Record investments signal strong growth ambitions in Finland’s food industry

According to recent investment survey by ETL investments in food sector have more than doubled since the beginning of the decade. Food and drink industry has become one of Finland’s largest industrial investors, alongside technology industry.

– Our industry has long been a steady investor, but companies are now showing exceptionally strong ambitions for growth. What makes this particularly encouraging is that the increase is driven by investments across numerous companies throughout Finland, rather than a few major projects, says ETL Economist Bate Ismail.

Around 44 per cent of investments are directed towards replacing existing production capacity, while 13 per cent focus on improving efficiency. A further 34 per cent are aimed at expanding production and supporting growth.

Growth and sustainability go hand in hand

Investments are helping food and drink manufacturers increase production, strengthen competitiveness and reduce their environmental impact. They also enable companies to respond to climate and environmental challenges, regulatory requirements and changing customer expectations.

– Growth and sustainability are not competing objectives. The same investment can increase production, improve efficiency and reduce environmental impacts, says ETL Sustainability Director Satumaija Levón.

Predictable business environment is essential

Continued investment depends on a stable, predictable and competitive operating environment. Key factors include regulation, energy costs and the availability of skilled workers and domestic raw materials.

ETL stresses that introducing new product-specific taxes would increase uncertainty and could discourage companies from making long-term investments in Finland.