Growth package for bioeconomy boosts growth of added value and improves security of supply

Work to ensure the security of supply and growth in food exports and the forest-based bioeconomy is making good progress. A growth package of EUR 10 million was introduced last spring, and EUR 5.7 million of this will be targeted to promoting food exports and developing value chains in the food sector in 2025.

EUR 2.4 million will be used for ensuring the availability of growing media and bedding materials and EUR 1.9 million for increasing added value of the forest-based bioeconomy. The aim is to raise the annual increase of the added value of the bioeconomy from 3% to 4%.

Growth will be sought from food exports and renewal of the traditional sectors. The programme also ensures the availability of labour and relevant skills and supports research and innovation. The work will be done through networks and the strengths of the Finnish regions will be utilised in it.

A high percentage, 60–70%, of Finnish food and forest industry exports is of domestic origin. Their subcontractors increase domestic production in other sectors as well. Exports have positive multiplier effects on the Finnish economy.

Food exports into growth

The growth programme for the food sector aims to double food exports to EUR 4.5 billion. The priorities of the programme are increasing cooperation between companies, education, research, development and innovation activities (RDI), and strengthening Finland’s image as a food country.

“Increased cooperation and creation of permanent structures to support food export companies are a shared target for the sector,” says Anni Savikurki, Senior Specialist who coordinates the growth programme for the food sector at the Ministry of Agriculture and Forestry. “Finfood – Finnish Food Information and the Finnish Food Export Association are building a company-driven growth platform for food exports. The platform gathers the needs of food companies, formulates a strategy for food exports and develops export practices especially for SMEs.”

International expertise is also needed to achieve growth. The University of Helsinki will introduce a new master’s programme on exports and gastronomy in 2026.

“A pilot period of coaching on internationalisation targeted to key persons in companies that already operate on the export market will begin in 2025,” Savikurki says. “This coaching will be closely connected to the company-driven growth platform.”

Targeting RDI funding to sustainability solutions in the food system creates added value to the sector. In 2025 an application round for RD projects will be organised as part of Valio’s Food 2.0 ecosystem.

“A study entitled ‘Sustainable growth from new value chain’ explores the future prospects of the new value chains’,” Savikurki says.

A strong food country image is important in terms of succeeding in the efforts to boost food exports.

“It will be further strengthened with communication actions to boost growth in food tourism,” Savikurki says.

The new food expert of the Ministry of Agriculture and Forestry promotes food exports together with the theme ambassador of the Ministry for Foreign Affairs. Finland’s country image will also be strengthened by participating in the World Expo in Osaka, Japan, where Finland will be presented as a trailblazer in sustainable bioeconomy solutions.

Added value of forest-based bioeconomy into increase

In 2023 the added value of the bioeconomy was estimated at about EUR 29.3 billion, of which the forest-based bioeconomy produced about a third. Added value of the forest-based bioeconomy can be further increased by accelerating the movement of innovations from laboratories to production, lengthening the value chains, making better use of the resource and material flows and improving the productivity of the value chains.

“The growth programme for the forest-based bioeconomy supports the national and regional networking of the actors,” says Anne Vehviläinen, Senior Ministerial Adviser the Ministry of Agriculture and Forestry. “We are developing the knowledge base needed for investments and bringing expertise to be used by different kinds of actors.”

Vehviläinen stresses that well-functioning networks will be needed to increase the value added of the forest-based bioeconomy.

“The ‘UudisPuu Hubi’ will gather databanks, calculators and tools to be used by the network of forest bioeconomy actors, regional ‘Wood Hubs’ will strengthen the regional networks of actors, and ‘OsaaPuu Hubi’ will develop education ecosystems to ensure skilled labour for the forest-based bioeconomy.”

The Forest Bioeconomy Science Panel will coordinate the perspectives of the scientific community in statements and recommendations related to increasing the added value.

“The Science Panel brings together experts from different sectors to ensure that we can find the best possible solutions for developing the forest-based bioeconomy,” Vehviläinen says.

Availability of domestic bedding materials and growing media ensured

Among the targets of the growth package is also to promote the domestic production of bedding materials and growing media. The theme has become highly important because of the threats associated with the availability and price of peat as bedding material and growing media. By improving the supply of domestic bedding materials and growing media and the related skills we will ensure the security of supply of food and seedling production and improve the competitiveness of the sector.

“The work will be started by preparing a roadmap for the sector in 2025,” says Veli-Pekka Reskola, Senior Officer at the Ministry of Agriculture and Forestry. “The roadmap will sum up the current situation of bedding material and growing media production and give proposals for the necessary policy actions and targeting of funding for RDI projects.”

Both peat and the materials to substitute for it will be studied.

“Perspectives related to security of supply, competitiveness and promoting operations on market terms are important,” Reskola says.

Various stakeholders, companies and research organisations will be invited to participate in the work on the roadmap.
“The results of the roadmap and the recommendations to be given will be taken into account in the preparation of policy actions and the application for funding to be opened towards the end of 2025,” Reskola says.

In funding a particular focus will be on development actions and investments through which innovations can be put into use on a production scale. Effective guidance and communication on the topic will also be ensured.

Inquiries:

•    Anne Vehviläinen, Senior Ministerial Adviser, tel. +358 295 162 236 (forest-basded bioeconomy)
•    Veli-Pekka Reskola, Senior Officer, tel. +358 295 162 193 (bedding materials and growing media)
•    Anni Savikurki, Senior Specialist, tel. +358 295 162 171 (food sector) 
•    Email addresses are in the format firstname.lastname@gov.fi