The Finnish food industry is facing a serious situation, according to Mikko Käkelä, Managing Director of the Finnish Food and Drink Industries' Federation (ETL).
Last summer's relatively weak harvest, logistics problems due to the pandemic and costlier raw materials and energy caused by the war in Russia have significantly raised the costs of agricultural production.
"As a result, the food industry now pays significantly more for primary production than in the past. Consumers must be prepared for the fact that already in autumn food will cost significantly more than before," said Käkelä.
The ETL is a group that represents the interests of the food and drink industry in Finland.
Shortages of almost everything
The difficulties in the food industry are not solely about rising prices of raw materials or energy. For example, there have been problems with the availability of plastic, cardboard, aluminium cans, glass jars, and even packaging labels has been a problem over the past six months.
Costs have also increased by the industry's efforts to wean itself off Russian fossil fuels.
"These cost pressures have not yet been passed on to customers, namely the retail, catering and public procurement sectors. No product group is immune to upward pressure," says Käkelä.
Challenges will continue for a long time
In Finland, cost pressures have not transferred as quickly as they have in other countries, such as Estonia.
Although the food chain is now experiencing major challenges, Käkelä urged people to remain calm and to refrain from hoarding products.
"In Finland, the food self-sufficiency rate is 80 percent. Yes, we have enough food and drink," Käkelä emphasised.
Käkelä predicted that the situation will remain challenging throughout the next year and that the most difficult squeeze has not yet been felt. However, he believed that the situation would at some point stabilise.
There are around 1,800 food companies in Finland, of which 600 belong to ETK. The Finnish food industry employs roughly 38,000 people directly and 300,000 indirectly.