1. Finnish agriculture

2. Finland Surface area 338 419 km 2 –forestry land 262 700 km 2 (78%) –agricultural land 22 500 km 2 (6.7%) Population 5 300 000 –share of rural population about 30% Population density 17.4 persons/km 2 –(EU-27 114.7 persons/km 2 ) GDP –178.8 billion euros (€) –33 803 €/capita –share of agriculture and forestry 26%

3. Finland – World’s northernmost agricultural country Geographical location the greatest handicap Growing season (in the picture) 180 - 120 days Temperature sum 1 300 - 400 degree days - Germany 2 000 - 1 600 degree days - Spain 2 800 - 2 400 degree days Natural conditions reflected especially in yield levels → only about half of those in Central Europe

4. Farms receiving support by production sector in 2008 (%) South Finland East Finland North Finland West Finland Dairy cattle 10.7% Pigs 4.6% Beef 4.3% Poultry 1.8% Other 5.2% Plant production 73.5% Dairy cattle 19.9% Pigs 5.1% Beef 6.4 % Poultry 1.4% Other 4.9% Plant production 62.4% Dairy cattle 32.2% Pigs 1.2% Beef 7.4% Poultry 0.2% Other 7.6% Plant production 51.4% Dairy cattle 19.4% Pigs 3.8% Beef 6.2% Poultry 1.3% Other 5.8% Plant production 63.6% Whole country Dairy cattle 32.6% Pigs 1.5% Beef 10.0% Poultry 0.4% Other 7.4% Plant production 48.0% NUTS II regions Uusimaa and Åland Islands included in southern Finland Source: MTT, Tike, Rural Business Register

5. Number of farms receiving support in 1995 and 2008 South Finland East Finland North Finland West Finland NUTS II regions Uusimaa and Åland Islands included in southern Finland Source: MTT, Tike, Rural Business Register WHOLE COUNTRY 95562 65292 0 20000 40000 60000 80000 100000 19952008 43104 29368 0 10000 20000 30000 40000 50000 19952008 17708 11501 0 10000 20000 30000 40000 50000 19952008 24794 17119 0 10000 20000 30000 40000 50000 19952008 9956 7304 0 10000 20000 30000 40000 50000 19952008

6. Number and average size of active farms (ha) in 1990–2007 1000 farmsha Source: MTT, Tike

7. Structural change in agriculture in 1995-2008 Size class distribution of farms 19952008 Arable area ha Number% % <1022 8502413 12020 10-2030 6983214 26222 20-3019 6692110 53916 30-5015 4141612 76220 50-1005 706610 92317 >100 7841 3 3045 Total number of farms fell by 32% ( 95 121 → 64 910) Average size of farms grew by 50% (22.8 ha → 34.2 ha) Number of farms with over 50 ha doubled (6 490 → 14 227)

8. Development of farm numbers and outlook for 2010 Dairy (-6.5%) Beef (-7.2%) Pig (-6.2) Chicken -9.5% Number of farms Year Source: MTT

9. Changes in the shares of production sectors Crop farms (-1.7%) Dairy farms (-53.2%) Number of farms Other cattle farms (-49.2%) Pig farms (-45.6%) Poultry farms (-53.8%) Share of livestock farms decreased, share of crop farms increased In 1995 52% of the farms were livestock farms and 39% were crop farms In 2006 34% of the farms were livestock farms and 61% were crop farms

10. Finland in international context

11. Average length of the thermal growing season, days 150 200 250 300 60 N 70 N Arctic circle Source: MTT

12. Productivity: Yields 2004 Finland - France 0 2 4 6 8 3.4 7.9 0 20 40 60 80 37 70 0 10 20 30 40 23 41 Source: MTT Winter wheat, tonnes / ha Sugar beet, tonnes / ha Potatoes, tonnes / ha

13. 05 075 1 125 15 175 2 19851990199520002004 year Index 1980=1 Denmark Finland Sweden Norway Total Factor Productivity (TFP) growth in agriculture Source: MTT

14. Food industry

15. Agriculture is closely linked to domestic processing industry → 85% of the raw material of food industry is domestic Food industry is the 4th largest industrial sector in Finland Key figures for food industry (2008): –gross value of the production 10.5 billion euros –added value of the production 2.2 billion euros –share of Finnish GDP 1.6% –share of Finnish industrial production 7.6% –number of staff 34 600 –number of places of business 1 900 –research and development expenditure 63 million euros –exports 1.4 billion euros, imports 3.3 billion euros

