Estonia’s vegetable self-sufficiency falls to 29% as producers face mounting costs

In 2024, only 29% of vegetables consumed in Estonia were grown domestically, according to Statistics Estonia. This marks a steep decline from 60% a decade ago, driven by rising production costs, limited tax support, and unfavorable market conditions.

The Estonian Horticultural Association points to the policy gap compared to neighboring countries. Latvia and Lithuania apply reduced VAT rates and tax relief for domestic growers. Finland provides area-based subsidies to greenhouse producers, making imported products more competitive in the Estonian market.

Estonia currently applies a 22% VAT on fruits and vegetables, which will increase to 24% in July 2025. In comparison, the VAT rate is 5% in Latvia and 12% in Finland. Additionally, fuel excise duties are higher in Estonia, raising heating costs for greenhouse operations.

Retail pricing is another concern. In April 2024, the average price for local cucumbers reached €7.31/kg, up from €4.07/kg the previous year. Growers report only a 10% increase in wholesale prices, suggesting that retail markups — often exceeding 100% — are a key factor in price hikes.

Producers highlight the need for energy policy reforms and sector-specific tax adjustments, including labour tax relief and VAT exemptions, to help stabilize domestic production.

Without policy changes, growers warn that vegetable self-sufficiency will continue to erode, increasing Estonia's reliance on imported produce to meet basic consumption needs.

source: news.err.ee

photo: edibleroutesshop.com