 Minä olen todellinen, että olen todellinen, että olen täällä. Minä sanoisin, että yritän ilman, koska olen tullut koko paikalla. Ja ensimmäisenä sanoisin, että olen tullut koko paikalla ja ilman. Meillä on paljon kokemuksia. Meillä on koko paikalla tai Eurooppaa. Meillä on Vest-North ja meillä on Vest-North-East. Meillä on koko paikalla. Tarkoituksessa on tärkeintä, mutta voin sen jälkeen yhteistyö. Tuolloin FIllandain keskeistä oli syrjässä 90-luvulla, ja koko Suomea tulee tullut koko paikalla. Meillä oli paljon koko paikalla jatkyvially ilman vuosien 20 vuotta. Itse build up our competitiveness as a nation. But the agri-food sector in Finland is not at the same position like it is in your country. Finnish agriculture is only about 1% of the total European Union agriculture. For example our milk quota at the moment is about 1.4% of the European milk quota. And also that in terms of the population we are only a little more than 1% of the European population. But one thing which is important for Finland is that when looking to the income of our GNP about 40% is coming from export of goods and also services more and more at the moment. My background is in dairy like it is said earlier. I have been employed by Valeo, the leading Finnish cooperative in dairy more than 30 years. But I retired last week so I have now freedom to speak about the experiences and I'm not being any more official spokesman for Valeo. So that's the reason I changed a little bit the title when talking about the innovations. And I have a little bit skeptical view about the innovations because it has become a little bit glissair type of work. Everybody is talking about innovations that innovations are going to save our economies and so on and so on. I can tell you a couple of cases what I have experienced and seen in the first in Valeo. And the second case is a Pennekel case from a Finnish food company by name Reissia. Sorry for the misspelling. And then I will talk a little bit about the challenges what I have seen during my career as an executive or big company. And then finally to make some concluding remarks. I made just as a curiosity a visit to the annual reports of the leading global food companies. And it's funny that you find all these six words in almost every annual report of the company. All the companies they want to be dynamic, they want to be innovative, they want to be global players, they want to build healthy nutrition, they want to be sustainable and finally competitive. Everybody strives to the same direction. And when looking to the trends it's very easy to find also similarities. Everybody is talking about healthiness, fitness, convenience, indulgence and every product has to be also ethical. Very natural requirements for also food innovations. And what we have experienced and learned very general requirements for innovations. Like it was shown up by the previous speaker also. So what we need, we need certainly we need science and we need technology resources. But then somebody has to apply the knowledge in terms of the research and product development projects. And what is needed more and more today is that science based evidence is needed. And then finally you have to have the patent protection. And in terms what happens inside of doing all these processes. You need functional cooperation with marketing production and sales. And what is very special in our case, what is a bonus in Finland is that like mentioned we are a small nation, only 5 million people. And so this has proven and become us a very important pilot territory. Where we can test and try all kind of funny ideas. And this is something what you should think also in Ireland. Because you are a closed or small enough small market and you have powerful companies who have resources to execute innovative concepts. And one case what I would like to bring up from Valio is how we have built a totally new category in dairy. And now I'm talking about lactose free products. But here we have a long story what we have to remember is that why we started to research and look at the lactose issue in milk and dairy products. Very simple reason because it is said that 17% of the Finnish population is lactose intolerant people. And what happened already in the late 70s when a person went to the doctor and complained that I have something problem. Something in my stomach and I'm not feeling well. The doctor said that please leave milk because you are lactose intolerant. And that caused us a lot of problems in the dairy industry. And we had to begin to work. We had to begin to develop the technologies. First very simple how to reduce lactose by enzymatic hydrolysis. And then we improved the technology through chromatographic separation to remove lactose totally. And now we have gone to the filtration techniques how to remove lactose. And what has happened during this time is that we have been able to build a totally new dairy category in dairy milks. Where we apply new type of technologies and with these new technologies I mean filtration technologies. Which are totally new for the traditional dairy processes. And suddenly we can see that future of traditional fresh milk has changed. So there are new opportunities to make in the future milk for recovery after exercise. Cooking milk products which don't burn into the kettle. And all kind of value added milks for nutrition. And this is actually at the moment a very fast moving technological area where all the dairy companies are looking for new applications. And especially it's interesting to see what will happen in the US when all the soft drinks are removed from the schools. And they should be replaced by more nutritional and hopefully by more nutritional milk based products with new technologies. And with these lactose free products what we have done in Finland and Sweden that we have built a new category. And at the moment the value of the sales or the revenues of this totally new category is more about 200 million euros. And that's important for very important for our revenues and also profits. The second case I would like to bring up is the situation what we have had in Finland traditionally in the 70s. Is that we have had one of the world's highest rates of cardiovascular diseases. And at that time Finnish government started a project. Health in the ground breaking health intervention called North Korea project. Where in a certain territory or region in the country the total diet of the people was changed. That