ESTONIA
offshore, though how far offshore has not been defined yet, says Mr Rebane. The distance from the coast, the depth of the sea, and the presence of other offshore installation will all have a bearing on fish farming operations, he points out, and there will be much to learn as we are the only company in Estonia with experience of farming in the sea and all of that is near shore.
Pandemic vaccine is the light at the end of a tunnel The company’s products are sold primarily on the domestic market in the three countries (Estonia, Finland, Sweden) which form the company’s base, but the
production is also exported to several countries most recently to Japan, where rainbow trout fillets have proved popular. The collapse of the Horeca sector as a result of the pandemic had a marked affect on the company as sales to this segment accounts for 20 of the Group’s turnover. The company also had to contend with increased volumes of Norwegian salmon on the market as sales to Asia and the US were diverted to Europe due to border closures and the lack of transport links. Seafood is also a relatively expensive product and among the first to be sacrificed by consumers when times are hard. The pandemic also provoked operational challenges as the team that carries out the
harvesting at the different sites could not move from country to country due to the travel restrictions. Now, however, with the
prospect of a vaccine in sight Mr Rebane is hoping for a return to a more normal work routine for his employees and himself.
PRFoods Pärnu mnt 141 Tallinn Estonia Tel.: +372 452 1470 margus@saaremerekala.eu www.prfoods.ee Operations director: Margus Rebane Activities: Rainbow trout farming, processing, sales
Volumes: 2,000 tonnes Farming sites: Estonia, Finland, Sweden Processing facilities: Estonia, Finland Range: Variety of smoked, salted, marinated, frozen, and fresh products based on rainbow trout Employees: 35 + seasonal employees at harvest periods
The Estonian Rural Development Foundation supports entrepreneurs in rural areas
Combating the impacts of the coronavirus The Estonian Rural Development Foundation is a government body established to support the development of rural areas by encouraging economic activity. This is done primarily by issuing guarantees for loans taken from banks as well as by offering loans directly.
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apital and cashflow are two of the major challenges faced by any entrepreneur, and in particular, those that are starting up. A common solution for most entrepreneurs is to approach a bank to get a loan. However, banks are usually cautious and need some kind of collateral that secures the money they are lending. A budding businessperson may not have the necessary assets to satisfy the bank, she may also lack a credit record, or may for some reason have failed to win the bank’s confidence. A lender may find it difficult to assess a potential client because
of a lack of information and may therefore be reluctant to offer a loan. Administration costs for small loans tend to be high, making them less interesting for banks.
Credit guarantees have an important economic and social function There could thus be several explanations for why an entrepreneur is not given a loan. It is in situations like this that the Rural Development Foundation (RDF) can step in to guarantee the loan. Credit guarantee schemes such as those offered by
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the RDF have existed in Europe since the nineteenth century and are available in countries around the globe. By standing surety for a loan, a guarantee scheme reduces the typically high collateral requirements of banks, and by assuming some or all of the risk the loan can be
offered at a lower interest rate. Credit guarantee schemes thus improve the terms of a loan and facilitate access to formal credit mechanisms. In addition, by enabling an entrepreneur to borrow money the guarantee scheme also assists her to start building a credit record, which
