Experiences of Local Identity Products Support Systems in

Experiences of Local Identity Products Support Systems in Finland Pirjo Heikkinen, LAG Manager LAG Living Kainuu LEADER Sivu 1 18. 3. 2018 Experience of Local Identity products in Kainuu Area (Finland) / Pirjo Heikkinen, LAG Living Kainuu

About LEADER in Kainuu • Two Leader Local Action Groups in Kainuu: Living Kainuu LEADER ry and Oulujärvi LEADER ry, rural development associations (NGOs), established in 1996. • Serve, develop, fund and bring to gether local residents, associations, companies and municipalities. • Living Kainuu operates along the Russian border in the area of 5 municipalities: Suomussalmi, Kuhmo, Ristijärvi, Sotkamo and Hyrynsalmi. Oulujärvi Leader operates in Kajaani, Vaala, Paltamo and Puolanka municipalities. • Most of the area is very sparsely populated wilderness with a wide range of wild animals, reindeer and beautiful scenery. • Everyone, who is interested in the promoting of the vitality of rural areas in our area, is free to join the associations as a member (and maybe be elected to the Board, which decides e. g. on funding). Sivu 2 18. 3. 2018 Experiences of Local Identity Products Support Systems in Kainuu, Finland

Support Systems ABOUT KAINUU AREA Sivu 3 18. 3. 2018 Presentation name and author

Kainuu Region 2010

Kainuu in brief • Region of Kainuu is situated in Eastern Finland • Consists of nine municipalities: • Hyrynsalmi, Kajaani, Kuhmo, Paltamo, Puolanka, Sotkamo, Suomussalmi, Ristijärvi and Vaala • Total population around 83, 000 • Regional capital Kajaani: around 38, 000 • Land area comparable to Belgium in size • Kainuu is well-known for its forests, nature, measurement technology and good opportunities for sports, among other things

Kainuu in Europe

In Dec 2011: Kainuu 4 946 unemployed persons, 8 % less than in Dec. 2010. Rate: 13, 4 (FI: 9, 7%) Sources of livelihood

Kainuu in relation to the whole of Finland

Population development in Kainuu

Development of the age structure in Kainuu 2007 – 2030 2007 2020 2030 0 -6 (%) 6, 4 6, 7 6, 5 7 -19 (%) 15, 6 13, 5 13, 8 20 -64 (%) 57, 9 51, 2 46, 8 65 -74 (%) 10, 6 16, 1 14, 8 9, 5 12, 5 18, 2 75 - (%)

Future business areas in Kainuu In the regional development program by business areas for the development of livelihoods and industry have been chosen based on their inherent strengths and future expectations: 1. ICT and Electronics • measurement technology • vehicle information systems (e. g. a car testing pipe) • metal 2. Tourism • leisure activities • culture (e. g. Kuhmo Chamber Music) • experiences • conferences 3. Natural Resources • forest • local food • mining (e. g. Talvivaara nickel mine) • energy

Natural resources Forests have been an important source of livelihood in Kainuu for centuries. Forests are not significant only because of their economic value, but also for the opportunities they provide for recreation and relaxation. In the following years, Kainuu focuses on developing innovative use of its forest resources and their reprocessing even further. In addition to forests, developing the use of other natural resources in the region will be in a significant role, too. In next coming years, Kainuu will put efforts in: • More effective utilisation of forest resources and reprocessing • Reinforcing the use of renewable energy • Boosting the growing mining industry • Increasing the use of local food Sivu 13 18. 3. 2018 Presentation name and author

In Kainuu the turnover of the foodstuff cluster enterprises in growing(source: Statistics 30. 05. 11) In 2010 the growth was 19, 8 % compared to 2009. Anyhow, the amount of personnel in the enterprises had increased only by 2, 5 %. Sivu 14 18. 3. 2018 Presentation name and author

Support Systems GENERAL ABOUT FOOD INDUSTRY IN FINLAND Sivu 15 18. 3. 2018 Presentation name and author

