1

Maataloustieteellinen A ikakauskirja
Vol. 58: 143—150, 1986

Self-sufficiency of agriculture in Finland in 1970—1983

LAURI KETTUNEN

Agricultural Economics Research Institute, Luutnantintie 13,
SF-00410 HELSINKI, Finland

Abstract. This study is aimed at considering self-sufficiency and food security in Finland.
Self-sufficiency of final products has been over 100 % for a long period. Only self-sufficiency
of fruits and vegetables is below 100 % due to the climate. Self-sufficiency of energy, protein
and fat of the diet is also examined in this article. A new indicator of total self-sufficiency
is developedby dividing the total yield measured in feed units with the total feed requirement
of total human consumption, measured also in feed units. According to these calculations total
self-sufficiency has been from 105 % to 130 %, depending on the quantity of total yield.

It is difficult to make adequate calculations of self-sufficiency of inputs, since the indus-
try producing agricultural inputs is operatingunder free trade, and tries to benefit from foreign
trade. Imports of energy, raw materials, machines and implements lower self-sufficiency. Some
estimates are, however, given in the text.

The article also discusses the attempts to improve food security by storage. Agricultural
research aims to clarify how alternative cultivation methods could lessen the dependence on
imports, and thus improve the food security.

Index words: self-sufficiency, food security, self-sufficiency of inputs

1. Introduction

Self-sufficiency as a concept is rather clear.
Dictionaries define self-sufficiency as an econ-
omy which is cabable of providing for its own
needs. Earlier, households were self-sufficient.
They were able to produce all things at home.
Food, clothing, housing and implements were
made on the farm or in the home. Only some
exchange was necessary. Self-sufficiency was
high in households and it was even higher
when the nation as a whole was examined.

However, times have changed. The level of

consumption has increased considerably but
at the same time a self-sufficiency economy
has been changed to an exchange economy.
Few farms are self-sufficient with respect to
food. The making of clothing in high income
countries is small. There are no sheep and flax
cannot be cultivated. The self-sufficiency of
our economy has declined.

National self-sufficiency has also decreased
considerably in small countries. Economists
have shown the profitability level in the na-
tional division of labourand therefore foreign
trade has expanded continuously. It has im-

143

JOURNAL OF AGRICULTURAL SCIENCE IN FINLAND

https://www.c-info.fi/en/info/?token=gfkm_J2P4Tq8abFu.a91t9TGfG509uFk6E33l7A.-6TqEPEPiwLwLajiIvURrlqxeXVjSFc-k3V9A0wmg8nnpDfwe0S-1DLmsGqTVUWColy8FUJ0skSPQrHcdQHml6hCYTAFFbYhTm8xr3b5h0c-bf47rBLkpPjmwJOS8zuXPHtABFyWsFXuQhSWxfujAbwN7BuMDltdjO2Hig


144

proved the economic welfare but at the same
time, self-sufficiency has decreased. For
example, foreign trade is about one-third of
the national income in Finland. Many impor-
tant raw materials and energy are imported.
The situation is not threatening as long as
foreign tradecontinues without interruption,
but the stoppage of imports would seriously
destroy or disturb our everyday life.

The situation is not as difficult in large
countries, because there foreign trade is only
a small percentage of Gross National Product.
They have their own raw materials and energy
even though part of their raw materials are im-
ported. Particularly the high level of technol-
ogy raises the requirements of self-sufficiency.
Poor countries are, in principle, less depen-
dent. Their economy will not collapse even
though foreign trade would stop. The econo-
mies of rich countries would suffer most, even
though, in times of crisis, they may maintain
a higher economic level than poor countries
because of their technology.

Self-sufficiency in food is of major impor-
tance for most economies. A man can give up
many things, but not food. There has been a
lot of discussion over food self-sufficiency or
food security in Finland recently. Particular-
ly, the energy crisis and the simultaneous food
crisis has led officials, as well as ordinary
people, to begin to question whether there will
be food in the future. Is our extra supply only
nominal, which may disappear if the time
comes when the borders are closed? These
questions over self-sufficiency have led to a
more thorough consideration than has previ-
ously been made.

2. The purpose of the study

The purpose of the study is to examine self-
sufficiency of agriculture in 1970—1983. The
study concerns the final products, agricultural
inputs and the whole of agriculture in general.
The article is based on the study by the author
(Kettunen 1986 b).

