Estonian cheesemaker Andre Farm pulls out of major supermarket chains
Estonian cheesemaker Andre Farm has stopped selling through major supermarkets due to high costs; production halved but profitability unchanged.
Andre Farm, a cheesemaker based in Tartu County, has stopped selling its cheese through major supermarket chains. The farm announced in a social media post in mid-June that it was ending this sales model because it had become too costly. Owner Erika Koroleva told business daily Äripäev that retail sales involve multiple intermediary costs, which would force the final price to consumers to an unreasonably high level if the farm continued using that model. The change in sales channels has halved the company's production volume: from six to eight metric tons per month previously to about three metric tons now. Koroleva stated that total profit and revenue naturally decline, but profitability — the overall viability of production — remains the same. The cheesemaker's products will now be available through select stores, restaurants, farmers' markets, the farm's own shop, and its online store. Andre Farm's cheeses have received several international awards and have been named Estonia's best cheese.
