Estonia's top greenhouse producer may drop herbs and lettuce after aid denial
Estonia's largest grower of vegetables and herbs, Grüne Fee, did not qualify for the EU renewable energy support scheme and did not receive an exemption. This will likely lead the company to stop producing several smaller items such as lettuces and herbs.
Under a EU plan that took effect in May, large industrial companies could apply for up to an 85‑percent discount on the renewable energy charge. It recently became clear, however, that Grüne Fee — which grows cucumbers, leaf lettuce and various herbs in covered facilities in Tartumaa and is a major electricity consumer — does not qualify for the measure under a European Commission decision.
"Horticulture is one of the exceptional cases that unfortunately cannot receive the reduced renewable energy charge. For our company, this means a hypothetical loss of roughly €150,000," company CEO Kristo Eisenberg said.
Kaspar Peek, head of the industrial sector at the Ministry of Economic Affairs, said the ministry explained Estonia's specific situation to the European Commission, including the high energy consumption of heated greenhouses, but the Commission maintained that no exemption for horticulture is possible under this measure in Estonia or any other member state.
Eisenberg said the support was badly needed, especially because new components — the security of supply fee and the balancing capacity fee — were added to electricity bills at the start of this year.
"For a household, this means a few extra euros per month, but for us it means €150,000 to €250,000 in additional annual costs. The reduced renewable energy charge would have been one balancing measure."
Given the situation, Grüne Fee must find areas to streamline operations. While growing Luunja cucumbers is the company's cornerstone, changes are most likely in the lettuce and herb category, Eisenberg said.
"There are about 20 such products today. We will definitely review the product portfolio and consider removing several smaller items from our assortment. There is no point in growing products that are not profitable, and of course we will reassess whether it makes sense to grow them in summer or year‑round."
Raimond Strastin, head of the Estonian Horticultural Association, said greenhouse horticulture more broadly needs state support. Aid would help ensure the sector's competitiveness and sustainability. Meanwhile, Estonia's self‑sufficiency in horticultural products is already declining.
"Today, self‑sufficiency for vegetables is about 35–40 percent, and for berries and fruit below 10 percent, meaning we are no longer feeding our population with basic vegetables. I would certainly expect a long‑term program that finally raises the level of self‑sufficiency in horticultural products. We need somewhat bolder decisions and political will," Strastin said.
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Editor: Urmet Kook, Argo Ideon