Self-sufficiency ratio of individual products
have been calculated for a long time by the

Marketing Research Institute of Pellervo So-
ciety (cf. Anon 1982). It can be done easily
for animal products. Self-sufficiency is de-
fined simply as a ratio of production and con-
sumption. For example, the self-sufficiency of
meat can be easily calculated. However, the
compilation of statistics has been developed
sufficiently only in recent decades so, no con-
fident long time series can be found. This
study has been confined only to the last
10—14 years. This is sufficient for many de-
velopment studies since the change from the
1960’s to 1970’s meant a great change in agri-
culture.

Self-sufficiency studies have been directed
mainly at final products. Energy crises have
meant, however, that our agriculture is threat-
ened mainly by the shortage of inputs. The use
of fertilizers and machinery has increased but
since both are imports, self-sufficiency has
fallen in the most critical places (Laaksonen
& Kettunen 1981). Therefore it is also neces-
sary to study the self-sufficiency of inputs.

The study is based mainly on simple balance
sheets, such as food balance sheets. However,
some modifications have been necessary.

3. Methods

Self-sufficiency (SS) is usually measured as
percentage which is obtained by the division
of national production (Q) by consumption
(C): SS = Q/S. This is the so-called national
self-sufficiency ratio. Self-sufficiency could be
defined in many ways. A quoted reference is
the study by FAO (1975). The difficulty with
more complex definitions is that the data re-
quires quite a lot of modifications which may
not be easily carried out. On the other hand,
the repetition of the study may be difficultand
therefore the continuation of the time series
may be difficult. Therefore it may be better
to use the simple definition in spite of its de-
ficiencies.

Self-sufficiency ratios of individual pro-
ducts are the most common way of measuring
self-sufficiency. However, people are often
concerned about the total self-sufficiency of



agriculture. These types of calculations are
seldom made. It is possible to calculate the
self-sufficiency according to the energy, pro-
tein and fat content of the diet. These calcu-
lations are also made in this study.

A special indicator of the self-sufficiency is
calculated in this study, which shows how well
domestic plant production satisfies domestic
consumption. Plant production is the basis for
the whole of agriculture. A part of it is directly
consumed, but a part is processed into animal
products. Food security depends mainly on
how plant production is functioning, since
animal production is not so sensitive to risks
once the supply of feed is secured.

The self-sufficiency of inputs is more dif-
ficult to calculate. For example, machines are
often made of imported raw materials or parts
(Laaksonen 1985). Therefore the ratio of do-
mestic production and domestic use does not
necessarily indicate the self-sufficiency of
machinery. The simple definition has, how-
ever, been used in this study. On the other
hand, it may be noted that some of the im-
ports of spare parts or raw materials may be
of domestic origin because of the complicated
structure of foreign trade. The self-sufficiency
of energy is perhaps the most critical, with
respect to food security. Some calculations as
to the self-sufficiency of energy can be made
by using the imports of oil and electricity, as
has been the case in this study. For most of
the inputs the self-sufficiency ratios are only
indications.

The self-sufficiency ratios have been calcu-
lated on a calendar year basis. This is some-
times a poor indicator. For example, in the
case of grains, the production year might be
a better timeperiod. Arithmetic methods also
effect the self-sufficiency ratios. Sometimes it
is possible to calculate the ratios on a net or
gross basis. For example, grain production
and consumption can be calculated in either
of these ways. Production may include seed
and waste. Also, consumption may include
both of these items. Alternatively, production
may be calculated in net terms by subtracting
seed and waste. Similarly, the same can be

done with consumption. Using net or gross
figures gives, however, different results.
Therefore a careful use of self-sufficiency ra-
tios requires a clear definition of concepts.

4. Self-sufficiency of final products

4.1. Individualproducts

There are various methods available to cal-
culate the self-sufficiency of grains. In this
study the production of grains for human con-
sumption (or supply) has been calculated by
estimating the grain supply available for
human consumption and subtracting the seed
value from this. The grain supply for human
consumption of the total yield varies from
year to year depending on harvesting and
other climatic factors. Every year the Board
of Agriculture estimates thepercentage which
implies the quality of grains for human con-
sumption. The rest of the yield is used for ani-
mal feeding. When the seed is subtracted from
this quantity, we get the final supply of grain
for human consumption. This is then divided
by consumption which should be measured in
grains (see Table 1).

