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Indicators measuring the competitiveness of the dairy supply chain in comparison to neighbouring countries

Photo: Jaakko Suvala

The customer

The Finnish dairy supply chain, from dairy farms to the dairy industry and retail trade.

The administrative sector of the Ministry of Agriculture and Forestry.

The need

The aim was to create productivity and competitiveness indicators for the Finnish dairy supply chain, in order to enable international comparisons of the competitiveness of the entire chain. The dairy chain is the biggest food supply chain in Finland with the best competitive edge, and its parts are linked closely.

The solution

The study was used to create a set of competitiveness indicators, with approximately 15 key figures. These key figures were then compared between the eight countries located around the Baltic Sea. In addition, a researcher visited dairy farms, dairies, research facilities, ministries and organisations supervising the interest of various parties and carried out over a hundred interviews among the actors and stakeholders. The interviews provided an overview of the strengths and weaknesses of the dairy chain in each country, which in turn gave an idea of the competitiveness of the dairy chains in the Baltic region as a whole.

The effectiveness

The results from the study were reported in the dairy production areas in various provinces, in events of organisations supervising the interest of the chain segments, events for the administration and members of companies, and at the Ministry of Agriculture and Forestry. They have also been utilised in university education. Approximately 350 copies of the book have been distributed. The Swedish Ministry of Agriculture and Forestry created a competitiveness strategy for its food supply chain utilising some of the information obtained from this study.

The funding

The Ministry of Agriculture and Forestry’s development fund for agriculture and forestry

Comments from the customer

“Agriculture and the food industry are going through an unprecedented change. The food strategy in Finland is under development, but the quick turns of events in the market and in politics have redirected the focus to crisis management. We must soon reach a situation in which attention is focused on competitive development. In this industry, it is essential to be familiar with the changes in the operating environment both in Finland and abroad. The study has been read and analysed carefully at the Central Union of Agricultural Producers and Forest Owners. The results are also valuable in deciding how we prepare for future changes in the EU’s agricultural policy.”

Juha Marttila, Chairman of the Board, the Central Union of Agricultural Producers and Forest Owners

“For a while, the study report functioned as a good general report and a summary of where we stand in comparison to other countries. From the point of view of export companies, it perhaps highlighted certain defects, but experience in export can only be gained through practical export activities. From the food supply sector’s point of view, the report provided a good outlook on the current situation and trends, which are important considerations when improving the security of supply.”

Heikki Juutinen, Director General, the Finnish Food and Drink Industries’ Federation

“The study gave us reliable information on the markets and operators in the neighbouring countries and also motivated me personally to follow the developments in the different parts of the dairy chain more closely. We have just completed a strategy for Arla covering the time up to the year 2020, and I have used this study as a basis when forming ideas of the strengths and weaknesses of the Finnish dairy chain. This has also made it easier to determine Arla’s position and its strategic development needs in the coming years.”

Reijo Kiskola, Managing Director, Arla Oy

Comments from Luke

“Close collaboration with customers was similar in all countries examined in the study. I engaged in dialogue with all the interviewees, naturally more intensely with the Finnish than foreign ones. The feedback I received from the study gave me new ideas and topics of research. I still follow the developments in the dairy sector to an extent, but my main focus now is an international competitiveness survey for the meat supply chain.”

Csaba Jansik, Senior Researcher, the Natural Resources Institute Finland