Nordic agricultural producers visit Valtra

16.08.2007

Valtra’s doors are always open to customers, so when the Nordiska Bondeorganisationernas Centralråd (NBC) wanted to visit the Suolahti factory following its meeting in Jyväskylä, Finland, they were very welcome. Valtra also participated actively in the arrangements for the meeting.

“In terms of the worldwide global competition, it is important to get along well with one’s neighbours. For this reason Nordic co-operation between national agricultural organisations must be cared for and developed,” stated Michael Hornborg, Chairman of Finland’s Central Union of Agricultural Producers and Forest Owners (MTK) and NBC.

Co-operatives owned by farmers already carry out active cross-border co-operation, such as Atria, Arla, HKScan and also LMB, which sells Valtra products in Sweden, Norway and Denmark.

Bioenergy and food the main topics

The main topics of conversation at the NBC meeting included bioenergy, environmental issues, Nordic food, and the future outlook for co-operatives. The value-added tax on food in the Nordic countries was also discussed, as in Finland politicians are trying to lower the tax, while in Sweden it is being raised. In Sweden the VAT on food is 12%, compared with the 25% on other goods. In Norway the VAT on food has been lowered to 12%. In Denmark the VAT on food is 25%, as with other goods. In Iceland the VAT on food is 7%, compared with 24% for other goods. In Finland the VAT on both food and other goods is 22%, but the VAT on food is being lowered. Farmers pointed out, however, that the VAT on food is not an agricultural policy issue as such but a question of income distribution, since producer prices in all Nordic countries are generally at the same level.

There was broad support for marketing Nordic food more intensely and increasing public appreciation of it. Various programmes are aimed at raising the reputation of Nordic cuisine to the same level as that of French or Italian cuisine. For example, the Nordic breakfast was mentioned as one concept that could be successful around the world.

The unique nature of Nordic food was explained by the short but intense growing season, when the long periods of daylight create a special flavour. Furthermore, thanks to the cold climate, pesticides are used much less in the Nordic countries than in more southern areas. On the whole, food produced in the lightly inhabited Nordic countries is of extremely high quality and clean. Some consumers also appreciate the region’s ethical production methods; environmental legislation and animal welfare, for example, are probably more advanced here than anywhere else in the world.

Bioenergy from wood, straw, ethanol, biodiesel and biogas is expected to increase the prices of agricultural products and their demand. This phenomenon can already be seen in global market prices, and further effects are expected as a result of the EU’s extremely challenging bioenergy targets, for example.

The meeting also looked at rural culture: the 5000-euro NBC culture award was presented to Liisa Heikkilä-Palo, who holds a leading position at Finland’s Union of Rural Education and Culture (MSL) and also publishes books and organises exhibitions. Heikkilä-Palo has several decades worth of experience in exporting Finnish folk culture and raising awareness of it domestically.

Valtra’s factory makes an impression

Following the two-day meeting, delegates had the chance to visit Finnish farms and the Valtra factory. Valtra offered lunch to around a hundred guests and introduced to them the company and our operations in Suolahti. The guests also had the chance to test drive Valtra tractors. The Suolahti factory was already familiar to some of the guests, but for most it was their first visit.

“I’m here for the first time. The factory is truly impressive. The wide range of customisation available on Valtra tractors was new to me,” said Harald Mork, a farmer from Averöy in Norway. Mork sits on the boards of Norway’s producer organisation Bondelag and the Norwegian meat co-operative.

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