Saudi investor's 135.25 million euro bid for Estonian dairy factories signals new opportunities

The acquisition of E-Piim Tootmine's factories in Paide and Põltsamaa, Estonia, by a Saudi Arabian company, BinDawood Holding, for 135.25 million euros, offers a glimmer of hope for the Estonian dairy sector. Dairy farmers view the significant bid as a sign of serious intentions and a potential gateway to new export markets, alongside increased competition for raw milk.

Raul Peetson, a board member of Halinga OÜ, a large dairy producer in Pärnu County, sees the auction win not as a threat but as an opportunity for Estonian dairy farming. He noted that the substantial offer indicates that BinDawood Holding, a publicly traded company in Saudi Arabia, has significant plans for the Estonian dairy industry. "These are sums with which one does not come to joke. There must be a plan behind it," Peetson stated, underscoring the seriousness of the investment.

While the substantial investment signals potential growth, dairy farmers stress that the new owner faces the crucial task of rebuilding trust and ensuring competitive pricing. To operate the factories at full capacity, BinDawood Holding will need to secure the confidence of milk producers and offer prices that are attractive in the current market. This will be key to revitalizing the production facilities and integrating them effectively into the broader dairy supply chain.

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These are sums with which one does not come to joke. There must be a plan behind it.