Procurement of additional grain for emergency stockpiles completed
In December, the NESA decided based on its own situation assessment to increase Finland’s emergency grain stockpiles. The amount of grain ultimately purchased was slightly greater than planned, as a result of which Finland now has nine months’ worth of grain in its emergency stockpiles instead of the previous six.
On 12 December 2022, the National Emergency Supply Agency (NESA) announced that it was launching the procurement of additional grain for Finland’s emergency grain stockpiles. The aim was to increase the size of the stockpiles with grains produced in Finland and suitable for human consumption by an amount corresponding to approximately 2.5 months of average consumption. The reason for this was the challenging global situation, in response to which Finland wanted to strengthen its long-term preparedness.
The NESA proceeded to establish a supplier register of willing suppliers, from whom grain was purchased on a weekly basis following a tendering procedure. The procurements were carried out between late January and March 2023.
The supply remained abundant, and with grain prices falling at the same time, the process was carried out slightly faster than anticipated. The sizes of the procurements were also increased slightly from what was originally planned, with the total amount of grain procured corresponding to approximately three months of human consumption in Finland. The procurements consisted of 64% oats and 36% wheat.
The procurements did not compete with the normal needs of the domestic market, as the grains purchased would have most likely been exported otherwise. This provided some leeway in terms of the procurement of grain for the domestic market. Cooperation with the companies and other industry operators participating in the operation proceeded smoothly and provided a good end result.
While the NESA is responsible for maintaining Finland’s emergency stockpiles, any decisions on the use of the stockpiles are made by the Finnish Government. The Government Decision on the Objectives of Security of Supply obligates the NESA to maintain emergency grain stockpiles corresponding to at least six months of average human consumption. Domestic grains play a crucial role in Finland’s primary production and food production sectors. If grain is not available in sufficient quantities on the free market, domestic demand can be supplemented by tapping into the emergency stockpiles.
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