General: Food and drink industry in Finland • Finland’s food and drink industry is a well-known force on international markets, especially in the Baltic Sea area. The strength of the Finnish food and drink industry is based on knowing the expectations of customers and consumers. The products are tasty and convenient. • Successful products and trustworthiness are the result of the strong integrity of food and drinks industry professionals. Quality is further guaranteed by innovative product development and advanced production technology. • Close and transparent cooperation across the food processing chain ensures a supreme standard of food safety from raw ingredients to the finished products. Corporate social responsibility policies and a commitment to environmental friendliness are the cornerstones of the Finnish food and drink industry that ensure sustainability far into the future. Sivu 16 18. 3. 2018 Presentation name and author

General, cont. • Finland’s food and drink industry is among the best in the world in the development of functional food products. The best known Finnish health innovations include tooth-friendly xylitol, lactic acid bacteria preparations designed to promote a healthy gut, and products intended for controlling cholesterol. • The food and drink industry is the 4 th biggest industry in Finland after the metal industry, forestry, and the chemical industry. • The gross production value of the food and drinks industry is EUR 10. 2 billion. • Food and drink industry exports were valued at EUR 1. 4 billion in 2010 and imports at EUR 3. 5 billion. Sivu 17 18. 3. 2018 Presentation name and author

General, cont. • The three largest food and drinks industry sectors – meat processing, dairy farming, and the bakery industry – represent 50% of the industry’s gross production value. • The food and drink industry employs almost 33 000 people. The number of individual facilities is approximately 1 900. • 85 % of all raw ingredients used in the food and drinks industry originate from Finland. • The Finnish food and drink industry invests more in research and development than most other countries in Europe: 2. 9 percent of the production value in 2009. • The entire food processing chain employs approximately 300 000 people in Finland, which is around 12 percent of the employed workforce. Sivu 18 18. 3. 2018 Presentation name and author

Support Systems LEGISLATION Sivu 19 18. 3. 2018 Presentation name and author

Support Systems: Legislation (For a law obedient people, like Finns this works) • E. g. Food hygiene proficiency can be exhibited by showing a certificate in hygiene proficiency, i. e. a socalled "hygiene passport" as designed by the Finnish Food Safety Authority, and which can be acquired by passing a hygiene proficiency test or producing a certificate in some appropriate examination or education. Sivu 20 18. 3. 2018 Presentation name and author

Support System START-UP Sivu 21 18. 3. 2018 Presentation name and author

Support Systems: Start-up • The local authorities available to advise on specific issues, like defining the working business idea, • finding the premises, • hiring personnel, • selecting funding options, • insurances, • marketing means etc. • Sector-based information also locally available. Sivu 22 18. 3. 2018 Presentation name and author

Support Systems: Start-ups, cont. • Training in Kainuu and in Finland more takes into account the entrepreneurial subjects: • Even in secondary classes, but especially in colleges, universities and in polytechnics of applied sciences and vocational schools • If you miss these, there is always possiblity to participate special courses later (also locally) Sivu 23 18. 3. 2018 Presentation name and author

Support Systems FUNDING Sivu 24 18. 3. 2018 Presentation name and author

Support Systems: Funding • E. g. FINVERA Financial solutions • • • Finnvera offers financing and financing expertise to meet the needs you might face when starting up a business. In this part of the web page you will find different financing methods targeted for start-up enterprises. To view a list of all the products Finnvera has to offer use the links Loans , Guarantees , Venture Capital Investments and Export Credit Guarantees. Needs for financing when starting up a business: Equity Investments Working capital • http: //www. ely-keskus. fi/en/frontpage/business/Sivut/default. aspx. EU sources: • http: //ec. europa. eu/small-business/funding-partnerspublic/finance/index_fi. htm And banking sector. Sivu 25 18. 3. 2018 Presentation name and author

Support Systems: Rural development funding • Developments in Finland’s rural regions can be financed using national funds and support from the European Agricultural Fund for Rural Development. National funding comes from the budgets of the national government budget and local municipalities. Private funding represents a third source of finance. • LEADER funding available for micro-sized businesses, situated in rural areas (less than 10 persons, under 2 mio eur/a t-o). For development (50 %) and investments (in Kainuu 35 %). Support in maximum 150 000 eur. For min. 3 micro-enterprises developing their businesses together, the support is max 75 %. • www. maaseutu. fi Sivu 26 18. 3. 2018 Presentation name and author

