1. Experience of Local Identity products in Kainuu Area (Finland) / Pirjo Heikkinen, LAG Living KainuuSivu 1 4.6.2014 Experiences of Local Identity Products Support Systems in Finland Pirjo Heikkinen, LAG Manager LAG Living Kainuu LEADER

2. Experiences of Local Identity Products Support Systems in Kainuu, FinlandSivu 2 4.6.2014 About LEADER in Kainuu Two Leader Local Action Groups in Kainuu: Living Kainuu LEADER ry and Oulujärvi LEADER ry, rural development associations (NGOs), established in 1996. Serve, develop, fund and bring to gether local residents, associations, companies and municipalities. Living Kainuu operates along the Russian border in the area of 5 municipalities: Suomussalmi, Kuhmo, Ristijärvi, Sotkamo and Hyrynsalmi. Oulujärvi Leader operates in Kajaani, Vaala, Paltamo and Puolanka municipalities. Most of the area is very sparsely populated wilderness with a wide range of wild animals, reindeer and beautiful scenery. Everyone, who is interested in the promoting of the vitality of rural areas in our area, is free to join the associations as a member (and maybe be elected to the Board, which decides e.g. on funding).

3. ABOUT KAINUU AREA Support Systems Presentation name and authorSivu 3 4.6.2014

4. Kainuu Region 2010

6. Kainuu in brief Region of Kainuu is situated in Eastern Finland Consists of nine municipalities: Hyrynsalmi, Kajaani, Kuhmo, Paltamo, Puolanka, Sotkamo, Suomussalmi, Ristijärvi and Vaala Total population around 83,000 Regional capital Kajaani: around 38,000 Land area comparable to Belgium in size Kainuu is well-known for its forests, nature, measurement technology and good opportunities for sports, among other things

7. Kainuu in Europe

8. Sources of livelihood In Dec 2011: Kainuu 4 946 unemployed persons, 8 % less than in Dec. 2010. Rate: 13,4 (FI: 9,7%)

9. Kainuu in relation to the whole of Finland

10. Population development in Kainuu

11. 200720202030 0-6 (%)6,46,76,5 7-19 (%)15,613,513,8 20-64 (%)57,951,246,8 65-74 (%)10,616,114,8 75- (%)9,512,518,2 Development of the age structure in Kainuu 2007 – 2030

12. Future business areas in Kainuu In the regional development program by business areas for the development of livelihoods and industry have been chosen based on their inherent strengths and future expectations: 1. ICT and Electronics measurement technology vehicle information systems (e.g. a car testing pipe) metal 2. Tourism leisure activities culture (e.g. Kuhmo Chamber Music) experiences conferences 3. Natural Resources forest local food mining (e.g. Talvivaara nickel mine) energy

13. Natural resources Forests have been an important source of livelihood in Kainuu for centuries. Forests are not significant only because of their economic value, but also for the opportunities they provide for recreation and relaxation. In the following years, Kainuu focuses on developing innovative use of its forest resources and their reprocessing even further. In addition to forests, developing the use of other natural resources in the region will be in a significant role, too. In next coming years, Kainuu will put efforts in: More effective utilisation of forest resources and reprocessing Reinforcing the use of renewable energy Boosting the growing mining industry Increasing the use of local food Presentation name and authorSivu 13 4.6.2014

14. In Kainuu the turnover of the foodstuff cluster enterprises in growing(source: Statistics 30.05.11) In 2010 the growth was 19,8 % compared to 2009. Anyhow, the amount of personnel in the enterprises had increased only by 2,5 %. Presentation name and authorSivu 14 4.6.2014

15. GENERAL ABOUT FOOD INDUSTRY IN FINLAND Support Systems Presentation name and authorSivu 15 4.6.2014

16. General: Food and drink industry in Finland Finlands food and drink industry is a well-known force on international markets, especially in the Baltic Sea area. The strength of the Finnish food and drink industry is based on knowing the expectations of customers and consumers. The products are tasty and convenient. Successful products and trustworthiness are the result of the strong integrity of food and drinks industry professionals. Quality is further guaranteed by innovative product development and advanced production technology. Close and transparent cooperation across the food processing chain ensures a supreme standard of food safety from raw ingredients to the finished products. Corporate social responsibility policies and a commitment to environmental friendliness are the cornerstones of the Finnish food and drink industry that ensure sustainability far into the future. Presentation name and authorSivu 16 4.6.2014

