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Estonia's Poltsamaa mustard production to end after 64 years as war pushes up input costs

Estonia's Poltsamaa mustard production to end after 64 years as war pushes up input costs
Estonia's Poltsamaa mustard production to end after 64 years as war pushes up input costs. / bne IntelliNewsFacebook
By bne IntelliNews April 18, 2026

Production of the iconic Poltsamaa strong mustard in Estonia will end this month after more than six decades, ERR News reported on its website ERR.ee on April 16.

Parent company Orkla Eesti said mustard production would be moved to Latvia and continue under the Felix brand using the same recipe. The Poltsamaa facility will remain operational, producing other goods such as pickled vegetables.

The mustard was launched in 1961 and became a staple in Estonia, with around 60mn tubes sold. Domestic demand remains strong, but production is being consolidated as part of a broader strategic shift by the Norwegian-owned parent.

The closure comes as Estonian industry faces sharply higher input costs linked to the US-Iran war. The Estonian Employers' Confederation warned that several companies could face bankruptcy as a result of the disruption.

In an appeal to the government, the confederation said the closure of the Strait of Hormuz had not only sharply reduced the supply of oil and petroleum products but had also disrupted the global availability of other key raw materials, including fertilisers, helium used in the semiconductor industry and aluminium.

Confederation chairman Hando Sutter told ERR that feedback gathered from members on the current situation was deeply worrying.

Estonia's economy contracted for nearly two and a half years before showing signs of improvement at the end of 2025, according to earlier IntelliNews reporting.

Poltsamaa is a small town in central Estonia. The mustard brand has been widely recognised as part of Soviet-era Estonian food heritage and survived the country's transition to a market economy after independence in 1991.

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