Finnish food industry is undergoing a transformation driven by data, but there is still work to be done, according to a recent survey conducted by the Finnish Food and Drink Industries' Federation (ETL).
Productivity across the entire food chain improves when data is efficiently shared and utilized. Digitalisation and the data economy can also support the internationalisation and competitiveness of food companies. However, a successful data economy requires trust between parties and common rules to enable seamless data exchange.
The food industry is committed to developing a globally competitive and sustainable food chain in Finland, leveraging high-quality and reliable data. Collaboration across the entire food chain – from primary production to industry and retail – plays a key role in driving this data-driven transformation.
A survey conducted in autumn 2024 indicates a positive shift in the mindset of food and beverage manufacturers toward the opportunities of digitalisation and the data economy. Nearly three out of four companies reported that they are actively monitoring digitalization trends and seeking to leverage them in their operations.
Although the diverse opportunities provided by digitalisation and data are widely recognized, only a few companies consider themselves pioneers in digital transformation.
– There is still room to increase understanding of the value of data in business. Data only becomes valuable when it is combined, enriched, and refined. This, in turn, requires data to be in a standardized format, says Riikka Korolainen, chief advisor at the Finnish Food and Drink Industries’ Federation.
Just over a quarter of the respondent companies stated that they are currently exploring the possibilities of utilizing data, indicating a growing trend and significant potential for future growth. A small number of companies are already leveraging the data economy to develop new business models.
– Food industry companies are clearly waking up to the potential of data, but there is still a long way to go before its full potential is realized, Korolainen notes.
Defining Common Rules for Data Exchange
When asked about the key opportunities of data exchange and utilization, companies identified increased operational efficiency and cost reduction as the most significant benefits. Other advantages included optimizing supply chain management, improving customer insights and targeted services, and enhancing data-driven decision-making.
Companies emphasized the need for clear rules regarding data sharing, ownership, and access rights as the most important prerequisite for increasing data utilization. Accelerating the data economy also requires new expertise in data and technology, as well as training for personnel. Overall, a more forward-thinking approach to data utilization is seen as highly beneficial.
Companies consider reciprocal data exchange among different actors, such as retailers, the food industry, and primary production, to be essential. However, there are challenges in determining how to implement reciprocity effectively. The development and adoption of unified data and data standards were also deemed crucial for the future.
– Standardized practices, such as global GS1 standards, facilitate the seamless flow of interoperable data between stakeholders. They enable transparency, traceability, and the promotion of sustainability throughout the entire food chain in a cost-effective manner. Sharing data also helps companies comply with regulatory requirements, such as sustainability reporting obligations, while fostering new innovations, says Korolainen.
Finland is home to Food Data Finland, a collaborative network and growth initiative supporting the international expansion of the food chain. The initiative, partially funded by Business Finland, brings together primary producers, industry players, and retailers to develop practical solutions for meeting increasing regulatory requirements.
Joint projects under this initiative focus on building shared data models that strengthen the industry’s international competitiveness and improve two-way data exchange across the entire food chain.
Read more: Food Data Finland
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