16. Sectors of food industry (2008) Dairy 215% Brewery 81% Feed 58% Confectionary 38% Bakery 113% Milling products 29% Sugar 30% Alcohol 26% Oils and fats 22% Fish 14% Other 30% Vegetables and fruit 49% Meat 267% 1

17. GDP share of agriculture and food industry (%) 1 At factor price Source: MTT, National acccounting 1998-2006e, Statistics Finland Agriculture and related services 1 Manufacture of food, beverages and tobacco 0 05 10 15 20 25 30 199819992000200120022003200420052006

18. Agricultural production and productivity

19. Finnish farm Total number of farms 65 300 Finnish agriculture is based on family farms → 88.4% of farms privately owned In 2008 a Finnish farm had the average of: 2.1 persons employed in agriculture (2007) 34.2 hectares of arable land 48 hectares forest 52 bovines/cattle farm 24 dairy cows/dairy farm 586 pigs/pig farm 7 206 birds/poultry farm earnings and capital income from agriculture 14 569 euros (2006)

20. Structure of farm income (2008) Total return on agriculture and horticulture 4.60 bill. € Total costs of agriculture and horticulture 3.72 bill. € → agricultural income 869 mill. € = 13 200 €/farm Agricultural support payments are based on the common agricultural policy of the EU 1 Preliminary, Gallup Food and Farm Facts Sources: MTT and Gallup Food and Farm Facts2 Incl. compensations for crop damages and rent income 98 mill. € Income total 6.9 bill € 1 Sales income of agriculture and horticulture 2.61 bill. € 2 Support 1.86 bill. € 3 Forest income 0.59 bill. € 1 4 Other income 1.84 bill. € 12 35% 29% 27% 9% Sales income % total 2.61 bill. € Meat 25% Milk 39% Eggs 2% Arable crops 18% Horticulture 16% 38% 27% 8%

21. Use of agricultural land (2008) Because of northern climate maize is not cultivated in Finland Use of agricultural land (2008) Because of northern climate maize is not cultivated in Finland

22. Arable crop production (2008) Area 1000 ha Yield kg/ha Total yield mill. kg ¹Domestic use mill. kg ¹Self- sufficiency % Wheat216.3 3 640787.5689.3114 Rye23.6 2 58060.888.668 Barley585.53 6402 128.61 791.3119 Oats354.53 4201 213.4785.9154 Cereals total1 193.83 5404 229.13 417.6124 Pea3.22 2507.2 9.873 Potato26.226 120684.4 616.7111 Sugar beet13.634 520468.0 not available Dry hay102.03 610367.8 not available Silage451.417 7908 032.7 not available Turnip rape and oilseed rape 63.71 39088.9 282.032 1 preliminary

23. Livestock production (2008) 1 Liquid milk, soured milk products and cream (consumption figures for 2008 preliminary) Production mill. kg/l Consumption mill. kg/l Consumption per capita, kg/l Self-sufficency % Milk total2 243.6 not available 101 Liquid milk products 1 1 046.31 048.8189.2100 Butter46.614.72.8317 Cheese105.497.918.4107 Ice-cream52.267.212.678 Meat total400.8387.476.7103 Bovine81.996.618.285 Pig217.1187.435.3116 Poultry100.998.118.5103 Eggs58.351.29.6114

24. Number of active farms and agricultural income in 1994–2007 Number of farms Change from year before% Change from 1994, % Agricultural income at 2007 prices, mill. € Index 1992–94 average: 100 200766800–29–3598863 200668766–05–3392459 200569088–28–33101765 200471100–13–31112672 200372000–19–30118176 200273386–27–29122178 200175384–32–27119076 200077896–52–24114273 199982142–41–20107769 199885690–30–17103166 199788370–32–14125381 199691281–45–11130084 199595562–72–7148896 1994103000*1699109 *Estimate of MTT Economic Research Sources: MTT Economic Research, Support register of Ministry of Agriculture and Forestry

25. Yields per hectare in 1987–2007 Source: MTT, Tike 19871992199720022007 kg/ha 0 1000 2000 3000 4000 5000 Rye 19871992199720022007 0 1000 2000 3000 4000 5000 kg/ha Spring wheat 19871992199720022007 kg/ha 0 1000 2000 3000 4000 5000 Barley 19871992199720022007 kg/ha 0 1000 2000 3000 4000 5000 Oats 2000 3000 4000 5000 kg/ha 19871992199720022007 Dry hay 10000 15000 20000 25000 kg/ha 19871992199720022007 Silage

