Abstract
The objective of this study is to examine the import dependency of domestic food and service sectors in Finland and produce indicators for measuring the import content of these sectors together with the import dependency of the inputs supplied into these sectors. Input–output analysis is utilised to provide the necessary information on the interdependencies and linkages between different industries for both goods and services in the Finnish economy. Primary agriculture, food processing, distribution and food service providers in Finland are heavily dependent on imported fossil fuels concerning energy and chemical inputs, including high reliance on imported supplementary protein feed for livestock production. However, most of the inputs supplied to the Finnish food and service sectors are domestic because only 20% of the total output is dependent on imported goods, services, and capital goods. The rate of self-sufficiency in food supply is high in Finland, but international trade is essential to provide the necessary energy and chemical inputs needed for food production along with livestock’s supplementary protein feed. Replacing fossil energy with sustainable renewable energy will reduce the dependence on Russia for energy supply and promoting human consumption of plant-based foods will reduce the demand for livestock feed.
Highlights
Food is produced predominantly to secure domestic food supply and only secondarily for export
The objective of this study is to examine the import dependency of domestic food and service sectors in Finland and produce indicators for measuring the import content of these sectors together with the import dependency of the inputs supplied into these sectors
The rate of self-sufficiency in food supply is high in Finland, but international trade is essential to provide the necessary energy and chemical inputs needed for food production along with livestock’s supplementary protein feed
Summary
Food is produced predominantly to secure domestic food supply and only secondarily for export. Most countries consider the ability to ensure food supplies in times of crisis to be a national security issue and invest in their domestic agricultural production because of the risk that imports will be cut off due to conflicts, political tensions, and natural disasters (Clapp 2017). The world is becoming increasingly unstable and uncertain due to climate change, global pandemics, destruction of ecosystems, geopolitical tensions and commodity price fluctuations (Tilman et al 2001, Foley et al 2005, Godfray et al 2010) Large scale shocks, such as the COVID-19 pandemic outbreak, are causing exceptional global economic impact (Addison et al 2020) and national challenges to the health and functioning of human society (Sen 2020). Measures to facilitate the trade of farming inputs such as machinery, fertilizers, pesticides, and animal feed should be taken seriously because these requirements are crucial for food production activities to continue smoothly (FAO 2020)
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