Upcoming Events
The Entrepreneurial Summer Academy
Date: June 15th - 18th
More information on the TRADEIT Website
Location: Tralee, Ireland
Contactperson: Breda O'Dwyer



Food safety and quality management for the small-scale traditional food sector
Date: September 18th
Trainer: Mari Vartiainen / Elintarviketurvallisuus ja laatu
Location: Kuopio, Finland
Contactperson: Anna-Maria Saarela

Environmental Management & Production of traditional baking goods
Date: September 19th
Location: Rehbrücke, Germany
Contactperson: Dr. Karsten Schmidt

Feature Article
Needs and Barriers: Technology, Innovation & Business Development
 

Fragmentation within the Bakery, Dairy and Meat sectors across Europe often results in Traditional Food Producers (TFPs) being less competitive than they might otherwise be, discourages collaboration, can make getting business funding difficult and diminishes opportunities for sales and marketing.


To gain a deeper understanding of the issues and specific challenges facing TFPs the TRADEIT project consulted with enterprises (Bakery, Dairy and Meat sectors) to identify current technology, innovation and business needs, including barriers to implementing solutions at a local level. A bottom up approach was taken with 340 surveys were completed and 322 enterprises participating in workshops, seminars or receiving onsite visits. The results highlight some of the major concerns facing the traditional food industry today.


The biggest business challenges regardless of sector, country or turnover are managing growth, increasing costs, economic uncertainty, lack of marketing expertise and identifying skilled labour. Poor access to facilities was cited as a major issue in Ireland, Poland and Italy. The traditional food sector is vibrant, food producers are focused and progressive with growth strategies including new product development a high priority for the European TFPs consulted. However despite this ambition, internationalisation is a real issue with significant challenges encountered in securing export markets, notably the German food producers were the exception. There was no consensus or clear trend on capital and access to finance as a business issue. Of note sustainability did not rank as a priority, this is a key issue to be addressed by the TRADEIT project, suggesting that the first wave of activity should be an awareness and educational campaign.

The topic of technology upgrading was particularly interesting; the willingness to adopt new technology is highly variable. The majority of enterprises identified the lack of technology adoption as a major challenge to business growth, with cohort of food producers indicating that new technologies are not a major barrier to business growth or competiveness. This was linked to the opinion on the “hand-made” aspect of traditional food production as a barrier to technology upgrading. Interestingly securing information on new technologies is a real issue for many companies, with an emphasis on the need for sector specific information on technological developments and technology transfer support infrastructures.


Interestingly approximately 40% were of the opinion that there is little demand for innovation in the traditional food marketplace. Availability or lack there of in-house innovation expertise is not perceived as a major determinant, key factors are the lack of funds (both in house and externally available), lack of access to external knowledge (Universities, R&D Centres, Technology providers) and difficulties finding partners for co-operation. Key topics of interest for innovation and technology acquisition was in the areas of food safety and quality, packaging, shelf life and food chain management.

The detailed understanding of these issues enables the TRADEIT team to target the specific needs of the Bakery, Dairy and Meat TFPs in their local regions. On the technology identification, selection and transfer supports needed a broad programme of Technology Brokerage events and SME missions will be hosted at each of the TRADEIT Hubs supported by the TRADEIT eMarketplace (where TFPs can ask for and receive support on technology, innovation and business related issues)a. All events are promoted via the TRADEIT website and updates, join the TRADEIT mailing list if you wish to receive event notifications. 

Traditional Food Research and Innovation Landscape
 

TRADEIT is currently identifying and prioritising future research activities relevant to Traditional Food Producing (TFP) SMEs in the Dairy, Meat and Bakery sectors to promote research development and innovation  (RDI) within TFP enterprises.


To determine the current status of the Food and Research Innovation landscape in the context of Traditional, Craft and Ethnic Food producing SMEs recent European-wide and National Strategic Research and Innovation Agendas including the ETP Food for Life, SRA 2007 and SRIA 2012, JPI A Healthy Diet for a Healthy Life, Commission, Food and Drink Industry, Innovation Strategy and policy documentation were reviewed to identify components relevant to the Traditional Foods Industry.