26. Production of milk, meat and eggs in 1997–2007 mill. litres 199719992001200320052007 2500 2450 2350 2300 2250 2200 2400 Milk production To dairies mill. kg Pigmeat Beef Eggs Poultry meat 199719992001 2003 20052007 250 200 150 100 50 0 Source: MTT

27. Trend in agricultural income in 1994–2008 Source: MTT Nominal Real 19941998199620002002200420062008e Ratio 110 100 90 80 70 60 50 40

28. Trend in the result and profitability of agriculture by sector in 1998–2007e Source: MTT Dairy farms All farms 0 020 040 060 080 100 00020407e9899010305 06 120 Pig farms Cereal farms Profitability coefficient

29. Agricultural support areas C1 A C2 C3 C4 B C2north Source: MTT

30. Typology of Finnish municipalities 2006 Source: MTT, Kajaani University Consortium of the University of Oulu and Finnish Regional Research FAR Urban (58) Urban-adjacent rural (89) Rural heartland (142) Sparsely populated rural (143)

31. Fertiliser use levels in Finland (kg/ha) Source: MTT, Tike Nitrogen Phosphorus Potassium 250 200 150 100 50 0 8890929496980002040608 kg/ha

32. Food chain

33. National Quality Strategy for the Finnish Food Economy Programme launched jointly by actors in the Finnish food sector in1997 → aims to construct a quality chain for food from farm to table Purpose of the quality chain is to ensure safe, high-quality foodstuffs (traceability of origin) and efficient operations all through the chain Input industry Primary production Food industry Transport TradeConsumer Food services

34. Quality can be verified through e.g. –certified systems (e.g. ISO 9000, ISO 14000) –product certification –verifiable quality contracts –verification by official authorities Fundamental aim of the quality strategy is to –improve the competitiveness of the Finnish food chain –reinforce socially responsible action in the food chain –improve the competitive advantages of Finnish food chains –improve consumer awareness of the work done in the food chain Programme is administered by the Ministry of Agriculture and Forestry Budget for 2009 is 1.37 million euros National Quality Strategy for the Finnish Food Economy

35. Trend in the manufacturer and consumer price for food and in the general consumer price index in 1995–2008 Source: MTT

36. Productivity ratios of labour and capital in 1992–2008 according to the total calculation of agriculture The year 1992 is indicated by 1 (2008e=forecast) Source: MTT

37. World market prices for cereals in 2004–2008 €/tonne 250 200 150 100 50 2004200520062007 2008 Rye Oats Source: MTT

38. Finnish food exports by target country in 2008 (%) Total value: 1 401 million euros EU-15 – 38.5% Sweden15.3 Germany6.1 Denmark3.8 Great Britain3.4 France2.4 Netherlands2.2 Belgium1.8 Other3.5 Member States as from 2004 and 2007 – 17.5% 9.7 3.5 1.1 1.6 0.6 Estonia Poland Latvia Lithuania Czech Republic Other 1.0 Other countries – 19.9% Russia – 24.1% Norway 4.2 USA 4.0 Other 8.6 Switzerland 1.6 Japan 1.5 Source: MTT, Board of Customs, ULJAS database

39. Finnish food imports by country in 2008 (%) Source: MTT, Board of Customs, ULJAS database Total value: 3 585 million euros EU-15 – 64.2% Other countries – 25.8% Member States as from 2004 and 2007 – 10.0% Estonia2.7 Poland2.5 Czech Republic2.0 Lithuania1.1 Other0.8 Latvia0.9 Germany14.1 Sweden10.9 Netherlands10.4 Denmark6.5 France5.9 Spain4.4 Belgium3.4 Italy3.4 Other5.2 Brazil5.1 Norway3.3 USA1.2 Colombia1.1 Other 12.1 Indonesia1.9 Chile1.1

40. WTO negotiations on agriculture -Doha round of trade negotiations on the liberalisation of agricultural trade since 2001 -Agreement and schedule still open -In the negotiations on agriculture the European Commission has approached the extreme limits of its mandate -The solution is all but finalised; now disputes not related to the EU as the obstacle -Main questions at the final stage of agriculture negotiations: -sustainable solution on market access -legal certainty of the rules for green support -The decisions lead to growth in price competition in Finland and the EU due to easier imports and abolition of export subsidies