Elintarvikkeiden hinnanmuodostus ja markkinoiden toimivuus

The study analyses the price formation and market functionality of the Finnish food chain. A significant portion of the report consists of international comparisons. The main comparison countries are the so-called old EU countries (EU15) of Western Europe, the new EU countries (EU12) and the United States. Comparisons are also made with individual countries. After the international comparisons, the price formation of the food chain, degree of concentration, competition, and the position of small producers is analysed for Finland in more detail. The main findings of the study are as follows: 1) a significant reason for the high price of foodstuffs in Finland is the high VAT, 2) the price level without VAT was in 2005 a couple of per cent higher and in December 2009 about 7 per cent higher than the average in the old EU countries, but it is considerably higher than in the new EU countries and the United States, 3) In Finland the price level of foodstuffs is elevated by the weak agricultural competitiveness (northern location and small farm size); on the other hand, the competitiveness of the foodstuffs industry and the wholesale and retail trade is rather good, 4) measured in terms of price-cost margins, competition works in Finland just as well in agriculture, the foodstuffs industry and the wholesale and retail trade as it does in the food. -- Foodstuff prices ; food chain ; agriculture ; foodstuff industry ; retail and wholesale trade ; competition ; competitiveness ; small foodstuff producers ; Finland