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🇫🇮 Finland /Economy & Trade

Food Exports' Value Won't Rise Without Investment

From Helsingin Sanomat · (9m ago) Finnish

Translated from Finnish, summarized and contextualized by DistantNews.

TLDR

  • Finnish food exports need investment to increase their added value, moving beyond price-based competition.
  • Companies require significant financial commitment, market knowledge, and the ability to handle losses to succeed in export markets.
  • Consistent government export promotion and a stable operating environment are crucial for companies to plan and invest in export growth.

This opinion piece in Helsingin Sanomat, penned by Jukka Ihanus of the Finnish Food Industry Federation, directly addresses the call to increase the added value of food exports, a sentiment echoed by Mika Kylänen and Anne Kalliomäki. Ihanus emphasizes that while price competitiveness remains a factor, Finnish food companies must focus on delivering quality at the right price to discerning international customers.

Suomalaisen elintarvikeviennin kilohintaa on saatava nostettua.

— Jukka IhanusThe author's statement on the need to increase the per-kilogram price of Finnish food exports.

The core argument is that venturing into exports is akin to making a significant investment. It demands substantial financial outlay, expertise in international trade, and a tolerance for risk, including potential losses. Success hinges on a deep understanding of target markets, regulatory landscapes, product suitability, and robust marketing and distribution strategies. Without these elements, export ambitions are likely to falter.

Suomalaisten elintarvikeyritysten vienti ei voi perustua hintavetoiseen volyymikilpailuun, mutta hintakilpailukyvyllä on viennissä edelleen merkitystä.

— Jukka IhanusExplaining the balance between price competitiveness and value in exports.

Furthermore, Ihanus stresses the critical importance of a supportive domestic business environment. Predictable regulations are foundational for profitable operations and export investments. He also highlights the necessity for companies to possess the capacity to supply sufficient volumes, which in turn requires investment in production. Data from the Confederation of Finnish Industries (EK) indicates that a third of food industry investments this year are aimed at expanding capacity, driven by a desire for export growth.

Vientiin ryhtymistä voi verrata investointiin.

— Jukka IhanusComparing the act of exporting to making an investment.

Finally, the piece calls for long-term, stable government support for export promotion. Fluctuations in support services, often tied to government terms, hinder companies' ability to plan effectively. Ensuring the continuity of these services in future government programs is presented as essential for fostering a predictable and encouraging climate for Finnish food exporters. This perspective underscores the Finnish food industry's strategic focus on value addition and its reliance on both corporate initiative and governmental backing.

Elintarvikevienti kasvaa, jos yritysten toimintaympäristö kotimaassa on kunnossa.

— Jukka IhanusHighlighting the importance of the domestic business environment for export growth.
DistantNews Editorial

Originally published by Helsingin Sanomat in Finnish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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