The self-sufficiency of wheat has varied
from 180 to 20 %. The year 1981 was par-
ticularly bad when almost all of the produc-
tion was of such low quality that it was only
good enough for animal feed. The area for
wheat production also fell considerably at the

Table 1. Self-sufficiency of grains in 1970—83, %.

Year Wheat Rye Barley Oats Sugar

1970 105 87 98 107 27
1971 125 100 105 117 29
1972 117 92 119 103 38
1973 137 102 98 96 35
1974 117 94 98 101 39
1975 181 63 125 120 45
1976 160 155 131 121 40
1977 60 63 123 92 39
1978 18 54 117 101 54
1979 54 62 110 111 45
1980 110 110 94 101 55
1981 23 30 80 84 51
1982 128 26 111 115 53
1983 176 106 136 129 74

145



end of the 1970’s which also lowered the sup-
ply of wheat. In recent years the production
has recovered to some extent, but imports
have been necessary to satisfy human con-
sumption. Wheat is also used for some indus-
trial purposes which increases the need for
domestic production.

The self-sufficiency for rye has almost
always been below 100 °7o. The area of rye cul-
tivation has decreased and there seem to be
difficulties in keeping the rye area around
50,000 or 60,000 hectares which is required for
domestic self-sufficiency.

Self-sufficiency in feedgrains has been ap-
proximately 100 %. In some bad years pro-
duction has fallen below the domesticrequire-
ments and imports have been necessary. The
years 1973 and 1981 were particularly bad and
then feeds had to be imported. Of course, part
of the imports of feed are always needed since,
for example, protein is insufficient in the do-
mestic grains. Soyabean meals and fish meal
are the normal imports. In addition, part of
the imports are needed to keep up export pro-
duction.

Concerning plant production, there are
some products which cannot be cultivated to
a sufficient extent in Finland. The self-suf-
ficiency of sugar is 50 to 60 % and particu-
larly the self-sufficiency of fruits and vegeta-
bles is always far below 100 %. Only apples
and some plums are cultivated in Finland, but
most of the citrus products and tropical fruits
have to be imported. Also vegetables like
tomatoes and cucumbers are imported in the
winter time.

However, where animal products are con-
cerned (Table 2), the picture is quite different.
Self-sufficiency of milk has been over 120 %

and has risen in recent years to about 130 °7o.
Also the self-sufficiency of meat has usually
been above 100 *Vo. Especially pork produc-
tion can be easily raised and there are pres-
sures to do so. With the help of all kinds of
supply restrictions the production of pork has
been able to remain at a reasonable level. Beef
production has been above the domestic con-
sumption in recent years, but due to the de-

Table 2. Self-sufficiency of milk, beef, pork and eggs
in 1970—83.

Year Milk Beef Pork Eggs

1970 125 110110 136
1971 121 127113 151
1972 122 119105 147
1973 122 10993 156
1974 125 109111 151
1975 120 10198 155
1976 124 101 165111
1977 131 10899 166
1978 128 117101 138
1979 125 11999 137
1980 120102129 140
1981 128113125 153
1982 no122 126 159
1983 116133 118 165

dine of dairy herds, beef supply will not rise.
It may even fall slightly in the future.

The self-sufficiency of eggs has been the
highest. It has been around 150to 160 % and
recent developments indicate that production
will fall.

4.2. Total self-sufficiency

It is slightly difficult to make any summary
or total figures of self-sufficiency for agricul-
ture as a whole. If we look at the calorie con-
sumption the self-sufficiency (Table 3) ratios
fall below 100 % in most years. This result is
due to the imports of sugar which make up
about 13 % of total calorie consumption.
Within total agriculture production sugar or
sugar beet is a minor product and the area is
only about 1.5 %. Therefore, the self-suffi-
ciency ratio for energy gives a biased picture
of total self-sufficiency for Finnish agricul-
ture.

In this study a special summary indicator
has been developed to examine the real self-
sufficiency. For that purpose, the total requi-
rement of plant production for the whole diet
is calculated. The majority of plant produc-
tion goes to animal production, but a part of
it is also consumed directly. Totalproduction,
measured in feedunits dividedby the diet, also
measured in feed units, gives an indication of
the agriculture needed to satisfy domestic con-

146



Table 3. Self-sufficiency of energy, protein and fat and
total self-sufficiency (see the text) in 1970
83, %.

