November 6,  2001

Finland has the second highest percentage of organic farmland in Europe however this is likely to
change in the coming years.

Organic farmland accounts for 6.8 percent of agricultural land in Finland. Much of the increase in
organic farmland was in the mid 1990s when the entry of Finland into the EU increased conversion
grants to organic agriculture. Organic farmland tripled from 44,695 hectares in 1995 to 147,423
hectares in 2000.

Last year, over 10,000 hectares of farmland converted to organic agriculture and by July 2001, there was only a 350 hectares increase for the year. At this rate, there would be less then 1,000 hectares of organic farmland converting in 2001.

Over two-thirds of organic farms in Finland converted after 1995, and their five-year conversion
grants are to expire in the coming years. It is unknown how many of these will maintain their organic holdings when financial subsidies end. Luomu-Liitto (the Union for Organic Farming) estimates that about 250 farmers will not renew their organic farming contracts and that up to 6,000 hectares of organic farmland could be lost in 2001.

With a rise of less then 1,000 hectares of organic farmland and a possible decrease of 6,000
hectares, the amount of organic farmland could drop to 142,000 hectares this year. The declining
trend could continue if the conversion rate to organic farming does not rise in 2002 and successive
years. Organic farmland in Finland appears to be going the same way as Austria, which also entered the EU in 1995 and is experiencing a similar contraction in organic farmland.

Organic Monitor research showed that although there is a high amount of organic farmland in Finland, the organic food industry is much lower in size. The organic food industry is a fraction of the size of that of Denmark, with sectors like fresh organic vegetables less then 2 percent of the conventional vegetables market.

Exceptionally high retail prices of organic foods and inefficient distribution structures are factors
behind the small Finnish market. Consumer interest is also low in Finland because there is high
confidence in conventional food. This stems from an agricultural sector that is less intensive then most European countries given by the fact that the country has the lowest use of pesticides in Europe.

Source:
The Scandinavian Market for Fresh Organic Vegetables

Related Article:
Declining Organic Farmland in Austria…Why?

Organic Monitor news release
N3839a