Already 1,305 people have seen this company's branding and they are being followed by 2 Storybook user.The company has not been given any ratings and comments are missing as well.

's activity report 2022

Introduction

The past financial year once again confirmed that rapid adaptability is one of the most important qualities in the management of companies and countries. Status Quo has taken a longer break or is tinkering unnoticed in the home office - it is not worth relying on him.

The WAR that started in Europe manifests itself in its cruelty and tragedy primarily to the people of Ukraine, but affects practically all areas of life globally. In assessing the direct and indirect, short-term and long-term impacts and risks, we all remain in suspense - we do not know what the future will bring!

Inflation, extreme volatility of prices in a relatively short time frame, rising interest rates, rising labor costs and the (non) functioning of the labor market as a whole are the new reality of business. Central banks and governments have set inflation suppression as their main goal, which also affects their own favorites, real estate and stocks.

The need to invest more in security and pay off obligations taken during crises forces countries to raise taxes or burden the economy, in the medium to long term, significant changes may occur in the competitiveness of countries - this depends directly on the quality of the reforms being implemented.

But the trump cards of change are yet to come - GREEN TURN, CLIMATE NEUTRALITY and GREENHOUSE GASES.

This is an insurmountable challenge to the survival of life on our planet and each subsequent climate crisis or natural disaster is pushing us more and more from behind - governments have a truly great responsibility. As a small country, we cannot afford to make mistakes in our choices - there may not be a chance to correct mistakes. But even before we begin to understand the depth of the planet-saving challenges as a society, we have to survive the significantly increased financial obligations of households and businesses resulting from the rise in interest rates. High energy prices do not seem so burdensome in retrospect as the ever-increasing obligations to banks. This hits our cooperative members with two sticks at once, firstly the direct impact of the rise in interest rates and secondly the decrease in food consumption due to the deteriorated financial situation of households, which pushes down the prices of agricultural products both locally and globally.

2022. The financial year was successful for the SCE group. We not only adapted to changes but predicted them and made strategic-tactical choices accordingly, took certain risks and they paid off. During the reporting year, there was a rapid rise in dairy product prices and also in input and raw material prices. The ability of companies to pass on price increases to the end product became important. In the situation that has arisen, the existence of different target markets was helpful to us. In the light of last year, our decisions to fix the price of electricity and our decision to build a wood chip boiler were correct, through these activities we were able to keep energy costs under control.

AS E-Piim Tootmine continued to build a new modern Paide dairy during the reporting year. In general, everything is going according to plan and we hope to start regular production in the fall of 2023. The setting up of the industry and the training of employees on site will begin in May. With the new factory, we want to achieve the highest efficiency and competitiveness in the region. New challenges in the world would make our activities in old factories relatively complicated. The new factory will achieve independence in the export of Estonian raw milk, which creates a good prerequisite for boosting dairy farming and further development in Estonia.

Jaunpils Pienotava completed the planned investments and began preparing to transfer the production of melted and smoked cheeses from the former E-Piim Türi production unit to Jaunpils, as well as the transfer of one cheese press from Põltsamaa.

The company has consistently developed the CARING FARM program for climate neutrality and animal welfare rules and activities to integrate the company internally from the farm level to the end product and in cooperation with our partners Interfood B.V and Royal A-Ware B.V we integrate the E-Piim Caring Farm standard with our partners' respective standards to meet our customers' expectations and demands to guarantee a fair and secure position for our products in the dairy value chain.

The company's board has responsibly decided to discuss climate neutrality and animal welfare issues as a regular monthly agenda item.

The E-Piim sustainability program CARING FARM covers the main sustainability goals and monitoring of all member households. The CARING FARM program is constantly being updated and improved due to legislative developments and market demands.

SCE E-Piim does not have a dividend policy, as SCE E-Piim as a cooperative does not pay dividends.

On the balance sheet date, consolidated short-term liabilities exceed current assets by 1,126 thousand euros, as reserves of 3,486 thousand euros were formed on the balance sheet date. As a result of current operations, working capital is positive and, in the opinion of the management, liquidity and continuity of operations are ensured. The financial management of the consolidating unit SCE E-Piim is centralized and the activities of subsidiaries ensure a positive cash flow.

The Group procured 141.1 (2021: 143.2) thousand tons of raw milk in 2022. Of the procured raw milk, 98.6 (2021: 98.7) % belonged to the elite and higher class. The average procurement price was 0.464 (2021: 0.313) EUR/kg.

In 2022, the Group produced the main products as follows:

Cheese 9,664 tons (2021: 9,539)

Milk powders 7,945 tons (2021: 7,630)

Sour cream 1,622 tons (2021: 3,250)

Curd 2,220 tons (2021: 2,925)

Butter 495 tons (2021: 911)