Urszula Zimoch & Outi Hakala

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ERIAFF Conference 2014 Urszula Zimoch, Project Planner & Outi Hakala, Project Planner University of Helsinki, Ruralia Institute "Regional economic impacts of food production and local food purchases by public kitchens - regional study cases from Finland"

Transcript of Urszula Zimoch & Outi Hakala

  • www.helsinki.fi/ruralia Regional economic impacts of food production and local food purchases by public kitchens in Finland University of Helsinki, Ruralia Institute Urszula Zimoch Outi Hakala Susanna Mtt 10.6.2014Ruralia-instituutti 1
  • www.helsinki.fi/ruralia Independent institute of University of Helsinki, Finland An expert on rural and regional research and development, with main mission is to foster business and livelihood of rural areas The expertise: natural resources rural areas and society rural entrepreneurship regional CGE modelling and evaluation of regional economic effects of projects and policy Our staff is about 70 researchers and developers placed in two rural towns (Mikkeli and Seinjoki) 10.6.2014 2Ruralia-instituutti University of Helsinki, Ruralia Institute
  • www.helsinki.fi/ruralia Independent institute of University of Helsinki, Finland An expert on rural and regional research and development, with main mission is to foster business and livelihood of rural areas The expertise: natural resources rural areas and society rural entrepreneurship regional CGE modelling and evaluation of regional economic effects of projects and policy Our staff is about 70 researchers and developers placed in two rural towns (Mikkeli and Seinjoki) 10.6.2014 2Ruralia-instituutti University of Helsinki, Ruralia Institute
  • www.helsinki.fi/ruralia Past: Since 2012, 5 different reports have been published on regional economic impacts of food production and purchasing locally produced food by public kitchens Present: Current study estimates the economic effects of local food consumption in the whole Finland Future: Proposals for estimating the regional economic impacts of organic food, participation in Horizon2020 proposals 10.6.2014 4Ruralia-instituutti RegFin team and sustainable food sector
  • www.helsinki.fi/ruralia South-West Finland: primary production impact on the regions GDP by 843 million and employment by 9.159 person-years; the food industry: 1.451 million and 10.832 person-years; the foodstuffs trade have an impact of 3.745 million on GDP and of 21.924 person-years on employment. Central Finland: primary production impact on the regions GDP by 261 million and employment by 3.884 person-years; the food industry: 438 million and 4.010 person-years; the foodstuffs trade: 1.991 million and 7.145 person-years Hme region: primary production impact on the regions GDP by 223 million and employment by 3.044 person-years (Kanta-Hme) / 143 million and 2.136 person-years (Pijt-Hme); the food industry: 667 million and 5.210 person-years (Kanta- Hme) / 825 million and 4.877 person-years (Pijt-Hme); the foodstuff trade: 1.235 million and 7.145 person-years (Kanta- Hme) and 1.321 million and 6.041 person-years (Pijt-Hme) 10.6.2014 5Ruralia-instituutt The regional economic impact of the food production chain
  • www.helsinki.fi/ruralia The regional economic impact of the food production Impacts in future (year 2020) 10.6.2014 6Ruralia-instituutti The questionnaire (targeted to all businesses in the food industry) indicated that businesses in the food industry are optimistic about the future. These calculations shows that if businesses estimates come true food industry will have even bigger impact on regions GDP and employment in the future than it is now. Avarage growth estimate Impact on regional GDP (over current figures) Impact on employment (over current figures) South-West Finland 35 % 344 million 2899 person-years Central Finland 20 % 65 million 651 person-years Kanta-Hme Region 20 % 94 million 961 person-years Pijt-Hme Region 25 % 186 million 1240 person-years
  • www.helsinki.fi/ruralia 10.6.2014 7Ruralia-instituutti Regional economic impacts of purchasing locally produced food by public kitchens in South Savo Approximately 10% of food stuffs are currently purchased from within the region by public kitchens. The most popular products purchased from within the region were fruits, vegetables, berries and bakery ingredients and products. Approximately 70% of foodstuffs are purchased from elsewhere in Finland and 20% from abroad. Local food purchasing by public kitchens has an impact of 19 person-years on employment in South Savo With the portion of local food 15%: it would have an impact of 28 person-years on the regions employment. If 25%, 42 person-years By raising the portion to 45%, it would have an impact of 76 person-years