Year Energy Protein Fat Total

92 109 1121970 104
91 1081971 104 114

1972 95 112 102 111
1973 90 107 98 105
1974 96 114 104101
1975 93 112 10896
1976 107 124 126103
1977 84 104 105105

82 991978 104 109
1979 78 98 103 111
1980 94 UI 110 114
1981 84 100 93113
1982 93 no 115 114
1983 110 117 121 130

sumption by domesticproduction. This index
shows that the total self-sufficiency of agri-
culture has been about 115 % on average
(Table 3), but the variation is very large. In
1981 the self-sufficiencywas only 93 % where-

as in 1983 the corresponding figure was
130 %. This result can be easily explained by

the large variation in total yield.

5. Self-sufficiency of inputs

The trade and industries producing agricul-
tural inputs operate in the free economy under
free competition. They buy their raw mate-
rials, inputs and articles with economic
grounds. Foreign trade is a part of their ac-
tions, as it is in the whole economy. There-
fore, it is quite natural that the self-sufficiency
of inputs is clearly under 100 °7o.

it may be necessary to point out in the be-
ginning that in 1983 the greatest share of all
costs was purchased feed (27.4 %, Kettunen
1986 a). The next largest share was the ma-

chine and implement costs (23.2 %), after that
fertilizers (12.9 %), mending costs (7.7 %)

and general costs (6.7 %) as well as fuel
(5.7 %). These account for 83.6 % of total
costs which do not include the labour input
of the family or the interest rate on the own-
ers’ capital. As to self-sufficiency, the most
important parts of costs are fertilizers, pur-

chased feed, fuel, electricity and machine
costs.

Even though there is domestic industry in
agricultural machines and implements, about
half of all machines sold are imported, i.e. the
share of domestic machines has been only
40—44 %. Finnish agricultural machines are,
however, exported to agrowing extent, which
means that the total self-sufficiency with re-
spect to machines is about 50 %.

The self-sufficiency of feed is close to
100 % even though it is slightly below, since
part of the protein feed is imported. Also in
bad years some feed, such as corn, has been
imported.

Fertilizers are the most critical input with
respect to a crisis. Their self-sufficiency is con-
sidered to be low. The energy and ammonia
needed for the nitrogen industry is imported.
Part of the raw materials of other fertilizers
are also imported. Phosphates are important
in agriculture. Nowadays Finland is almost
self-sufficient in this respect after the opening
of a new mine. Thus the most critical input
is energy.

Sizeable research is being carried out to
improve the use of biological nitrogen in agri-
culture. The problem is that agriculture is
specialised, and therefore the use of plants
producing nitrogen is not possible everywhere.
However, it would be possible to improve self-
sufficiency by thebiological binding of nitro-
gen.

Pesticides are also important in agriculture
nowadays. Domestic production satisfies the
needs, but a part of the raw materials are im-
ported, which is, of course, a weak point in
our food security.

It is difficult to estimate what the real
energy self-sufficiency would be in a crisis. At
the moment, agriculture is based on imported
energy such as oil or electricity. In a crisis
situation, oil could be substitutedby domestic
energy resources such as wood or biomass.
Their adaptation would, however, take a lot
of time and self-sufficiency would fall during
the years after the beginning of the crisis.
Again, research is being carried out to im-

147



prove the utilisation of domestic resources for
fuel of tractors.

It is difficult to make any summary estimate
of self-sufficiency of inputs. Namely, energy
is very important in this respect. If there is a
lack of energy, tractors would stop and agri-
cultural production would totally collapse.
Domestic resources can be a substitute for im-
ported energy, but there is no clear picture as
to how much time would be needed to adjust
to a crisis situation. Other critical inputs are
the raw materials for pesticides and fertilizers,
even though they would not create such a large
problem as energy. A rough estimate of the
self-sufficiency of inputs can be given: the
valueof imported inputs is about 15 % of the
value of all inputs.

6. Improvement of food security

6.1. Actions by the Government

The increase of grain stores is perhaps the
most concrete action by the government to
increase food security. The aim of the State
Granary is to stabilize grain markets in Fin-
land by storage. A few years ago, an Act of
Parliament was passed which implies that a
part of the stores are security stores; i.e. they
can only be used with the permission of par-
liament in a time of crisis.

