Approximately 30 percent of the vegetables consumed in Estonia were grown domestically last year. Raimond Strastin, CEO of the Estonian Horticultural Association (Eesti aiandusliit), says Finland has a competitive advantage due to tax breaks and subsidies and "common sense" is needed. Data from Statistics Estonia shows 29 percent of the vegetables consumed in Estonia last year were produced in the country. Ten years ago, the figure was 60 percent.
Strastin said that a decade ago, vegetable growers predicted that self-sufficiency would remain around two-thirds, but it has now fallen to half of that.
"There is a lack of stability and a secure business environment, various tax increases in a relatively short period. If you look at neighboring countries, there have not been such major disruptions, and food production in agriculture is supported as much as each country can afford. Latvia and Lithuania have implemented various tax breaks. For example, Latvia has a reduced VAT rate for domestically grown fruits and vegetables. That's how the sector is supported there," he told ERR.
"If we look at the example of Finland, Finnish cucumbers really are cheaper thanks to the country's decision to provide square-meter-based subsidies for domestic horticultural producers using greenhouses. This support has been in place since they joined the European Union. And when Finnish cucumbers eventually make their way here – at a significantly lower price than ours — it is naturally easier to bring them to Estonia at a lower cost and a more attractive price for retailers," Strastin explained.
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