intended for the domestic market. The Estonian food processing industry is characterised by relatively high competitiveness and stability. Despite the strong pressure created by companies in neighbouring countries, our enterprises have been able to maintain their leading position at home and expand to export markets. The development of the sector has been facilitated by the investments made into innovation and efficiency in recent years.

The areas of activity include the production, processing and storage of meat, fish, fruits and vegetables, dairy and bakery products, spices and products of the milling industry, starch products, prepared animal fodder etc. Food processing industry also encompasses beverage production. Dairy, beverage and fish industries are the most substantial – together, they make up more than 60% of the output of food processing industry: milk and dairy products (31%), fish and fish products (18%), beverages (17%). Meat and meat products (13%), bakery and confectionery products (8%) and flour and milling products (4%) make up smaller volumes.

Food processing industry enterprises are located relatively evenly all over Estonia. The largest by number of employees are concentrated in the region of Tallinn, Harju County and Lääne-Viru County. Larger meat industry enterprises include AS Rakvere Lihakombinaat, Linpet AS, Atria Group and AS Maag Lihatööstus. Larger bakery enterprises include AS Leibur, AS Pere Leib Tootmine and AS Eesti Pagar. Other larger food processing industry enterprises include beverage producers AS Saku Õlletehas and AS A. Le Coq, dairy enterprise AS Tere and dairy association E-Piim, egg producer Eesti Munatooted AS and fish processors AS Maseko and Kajax Fishexport AS.

The average sales turnover of the sector was 256 million EUR in the first half of 2009.

The average export turnover was 83 million EUR. In 2009, export was divided across the main export countries as follows: Russia (22%), Latvia (18%), Lithuania (14%), Finland (14%), Ukraine (6%) and Germany (4%). The main groups of export articles were dairy products (27%), fish products (23%), beverages (16%) and meat products (11%).