Luke's calculations and recommendations pointed the way for export promotion measures in the food sector

Our report on increasing the value added of the food sector boosted the efforts of both government and industry to promote food exports. 

The food sector as part of Finland's bioeconomy is expected to contribute to the national growth of value added. Prime Minister Petteri Orpo's government programme has set a target to double Finland's food exports by 2031. However, the rise in prices caused by the cost crisis and the resulting impact on consumption have led government officials to question the conditions for growth in the food sector. To respond to this information need, we studied the highest achievable growth potential of the food sector's value added by 2035 and made recommendations for measures to increase growth for both the administration and businesses.

Our calculations showed that the Finnish food sector can at best grow by 30% in turnover and 39% in value added between 2020 and 2035. 

As much as four-fifths of the imputed growth in turnover and value added will come from exports and only about one-fifth from the domestic market, according to our study.

The food sector will also grow by creating new value chains. The two largest new sectors with the greatest potential for growth are plant proteins and cellular agriculture. In both cases, however, the value chains are uncertain and still being built. In these cases, the focus should be on exports, too. 

Our recommendations, based on our calculations and highlighting the importance of food exports, were well received by both the governance and the food sector. Our report was widely praised for its forward-looking, positive approach and timeliness. Action was also taken swiftly.

A few months after the publication of our report, in the spring 2024 framework negotiations, Prime Minister Petteri Orpo's government decided to allocate EUR 5.7 million to a food sector growth programme aimed at doubling food exports by 2031. In line with our recommendations, funding for the Growth Programme will be allocated to support food exports, RDI activities and the development of export skills and capabilities and the food landscape. 

A particularly significant new development is that, with the help of the growth programme funding, food sector companies have rapidly organised themselves in a new way on the food export growth platform coordinated by Finfood – Finnish Food Information and The Finnish Food Export Association. In addition, the RDI projects funded through Business Finland as part of the Food2.0 project are promoting the competitiveness of food exports in a business-oriented way. These actions are in line with our recommendations, which stressed the need for both businesses and government actors to commit to common objectives and cooperation, and for effective coordination of financial investments.

”Luke's report came at a time when it was time to replace the old structures of export promotion with new ones. The government and companies were in sync and the state allocated special funding for the sector. Luke's calculations and recommendations have pointed the way for the administration and companies to take action and create permanent structures for joint export promotion.”

Päivi Nerg, Secretary of State, Ministry of Agriculture and Forestry