Finnish food and drink industry

1
Finnish food and drink industry

• Finnish Food and Drink Industries Federation
• 2009

2
A significant industry

• In Europe the food industry
• is the biggest industry, employs over 4 million
  people
• In Finland the food industry
• is the biggest manufacturer of consumer goods
• is the fourth significant industry, operates in
  approx. 1,900 sites
• employs over 34,500 persons, the third important
  employer among industries
• uses mainly domestic raw materials (85)
• covers 81 of domestic market
• for its part attends to the food self-sufficiency
  in Finland
• The whole food chain in Finland
• employs over 300,000 persons, that is 12 of the
  employed labour force

3
Strengths of the Finnish food industry

• Customer and consumer orientation

• Healthy and functional products

• Responsibility

• High technology

• Professionally skilled employees

• Self-monitoring and quality systems

• Control over the whole production chain

• Prevention of risks and traceability

The base of all operations quality and safety
4
Development

• 1998 2008
• Gross value of production 8.1 billion 9.6
  billion
• Value added 1.9 billion 2.2 billion
• Employees 42,000 34,600
• Share of profit, from turnover 3.5 4.6
• Equity ratio 46.2 41.1
• Exports 0.9 billion 1.4 billion
• Imports 1.9 billion 3.3 billion

Source Statistics Finland
5
Largest branches 2008

• Share of Share of
• production employment
• Butchery, meat processing 28 24
• Dairy products, ice cream 21 15
• Bread, cookies 11 -
• Beer, soft drinks, mineral waters 8 -
• Feeds 6 2
• Vegetables, fruits 5 5
• Chocolate, sweets, cocoa 4 -

SouceStatistics Finland
6
Number and location of sites 2007
100
39
133
43
121
97
90
129
95
83
137
103
68
57
74
223
214
67
Åland 22
32
Source Statistics Finland
7
Many small and medium size companies
65 of all sites in food and drink industry
employ less than 5 employees.
Sites
Source Statistics Finland, 2007
Employees
8
The largest companies in Finland

• Paulig
• Raisio
• Saarioinen
• Sinebrychoff
• Snellman
• Finnsugar
• Unilever Finland
• Vaasan
• Valio

• Altia
• Atria
• Fazer Bakeries
• Fazer Confectionery
• Hartwall
• HKScan
• Arla Ingman
• Järvi-Suomen Portti
• Lännen Tehtaat

9
Finnish food and drink industry abroadExternal
business operations 4.1 bill. in 2006
USA ? 1 ? 1 ? 1
Japan ? 1

• China
• 1 ? 1

The figures cover member companies of ETL that
are Finland-owned at least by 50 per cent.

• ? 8
• 7
• ? 3

? Argentine, Australia, Chile (2), Equador (2),
South Africa, South-Korea, Intia, Indonesia,
Israel, Malta, Meksico, Papua New Guinea,
Thailand, Turkey, Uruquay, Vietnam, United
Arabiemirates (2)
Iceland? 2

• ? 32
• ? 20
• ? 7

? 2 ? 7 ? 2
? 6 ? 7 ? 1
? 1

• ? 2
• 2
• ? 2

• ? 6
• 4
• ? 3

? 8 ? 6 ? 1
1 Belarus ?
? 1 ? 1

• ? 1
• ? 1
• ? 4

? 2
Ukraine ? 1
? 3
? production site ? sales office,
packing department or ware house ?
associated or joint company or co-operation
agreement
? 2
? 1 Czech. Rep.
? 2 Slovenia? 1 Kroatia? 1 Serbia ? 1
Montenegro? 1 Macedonia? 1 Bosnia-
Hertzegovina
? 2
? 2
? 1? 2
? 2
? 2
? 2
? 1
? 2
? 1
10
Imports and exports of foodstuffs 1985 - 2008
Million euros
3500
Imports, all foodstuffs
3000
Imports, food industry products
2500
2000
Exports, all foodstuffs
1500
1000
Exports, food industry products
500
0
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
0
1
2
3
4
5
6
7
8
Source Finnish Customs
11
Imports in 2008

• Total value 3.3 billion euro
• The most important import products
• Alcoholic beverages
• Fruits
• Cheese
• Vegetables
• Green coffee
• Modified starch
• Oil seeds
• Fresh fish

• The most important import countries
• Germany
• Sweden
• Nerherlands
• France
• Denmark
• Brasil
• Spain

Source Finnish Customs
12
Exports in 2008

• Total value 1.4 billion euro
• The most important export products
• Cheese
• Alcoholic beverages
• Butter and other milk fats
• Pork
• Sucrochemical products
• Oat
• Oils and fats
• Chocolate

• The most important export countries
• Russia
• Sweden
• Estonia
• Germany
• Norway
• USA
• Denmark

Source Finnish Customs
13
Consumption in different countries kg/l per
capita / year (2003)
1) incl. cheese, but not butter 2) incl.
preserves and juices 3) year 2004, incl.
carbonated, not mineral waters
Source FAO Statistics Division Food Balance
Sheet 2003, CAOBISCO, Federation of Brewing and
Soft Drink Industry
14
Market shares per retail shops 2008
Others (private)
S-Group
12.6
42.4
S-Group
Finlands Local Store
11.3
K-Group
Finlands Local Store
Others (private)
K-Group
33.7
Source PTY ry / Nielsen
15
Uniqueness of the Finnish food culture
Regional differences Open-mindedness International
isation
Influences from east and west
Core
Aromas of the unspoilt nature in the north
Clean environment Genuine flavours Uncomplicated
food
Close to nature
Responsible actions
Know-how Quality efforts Well-being
16
National Quality Strategy

• The National Quality Strategy was established in
  1997
• The Strategy is based on co-operation within the
  whole food chain from field to table
• Targets of the Strategy
• to strengthen the competitiveness and competitive
  advantage of the Finnish food chain
• to add consumer knowledge to the way Finnish food
  chain operates
• to enforce responsibility in the food chain

17
The vision of the Finnish food industry

• Finnish food industry has a leading market
  position in Finland and it is a significant
  internationalised operator in the neighbouring
  regions.
• The market position is based on
• safe and correctly prised products that meet the
  expectations of consumers
• the high professionalism of employees
• profitability of operations
• responsibility
• The position is strengthened by
• close cooperation and partnership in the whole
  processing chain
• production and product development based on high
  technology