17. General, cont. Finlands food and drink industry is among the best in the world in the development of functional food products. The best known Finnish health innovations include tooth-friendly xylitol, lactic acid bacteria preparations designed to promote a healthy gut, and products intended for controlling cholesterol. The food and drink industry is the 4th biggest industry in Finland after the metal industry, forestry, and the chemical industry. The gross production value of the food and drinks industry is EUR 10.2 billion. Food and drink industry exports were valued at EUR 1.4 billion in 2010 and imports at EUR 3.5 billion. Presentation name and authorSivu 17 4.6.2014

18. General, cont. The three largest food and drinks industry sectors – meat processing, dairy farming, and the bakery industry – represent 50% of the industrys gross production value. The food and drink industry employs almost 33 000 people. The number of individual facilities is approximately 1 900. 85 % of all raw ingredients used in the food and drinks industry originate from Finland. The Finnish food and drink industry invests more in research and development than most other countries in Europe: 2.9 percent of the production value in 2009. The entire food processing chain employs approximately 300 000 people in Finland, which is around 12 percent of the employed workforce. Presentation name and authorSivu 18 4.6.2014

19. LEGISLATION Support Systems Presentation name and authorSivu 19 4.6.2014

20. Support Systems: Legislation (For a law obedient people, like Finns this works) E.g.Food hygiene proficiency can be exhibited by showing a certificate in hygiene proficiency, i.e. a so- called "hygiene passport" as designed by the Finnish Food Safety Authority, and which can be acquired by passing a hygiene proficiency test or producing a certificate in some appropriate examination or education. Presentation name and authorSivu 20 4.6.2014

21. START-UP Support System Presentation name and authorSivu 21 4.6.2014

22. Support Systems: Start-up The local authorities available to advise on specific issues, like defining the working business idea, finding the premises, hiring personnel, selecting funding options, insurances, marketing means etc. Sector-based information also locally available. Presentation name and authorSivu 22 4.6.2014

23. Support Systems: Start-ups, cont. Training in Kainuu and in Finland more and more takes into account the entrepreneurial subjects: Even in secondary classes, but especially in colleges, universities and in polytechnics of applied sciences and vocational schools If you miss these, there is always possiblity to participate special courses later (also locally) Presentation name and authorSivu 23 4.6.2014

24. FUNDING Support Systems Presentation name and authorSivu 24 4.6.2014

25. Support Systems: Funding E.g. FINVERA Financial solutions Finnvera offers financing and financing expertise to meet the needs you might face when starting up a business. In this part of the web page you will find different financing methods targeted for start-up enterprises. To view a list of all the products Finnvera has to offer use the links Loans, Guarantees, Venture Capital Investments and Export Credit Guarantees.LoansGuaranteesVenture Capital Investments Export Credit Guarantees Needs for financing when starting up a business: Equity Investments Working capital http://www.ely-keskus.fi/en/frontpage/business/Sivut/default.aspxEU sources: http://ec.europa.eu/small-business/funding- partners-public/finance/index_fi.htmhttp://ec.europa.eu/small-business/funding- partners-public/finance/index_fi.htm And banking sector. Presentation name and authorSivu 25 4.6.2014

26. Support Systems:Rural development funding Developments in Finlands rural regions can be financed using national funds and support from the European Agricultural Fund for Rural Development. National funding comes from the budgets of the national government budget and local municipalities. Private funding represents a third source of finance. LEADER funding available for micro-sized businesses, situated in rural areas (less than 10 persons, under 2 mio eur/a t-o). For development (50 %) and investments (in Kainuu 35 %). Support in maximum 150 000 eur. For min. 3 micro-enterprises developing their businesses together, the support is max 75 %. www.maaseutu.fi Presentation name and authorSivu 26 4.6.2014

27. PROMOTION Support Systems Presentation name and authorSivu 27 4.6.2014

28. Support Systems: Promotion TASTE OF FINLAND -NETWORK http://www.tasteoffinland.fi/In_English/Taste_of_Finland_Province_restaurants FINPRO (www.finpro.fi) http://issuu.com/sanakunta/docs/finpro_infront_4_2011?mode=window&printB uttonEnabled=false&shareButtonEnabled=false&searchButtonEnabled=false& backgroundColor=%23222222http://issuu.com/sanakunta/docs/finpro_infront_4_2011?mode=window&printB uttonEnabled=false&shareButtonEnabled=false&searchButtonEnabled=false& backgroundColor=%23222222 Plus: Own segment or area networks, projects, events… be visible = be available to you key customers… Presentation name and authorSivu 28 4.6.2014

