Products of the new oat mill focus on export market
The global market for oat products is growing strongly, especially in the emerging economies like Asia and Africa. The investment in the oat mill of Suomen Viljava’s subsidiary will increase the value in Finnish oats and thus strengthen Finland’s position in the growing export market for oat products. Finland has a competitive advantage based on the availability and quality of oats, to which Viljava’s expertise in the production of oat and protein products brings a strong additional advantage. The oat mill will be built in the existing port warehouse in Rauma. The location is perfect for international maritime and railway logistics.
Market for oat products is growing globally. Finland is active player in growth
Consumers around the world know excellent health benefits of oats. Globally consumption of oat products as food is growing by 3.5% annually. Demand for healthier plant-based food and thus also high-quality oats is strengthened by, among other things, increased purchasing power, better level of education and increase in general health awareness of consumers, especially in the emerging economies of Asia and Africa. Product innovations are also significant drivers of the growth in demand for oats. In addition, oat products have a significant role to play in reducing climate warming, in particular CO2 emissions.
Finland is currently the world’s second largest exporter of raw oats after Canada, with an annual export volume of about 300-400 million kilos. Finland has a competitive advantage based on the availability and high quality of local oats, and the image of Finnish oats is very good in the world. Finnish farmers know how to grow oats. Finland has excellent know-how in the breeding of new oat varieties. For Finland this added value is to provide several opportunities: an investment in oat mill is a solution for this.
“Viljava’s know-how on oat and plant-based protein products together with the oat mill adds value in Finnish oats and enables the growth of Finnish exports in oat products. Viljava’s experience in implementing investments and an extensive customer network are significant additional strengths. The oat mill plays significant role in Viljava’s growth strategy, ”says CEO Pasi Lähdetie, “Oat mill company does not establish its own procurement organization and purchase oats from grain traders. The oat mill has no effect on the Viljava’s grain storage and handling business or on the national obligation, on its behalf, to safeguard food supply chain’s operations in exceptional circumstances. ” Lähdetie adds.
Excellent location of the oat mill: Connections to all over the world
Rauma region is significant oat production area. Viljava oat mill will be built in connection with the existing port warehouse in Rauma.
The Port of Rauma is a deep-sea container port with good connections all over the world, both as container exports by ship and as direct railway connections to the east to China. In addition to good connections, the location allows for moderate freight costs, especially for container exports.
The capacity of the oat mill will be 110 million kilos of oats. The products are made of 80 million kilos of groats and flakes. In addition, the mill will produce 35 million kilos of oat husk pellets for the Baltic Rim countries feed and biofuel market. Investment will be ready in late 2022.
CEO Pasi Lähdetie, tel. +358 50 360 9075
Suomen Viljava Oy was established in 2002 and it is Finland’s largest service company that specialises in the processing and storage of grains and agribulk raw materials. We offer storage and processing services both in the Finnish market and for companies that operate in export, import and transito trade. The company is owned by the Finnish government.
Viljava has 19 locations in 16 municipalities that are comprehensively spread around Finland. Almost half of the grains reaching Finland’s trade operations are transported via our storage facilities. Most of Finland’s import and export grains are transported via our port storage facilities, which are located in Naantali, Rauma, Helsinki, Loviisa and Kotka. Half of Viljava’s total volumes at our port storage facilities are stored and two thirds are processed.
On the other hand, Viljava’s inland storage facilities serve the domestic industries and primarily operate as storage facilities for the security of grain supply. We have powerful grain dryers in use in connection with our storage facilities in Koria, Kouvola, Kokemäki and Perniö. Our platform and silo storage facilities are also suitable for the storage of many piece goods and bulk goods. In Kokemäki is produced plant protein and oats products.
Viljava has a national obligation and special task, on its behalf, to safeguard the food supply chain’s operations in exceptional conditions.