Experiences of Local Identity Products Support Systems in Finland

1. Experiences of Local Identity Products Support Systems in Finland Pirjo Heikkinen, LAG Manager LAG Living Kainuu LEADER Experience of Local Identity products in Kainuu Area (Finland) / Pirjo Heikkinen, LAG Living Kainuu

2. About LEADER in Kainuu • Two Leader Local Action Groups in Kainuu: Living Kainuu LEADER ry and Oulujärvi LEADER ry, rural development associations (NGOs), established in 1996. • Serve, develop, fund and bring to gether local residents, associations, companies and municipalities. • Living Kainuu operates along the Russian border in the area of 5 municipalities: Suomussalmi, Kuhmo, Ristijärvi, Sotkamo and Hyrynsalmi. Oulujärvi Leader operates in Kajaani, Vaala, Paltamo and Puolanka municipalities. • Most of the area is very sparsely populated wilderness with a wide range of wild animals, reindeer and beautiful scenery. • Everyone, who is interested in the promoting of the vitality of rural areas in our area, is free to join the associations as a member (and maybe be elected to the Board, which decides e.g. on funding). Experiences of Local Identity Products Support Systems in Kainuu, Finland

3. Support Systems Aboutkainuuarea Presentation name and author

4. 2010 Kainuu Region

6. Kainuu in brief • Region of Kainuu is situated in Eastern Finland • Consists of ninemunicipalities: • Hyrynsalmi, Kajaani, Kuhmo, Paltamo, Puolanka, Sotkamo, Suomussalmi, Ristijärvi and Vaala • Total populationaround 83,000 • Regional capital Kajaani: around 38,000 • Landareacomparable to Belgium in size • Kainuu is well-known for itsforests, nature, measurementtechnology and goodopportunities for sports, amongotherthings

7. Kainuu in Europe

8. Sources of livelihood In Dec 2011: Kainuu 4 946 unemployed persons, 8 % less than in Dec. 2010. Rate: 13,4 (FI: 9,7%)

9. Kainuu in relation to the whole of Finland

10. Population development in Kainuu

11. Development of the age structure in Kainuu 2007 – 2030

12. Future business areas in Kainuu • In the regional development program by business areas for the development of livelihoods and industry have been chosen based on their inherent strengths and future expectations: • 1. ICT and Electronics • measurement technology • vehicle information systems (e.g. a car testing pipe) • metal • 2. Tourism • leisure activities • culture (e.g. Kuhmo Chamber Music) • experiences • conferences • 3. Natural Resources • forest • local food • mining (e.g. Talvivaara nickel mine) • energy

13. Natural resources Forests have been an important source of livelihood in Kainuu for centuries. Forests are not significant only because of their economic value, but also for the opportunities they provide for recreation and relaxation. In the following years, Kainuu focuses on developing innovative use of its forest resources and their reprocessing even further. In addition to forests, developing the use of other natural resources in the region will be in a significant role, too. In next coming years, Kainuu will put efforts in: • More effective utilisation of forest resources and reprocessing • Reinforcing the use of renewable energy • Boosting the growing mining industry • Increasing the use of local food Presentation name and author

14. In Kainuu the turnover of the foodstuff cluster enterprises in growing(source: Statistics 30.05.11) In 2010 the growth was 19,8 % compared to 2009. Anyhow, the amount of personnel in the enterprises had increased only by 2,5 %. Presentation name and author

15. Support Systems General about food industry in finland Presentation name and author

16. General: Food and drink industry in Finland • Finland’s food and drink industry is a well-known force on international markets, especially in the Baltic Sea area. The strength of the Finnish food and drink industry is based on knowing the expectations of customers and consumers. The products are tasty and convenient. • Successful products and trustworthiness are the result of the strong integrity of food and drinks industry professionals. Quality is further guaranteed by innovative product development and advanced production technology. • Close and transparent cooperation across the food processing chain ensures a supreme standard of food safety from raw ingredients to the finished products. Corporate social responsibility policies and a commitment to environmental friendliness are the cornerstones of the Finnish food and drink industry that ensure sustainability far into the future. Presentation name and author

17. General, cont. • Finland’s food and drink industry is among the best in the world in the development of functional food products. The best known Finnish health innovations include tooth-friendly xylitol, lactic acid bacteria preparations designed to promote a healthy gut, and products intended for controlling cholesterol. • The food and drink industry is the 4th biggest industry in Finland after the metal industry, forestry, and the chemical industry. • The gross production value of the food and drinks industry is EUR 10.2 billion. • Food and drink industry exports were valued at EUR 1.4 billion in 2010 and imports at EUR 3.5 billion. Presentation name and author

18. General, cont. • The three largest food and drinks industry sectors – meat processing, dairy farming, and the bakery industry – represent 50% of the industry’s gross production value. • The food and drink industry employs almost 33 000 people. The number of individual facilities is approximately 1 900. • 85 % of all raw ingredients used in the food and drinks industry originate from Finland. • The Finnish food and drink industry invests more in research and development than most other countries in Europe: 2.9 percent of the production value in 2009. • The entire food processing chain employs approximately 300 000 people in Finland, which is around 12 percent of the employed workforce. Presentation name and author

