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02.05.23 1
Finnish agriculture- history and current
challengesEIARD 21st European Coordination Group Meeting
Sanna-Helena Fallenius26 November 2015
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Finland• Surface area 338 419 km2
– forestry land 262 700 km2 (78%)– agricultural land 22 500 km2 (6,7%)
• Population 5 489 211 (23rd October 2015 of which– In rural regions 41 %– In intermediate regions 30,6 %– In urban regions 28,4 %
• Population density 17,9 persons/km2
– (EU-27 114,7 persons/km2)
• GDP 2013 – 195 billion EUR (€) (nominal)– 35 988 €/capita– 28 948 Purchasing power– share of agriculture, hunting and fishing 2,9 %– Agriculture of total employment 4,6 %
Finland – World’s northernmost agricultural country
• Geographical location the greatest handicap
• Growing season (in the picture)180 - 120 days
• Temperature sum 1 300 - 1 400 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
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History
• Agriculture was first introduced in the form of slash-and-burn cultivation 4,000 years ago and developed into permanent agriculture 3,500 years ago.
• Finland's isolation required that most farmers concentrate on producing grains to meet the country's basic food needs.
• The total area under cultivation was still small. • Finland engaged in very limited agricultural trade.
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Slash-and-burn agriculture
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History - production pattern shift
• This traditional production pattern shifted sharply during the late nineteenth century -- inexpensive imported grain from Russia and the United States competed effectively with local grain.
• Rising domestic and foreign demand for dairy products and the availability of low-cost imported cattle feed made dairy and meat production much more profitable.
• Finland's farmers switched from growing staple grains to producing meat and dairy products
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War - food shortages• Winter war and II wordl war - food shortages• Finland cedes Karelian to the Soviet Union (about one-tenth of
farmland)• The experiences the war years -- to secure independent food
supplies to prevent shortages in future conflicts.
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Resettling people and displaced farmers
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After war• As a result of the resettlement and land-clearing programs, the
area under cultivation expanded by about 450,000 hectares, reaching about 2.4 million hectares by the early 1960s.
• Finland thus came to farm more land than ever before, an unusual development in a country that was simultaneously experiencing rapid industrial growth.
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After war
• During this period of expansion, farmers introduced modern production practices. The widespread use of modern inputs (fertilizers, agricultural machinery, improved seed varieties) sharply improved crop yields.
• All farms didn’t keep up with the pace of development• Structural change, urbanisation, migration wave to
the towns.
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Number of farms receiving agricultural support in 1995 and 2014
Finnish Agriculture and Rural Industries
2015
11
Southern Finland
Eastern Finland
CentralFinland
NorthernFinland
Main regions of Uusimaa and Åland according to NUTS II have been included in Southern Finland. Source: Finnish Agency for Rural Affairs.
43,104
25,119
010,00020,00030,00040,00050,000
1995 2014
17,70810,027
010,00020,00030,00040,00050,000
1995 2014
9,956 6,4600
10,00020,00030,00040,00050,000
1995 2014
24,79414,410
010,00020,00030,00040,00050,000
1995 2014
Whole country95,562
56,016
020,00040,00060,00080,000
100,000
1995 2014
Number of farms and average size (ha)
Source: Luke, Statistical services
Finnish Agriculture and Rural Industries 2015
12
Farms, ha Active farms, haFarmsActive farms
Agricultural andhorticultural enterprises
0
9
18
27
36
45
0
50
100
150
200
250Average size, haFarms, 1,000
Structure of agricultural holdings
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Source: European Commission
Importance of rural areas
02.05.23 14Source: European Commission
Distribution of farms receiving agricultural support according to production line in 2014
Finnish Agriculture and Rural Industries
2015
Dairyhusbandry15.6%
Pig husbandry 2.6%Beef production 6.2%
Poultry production 1.0% Otehr 5.5%
Cropproduction69.1%
Whole country
Main regions of Uusimaa and Åland according to NUTS II have been included in Southern Finland. Source: Finnish Agency for Rural Affairs.
Dairy16.2.%
Pig 4.0%Beef 6.6%Poultry 1.2% Other 4.5%
Cropproduction67.6%
Dairy 25.6%
Pig 0.9%Beef 9.9%Poultry 0.3% Other 6.8%
Crop production56.5%
Beef 7.4%
Dairy26.6%
Pig 0.9%
Poultry 0.1% Other 6.6%
Crop production58.4%
SouthernFinland
EasternFinlandCentral
Finland
Northern Finland
Dairy8.4%
Pig 3.0%Beef 4.2%
Poultry 1.4%Other 5.2%
Cropproduction77.8%
15
Structural development in Finnish Agriculture
Number of farms in different production lines 1995-2012
Change
1995 2000 2005 2012 1995-2012Milk production 32 715 23 079 16 495 9 800 -70%Beef production 9 394 6 077 4 508 3 630 -61%Pig production 6 249 4 380 3 165 1 770 -72%Poultry production 2 329 1 349 976 590 -75%Crop production 42 287 42 530 41 960 39 600 -3%All farms 95 562 79 783 69 517 58 898 -38%
02.05.23 16Source: MTT
Number of Farms in 2020
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Forecast Change2012 2020 2012-2020
Milk production 9 800 5 500 -43%Beef production 3 630 2 200 -39%Pigmeat production 1 770 900 -49%Poultry production 590 250 -58%Grain production 26 560 24 000 -10%All farms 58 898 48 000 -19%
Source: MTT
Number of farmers by age categoriesin 2004–2014
Source: Luke, Statistical services
Finnish Agriculture and Rural Industries
2015
18
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2004 2006 2008 2010 2012 2014
65–
55–64
45–54
35–44
–34
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Production of milk, meat and eggsin Finland from 2002 to 2012
million litres
2100
2200
2300
2400
2500
2002 2004 2006 2008 2010 2012
Milk production
Delivered to dairies
0
50
100
150
200
250
2002 2004 2006 2008 2010 2012
million kg
Pigmeat
Beef Poultry meat
Eggs
Harvested areas in 2000–2012
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1,000 ha
0
100
200
300
400
500
600
700
2000 2002 2004 2006 2008 2010 2012Oilseed crops
WheatDry hay
Silage
OatsBarley
Source: MTT
Result and profitability development of agriculture and horticulture
• Entrepreneurial profit
Interest claim on equity
1,000 €/enterprise
Costs
Wage claim
Gross return
Net result
Entrepreneurial profit / loss
Entrepreneurialincome
–50
0
50
100
150
200
2000 2002 2004 2006 2008 2010 2012 2014e21 Finnish Agriculture and Rural Industries
2015
Exports and imports of agricultural and food products (CN 01–24) in 2004–2014
22 Finnish Agriculture and Rural Industries
2015
Source: Finnish Customs, ULJAS database
million €
0
1,000
2,000
3,000
4,000
5,000
6,000
2004 2006 2008 2010 2012 2014
Import
Export
Finnish Agriculture and Rural Industries 2015
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