Support Systems PROMOTION Sivu 27 18. 3. 2018 Presentation name and author

Support Systems: Promotion TASTE OF FINLAND -NETWORK • http: //www. tasteoffinland. fi/In_English/Taste_of_Finland_Province_restaurants FINPRO (www. finpro. fi) • http: //issuu. com/sanakunta/docs/finpro_infront_4_2011? mode=window&print. B utton. Enabled=false&share. Button. Enabled=false&search. Button. Enabled=false& background. Color=%23222222 Plus: Own segment or area networks, projects, events… be visible = be available to you key customers… Sivu 28 18. 3. 2018 Presentation name and author

Support Systems: RESEARCH & DEVELOPMENT Sivu 29 18. 3. 2018 Presentation name and author

Umberella Projects, example from TEKES • Tekes – the Finnish Funding Agency for Technology and Innovation (is the main public funding organisation for research, development and innovation in Finland). • Sapuska – Added Value for International Food Markets 2009– 2012 • aims to improve the international competitiveness of the Finnish food industry by creating innovative products and technologies as well as new business models and service concepts. • Sapuska is targeted especially for Finnish small and medium-sized enterprise but research and development projects launched by large enterprises will also be funded if they bring benefits for participating SMEs. • Companies operating in Finland can apply for funding at any time. • http: //www. tekes. fi/programmes/Sapuska/Projects Sivu 30 18. 3. 2018 Presentation name and author

New export business activity for berry sector by marketing startegy • to Enter the International Markets Competition at the international markets often is hard and resources needed for marketing are high. Particularly for SMEs it is challenging to gain international visibility. To meet this challenge, Finnish companies will co-operate in this project to develop common marketing strategy for international markets. Co-operation enables to achieve the critical mass needed for better international visibility. Long term objective is to reduce the export of berries as such and to increase the export of Finnish berry products with high added value. Lingonberry was selected as a case berry for this project. Our objective is to bring added value to lingonberry and lingonberry products. This is done through R&D and strategy planning in cooperation between Finnish SMEs and large-scale companies. The results of this project can later be applied to other berries, e. g. when developing international business activities for berry sector. Partners from Lapland, Kainuu… • Project is included in Sapuska-project by TEKES Sivu 31 18. 3. 2018 Presentation name and author

The Finnish Food Sector r&d FOOD FOR LIFE, National Technology Platform of Finnish Food Sector. Information about Finnish Food R&D, Active Stakeholders, Food Innovations and Culture • http: //www. foodforlife. fi/ FOODLE Foodle is a new easy-to-use service to search and deliver research information in the Finnish food sector. Foodle offers the newest results for enterprises, media and developers. • http: //www. foodle. fi/en Sivu 32 18. 3. 2018 Presentation name and author

Last but not least… TOURISM + LOCAL IDENTITY PRODUCTS Sivu 33 18. 3. 2018 Presentation name and author

Part of Lakeland Area marketing • http: //www. visitfinland. com/web/guest/finlandguide/where-to-go/lakeland/kajaani • http: //www. wildtaiga. fi/en - Kuhmo-Suomussalmi Kainuu Specialities • Rönttönen, pastry with lingonberry filling (PGI protection under EU law) • Smoked meat soup • Kainuun Juustoleipä or Leipäjuusto, Bread Cheese • Vendace fish soup • Pettuleipä (Pettu-bread), a bread made from rye flour and pine bark Sivu 34 18. 3. 2018 Presentation name and author

Co-operation with local restaurants Examples: • Restaurant Kippo (in Vuokatti) http: //www. kippo. fi/ • ja Restaurant Torero (in Kajaani). Both are promoting and offering local products and traditional tastes in their menus. Torero will offer in near future only locally produced food. In villages: http: //www. lentiira. com/gallery. htm If you’d like to eat well in real village athmosphere, visit Lentiira. Sivu 35 18. 3. 2018 Presentation name and author

Kainuu products by picture cavalcade Nettle products by Ärmätti. Mr Matti Veijola, the biggest producer and farmer of nettle in Finland. http: //www. armatti. fi/en/ Sivu 36 18. 3. 2018 Presentation name and author