Key scientific challenges for the Traditional Food Producing SMEs identified:

  • Health & Nutrition: With increasing consumer demand for both healthier food and for foods with specific health benefits there are a significant market opportunities to capitalise on. RDI is required to develop and characterise convenient, high quality personalised food products to meet diverse consumer demands, including studies to explore and verify the effect of specific foods on human health.
  • Safety: Food safety remains a priority of the European Food Industry, with recent large food safety incidents. Key RDI needs are technologies for the characterisation early detection and elimination of chemical, biological, processing related hazards.
  • Sustainability and Ethical Production: Covering multiple topics such as food security, sustainable agriculture, bio economy challenge, resource efficiency and food distribution. SMEs also face tough economic constraints to comply with stringent EU environmental legislation on (for example, IPPC, Emissions Trading Schemes compliance costs).
  • Food processing and packaging: New processing, production and packaging technologies are required which achieve a balance between enhanced process performance and impact upon food quality, safety, environmental performance and impact (e.g. low waste, active, intelligent packaging).
  • Consumer awareness: Studies are required to better understand the consumer and to ensure that new food related developments, as part of balanced diets and active lifestyles, are accepted by the consumer.
  • The food chain: There is a need to adjust the trend towards increased process integration along the value chain to the organization of a flexible and responsive network approach to adapt rapidly, to overcome structural problems and to focus on consumer needs. Technologies developing improved logistics (from farmer, processor, distributer, retailer, consumer), greater knowledge of consumer preferences, pricing strategies, exploration of alterative retail structures and social innovation led activities are required.
  • Innovation: Continued facilitation and promotion of innovation in the food sector is required to ensure the sector evolves and regains its competitive positioning in a global setting.


This insight will be drawn upon in future stakeholder consultations to accelerate and focus discussions on key areas of importance to the traditional, craft and artisan agro-food producers to develop a Strategic Research and Innovation Agenda for the European SMEs.

The research agenda developed will proposes topics to promote investment in development of technologies and processes that are relevant and economically viable in the setting of small and micro scale food enterprises.

There is at present European wide consultation toward the identification of research needs and topics, suggestions and recommendations are welcomed at info@tradeitnetwork.eu

Latest News
The Entrepreneurial Summer Academy
 

TRADEIT will offer a 3-day intensive entrepreneurial training program to Post Graduate Food Researchers and Research Centre Managers on June 15th – 18th, 2014 in Tralee, Ireland.  The participants will be afforded the opportunity to consider setting up their own business and/or leading innovative solutions for an existing Traditional Food SME.


The top 25 researchers and the top 5 research centre managers will have the opportunity to network with their peers and the panel of speakers and representatives of the SME and MNC corporate sector. The first 30 applicants selected will receive the following:

  • An opportunity to explore the commercial value of your research
  • An opportunity to scope out an innovative and enterprising culture for your research centre
  • A comprehensive resource pack
  • Ongoing virtual support
  • Local mentor support
  • Access to an extensive network
  • Waived registration fees for the Entrepreneurship Summer Academy
  • A travel bursary for flights and accommodation.

There is a top line of speakers and panelists attending the academy with significant experience and track record in Europe and beyond.  Full details of the all the speakers and panel members are available on the TRADEIT website.
Participants will have the opportunity to network and learn from their peers, research centre managers and representatives of the Traditional Food SMEs throughout the Academy.
At the end of the Entrepreneurial Summer Academy the food researchers will have acquired a ‘ready to go to market’ resource pack but more importantly with a network of contacts and supports through the International TRADEIT community which will enhance their Entrepreneurial and Innovative mindset.

