Dependency of domestic food sectors on imported inputs with Finland as a case study

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.