Agricultural Production and Consumption

Abstract

Producer prices are the main factor influencing consumer price formation in Estonia. Calculations show that the cost of buying the minimum monthly amount of food that meets basic physiological needs has risen from 144 Estonian Crowns in July 1992 to 215 Estonian Crowns in April 1993. The main factor determining consumption level is income. In 1991 consumption of basic food products was at a similar level to that in Finland. From July 1992 to April 1993 retail prices of milk, pigmeat, butter and bread increased and the amounts purchased decreased. More time is needed following the introduction of market economics to enable the collection of sufficient statistical data to calculate reliable elasticity coefficients.