News
The article is more than 2 years old

Finnish consumers buying cheaper meats

As prices for meat climb, shoppers in Finland are increasingly opting for cheaper cuts and more pork.

Lihaleikkeleitä kaupan hyllyssä.
Consumers have increasing switched from more expensive cuts to minced meat, and cheaper sandwich meats, say researchers. Image: Antti Haanpää / Yle
  • Yle News

The increase in food prices has caused many shoppers in Finland to look for cheaper alternatives at supermarket meat counters, which has increased the demand for pork this autumn.

"The consumption of pork had fallen somewhat over the years, but in recent months, since the summer, the consumption of pork has increased," said Ari Berg, director of the private pig farmers' association, Suomen Sikayrittäjät.

Domestic pork production is facing big changes.

A crisis in the agricultural sector, in part driven by higher energy costs, is driving many pig farms to close down. According to an estimate by the producers' association, one in 10 Finnish pig farms will fold their operations this year.

Despite the drop in production, demand for domestic pork remains high.

Item continues after the photo.

Sikoja karsinassa
The Atria meat processing company reports that the consumption of poultry has occasionally overtaken the consumption of pork in monthly statistics, but on an annual level, pork is still number one. Image: Antti Karhunen / Yle

An agricultural and food economy review by the Natural Resources Institute (Luke) had forecast that this would finally be the year during which the consumption of poultry would overtake the consumption of pork in Finland. However, more pork is still being bought.

Rising prices are affecting purchasing behaviour.

"Consumption habits are constantly changing. The total consumption of meat does not seem to be significantly down, but there is a shift from more expensive cuts to minced meat, to cheaper sandwich meats, and cheaper cuts," said Csaba Jansik, a specialist researcher at Luke.

Finland's remaining pig farmers are now carefully considering whether it is possible for them to invest and expand their production to meet demand. Because of the current world situation, this does, however, entail considerable financial risk.

On the other hand, if demand is not met domestically, that may increase imports from abroad.

EU production down

Overall, food has become more expensive in Finland this year at a record pace. Part of the price paid by consumers goes to retailers, part to the food processing industry and part to the producers themselves.

According to Statistics Finland, farms are currently getting an average of 30 percent more money for their products than a year ago.

However, according to Pellervo Economic Research PTT, the agricultural sector crisis is not abating. At the same time as farmers are being paid more for their products, the prices of production inputs, such as energy, feed and fertilizers, have risen sharply.

The increase in costs has especially hit livestock producers. Pigs need feed grain, light and warmth. According to PTT, the increase in costs has also reduced pork output in Europe's major producing countries, such as Germany, Poland and Italy.

At the same time, exports to China have decreased. Meat processing company Atria reports that less is now being exported to China, as China's own pork production has increased.

"We have found other sales channels such as Japan, South Korea and Hong Kong. Antibiotic-free pork is especially in demand in Asia," said Hanne Kortesoja, communication director at Atria. 

Pricier Christmas ham

Demand for Christmas hams is not expected to fall this year. Atria estimates that it will sell around 2.5 million kilos of hams during the Christmas holiday season this year.

The pig farmers' association also believes that ham will retain its place on holiday tables despite higher prices.

"Consumer prices for pork have risen moderately, and ham is a traditional Christmas dish," explained Berg.

As for other meats, the price of poultry has risen the most. Pork prices have gone up in Finland by 23.3 percent over the past year.