Agriculture and Food Sector in Finland 2016/17...food products (CN 01-24) in 1992–2016 10 Source: Finnish Customs, ULJAS database 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

© Natural Resources Institute Finland© Natural Resources Institute Finland

Agriculture and Food Sector in Finland 2016/17

Jyrki Niemi and Minna Väre (eds.)Luke, Economics and Society

Publication available at http://jukuri.luke.fi/handle/10024/540352

© Natural Resources Institute Finland2

Consumer expenditure on foodstuffs and beverages, € million

2014 2015 % change

Total 23,334 23,298 0

Foodstuffs* 12,445 12,288 -1

Non-alcoholic beverages* 1,292 1,288 0Alcoholic beverages* 3,414 3,319 -3Catering services(eating out) 6,183 6,403 4*Food consumed at home

Source: Statistics Finland, National accounts

Finnish Agriculture and Rural Industries 2016/2017


Share of foodstuffs and non-alcoholic beverages in consumer expenditure of households, %

Lähde: Eurostat National accounts

2014 2015EU28 12.4 12.3EU15 11.8 11.7Belgium 13.1 13.3Denmark 11.5 11.4Estonia 21.0 20.7Finland 12.7 12.4France 13.3 13.3Germany 10.5 10.5Greece 16.4 16.6Italy 14.3 14.3Norway 11.9 11.9Portugal 17.3 17.0Sweden 12.4 12.5United Kingdom 8.7 8.4



Employed of agriculture and food industry (%) in different regions in 2014

Source: Regional accounting, Statistics Finland


0 2 4 6 8 10 12 14 16

South OstrobothniaCentral Ostrobothnia

OstrobothniaPohjois-SavoNorth-Karelia

Etelä-SavoKanta-Häme

SatakuntaNorth Ostrobothnia

Varsinais-SuomiÅland

South KareliaPäijät-Häme

WHOLE COUNTRYKymenlaakso

Central FinlandKainuu

LaplandPirkanmaa

Uusimaa

01 Agriculture andhunting

10_12 Foodindustry etc.


Employment effect of the use of intermediate products in Finnish agriculture by sectors in 2014

3574 3556

2473

1688

971718

433304 169

381

0

500

1000

1500

2000

2500

3000

3500

4000

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

1. Trade in implements2. Business and other services

4. Other manufacturing industry3. Feed industry

5. Transport and storage6. Building7. Administration, education and

health8. Energy, water and waste

management9. Other primary production

10. Other

Number of employed persons


© Natural Resources Institute Finland

Consumer expenditure on foodstuffs and beverages in 1975–2015, %

6

Source: Tilastokeskus

0102030405060708090

100

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

Rasvat ja öljytMuut elintarvikkeetKala ja kalatuotteetAlkoholittomat juomatSokerit, hillot, ja makeisetLeipä- ja viljatuotteetMaito, juusto ja munatLiha ja lihatuotteetHedelmät ja kasviksetFruits and vegetables


Fats and oilsOther foodstuffsFish and fish productsNon-alcoholic beveragesSugar, jam and sweetsBread and cereal productsMilk, cheese and eggsMeat and meat products


Food prices (excluding VAT) in Finland and certain EU countries in 2005–2016

7

Index 2005=100


90

100

110

120

130

140

150

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

United KingdomFinlandDenmarkGermanySwedenEuro areaFrancePortugalIreland


Markets shares of retail companies in Finland in 2016

8

* Earlier Tradeka. ** From 2006 M Group; in 2007–2008 included in ”Other”.*** estimate

Source: AC Nielsen.


Other companies


Personnel of Finnish food industry and real turnover per person

9

0

50

100

150

200

250

300

350

400

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

ThousandsEUR/person



Exports and imports of agricultural and food products (CN 01-24) in 1992–2016

10

Source: Finnish Customs, ULJAS database

0500

100015002000250030003500400045005000

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

Million €

Imports

Exports



Trends in the world grain production, consumption and stocks in 2007/08–2016/17

11

Source: AMIS Statistics

Production

ConsumptionStocks

0

500

1000

1500

2000

2500

3000

2007/08 2009/10 2011/12 2013/14 2015/16

Billion kg



World market price for maize, soy and wheat in 2006–2016

12

Source: USDA, CBOT, CBR

MaizeWheat

Soy

0

100

200

300

400

500

600

700

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

USD/ 1.000 kg



Export prices of butter and skimmed milk powder in 2006–2016

13

Source: Canadian Dairy Information Centre

Milk powder

Butter

0

1000

2000

3000

4000

5000

6000

7000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

USD/1.000 kg



World market price indices for beef, pigmeat and poultrymeat in 2006–2016

14

Source: FAO

Pigmeat

Beef

Poultry meat

5075

100125150175200225

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Index (January 2006=100)



Producer prices of meat, eggs and milk in Finland in 2012–2016

15

Source: Luke

Eggs Poultry meat

Beef

Pigmeat

€/100 kg

Milk, incl.support

Milk, excl. support

€/100 l



Producer prices of horticultural products in Finland from 2012 to 2016

16

Source: Kasvistieto Ltd.

