Natural plants in entrepreneurship

EU Novel Foods Regulation regarding products based on natural plants

Entrepreneurs are key actors in economic development as they influence EU innovativeness, employment and economic growth. Entrepreneurs in the field of products based on wild plants are finding themselves in a position where demand is growing, new innovative ideas are rising and domestic resources are becoming highly valued. The challenges for the sector lie mainly in the business environment they are acting in:

• The European Union Novel Food Regulation is puzzling. The regulations states “This Regulation shall apply to the placing on the market within the Community of foods and food ingredients which have not hitherto been used for human consumption to a significant degree within the Community AND which fall under the following categories: … (e) foods and food ingredients consisting of or isolated from plants and food ingredients isolated from animals, EXCEPT FOR foods and food ingredients obtained by traditional propagating or breeding practices and having a history of safe food use.” This wording has now left entrepreneurs and officials to interpret the regulation differently regarding whether wild and/or cultivated edible plants are or are not considered novel foods.
• Taxation of plants collected from the nature varies depending on what is picked (berries, mushrooms, cones or other) and what it is used for (food, medicine, cosmetics, ornaments). Also the processing level and place of sale influence tax treatment. Entrepreneurs have expressed a wish for clear tax instructions in order to secure equal treatment.
• Finland has had a systemized training program for herb collectors since the 1980s. The material used in the training has been found reliable and it has been continuously updated. The future of the training register is uncertain since there is no-one to upkeep it at the moment.

Natural Plants in Entrepreneurship is an assessment project that takes place in 2014: Ruralia Institute (University of Helsinki) and Oulu University of Applied Sciences are investigating the following issues from the entrepreneurship point-of-view:

1. the entrepreneurial effects of the Novel Food Regulation and instructions concerning it
1. how edible plants are used in other European Union countries
2. how different EU-countries instruct and oversee the use of edible plants
2.  the challenges of entrepreneurs specializing in nature-based cosmetics
3. the taxation of nature-based products
4. the significance of the training system regarding wild plant collection

Blog: http://novelfoodsregulation.blogspot.fi/
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For further information, please contact:
Project Coordinator Susanna Keskinarkaus, Tel. +358 50 448 2110, susanna.keskinarkaus@helsinki.fi