How to apply?
Please complete the application form available on the TRADEIT website.  There are only a limited number of places available on the programme. Please submit your application on time to breda.odwyer@staff.ittralee.ie by 5pm on Friday May 10th, 2014 by email or by post to Breda O’Dwyer, Manager CEED, Tom Crean Business Centre, Kerry Technology Park, Tralee, Co. Kerry, Ireland.

Traditional Food Producer
Case study: Maitomaa interview
 
maitomaa.jpg

“In a small organization flexibility and adaptability are essential for survival in today’s marketplace” Mikko Sairanen, Managing director of Maitomaa.

Company history
Maitomaa, now one of the oldest co-operatives in Finland was founded in 1915 by a group of milk producers driven by the need to have a single location for milk processing and diary produce manufacture.


Currently owned by about 120 milk producers with about 50 employees the company has survived in a time of significant change and challenge in the Dairy Industry.  On the one hand the numbers of dairy producers is diminishing whilst the remaining producers are getting larger. Today in Finland there are 35 dairy production facilities, half the number of suppliers in place 20 years ago. The market of dairy products has turned into a more global one and there is a higher demand for authentic high quality products.

Products

Maitomaa, the largest facility in the category of small dairies in Eastern Finland, started out producing butter and progressing to cottage cheese, which continue to be key products in the Maitomaa offering. The company has been producing consumption milk since 1995. The high demand for genuine pure Finnish products has been a key driver of success at the co-operative, which is only supplied by regional milk producers.
However, as is the case with many traditional food producers, in order to retain and expand market share Maitomaa has had to innovate and diversify on its traditional product ranges. This includes development of a new UHT (ultra high temperature) line used to produce a range of milks and Cottage Cheeses. The use of UHT treated milk ingredients has provided diverse market opportunities, including development of lactose free product ranges (UHT milk is lactose free), a high demand product category in Finland. The company has capitalized on regional and national demand for extended shelf life produces and is targeting Maitomaa to expand into new markets due to the logistical advantages derived from the extend shelf life.  
Building on the strong ethos of innovation Maitomaa has entered into a partnership with a traditional brewery, Olvi-brewery developing a unique range of drinkable high protein, high fiber snacks and sport beverages. All Maitomaa branded products are sold nationwide, in addition to supplying own label products for the retail multiples such as Lidl and SOK, with 35% of the butter production exported across Europe.

Future plans and marketing
With regards to future plans there are a number of key target areas including continuous growth in domestic trade through a combination of marketing and product development and a parallel expansion with export into the Russian Markets.
There are many opportunities around the UHT-line, however new product development activities require significant investment, and securing the necessary resources is challenging. In addition to having to incorporate a strategic focus on product innovation, Maitomaa is also focused upon being more relevant and innovative in its marketing activities. The company is about to move entirely into digital advertising and social media based advertising campaigns, which are more effective at targeting new consumers and markets.  
Maitomaa as an organization has a strong focus on sustainability and the environment, investing in new technologies, to reduce energy consumption and emissions improving their carbon footprint. The company has also secured an environment certificate, Hyvää Suomesta-Produce of Finland, This aspect of the company is also a differentiator which will be drawn upon.
Whilst challenges such as market variability, milk price, regulatory demands and resourcing are significant, Mikko Sairanen is confident about the future of Maitomaa.

TRADEIT-project
Savonia University of Applied Sciences introduced Maitomaa to the TRADEIT consortium when the project was being developed and the company is one of the Traditional Food Producer partners.
Maitomaa is hoping to connect with other enterprises, product and technology developers to identify and develop innovations and ideas for new processes and products, ideally through an open innovation forum, Mikko informed that  “It is easier to create solutions when you receive the help from other companies and also return the favor, providing an opportunity for expanding and sharing knowledge”. Maitomaa has identified opportunities and possibilities for waste management, environmental issues, packaging solutions and product development which it will further explore and develop through the networking and support activities of the TRADEIT project. Even more exciting is the possibility of developing new processes and solutions that would never have occurred without this opportunity.

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