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Dr. Sirpa KurppaProfessorMTT Agrifood Research, Finland E-mail: [email protected]
Strategy for Sustainable Consumption and Production – Public and Private Partnership in a Key Role, in Finland
Low Carbon Finance and Global Strategic Alliances
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Collaboration in the Finnish food system
Up to joining the EU (1995), Finland used to have national centralized steering system, where government and farmers union were contracting, and mutually controlled food import and export.
Now, food system is market oriented.Food system approach gradually developed; where key linkages• agriculture and their input industries, • agriculture and processing industries• processing industries and traders • traders and consumers
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Land use
Input industryFeed production
Feed industry
Milk farm
Dairy factory
Trade
Consumers
Energy
Toxic waste
Solid waste
Liquid waste and nutrients
LandscapeStakeholders
administrativeLocal people
Public mediaNGOs
ZitizensProduct owners
Transport
We aim at introducing a system involving the
whole food chain from farmers to consumers on a local and regional scale.
Graph: Pasi Voutilainen
Water
Surface water
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…and regional as well as global Sustainability in various time scales.
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Collaboration in the Finnish food system Traditionally competition legislation provides the statutory
framework for the collaboration between stakeholders of a chain.
Different support systems (from EU or national) set their own requirements to stakeholders.
Agriculture does not follow ‘polluter pays’ principle, instead costs for decreasing environmental pollution form a basic reasoning for support
Water pollution has been in major role in environmental protection scheme in agriculture; ecotoxicology, climate impact and protection of biodiversity has got less emphasis.
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Environmental protecton Scheme in Finnis Agriculture
• 95 % of farmers accept the regulations and rfeceive some support
• Direct subsidy for avoiding pollution• Additionally some support for investments; building of
wetlands and manure or slurry technology• Poorly focused – does not take into account nature based
conditions in farms – also those having less risk on becoming polluter receive subsidy for their activities – principle for equity between farms
• Major quantities on money in question – in some farms form more than 50% of cash flow
• Subsidy is liked to farm activities, no linkage to productivity
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Enviromental Protection Scheme of Agriculture to be renewed in 2014
• Minor amount of money in EU and nationally• Market based LCA has is being taken to use• Carbon labels on products becoming more end more common• LCA measures environmental impacts per kg product or per
Euro of product value – having so linkage to efficiency• How do we integrate novel focusing on process based LCA
and conventional expectation for subcidy• If science based – investments to qualifications of
environmental performance subcidiced in conventiona way• Lower environmental impact of production chain should be
joined into higher product value and supported by market
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Cooperation and competitiveness for 2030
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Key qualifications for competitiveness• taste and well-being• constant supply for everybody• global food situation considered• sustainable use of natural resources• responsibility: environment, product safety, nutrition,
occupational welfare, animal welfare, economic responsibility and local market presence
• health and nutrition• understanding consumers• growing role of services• reasonable price for all• social impacts
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• In food for tomorrow special focus has been set on SMEs;
• special arrangements should be made for them relating to e.g.• development of supply and
distribution systems. • the targeting of support
• An agent or service point specifically for advising and managing the affairs of SMEs is proposed.
• The strategic national ownership of companies is regarded important.
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1130.01.12 Kurppa
2.11.2010
Lean manufacturing, comparable to (3), does work for car manufacturing but doesn’t work for food economy!
Just-in-space
Just-on-time
Just-in-case
MATERIAL
SERVICE
1)
3)
2)
Food markets are highly centralized but at present practical examples of local food processing, cooperation with schools, ecological tourism and the development of local markets have been documented.
The strategy focuses on dialogue within the food system
• Trust between the different stakeholders of the food system and within them is vital in order to be able to agree on common strategic objectives and their implementation.
• The building of trust requires transparent flow of information and improving of the understanding between actors.
• The food system needs a visible chain of traceability and responsibility from field to consumer
• Careful thinking is needed when sharing LCA investment data - not to give inclined information for the buyer or final trader
• Modular based LCA may be a solution.
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LCA approach used in partnership orientation• Compliance oriented – end-of-pipe techniques• Process oriented – typical LCA process from cradle to grave• Market oriented – LCA implemented into process and product
design • in public private collaboration:
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Orientation: Compliance Process Market
Institutional state
Fragmented Negotiation Communal
Process Black box Identifiable through LCA
Contribution identified as market value
Performance End-of –pipe measures
Process improvemetns
Product design improvements
Modified from Hagelaar and van der Vorst 2002, International Food Business Management Review 4: 399-412
Success factors for partnership for commune and SME public-private partnership
Drivers Facilitators Characteristics
Cost effectiveness Strategic complementarity
Joint planning
Shorter production chain Compatibility of philosophy
Operational information change
Entrance into specific markets
Mutually joint objectives and sensitive information
Sharing benefit and purdens – trust and commitment
Competitiveness/profit stabiity and ditribution
Symmetry in power ExtendednessBridge building culture
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Modified from Hagelaar and van der Vorst 2002, International Food Business Management Review 4: 399-412
State of the public-private partnership
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Hagelaar and van der Vorst 2002, International Food Business Management Review 4: 399-412
Consumers, who have become distanced from
food production, want to know more about the production method and origin of food.
• A traceability system is constructed which also functions as the system for the verification of the responsible production, processing and distribution practice.
• Such a system is indispensable for exports; a well-functioning system for this purpose is a competitive advantage.
• Participation in the system is included in the competition criteria in public procurement.
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The coordination of the food-related policies and their implementation should be improved in the future.
• The objective of the new arrangements is to streamline food policy in central government and between different actors.
• This comprises better allocation of research and development funds and combination of these into larger and more comprehensive entities.
• Better coordination and consistency among the administrative sectors is also needed in legislative preparation and budgeting to reach the objectives set for food policy.
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Summary Low Carbon Finance and Global Strategic Alliances
• Consumer focus in global strategies• No low carbon finance for food at present (NZ piloting carbon
trading in milk production)• Potential finance for carbon offset• Potential finance of low carbon valued products in the market• Public procurement has a specific has high impact because of
its’ high volumes• Comparability of assessments and global strategic alliances
would be needed
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