The ongoing energy crisis will pose 'insurmountable challenges' for some companies and threaten food security in the country, according to Elintarviketeollisuusliitto (ETL), the Federation of the Food Industry in Finland.
The organisation noted that concerns about the availability of electricity at affordable prices affect the food industry as a whole, but for small and medium-sized enterprises, in particular, energy solutions are vital.
Mikko Käkelä, CEO of the Federation of the Food Industry, said, "We are disappointed with the energy decisions in the budget proposals. They will not ease the food sector's cost crisis or bring security to the food supply.
"At the end of the day, the question is whether domestic food is available in the shops. The food sector urgently needs solutions to help businesses cope with the challenges they are facing."
Corrective Moves
Elintarviketeollisuusliitto has urged the government to make corrective moves, taking into account the domestic food industry as it is essential to safeguard the sector's supply chain.
'Food affects us all, so measures targeting the sector will have an impact right down to the household level,' the association noted.
It welcomed the Finnish government's decision on tax deductibility of research, development and innovation (RDI) investments, saying it was necessary for the future growth and renewal of the food sector.
Many companies have set low-carbon targets, which means investment in new technology and production capacity.
'Tax Incentive Is Crucial'
Käkelä commented, "The tax incentive is crucial for companies to ensure that rising costs and the uncertainty of the business environment do not hold back the right direction for the sector and that more companies reform their operations."
"Many companies are planning or already implementing green shift investments. The promised speeding up of permit procedures must also be reflected in practice and the government must be prepared to take further action in this respect during the autumn."
© 2022 European Supermarket Magazine – your source for the latest supply chain news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
