Estonian Cheese Maker Andre Farm Leaves Major Retail Chains, Citing High Costs

Estonian cheese producer Andre Farm has announced it is leaving most retail chains, explaining that the current sales system has become too costly for the company. As a result, the farm is cutting back on cheese production and returning to selling raw milk.

The company emphasizes that the decision is not due to a single cause but a combination of factors. Farm owner Erika Koroleva states that the state is the first to claim the contents of their wallet, followed by changes in buyer behavior. Sales are declining, while the workload required to sell the same amount or even less cheese has increased significantly.

Andre Farm's herd consists of 490 cows, of which 220 are milking. Ten years ago, the company decided to focus on cheese production to boost profits. Now the situation has changed: the company again sells three-quarters of its milk and keeps one-third for cheese making. Previously, young cheese tripled the price of milk, and aged cheese multiplied it sixfold. But costs have risen so much that even this level is no longer achievable. The markup for young cheese is now just over one, and for aged cheese, at best, twice the cost of milk.

Meeli Lindsaar, head of the Agricultural and Trade Chamber’s department, notes that the large number of retail chains and a sometimes rigid system make it difficult for small producers. When a product enters a retailer’s assortment, additional costs arise—advertising, shelf placement fees, logistics. If a supplier fails to meet certain requirements, they face fines. While costs for one store might be manageable, working with multiple chains becomes overwhelming for many producers.

Lindsaar suggests allowing producers to sell their goods selectively—only in certain stores—and making logistics chains more efficient.

Andre Farm products will now be available only in select stores, restaurants, and fairs, as well as at their own farm store and online shop.