  • www.helsinki.fi/ruralia Objective of the project was to investigate the extent to which Finnish food companies on the one hand, and public-sector professional kitchens on the other, utilise local ingredients. In addition, the objective was to create an estimate on the current and future impact of local food on both the regional economy and the employment situation of the provinces. The results were intended to offer support for the decision- making of those in charge of public procurement. Two surveys in 2013: companies refining food (n = 584 new + 194 previous = 778) public joint procurement groups and procuring entities (n = 69) 10.6.2014 8 Economic impact of local food and promoting its use in public-sector professional kitchens (2014)
  • www.helsinki.fi/ruralia At the national level, of the ingredients for primary production, food companies buy on average 23 % from the province where they are based 52 % from elsewhere in Finland 25 % from abroad. The share of the companys own province in ingredient purchases is highest with companies refining fruit, vegetables and berries. Nearly 80 per cent of the respondents reported that in the future, the company will use approximately as much ingredients purchased from their own province as they currently do. 20 per cent estimated that the share will increase 10.6.2014 9 Economic impact of local food and promoting its use in public-sector professional kitchens
  • www.helsinki.fi/ruralia Finnish joint procurement groups and procuring entities purchase on average 15 % of food used in the public-sector kitchens from their own province 65 % from elsewhere in Finland 20 % from abroad. Joint procurement groups that responded to the survey purchase local food for approximately EUR 32 million per year. The share of ones own province is highest with bakery products. According to respondents estimates, in 2020 the equivalent shares would be 20 % from own province 55 % from elsewhere in Finland 25 % from abroad. 10.6.2014 10 Economic impact of local food and promoting its use in public-sector professional kitchens
  • www.helsinki.fi/ruralia The impact of agriculture on the Finnish gross domestic product is approximately 2.8 percentage points, more than EUR 5.2 billion. Agriculture employs about 4.1 per cent of the Finnish workforce, making up approximately 100,000 man-years with multiplier effects considered. The impact of the food industry on the GDP is about 7.1 percentage points, approximately EUR 13.2 billion. The impact of the manufacture of food and beverages on employment is slightly smaller than that of agriculture: approximately 3.8 percentage points, i.e. 95,000 man-years with multiplier effects considered. 10.6.2014 11 Economic impact of local food and promoting its use in public-sector professional kitchens
  • www.helsinki.fi/ruralia In Southern Ostrobothnia, joint procurement groups and procuring entities purchase on average 23 per cent of food used in the public-sector kitchens from their own province. According to respondents estimates, in 2020 the equivalent share would be 25 %. At the moment, these respondents purchase local food for approximately EUR 1.43 million per year. According to the presented estimates, in 2020 the equivalent amount would be EUR 1.59 million per year. Thus the change would be EUR 158,000 per year. That change would provide four person-years of employment to the region. Hence, for every 100,000 spent on local food purchases, the employment effect would be 2.5 person-years with multiplier effects considered. In addition, that change would contribute EUR 254,000 to the regions GDP. 10.6.2014 12 Economic impact of local food and promoting its use in public-sector professional kitchens
  • www.helsinki.fi/ruralia By procuring locally produced and refined ingredients and food, municipalities will be able to act in a more customer-oriented manner while increasing the appreciation of local food among consumers. The basis for promoting the use of local food should be created in municipalities in the level of strategy. Favouring local food also means investing in the regions economy and employment and supporting sustainable development in the regions throughout the food production chain. 10.6.2014 13 Economic impact of local food and promoting its use in public-sector professional kitchens
  • www.helsinki.fi/ruralia 10.6.2014 14Ruralia-instituutti http://www.helsinki.fi/ruralia/research/regfin.htm Professor Hannu Trm, +358 50 5389 680, hannu.torma@helsinki.fi Urszula Zimoch, +358 50 3183 941, urszula.zimoch@helsinki.fi