19. Support Systems legislation Presentation name and author

20. Support Systems: Legislation (For a law obedient people, like Finns this works) • E.g.Food hygiene proficiency can be exhibited by showing a certificate in hygiene proficiency, i.e. a so-called "hygiene passport" as designed by the Finnish Food Safety Authority, and which can be acquired by passing a hygiene proficiency test or producing a certificate in some appropriate examination or education. Presentation name and author

21. Support System Start-up Presentation name and author

22. Support Systems: Start-up • The local authorities available to advise on specific issues, like defining the working business idea, • finding the premises, • hiring personnel, • selecting funding options, • insurances, • marketing means etc. • Sector-based information also locally available. Presentation name and author

23. Support Systems: Start-ups, cont. • Training in Kainuu and in Finland more and more takes into account the entrepreneurial subjects: • Even in secondary classes, but especially in colleges, universities and in polytechnics of applied sciences and vocational schools • If you miss these, there is always possiblity to participate special courses later (also locally) Presentation name and author

24. Support Systems funding Presentation name and author

25. Support Systems: Funding • E.g. FINVERA Financial solutions • Finnvera offers financing and financing expertise to meet the needs you might face when starting up a business. In this part of the web page you will find different financing methods targeted for start-up enterprises. • To view a list of all the products Finnvera has to offer use the links Loans , Guarantees , Venture Capital Investments  and Export Credit Guarantees . • Needs for financing when starting up a business: • Equity • Investments • Working capital • http://www.ely-keskus.fi/en/frontpage/business/Sivut/default.aspxEU sources: • http://ec.europa.eu/small-business/funding-partners-public/finance/index_fi.htm And banking sector. Presentation name and author

26. Support Systems:Rural development funding • Developments in Finland’s rural regions can be financed using national funds and support from the European Agricultural Fund for Rural Development. National funding comes from the budgets of the national government budget and local municipalities. Private funding represents a third source of finance. • LEADER funding available for micro-sized businesses, situated in rural areas (less than 10 persons, under 2 mio eur/a t-o). For development (50 %) and investments (in Kainuu 35 %). Support in maximum 150 000 eur. For min. 3 micro-enterprises developing their businesses together, the support is max 75 %. • www.maaseutu.fi Presentation name and author

27. Support Systems promotion Presentation name and author

28. Support Systems: Promotion TASTE OF FINLAND -NETWORK • http://www.tasteoffinland.fi/In_English/Taste_of_Finland_Province_restaurants FINPRO (www.finpro.fi) • http://issuu.com/sanakunta/docs/finpro_infront_4_2011?mode=window&printButtonEnabled=false&shareButtonEnabled=false&searchButtonEnabled=false&backgroundColor=%23222222 Plus: Ownsegmentorareanetworks, projects, events… bevisible = beavailable to youkeycustomers… Presentation name and author

29. Support Systems: Research & development Presentation name and author

30. Umberella Projects, example from TEKES • Tekes – the Finnish Funding Agency for Technology and Innovation (is the main public funding organisation for research, development and innovation in Finland). • Sapuska – Added Value for International Food Markets 2009–2012 • aims to improve the international competitiveness of the Finnish food industry by creating innovative products and technologies as well as new business models and service concepts. • Sapuska is targeted especially for Finnish small and medium-sized enterprise but research and development projects launched by large enterprises will also be funded if they bring benefits for participating SMEs. • Companies operating in Finland can apply for funding at any time. • http://www.tekes.fi/programmes/Sapuska/Projects Presentation name and author

31. New export business activity for berry sector by marketing startegy • to Enter the International Markets Competition at the international markets often is hard and resources needed for marketing are high. Particularly for SMEs it is challenging to gain international visibility. To meet this challenge, Finnish companies will co-operate in this project to develop common marketing strategy for international markets. Co-operation enables to achieve the critical mass needed for better international visibility. Long term objective is to reduce the export of berries as such and to increase the export of Finnish berry products with high added value. Lingonberry was selected as a case berry for this project. Our objective is to bring added value to lingonberry and lingonberry products. This is done through R&D and strategy planning in co-operation between Finnish SMEs and large-scale companies. The results of this project can later be applied to other berries, e.g. when developing international business activities for berry sector. Partners from Lapland, Kainuu… • Project is included in Sapuska-project by TEKES Presentation name and author

32. The Finnish Food Sector r&d FOOD FOR LIFE, National Technology Platform of Finnish Food Sector. Information about Finnish Food R&D, Active Stakeholders, Food Innovations and Culture • http://www.foodforlife.fi/ FOODLE Foodle is a new easy-to-use service to search  and deliver research information in the Finnish food sector. Foodle offers the newest results for enterprises, media and developers. • http://www.foodle.fi/en Presentation name and author