00,5

11,5

22,5

33,5

2012 2013 2014 2015 2016

Cucumber

Tomato

€/kg

Carrot

OnionCabbage

€/kg



Production of beef, pigmeat, poultry meat and eggs in Finland from 1995 to 2016

17

Source: Luke

0

50

100

150

200

250

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Beef

Pigmeat

Eggs

Poultrymeat

Million kg



Production of milk in Finland from 1995 to 2016

18

Source: Luke

2100

2200

2300

2400

2500

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

Million litres

Delivered to dairies

Milk production



Harvested areas in Finland from 2004 to 2016

19

Source: Luke, Statistical services

SilageBarley

OatsWheat

Dry HayOilseed crops

1.000 ha



Structure of the Common Agricultural Policy (CAP) of the EU

20 Finnish Agriculture and Rural Industries 2016/2017

Direct CAP supportDecoupled direct payments

and coupled payments

Market organisationsIntervention, storage and

regulation of supply

Agri-environment supportLFAStructural and investments aidRural development and business projectsLeader

Market support anddirect payments

Rural developmentpayments

1. Pilar(75% of the funding)

2. Pilar(25%)

CommonAgricultural Policy of the EU


Regional policy48.834 %

Improving competitiveness

17.412 %

International activity

10.27 %

Administration8.96 %

Other expenditure3.42 %

Direct payments40.228 %

Market interventions

2.42 %

Rural development

11.78 %

Other0.81 %

Sustainablegrowth and

natural resources39 %

EU budget for 2016, € billion



Agricultural support in Finland in 2010–2016, € million

22

milj. euroa


545 541 539 539 524 531 531

419 423 422 412 423 552 547

358 372 363 379 369274 300

586 561 534 505 502 326 322

0

250

500

750

1000

1250

1500

1750

2000

2010 2011 2012 2013 2014 2015 2016

Kansallinen tuki

Ympäristötuki

LFA-tuki

CAP-tuki

National support

Environmental support

LFA support

CAP support

€ Million


Support areasin Finland



Number of farms receiving agricultural support in 1995 and 2016

Southern FinlandSouthern Finland

EasternFinlandEasternFinland

CentralFinlandCentralFinland

NorthernFinlandNorthernFinland

Main regions of Uusimaa and Åland according to NUTS II have been included in Southern Finland. Source: Finnish Agency for Rural Affairs.

24

24,79413,322

43,104

23,167

51,616

95,562


20,00040,00060,00080,000

100,000

0

10,00020,00030,00040,00050,000

0

10,00020,00030,00040,00050,000

0

10,00020,00030,00040,00050,000

0

9,14110,00020,00030,00040,00050,000

0


Number of farms receivingagricultural support in 2006–2016

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Whole country 68,766 66,821 65,292 63,716 62,450 61,153 58,898 57,559 56,016 52,858 51,616

Southern Finland1) 30,967 29,945 29,368 28,694 28,098 27,578 26,517 25,874 25,119 23,726 23,167Eastern Finland 12,173 11,812 11,501 11,218 11,033 10,808 10,479 10,281 10,027 9,469 9,141Central Finland 17,947 17,574 17,119 16,650 16,177 15,771 15,172 14,812 14,410 13,645 13,322

Northern Finland 7,679 7,490 7,304 7,154 7,142 6,996 6,730 6,592 6,460 6,018 5,986

1) Main regions of Uusimaa and Åland according to NUTS II have been included in Southern Finland.Source: Finnish Agency for Rural Affairs



Area of leased arable land (ha) in Finland from 2006 to 2016

Source: Finnish Agency for Rural Affairs.


0100200300400500600700800900

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1000 ha

© Natural Resources Institute Finland© Luonnonvarakeskus27

0

10000

20000

30000

40000

50000

60000

70000

80000

2001 2003 2005 2007 2009 2011 2013 2015

65-

55-64

45-54

35-44

-34

Number of farmers by age categories in Finland in 2001–2015

Source: Luke, Statistical services



Southern FinlandSouthern Finland

EasternFinlandEasternFinlandCentralFinland

CentralFinland

NorthernFinlandNorthernFinland Cropproduction

59%

Others 6%Beef production 8%

Dairy husbandry26%

Dairy husbandry15.1%

Pig husbandry 2.4%Beef production 6.6%Poultry production 1.1% Others 5.0%

Crop production69.8%

Whole country

Distribution of farms receiving agricultural supportin Finland according to production line in 2016

Main regions of Uusimaa and Åland according to NUTS II have been included in Southern Finland. Source: Finnish Agency for Rural Affairs. 28

