5th NORDIC-BALTIC CONFERENCE IN REGIONAL SCIENCE
GLOBAL-LOCAL INTERPLAY IN THE BALTIC SEA REGION
Pärnu, Estonia, October 1-4, 1998

Dr. Stuart Thorne
Consortium of Roehampton Institute London, School of Life Sciences West Hill
London, SW15 3SN, United Kingdom
Tel.: +0181-392 3235    Fax: +0181-392-3271
E-mail: sthorne@max.roehampton.ac.uk

Small food manufacturers and producers are essential to the Estonian economy and to the development of rural economic viability. They faced severe difficulties after the change from a command economy to a free economy; these were both financial and technical and were exacerbated by the need to develop new markets after the loss of the traditional Russian market. The ability of larger manufacturers to attract foreign investment added to the problems of small manufacturers, as has the potential need to comply with EU legislation.

The Rohampton Institute has two projects to help small Estonian food manufacturers develop and improve their competitiveness. The first of these, financed by the United Kingdom "Know-How" fund has established of a consortium of small manufacturers, which now trades successfully as "Oma Pood." Currently, a PHARE project is enabling a consortium of farmers, caterers and very small manufacturers to co-operate for their mutual benefit.

The projects are assisting small manufacturers to:

• Co-operate in quality improvements
• Develop common, co-operative marketing strategies, branding and trade marks
• Improve their financial stability
• Develop national distribution and retailing
• Improve financial and business knowledge
• Develop new products to satisfy consumer aspirations
• Develop new export markets, including the EU and Russia