Invest in Finland

Finland invests in better availability of organic and local food

07/02/2012

The Finnish Innovation Fund Sitra is supporting the establishment of a new retail chain and as a way to improve the availability of organic and local food in Finland. Sitra is investing EUR 100,000 in Suomen Aitokauppa, a new company that is opening its first store in Helsinki this year and aims to establish a national chain of stores offering organic and locally produced food to consumers.

According to food industry specialist Minna Kantén, local food accounted for up to 8% of grocery sales in the retail sector in 2011. This corresponds to a sales volume of up to EUR 960 million annually. Sitra is also investing EUR 100,000 in Suomen Luomutukku, a wholesale company serving professional kitchens that use organic and local food. The investment will improve the supply reliability of organic and local food.

The growth of the organic and local food sector in Finland has faced challenges in logistics, wholesale activity and distribution, according to Jyri Arponen, Leading Specialist, Business Development, in Sitra’s Landmarks programme. He hopes that Sitra’s active support will create new business activity in the market which currently lacks medium-sized companies that could operate between the large hypermarkets and small delicatessens.

According to Sitra, the trend for organic and local food has turned into a permanent phenomenon in Finland. Sitra’s research shows that the demand for organic and local food is not price sensitive and the majority of Finnish consumers are ready to increase its consumption if it becomes easily available.

Sources: Talouselämä, Sitra