July 7, 2011

 

Estonian dairy enterprises earn US$4 million in Q1

 

 

Estonian dairy organisations' profit was EUR2.8 million (US$4 million) from January-March this year, more than two times the figure within the same period last year, according to a survey of the dairy market by the Institute of Economic Research.


Total sales revenue of the dairies grew 17% to EUR88.4 million (US$126.6 million) in January-March 2011. Expenditures were up by 16% at EUR85.7 million (US$122.8 million). The rise in expenditures was mainly the result of a 23% increase in expenditures for milk purchase, equal to the annual rise in the average raw milk price.

 

During the three-month period, dairies purchased 149,900 tonnes of milk, 89% of the milk produced in Estonia. The volume of milk purchase grew 7% compared to the first quarter of 2010. Some of the milk produced in Estonia was sold to Latvia and Lithuania by farmers citing low wholesale prices in Estonia, the Institute of Economic Research said.

 

Investments by dairy companies during the quarter totalled EUR2.9 million (US$4.2 million), of which EUR1.5 million (US$2.1 million) was invested in plant and buildings and EUR1.4 million (US$2 million) in machinery and equipment.

 

The retail prices of dairy products in Estonia were on the average 44% higher in the first quarter than in the same period in 2010.

 

There were 96,400 milk cows in Estonia as at the end of March, 200 more than at the same time a year ago. The average milk yield per cow grew 3.6% year on year to 1,699 kilogrammes.

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