E-Piim Cooperative Declared Bankrupt

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E-Piim Cooperative Declared Bankrupt

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E-Piim, a major Estonian dairy cooperative, has been declared bankrupt by the Tartu County Court, with its financial difficulties largely attributed to an unfavorable shareholder agreement for the construction of its Paide cheese factory. The cooperative’s debt was estimated at €29 million at the start of 2026.

The formal bankruptcy declaration for AS E-Piim Tootmine, the entity operating the Paide factory, occurred on March 11, 2026, with Indrek Lepsoo and Olev Kuklase appointed as bankruptcy trustees. This followed an initial bankruptcy application filed on February 11, 2026. The company’s management had been working since December 2025 to stabilize the situation, but negotiations among owners to inject new capital were unsuccessful.

The Paide cheese factory, a state-of-the-art facility, began test production in September 2023 and was intended to significantly increase Estonia’s milk processing capacity. The Estonian state contributed €15 million towards its construction, which ultimately cost over €100 million. Despite the bankruptcy, the factory’s operations were expected to continue during the proceedings to preserve its value.

In August 2026, the Paide and Põltsamaa factories of E-Piim Tootmine were acquired by BinDawood Holding, a Saudi Arabian retail giant, for €135.25 million through its Estonian subsidiary. The sale included real estate, production equipment, and other operational assets. This acquisition aims to leverage E-Piim’s production and export capabilities for international markets, including Saudi Arabia. The bankruptcy has had significant consequences for dairy farmers, with E-Piim owing producers nearly €30 million in total.

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