Drought boon for breweries, bane for farmers

  • 2002-06-27
  • Aleksei Gunter, TALLINN
Estonia's recent run of hot weather and drought has left farmers scrambling to save their crops, and ice cream and beer vendors struggling to meet demand.

The Ministry of Agriculture estimates that low rainfall since April has caused up to 1 billion kroons ($58.8 million) in crop damage. Only 35 of Estonia's estimated 61,000 farmers have crop insurance through the one insurance company in the country that offers it, according to the Ministry of Agriculture.

About 26 millimeters of rain fell in May, according to the Estonian Meteorological and Hydrological Institute, about half the normal rainfall.

June has also been far drier than normal.

Strawberry, potato and barley crops have been hit the hardest.

The crop damage should not cause a jump in food prices, however, because the country imports most of its food.

"But the credit burden of Estonian farmers and their competitiveness on the future EU market are (at stake)," said Maris Lehtmets, an adviser to the Agriculture Ministry. "In this respect the farmers should think about harvest insurance."

The lack of rainfall has been accompanied by higher-than-normal temperatures.

Estonia's average daytime temperature in June since 1961 has hovered at around 16 degrees Celsius (61 degrees Fahrenheit). Temperatures in recent weeks have climbed to an average of 24 degrees Celsius, according to weather forecasters. Temperatures have been above average since April.

Estonia's largest brewery, Saku, which controls about 45 percent of the beer and soft drink market, has added an additional shift to satisfy demand.

Saku has posted record sales of its Originaal beer, with a 42 percent increase in sales compared with last spring. It also doubled soft drinks sales in April and May compared with last year.

"The lager type of beer has been the best moneymaker so far this summer," said Saku spokeswoman Kristina Seimann.

Tartu brewery reported a 20 percent jump in sales this May compared with May 2001.

Outdoor barbecues have also been increasingly popular so far this summer thanks to the weather.

The Valga meat processing plant sold 291 tons of barbecue meat by the beginning of June, nearly twice as much as last year.

Meat sales, though markedly higher this year, have been following an upward trend for a few years, according to industry sources.

"Ten years ago people would grill meat only on Jaanipaev (St. John's Day, June 24), in recent years the whole summer is like one big Midsummer Day," said Olle Horm, CEO of the meat processing plant Rakvere. "These days the demand for barbecue products starts in May and ends with the first autumn frost," he said.

Officials from the ice-cream makers Johvi Piim and Tallinna Kulmhoone said sales so far this summer were double last year's.