IFAJ 45th Annual Congress 8-13 September 2001, Savonlinna, Finland

 

Northers Dimension and Family Farming

 

Sisko Mäkelä

Dairy Farmer

 

Until the mid-1990s, Finnish agriculture existed within a sheltered economy. We could make an agreement with the government on the prices of products, the amounts we required in our domestic consumption and the laws to regulate production. However, when we joined the EU against farmer opinion, we had to adapt to a very different situation. This was a sudden, very dramatic change, which proved too much to bear for many farm families, causing especially small farms to quit production altogether. The number of operating farms has decreased from 105,570 in 1994 to 75,000 today, while the average size of farms has increased: the average plot size of Finnish farms is now 28 hectares, compared to 22 hectares in 1995 and 17 in 1990.

 

The reason for these changes was the dramatic decline in produce prices, which forces the farm family to increase the size of their farm enterprise or look for alternative sources of income. This poses a threat to the Finnish way of family farming, the likes of which is not found in any other country. Finnish agriculture is based on family farms: in 2000 private persons owned 88% of all farms in Finland. If two spouses are working on the farm, they are automatically assumed to be business partners and co-owners of the farm, usually with each holding 50% of the operation.

 

Finnish farmers divide the farm income based on the share of farm work. This also affects social security, because taxable income, social security and qualifications are consistent with each other. This is perhaps one aspect of the Northern Dimension, typical of one third of the active dairy farms. The change in the number of dairy farms has been drastic: previously, almost all farms in Finland produced milk, but by 2000 there were only 21,500 farms practising any form of dairy farming compared to 40,000 in 1991.

 

These phenomena are connected with the emigration from rural areas. When agriculture forces farmers out of business, there are no job substitutes available. This can prove disastrous to the basic infrastructure in a large country with a low population density.

 

One typical feature in all Scandinavian countries is that women leave rural areas on average more than men. This happens because men usually take care of the farms, while women look for other types of jobs. The rural women are usually more highly educated than rural men.

 

New strategies

 

In this new situation we were forced to weigh very carefully the strengths and weaknesses of our production. We must be able to live with three major problems: 1. our cold climate; 2. small farm size; and 3. long distances from consumption centres. Our climate with its short growing season  and long, cold winter results in extremely high production costs, which compromises our ability to compete with farmers in more southern climes. This means: maintaining heated buildings to keep our animals warm in the middle of the winter cold; maintaining large storage facilities to keep forage for 8-9 months at a time; keeping livestock in barns; maintaining expensive machinery to grow and harvest all that forage within a three-month period. Furthermore, we cannot use seed crops with high yields, such as corn or alfalfa.

 

The reason for the small size of our farms is partly rooted in our history, but also from our climatic restrictions. Thirdly, we are located far from population centres and, in turn, markets. Every now and then revolutionary new farm products are introduced, but if the closest town is over 100 kilometres away, and the major European markets are over 1000 kilometres away, these will be of little use; such isolated farms require courage and skill to bring their crops to market. On the other hand, this distance from major markets can also be considered one of our strengths, providing us with a natural shelter for domestic food production. We are not a very attractive market to big multinational food companies.

 

If we use the weaknesses of our agriculture to our advantage, these weaknesses can be transformed into our key strengths. Our distance from almost all major population centres and the cold climate actually represent our greatest strengths. Our plants are less likely to be affected by pests or plant diseases, which translates into the reduced need for pesticides and plant protection. Finland’s vast surface area, low population density, lack of traffic and low-impact industrial infrastructure mean clean air and low nitrate and heavy metal content in our soil. These factors are very beneficial to the production of wholesome food.

 

Our remote location has helped us to maintain the health of our livestock like nowhere else in the world. Finland has been declared ‘disease free’ by the World Organisation for Animal Health (OIE) in regards to several animal diseases. The EU Scientific Council has classified Finland, together with Sweden and Austria, as low BSE risk countries. The small size of the farms allows more individualised care of the livestock and provides us with a greater possibility to prevent the outbreak of diseases. The aim of our animal husbandry is healthy livestock, not productivity at any cost. We do not enhance the production capacity of our animals with hormones or antibiotics, methods that our consumers do not accept.

 

But Finnish food safety is not just blind luck. It is also the result of years of hard work. An essential aspect of this work are official regulations, which start from feed control and go through the entire food chain to the supermarket shelf. For the farmer, this means a lot of paperwork and a lot of time spent in conference with agricultural administrators, advisors, veterinarians, etc. But this is the only way to ensure the consumer that our food is pure.

 

Food safety and food quality are thus our main strategies to survive as food producers. Of course food quality is an expression that means different things to different persons. This is why the only way to market our food is to have an active dialogue with our clients, the consumers and their organisations. Farmers and every part of the food production chain works under the policy that the Finnish consumer can place his trust in the safety of the food he is eating. The Finnish farmer supports a fully transparent food production chain, in which each link guarantees the consumer the quality and safety of its own operations. This new dialogue between producers and consumers arose after EU membership, and people began buying domestic products as a matter of preference. 

Quality assurance system in agriculture

 

The national food quality strategy was completed in 1998, following extensive preparation of industrial inputs for agriculture, farmers, the foodstuffs industry, wholesalers, consumers, research, advisory boards, the official sector and administration. The ambitious target is that a transparent quality chain will extend from production investments made on the farm to the consumer via industry and grocers by no later than 2006 in all production sectors. This work is based on the fact that the needs and hopes of the consumer dictate the function of the entire chain. The aim is to improve food quality and maintain its high standard.

 

Currently, farms are developing a quality assurance system, in which all work and procedures performed on the farm are recorded in a quality logbook. This quality assurance system helps us to minimise risk factors and makes it easier to trace actions taken.

 

Sisko Mäkelä

Dairy farmer

M.Sc. (Agr.For.)

Age: 45 years

 

Ms. Mäkelä has been a dairy farmer since 1984 on her home farm in Northern Ostrobothnia, Middle Finland. Following a divorce, she bought the farm for herself in 1997. She has two children: an 18-year-old son and a 16-year-old daughter.

 

Ms. Mäkelä’s farm has a field area of 31 hectares, all growing hay (pastures and silage); a forest area of 80 hectares; a share of co-operative forest; 18 dairy cows; and 20 young cows.

 

Ms. Mäkelä holds different posts in agricultural organisations and companies closely related to agriculture. She is Vice President of the International Federation of Agricultural Producers (IFAP) Women's Committee.