29. RESEARCH & DEVELOPMENT Support Systems: Presentation name and authorSivu 29 4.6.2014

30. Umberella Projects, example from TEKES Tekes – the Finnish Funding Agency for Technology and Innovation (is the main public funding organisation for research, development and innovation in Finland). Sapuska – Added Value for International Food Markets 2009– 2012 aims to improve the international competitiveness of the Finnish food industry by creating innovative products and technologies as well as new business models and service concepts. Sapuska is targeted especially for Finnish small and medium-sized enterprise but research and development projects launched by large enterprises will also be funded if they bring benefits for participating SMEs. Companies operating in Finland can apply for funding at any time. http://www.tekes.fi/programmes/Sapuska/Projects Presentation name and authorSivu 30 4.6.2014

31. New export business activity for berry sector by marketing startegy to Enter the International Markets Competition at the international markets often is hard and resources needed for marketing are high. Particularly for SMEs it is challenging to gain international visibility. To meet this challenge, Finnish companies will co-operate in this project to develop common marketing strategy for international markets. Co-operation enables to achieve the critical mass needed for better international visibility. Long term objective is to reduce the export of berries as such and to increase the export of Finnish berry products with high added value. Lingonberry was selected as a case berry for this project. Our objective is to bring added value to lingonberry and lingonberry products. This is done through R&D and strategy planning in co- operation between Finnish SMEs and large-scale companies. The results of this project can later be applied to other berries, e.g. when developing international business activities for berry sector. Partners from Lapland, Kainuu… Project is included in Sapuska-project by TEKES Presentation name and authorSivu 31 4.6.2014

32. The Finnish Food Sector r&d FOOD FOR LIFE, National Technology Platform of Finnish Food Sector. Information about Finnish Food R&D, Active Stakeholders, Food Innovations and Culture http://www.foodforlife.fi/ FOODLE Foodle is a new easy-to-use service to search and deliver research information in the Finnish food sector. Foodle offers the newest results for enterprises, media and developers. http://www.foodle.fi/en Presentation name and authorSivu 32 4.6.2014

33. TOURISM + LOCAL IDENTITY PRODUCTS Last but not least… Presentation name and authorSivu 33 4.6.2014

34. Part of Lakeland Area marketing http://www.visitfinland.com/web/guest/finland- guide/where-to-go/lakeland/kajaanihttp://www.visitfinland.com/web/guest/finland- guide/where-to-go/lakeland/kajaani http://www.wildtaiga.fi/en - Kuhmo-Suomussalmihttp://www.wildtaiga.fi/en Kainuu Specialities Rönttönen, pastry with lingonberry filling (PGI protection under EU law)RönttönenPGI protection Smoked meat soup Kainuun Juustoleipä or Leipäjuusto, Bread CheeseLeipäjuusto Vendace fish soup Pettuleipä (Pettu-bread), a bread made from rye flour and pine bark Presentation name and authorSivu 34 4.6.2014

35. Co-operation with local restaurants Examples: Restaurant Kippo (in Vuokatti) http://www.kippo.fi/http://www.kippo.fi/ ja Restaurant Torero (in Kajaani). Both are promoting and offering local products and traditional tastes in their menus. Torero will offer in near future only locally produced food. In villages: http://www.lentiira.com/gallery.htmhttp://www.lentiira.com/gallery.htm If youd like to eat well in real village athmosphere, visit Lentiira. Presentation name and authorSivu 35 4.6.2014

36. Kainuu products by picture cavalcade Presentation name and authorSivu 36 4.6.2014 Mr Matti Veijola, the biggest producer and farmer of nettle in Finland. http://www.armatti.fi/en/ Nettle products by Ärmätti.

