This CBI market survey gives exporters in developing countries information on the main developments in the preserved fruit and vegetables market in Finland. The information is complementary to the information provided in the CBI market survey ‘The preserved fruit and vegetables market in the EU’, which covers the EU in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo.
CBI MARKET SURVEY: THE PRESERVED FRUIT AND VEGETABLES MARKETIN FINLAND
1. Market description: consumption and production
n 2005, consumption (industrial and consumer demand) of preserved fruit and vegetables, excluding edible nuts, in Finland was €410 million and 384 thousand tonnes (Prodcom 2006). Consumption decreased by 3% in value and remained stable in volume between 2001 and 2005. • The consumption is 73 kg per person, which is higher than the EU average of 62 kg, but with a share of the EU market of only 1%, Finland is one of the smaller markets.
Canned fruit and vegetables concentrates accounted for 39% of consumption, fruit juices and concentrates for 33%, frozen fruit and vegetables for 17%, jams, jellies and purees for 6%, and dried fruit and vegetables for 4%.
Consumption of edible nuts amounted to 10 thousand tonnes in 2004 and declined by 25% compared to 2001 (Food and Agricultural Organization – FAO - 2006).
Finland has a high percentage of out-of-home consumption. Finnish people eat out at least once a day, often a warm lunch. Food services are therefore an important channel for fruit and vegetables (National Public Health Institute undated).
In 2005, Finland’s production of preserved fruit juices and concentrates, excluding edible nuts, was €269 million and 286 thousand tonnes (Prodcom 2006). From 2001 to 2005, production decreased by 9% in value but volume increased by 1%.
Canned fruit and vegetables constitute 40% of production, fruit juices and concentrates 35%, frozen fruit and vegetables 17% and jams, jellies and purees (8%). Finland does not produce edible nuts on a commercial basis.
Total turnover of the food and beverage industry in 2005 was €8.9 billion, which is 1% of the EU total. The industry produces mainly meat products, dairy products, beverages, bread and other bakery products. 85% of the raw materials used in this industry are produced in the country (Dutch Agency for International Business and Cooperation - EVD - 2007).
Trends • Due to the growing awareness of the effects of food on health, nutrition habits are changing gradually from protein-rich and high-fat diets to more low-fat diets with more vegetables and fruits (National Public Health Institute undated).
The sales of food products in the out-of-home segment is growing faster than in the retail segment. Out-of-home consumption will therefore increase in importance in the future. Also the sales of convenience products will continue to rise.
Opportunities and threats • The growing interest in more healthy food is expected to increase the sales of fruit juices and healthy snacks. Fresh fruit and vegetables will also profit, maybe at the expensive of canned products.
Frozen dried fruit and vegetables and dried fruit and vegetables are the best performing product groups in terms of growth but are among the smaller product groups.
• Finnish Food and Drink Industries’ Federation — http://www.etl.fi. • Finnish Food Marketing Association — http://www.pty.fi.
2. Trade: imports and exports
Imports • In 2005, Finland’s imports of preserved fruit and vegetables amounted to €189 million and 168 thousand tonnes (Eurostat 2006). Finland accounts for only 1%% of EU imports of preserved fruit and vegetables and is one of the smallest importers in the EU.
Finland’s imports of preserved fruit and vegetables consisted of canned fruit and vegetables (31% of total import value in 2005), fruit juices and concentrates (24%), frozen fruit and vegetables (21%), edible nuts (12%), dried fruit and vegetables (9%), and jams, jellies and purees (3%).
Germany is the main supplier with 16% of import value, followed by Belgium (13%), the Netherlands (10%) and Sweden (10%).
From 2001 to 2005, total import value increased by 23% and volume by 23%. Imports grew slightly more than consumption.
Only 12% of the import value in 2005 came from developing countries. • The most important product groups imported from developing countries were canned fruit (16% of import value came from developing countries) and edible nuts (25%).
Turkey is the largest supplier among the developing countries (4% of total import value, mainly edible nuts), followed by Thailand (2%, mainly canned fruit).
Exports • Finland exported €30 million and 18 thousand tonnes of preserved fruit and vegetables in 2005 (Eurostat 2006). This is less than 1% of the EU total.
Exports increased by 50% in value and 33% in volume between 2001 and 2005. • Finland’s exports consisted of frozen fruit and vegetables (58% of total export value in 2005), canned fruit and vegetables (23%), jams, jellies and purees (8%), and fruit juices and concentrates (7%). • Sweden is the main destination with 20% of the export value, followed by Germany (18%), Estonia (13%) and China (10%). • Based on the import and export data, Finland is not an important re-exporter, but may re-export certain products in small volumes.
Opportunities and threats • Production of processed food is short of domestic consumption. Finland therefore relies on imports of processed food. This dependence on imports is expected to remain. • Based on import trends, edible nuts and canned and dried fruit and vegetables offer the best opportunities for exporters from developing countries. • Exporters that want to access the Finnish market are advised to look also at those EU countries that supply preserved fruit and vegetables to Finland. The main trade partners are Germany, Belgium and Netherlands, which are important re-exporters of products from developing countries. • EU Expanding Exports Helpdesk — http://export-help.cec.eu.int/.
3. Trade structure • The best way of entering the Finish market is through an agent or importer specialised in preserved fruit, vegetables or edible nuts. For information on more importers, please contact the Finnish Foreign Trade Agents’ Federation — http://www.agenttiliitto.fi.
Besides the multinational food companies that are active in Finland (see the CBI market survey ‘The preserved fruit and vegetables market in the EU’), the largest Finnish food processors using preserved fruit and vegetables are: Saarioinen (multiple food products, http://www.saarioinen.fi), Valio (dairy and juice, http://www.valio.fi) and Cloetta Fazer (Swedish-owned confectionery company, http://www.cloettafazer.fi).
Food sales in Finland are mainly through large supermarkets and discount stores. The largest multiple retailers chains in Finland are: o K-Group (http://www.kesko.fi); o S-Group (http://www.s-kanava.fi); o Tradeka/Wihuri (http://www.tradeka.fi).
4. Prices • Preserved fruit and vegetables are traded in the world market and, in general, national prices will not differ much from world market prices.
If price differences exist, these are mostly due to differences in quality of the products. • See the CBI market survey ‘The preserved fruit and vegetables market in the EU’ for more information on price levels of preserved fruit and vegetables in the EU.
5. Market access requirements • Manufacturers in developing countries should be aware of the market access requirements of their trading partners and the Finnish government. Requirements are specified through legislation and through labels, codes and management systems. These requirements are based on environmental, consumer health and safety and social concerns.
For more information go to ‘Search CBI database’ at http://www.cbi.eu/marketinfo.
For preserved fruit and vegetables, a reduced value-added tax (VAT) rate of 17% is applicable.
6. Business practices Information on doing business in Finland is available from the following sources:
The Central Chamber of Commerce of Finland — http://www.keskuskauppakamari.fi.
Enterprise Finland, information on trade with Finland — http://www.enterprisefinland.fi
• http://www.biztradeshows.com/finland/ for a list of trade shows in Finland
• http://www.executiveplanet.com for information on business culture and practices in Finland.
This survey was compiled for CBI by Mercadero. Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: firstname.lastname@example.org • www.cbi.eu/disclaimer CBI MARKET SURVEYTHE PRESERVED FRUIT AND VEGETABLES MARKET IN FINLAND. Publication date: June 2007