meant a lot in dairy consumption but also gave an idea for ratio to develop a new type of food products. Where the cardiovascular disease influence was reduced by adding some cholesterol reducing ingredients. And this was the beginning of the ratio, ratio, benegal story. And here we can say that in a way since it's not always that everything is carefully planned and forecasted. But you may make also real inventions in that sense. The issue here was that how to get plant sterols into food products. And this rise in a way was that how to produce stunnall esters. And which you are able to add to food products in enough big quantities. And that was the beginning how the first cholesterol lowering foods were created. And like said they should be according to the standards of normal foods in terms of the taste. And like said, Raisio has been able to build this benegal brand, a global brand. And not only in terms of the ingredient but also with the end products. And in their annual report they say that this is for them nowadays more than 200 million euro business. And like said they have been able to develop the technologies where they can introduce this ingredient. Stannall ester to all kind of food products including also yogurt drinks and spreads and milks. Like said this is a story or case where you can say that by adding an ingredient you can develop or innovate something new. And the beginning here was the national health problem what we saw in Finland. And it's interesting to see that what's happened since 70's in terms of the cardiovascular diseases in Finland. But as a daily man I must say that this is not only the benefit of the benegal. It's also one part is that all the major daily products have become low fat. So the overall fat intake has reduced at the same time. So these are two cases where we can see that it has paid off to innovate. But like said in everyday life innovation in a food company is not so easy and rightful what you can see from the successful cases. So innovation is a distraction until it pays off. And like said our experience when building the innovative concepts we can divide them to technology based innovations or science based innovations. And the third category is certainly the market based innovations. And our experience is that when planning your processes and targets for innovations you have to look for enough big markets and international potential. Certain difficulty at the moment is the regulatory environment where we are living. We all know that how difficult it has been in the recent conditions to prove the effect in that sense that you get the official claims from our European Food Safety Authority. And that is a real burden for many and I would say for even global and big food companies how to make this research enough proof that you can get these claims through. But some companies have already succeeded with their ingredients. But like said innovation as a process is always in a company it's an investment for the future and it is a risky investment. We all know that when building up your knowledge when building up your ecosystem for the business case and organization it costs you all the time money. And the question is that what is the time length when everything pays off. And we have here a certain type of framework what we have used quite a lot in our company. I mean Valio that how we can build the different kind of business cases and this is actually a model developed originally by Boston Consulting Group. But I have found this very useful and we have decided in many cases when building the business case that what kind of model is the best one. And especially for a small or medium sized company like we are in terms of the global context. We have the basic models are you integrator are you orchestrator or are you just selling the licenses. And a little bit to explain what this all means that in the integrator model it means that you want to do everything yourself. And there are some brands mentioned in other fields or industries. And our experience is that you have to be not local strongly strong that you can play a model where you are an integrator. The second model is the orchestration orchestrator where you combine different disciplines in your business case. And certainly you can reduce your risk level. And the third one is the licensing model where you only license with under I would say. As a risk free your business out to the other party who makes controls. And make controls for the business itself. But then at the same time when your risk level is less so it means that your revenues are also less. But finally I would like to conclude my presentation in this a little bit complex picture. But my personal lesson when talking about innovations and how to make a business out of innovations. The key issue here is that not only the technology or competence or knowledge what you have been able to develop according to the rules and regulations. You have to think what is the market you are going to market your product. We can see that you can divide the consumers which are technology oriented consumers. Or the consumers which are lifestyle oriented consumers. And the third category is that if you are able to introduce your product on the market. And just take a few examples so you see in this picture a lot of familiar brand names. But when looking to the innovations in food and in the past 10 years. It is amazing how big success Red Bull has made. Red Bull has been able to penetrate to mass market product with innovation. Innovating product concept. We all who know food technology and food chemistry can evaluate that is that product. And innovation at all. It is just a mixture of flavors, ingredients and some active components. But anyhow if they have been able to build a successful global brand and make a huge business out of it. At the same time we have seen that on the technology oriented consumer side. There are very valuable nutrition and valuable products. So my conclusion here is that when talking traditionally in my great agriculture business. We are two technology and two science mindset people. It should be more market oriented, more marketing people and skillful in marketing. And that is my final conclusion that when talking about innovations. We have to change our mindset from technology to more market oriented approach. In the whole process what we are doing in order to become more successful. We are able to penetrate in our big markets.