33. Last but not least… Tourism + LocalIdentityproducts Presentation name and author

34. Part of Lakeland Area marketing • http://www.visitfinland.com/web/guest/finland-guide/where-to-go/lakeland/kajaani • http://www.wildtaiga.fi/en - Kuhmo-Suomussalmi Kainuu Specialities • Rönttönen, pastry with lingonberry filling (PGI protection under EU law) • Smoked meat soup • Kainuun Juustoleipä or Leipäjuusto, Bread Cheese • Vendace fish soup • Pettuleipä (Pettu-bread), a bread made from rye flour and pine bark Presentation name and author

35. Co-operation with local restaurants Examples: • Restaurant Kippo (in Vuokatti) http://www.kippo.fi/ • ja Restaurant Torero (in Kajaani). Both are promoting and offering local products and traditional tastes in their menus. Torero will offer in near future only locally produced food. In villages: http://www.lentiira.com/gallery.htm If you’d like to eat well in real village athmosphere, visit Lentiira. Presentation name and author

36. Kainuu products by picture cavalcade Nettle products by Ärmätti. Mr Matti Veijola, the biggest producer and farmer of nettle in Finland. http://www.armatti.fi/en/ Presentation name and author

37. Picture cavalcade cont. Kainuulainen perinneherkku rönttönen sai EU:n nimisuojan in 2008 Kainuun perinneruoka, rönttönen on saanut Euroopan unionin nimisuojan. Rönttönen on ohra- tai ruistaikinista tehty piirakka, jossa on imelletetystä perunasta ja marjasta tehty täyte. Kainuun rönttönen sai nimisuojan maantieteellisenä merkkinä, ja näin ollen maakunnan ulkopuolella rönttösiä ei saa kutsua Kainuun rönttösiksi. Rönttönen on viides suomalainen elintarvike, joka on saanut EU:lta nimisuojan. Nimisuojan ovat aikaisemmin saaneet Lapin puikula, sahti, karjalanpiirakka ja kalakukko. Suojan tarkoituksena on turvata tietyllä alueella valmistetun elintarvikkeen valmistusta. Kainuun rönttöselle nimisuojaa haki Kainuun leipuriliikkenharjoittajat ry. In Lentiira village the visitors of a summer event are able to participate the baking of rönttönen. Presentation name and author

38. Links to Kainuu Products • http://www.biokia.fi/english/ (in Suomussalmi) Forest berry products, a major part of markets already abroad. • http://www.sienesta.fi/welcome.html (in Vaala) Forest mushrooms and mushroom products, well received! Presentation name and author

39. Links to Kainuu Products • http://www.vaalanjuustola.fi/ (In Vaala) Cheese bread from Kainuu. The company received the economically strongest company in Finland 2011 reward! • http://www.arctic-flavours.fi/en/frontpage/ The Arctic Flavours Association is a nation-wide natural products industry association specialising in wild berries, mushrooms, herbs and special natural products. The aims of the Association are to promote the gathering, processing and use of natural products as well as to improve their quality. (office in Suomussalmi) Presentation name and author

40. FLAGs in Finland • Seven FLAGs • Every FLAG area an activation project with activator • Started during 2008 • 200 000 €/year for funding • 9,2 % of total EFF in Finland

41. Kainuun and Koillismaa FLAG program • Three Leader groups • 9 members in board • 3 entrepreneur • 3 from municipalities • 3 from NGO or leader • Two main lines • Market launch of the products • Promoting and renewing the industry

42. Fish handling facilities in the area • Research of handlingfacilities • Target areasselection • Funding for constructionplanning • Co-operationwithmunicipalities • Projects: • Kuusamo fish-house • Manamansaloharbour • Suomussalmi handlingbuilding • Kajaani harbour

43. Construction projects • Kuusamo ”fish house” • Total cost c.a. 2,8 M euro • 450 m2 for fish product manufacturer • 450 m2 for fishermen • IQF unit 200-500 kg/fish/h • Suomussalmi fish handling building • 80 m2 for fishermen • Linked with local fish product manufacturer • Kiloniemi harbour • 70 m2 new space for filleting , cold store and packaging

44. Basic examination regarding logistics • Problem: vast area with poor logistical connections • Funding: basic examination • Results: new co-operation between entrepreneurs, one new logistics line in Kuhmo

45. New Technologies, innovations • Small fish gutting and cleaning is problematic • Funding: prototype for small-sized vendace handling machine • Assistance: support for inventor (funding applications for Foundation for Finnish Inventions etc.)

46. Developing fish processing companies • Project for fishprocessingcompanies • Project coordinator: ProAgria (local food developmentorganisation) • Targets: • New markets • New products • Betterquality • Moreprofitableproduction

47. Education project for new fishermen • Financed and organised by: Employment and Economic Development office of Kainuu • 12 canditates; 8 were selected • 1 year education • 1/3 theory and 2/3 hands-in training with fisherman mentor • FLAG input: starting meetings and helping at recruiting students

48. Koillismaa district • Target: having a small fish cluster in Koillismaa • Main projects: • a fish handling building at Kuusamo • Protected Designation of Origin PDO: Kitkan Viisas • Synergy between fishermen and fish product manufactures

49. Kuusamo Fish Cluster projects

50. Other projects • Entrepreneurs’ own projects: total amount of funding 1 m€ • Aquaculture: finding new areas for aquaculture, case UPM • Lobbying state bureaucrats