The target is to provide security stores of
400 mill, kg of bread grains and 600 mill, kg
of feed grains. These amounts cover the con-
sumption of bread grains for one year and the
commercial sales of feed grains for about half
a year. The store capacity of the State Gra-
nary may, of course, be higher. In fact, it was
about 1200 mill, kg in 1984. Private commer-
cial firms as well as farmers also have stores,
and so the total storage capacity is much larger
than that of the State Granary. The most criti-
cal point in food security is in the summer,
just before the new crop. Stores have to be
sufficient to cope with a total crop failure. Of
course, such a failure or the collapse of farm-
ing is quite unlikely. Some forage (hay, silage)
is always obtained, as well as feed grains in

most cases, and feed grains can also be used
for human consumption.

The government has also planned for the
storage of some critical raw materials and
spare parts, but no significant results have so
far been reached. Oil reserves have been built
up constantly, a part of which are available
for agriculture, so fuel for tractors is secured
at least in the short run. The same applies for
the energy required for the fertilizer industry.

6.2. Other readiness for crisis

Energy is the most central input withrespect
to crisis management. Agriculture uses both
oil and electricity. A part of electricity is do-
mestic (hydroelectric power and electricity
produced by other domestic sources such as
wood and peat), so that a complete lack of
energy is unlikely even though shortages may
become evident even in agriculture.

The fuel for tractors is, of course, most
problematic. It can be assumed that during
normal conditions oil will not be substituted
by domestic energy sources, and oil will be
used for as long as it is available. In the case
of shortage, however, there are substitutes.
Carbon monoxide was used during the last
war, and its application has been studied and
improved in recent years. Its application in
agriculture in a crisis would be a comprehen-
sive task, particularly if all car and truck
traffic should use the same technology. The
transfer is, of course, possible, but it would
take many years. During the transfer period,
old technology has to be used partly with
stored oil, if the borders remain closed. The
preparedness to transfer to domestic energy
has improved in recent years, but it is still not
very good. Self-sufficiency in energy will not,
however, improve during normal peace con-
ditions, and oil will continue to be imported
in the future.

6.3. Fertilizer and other chemical industries

The Finnish fertilizer industry produces all
fertilizers used in the country but the produc-
tion is based on imported energy and raw ma-

148



terials. Should the borders be closed, produc-
tion of fertilizers will fall quite quickly. In the
long run, a fall in yields will follow. Energy
may be substituted by domestic energy, even
though it may take time.

The fertilizer industry uses oil as a raw ma-
terial in making nitrogen. Finland could use
peat instead of oil. In recent years plans have
been made to return to the use of peat so that
self-sufficiency will improve.

Phosphate is another critical raw material
in fertilizer products. Domestic raw materials
are available and self-sufficiency can easily be
increased up to 100 %. A decrease in the use
of phosphate would not be critical since its use
has been too high and it stays a long time in
the soil. The yield level would not fall due to
the shortage of phosphates.

The situation is worse in the case of potash.
So far, no economic raw materials have been
found in Finland. But in a short crisis the
shortage of potassium fertilizer may not be
sufficiently critical as to lower the yield level
considerably.

The self-sufficiency of other chemicals (pes-
ticides, herbicides) used in plant production
is low. The effect of plant production is very
great, so the use of pesticides and herbicides
would be profitable, even in the case of higher
prices through possible domestic production.

6.4. Alternative farming methods
The dependence of the fertilizer industry on

imported energy and raw materials has caused
a lot of discussion and research into the de-
velopment of natural or alternative farming
methods. Nitrogen fertilizers require much
energy. Leguminous plants and clover can
bind nitrogen in the soil which can then be
used by other plants.

A comprehensive use of these plants seems
to face many problems. Modern farming has
become very specialized, whereas natural
farming requires mostly mixed farming. At
the moment, there are no signs that natural
farming will increase to the extent that it will
be of significant importance to self-suffi-

ciency. It requires a long time period to in-
troduce alternative farming technology.
However, in a crisis situation good advice may
be more readily acceptable to farmers than in
normal conditions.