Picture cavalcade cont. In Lentiira village the visitors of a summer event are able to participate the baking of rönttönen. Sivu 37 18. 3. 2018 Presentation name and author Kainuulainen perinneherkku rönttönen sai EU: n nimisuojan in 2008 Kainuun perinneruoka, rönttönen on saanut Euroopan unionin nimisuojan. Rönttönen on ohra- tai ruistaikinista tehty piirakka, jossa on imelletetystä perunasta ja marjasta tehty täyte. Kainuun rönttönen sai nimisuojan maantieteellisenä merkkinä, ja näin ollen maakunnan ulkopuolella rönttösiä ei saa kutsua Kainuun rönttösiksi. Rönttönen on viides suomalainen elintarvike, joka on saanut EU: lta nimisuojan. Nimisuojan ovat aikaisemmin saaneet Lapin puikula, sahti, karjalanpiirakka ja kalakukko. Suojan tarkoituksena on turvata tietyllä alueella valmistetun elintarvikkeen valmistusta. Kainuun rönttöselle nimisuojaa haki Kainuun leipuriliikkenharjoittajat ry.

Links to Kainuu Products • http: //www. biokia. fi/ english/ (in Suomussalmi) • http: //www. sienesta. fi/welcome. html (in Vaala) Forest berry products, Forest mushrooms a major part of and mushroom markets already products, well abroad. received! Sivu 38 18. 3. 2018 Presentation name and author

Links to Kainuu Products • http: //www. vaalanjuustola. fi/ (In Vaala) Cheese bread from Kainuu. The company received the economically strongest company in Finland 2011 reward! Sivu 39 18. 3. 2018 Presentation name and author • http: //www. arcticflavours. fi/en/frontpa ge/ The Arctic Flavours Association is a nation-wide natural products industry association specialising in wild berries, mushrooms, herbs and special natural products. The aims of the Association are to promote the gathering, processing and use of natural products as well as to improve their quality. (office in Suomussalmi)

FLAGs in Finland • Seven FLAGs • Every FLAG area an activation project with activator • Started during 2008 • 200 000 €/year for funding • 9, 2 % of total EFF in Finland 40 18. 3. 2018

Kainuun and Koillismaa FLAG program • Three Leader groups • 9 members in board - 3 entrepreneur - 3 from municipalities - 3 from NGO or leader • Two main lines - Market launch of the products - Promoting and renewing the industry 41 18. 3. 2018

Fish handling facilities in the area • Research of handling facilities • Target areas selection • Funding for construction planning • Co-operation with municipalities • Projects: – Kuusamo fish-house – Manamansalo harbour – Suomussalmi handling building – Kajaani harbour

Construction projects • Kuusamo ”fish house” - Total cost c. a. 2, 8 M euro 450 m 2 for fish product manufacturer 450 m 2 for fishermen IQF unit 200 -500 kg/fish/h • Suomussalmi fish handling building - 80 m 2 for fishermen - Linked with local fish product manufacturer • Kiloniemi harbour - 70 m 2 new space for filleting , cold store and packaging

Basic examination regarding logistics • Problem: vast area with poor logistical connections • Funding: basic examination • Results: new cooperation between entrepreneurs, one new logistics line in Kuhmo

New Technologies, innovations • Small fish gutting and cleaning is problematic • Funding: prototype for small-sized vendace handling machine • Assistance: support for inventor (funding applications for Foundation for Finnish Inventions etc. )

Developing fish processing companies • Project for fish processing companies • Project coordinator: Pro. Agria (local food development organisation) • Targets: – New markets – New products – Better quality – More profitable production

Education project for new fishermen • Financed and organised by: Employment and Economic Development office of Kainuu • 12 canditates; 8 were selected • 1 year education • 1/3 theory and 2/3 hands-in training with fisherman mentor • FLAG input: starting meetings and helping at recruiting students

Koillismaa district • Target: having a small fish cluster in Koillismaa • Main projects: - a fish handling building at Kuusamo - Protected Designation of Origin PDO: Kitkan Viisas - Synergy between fishermen and fish product manufactures

Kuusamo Fish Cluster projects Kuusamo Fish House feasibility study 23 250 € FLAG Fish house construction 2, 7 M€ EKTR Start up- project 33 000 € FLAG Logistics study 10 000 € FLAG Marketing 8 000 € City of Kuusamo Development of the gutting machine 28 800 € FLAG Kitkan Viisas application of PDO Co-operation with tourist companys

Other projects • Entrepreneurs’ own projects: total amount of funding 1 m€ • Aquaculture: finding new areas for aquaculture, case UPM • Lobbying state bureaucrats