Poultry production 0%

Pig husbandry 1%

Cropproduction57%


Dairy husbandry 25%


Pig husbandry 1%

Others 5%

Dairy husbandry 8%


Pig husbandry 3%

Crop production79%

Crop production69%


Dairy husbandry16%


Pig husbandry 3%

Beef production 4%



Result and profitability development of agriculture and horticulture in Finland

• Entrepreneurial profit

Interest claim on equity

1,000 €/enterprise

Costs

Wage claim

Gross return

Net result

Entrepreneurial profit / loss

Entrepreneurialincome

29

-50

0

50

100

150

200

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015




• Profitability

30

Other cattle husbandry

Goat and sheep farmsAll farms

Pig farms

Dairy farms

-0,2-0,10,00,10,20,30,40,50,60,70,80,91,01,11,21,31,4

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Poultry



-0,2-0,10,00,10,20,30,40,50,60,70,80,91,01,11,21,31,4

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015


• Profitability ratio

31

All farms

Glasshouse production

Other crop productionCereal farms

Production in the open



• Return on total assets

32

Glasshouse productionPig farms

Dairy farms

Cereal farms


All farms

-16,0-14,0-12,0-10,0

-8,0-6,0-4,0-2,00,02,04,06,08,0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015




Result and profitability development of agriculture and horticulture

Glasshouse productionPig farms

Dairy farms

Cereal farms


All farms

33

0%10%20%30%40%50%60%70%80%90%

100%

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015


• Sales proceeds of total return


Specification of return and costs of acriculture and horticulture 2016

34

Source: Luke



Balance sheet of agriculture and horticulture 2016

35

Source: Luke


10201177635

1397

2698

3110

7554

60

4622

13029

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Oma pääoma

Vieras pääoma

Aineettomat hyödykkeet

Maa-alueet

Rakennukset

Koneet ja kalusto

Salaojitukset ja kasvustot

Kotieläimet

Tarvikkeet ja tuotteet

Rahat ja saamiset

Million €

Equity

Debts

Intangible commodities

Land

Buildings

Machinery and equipment

Subsurface draina plant

Livestock

Supplies, stocks

Cash and receivables


Marget margins 1/2010–9/2016

36

Market markings and our American cousin

Market margin, hog (€/hog)

Market margin, sow(€/sow/farrowing)


05

1015202530354045

Jan-

10Ju

n-10

Nov-1

0Ap

r-11

Sep-

11Fe

b-12

Jul-1

2De

c-12

May-1

3Oc

t-13

Mar-1

4Au

g-14

Jan-

15Ju

n-15

Nov-1

5Ap

r-16

Sep-

160

50100150200250300350400

Jan-

10Ju

n-10

Nov-1

0Ap

r-11

Sep-

11Fe

b-12

Jul-1

2De

c-12

May-1

3Oc

t-13

Mar-1

4Au

g-14

Jan-

15Ju

n-15

Nov-1

5Ap

r-16

Sep-

16


Marget margins 1/2010–9/2016

37

Market markings and our American cousin

Market margin, hog(€/10 000 hog)

Market margin, hen(€/100 hen/ year)


0

2500

5000

7500

10000

Jan-

10Ju

n-10

Nov-1

0Ap

r-11

Sep-

11Fe

b-12

Jul-1

2De

c-12

May-1

3Oc

t-13

Mar-1

4Au

g-14

Jan-

15Ju

n-15

Nov-1

5Ap

r-16

Sep-

16

0

100

200

300

400

500

600

700

800

Jan-

10Ju

n-10

Nov-1

0Ap

r-11

Sep-

11Fe

b-12

Jul-1

2De

c-12

May-1

3Oc

t-13

Mar-1

4Au

g-14

Jan-

15Ju

n-15

Nov-1

5Ap

r-16

Sep-

16


Quantities of land improvement lime used (kg/ha) in 2005–2015

Source: Evira

38

Lime



Use of pesticides (active substance g/ha) in 2005–2015

Source: Luke

39

Herbicides

InsecticidesGrowth regulatorsFungicides

Active substance g/ha



Surpluses of nutrient balances (kg/ha) in 2005–2015

40

Nitrogen balance

Phosphorusbalance

Source: Luke



Uses of fertilisers (kg/ha) in 2005–2015

Source: Luke

41

Nitrogen

PhosphorusPotassium



Area (1000 ha) under organic production in 2005–2015

42

Organic production and area under transition

Source: Luke



Citizens’ willingness to pay extra for produts that take animal welfare into consideration in Finland

43

Consumers interested in animal welfare


0 20 40 60 80 100

EU average

Sweden

Finland

Share (%) of respondents

Not ready to pay more

Ready to pay up to 5% more

Ready to pay up 6% to 10%moreReady to pay up 11% to 20%moreReady to pay more than 20%moreDepends on the price of theproductDon´t know

Documents

Agriculture and Food Sector in Finland 2016/17...food products (CN 01-24) in 1992–2016 10 Source: Finnish Customs, ULJAS database 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000