It is to be remembered, however, that the
energy used by the fertilizer industry is only
a small part of the energy needed by agricul-
ture. Fertilizer production should be secured
to the maximum amount since it is the most
effective input in agriculture.

6.5. Adaptation of consumption

The diet in industrialized countries is very
energy consuming. Consumption has moved
from plant products to animal products,
which means a larger use of resources than
earlier. The waste of energy when beef is sub-
stituted for wheat is over 90 °7o. The national
diet can be changed, without any nutritional
loss, to favour a greater consumption of plant
products; including a rather large self-suffi-
ciency reserve which can be utilized in a crisis.

A minimum requirement diet has been
planned for crisis periods which fulfills all
nutritional requirements. Its energy content is
about the same as that of a normal diet, but
it consists of different food items. There are
equal amounts of milk and milk products in
it as in the present diet, more grain products
and less meat and fat.

It is, of course, difficult to know how to
encourage people to adopt the crisis dietplan.
It should be possible to implement it by regu-
lation, but all kinds of rationing easily brings
about a black market, which weakens the
effect of rationing. In any case, it is possible
to adjust consumption to the crisis situation
without large nutritional problems.

Attempts will be made to maintain milk
production during a crisis since it is a major
protein source. Pork and egg production can
be decreased considerably, however, because
their normal production level can be restored
rather easily. This is not the case in milk pro-
duction since the raising of a dairy stock is a
slow process.

149



References

Anon 1982. PSM:n viisi vuosikymmentä. Pellervo-
Seuran Markkinatutkimuslaitos. Kouvola 1982, 80 p.

Fao 1975.Self-sufficiency in Food and Food Commodi-
ties. International Agricultural Adjustment, C. 75/
LIM/1, October 1975. 62 s. + 4 liit.

Kettunen, L. 1986 a. Finnish Agriculture in 1986. Agr.
Econ. Res. Inst., Pubi. 50. Helsinki 1986, 42 p.

Kettunen, L. 1986 b. Maatalouden omavaraisuus Suo-
messa vuosina 1970—83. Summary: Self-sufficiency of
Finnish Agriculture in 1970—83.Agr. Econ. Res. Inst.,

Pubi. 49. Helsinki 1986, 75 p.
Laaksonen, K. 1985. Maatalouden tuontipanosten kor

vaaminen kotimaisilla raaka-aineilla. Pellervon talou
dellisen tutkimuslaitoksen julkaisujaNo. 5. Espoo 1985

Laaksonen, K. jaKettunen, L. 1981. Maatalouden huol-
tokyky. Esitutkimus. Pellervon taloudellisen tutkimus-
laitoksen raportteja ja artikkeleita No. 14. Espoo 1981,
77 p.

Ms. received August 15, 1986.

SELOSTUS

Maatalouden omavaraisuus Suomessa
vuosina 1970—1983

Lauri Kettunen
Maatalouden taloudellinen tutkimuslaitos
Luutnantintie 13, 00410 Helsinki

Artikkelissa tarkastellaan maatalouden omavaraisuutta
ja huoltovarmuutta. Lopputuotteiden omavaraisuus on
ollut yleensä yli 100 % ja vain hedelmien ja vihannesten
omavaraisuus on jäänyt selvästi alle 100 %. Artikkelissa
on laskettu myös ruokavalion energia-, valkuais- ja ras-
vaomavaraisuus.

Artikkelissa esitellään myös koko maatalouden oma-
varaisuutta varten kehitetty indikaattori. Se on laskettu
jakamallakoko sato (rehuyksikköinä mitattuna) elintar-
vikkeiden kulutukseen tarvittavalla sadon määrällä (myös
rehuyksikköinä mitattuna). Sen mukaan kokonaisoma-

varaisuus on vaihdellut 105 ja 130 % välillä.
Tuotantopanostenomavaraisuudesta on esitetty myös

joitain arvioita, joskin on todettava, että esitetyt luvut
ovat hyvin likimääräisiä. Lopuksi artikkelissa tarkastel-
laan omavaraisuuden parantamiseen tähtääviä toimenpi-
teitä.

Artikkeli perustuu tekijän aikaisemmin julkaisemaan
tutkimukseen; Maatalouden omavaraisuus Suomessa vuo-
sina 1970—83, Maatal. tai. tut. lait. julk. no. 49, Hel-
sinki 1985.

150