Bakeries in Finland struggle with rising costs as local businesses threaten to close
Small local bakeries in Finland are facing significant challenges due to rising costs in recent years. Minna Saarelainen, the owner of Lapin leipomo in Rovaniemi, reports that the costs of raw materials, packaging, transportation, and energy have escalated quickly, reducing the profit margins for bakeries. As a result, Saarelainen fears that many traditional regional baked goods may disappear entirely, with predictions that only a handful of large baking companies will remain in Finland if the trend continues.
Recently, another local bakery, Kursulainen, which has operated for over 40 years in Salla, announced its closure, citing ongoing inflation and competition from larger bakeries as the primary reasons. The business is set to bake its last products tomorrow, having already closed its online store.
According to Saarelainen, smaller bakeries struggle in price competitions due to their less efficient production methods compared to larger firms, leading consumers to opt for cheaper options. Despite these challenges, Saarelainen believes there is still space in the market for high-quality local products, urging bakeries to identify their strengths and find unique offerings to survive.
The situation is not all bleak, however. Both Lapin leipomo and Karkiaisen leipomo in Tornio report healthy sales, especially during the tourist season, which has positively impacted their overall revenue. Saarelainen is currently exploring the development of a product range tailored to the tourism sector, which differs significantly from grocery sales, as the demand for local breads increases with tourist footfall in Lapland.