37. Picture cavalcade cont. Presentation name and authorSivu 37 4.6.2014 Kainuulainen perinneherkku rönttönen sai EU:n nimisuojan in 2008 Kainuun perinneruoka, rönttönen on saanut Euroopan unionin nimisuojan. Rönttönen on ohra- tai ruistaikinista tehty piirakka, jossa on imelletetystä perunasta ja marjasta tehty täyte. Kainuun rönttönen sai nimisuojan maantieteellisenä merkkinä, ja näin ollen maakunnan ulkopuolella rönttösiä ei saa kutsua Kainuun rönttösiksi. Rönttönen on viides suomalainen elintarvike, joka on saanut EU:lta nimisuojan. Nimisuojan ovat aikaisemmin saaneet Lapin puikula, sahti, karjalanpiirakka ja kalakukko. Suojan tarkoituksena on turvata tietyllä alueella valmistetun elintarvikkeen valmistusta. Kainuun rönttöselle nimisuojaa haki Kainuun leipuriliikkenharjoittajat ry. In Lentiira village the visitors of a summer event are able to participate the baking of rönttönen.

38. Links to Kainuu Products http://www.biokia.fi/ english/http://www.biokia.fi/ english/ (in Suomussalmi) Forest berry products, a major part of markets already abroad. http://www.sienesta. fi/welcome.htmlhttp://www.sienesta. fi/welcome.html (in Vaala) Forest mushrooms and mushroom products, well received! Presentation name and authorSivu 38 4.6.2014

39. Links to Kainuu Products http://www.vaalanjuustola.fi/ (In Vaala) Cheese bread from Kainuu. The company received the economically strongest company in Finland 2011 reward! Presentation name and authorSivu 39 4.6.2014 http://www.arctic- flavours.fi/en/frontp age/http://www.arctic- flavours.fi/en/frontp age/ The Arctic Flavours Association is a nation-wide natural products industry association specialising in wild berries, mushrooms, herbs and special natural products. The aims of the Association are to promote the gathering, processing and use of natural products as well as to improve their quality. (office in Suomussalmi)

40. FLAGs in Finland Seven FLAGs Every FLAG area an activation project with activator Started during 2008 200 000 /year for funding 9,2 % of total EFF in Finland 40 4.6.2014

41. Kainuun and Koillismaa FLAG program Three Leader groups 9 members in board -3 entrepreneur -3 from municipalities -3 from NGO or leader Two main lines -Market launch of the products -Promoting and renewing the industry 41 4.6.2014

42. Fish handling facilities in the area Research of handling facilities Target areas selection Funding for construction planning Co-operation with municipalities Projects: –Kuusamo fish-house –Manamansalo harbour –Suomussalmi handling building –Kajaani harbour

43. Construction projects Kuusamo fish house -Total cost c.a. 2,8 M euro -450 m2 for fish product manufacturer -450 m2 for fishermen -IQF unit 200-500 kg/fish/h Suomussalmi fish handling building -80 m2 for fishermen -Linked with local fish product manufacturer Kiloniemi harbour -70 m2 new space for filleting, cold store and packaging

44. Basic examination regarding logistics Problem: vast area with poor logistical connections Funding: basic examination Results: new co- operation between entrepreneurs, one new logistics line in Kuhmo

45. New Technologies, innovations Small fish gutting and cleaning is problematic Funding: prototype for small-sized vendace handling machine Assistance: support for inventor (funding applications for Foundation for Finnish Inventions etc.)

46. Developing fish processing companies Project for fish processing companies Project coordinator: ProAgria (local food development organisation) Targets: –New markets –New products –Better quality –More profitable production

47. Education project for new fishermen Financed and organised by: Employment and Economic Development office of Kainuu 12 canditates; 8 were selected 1 year education 1/3 theory and 2/3 hands-in training with fisherman mentor FLAG input: starting meetings and helping at recruiting students

48. Koillismaa district Target: having a small fish cluster in Koillismaa Main projects: -a fish handling building at Kuusamo -Protected Designation of Origin PDO: Kitkan Viisas -Synergy between fishermen and fish product manufactures

49. Kuusamo Fish Cluster projects Kuusamo Fish House feasibility study 23 250 FLAG Fish house construction 2,7 M EKTR Logistics study 10 000 FLAG Development of the gutting machine 28 800 FLAG Co-operation with tourist companys Kitkan Viisas application of PDO Marketing 8 000 City of Kuusamo Start up- project 33 000 FLAG

50. Other projects Entrepreneurs own projects: total amount of funding 1 m Aquaculture: finding new areas for aquaculture, case UPM Lobbying state bureaucrats