The Sianoja dairy farm, located in Sastamala, Southwest Finland, has 75 milking cows. Considering that the national average for a Finnish dairy farm is 50 cows, Sianoja is quite a large operation. It sells all its milk to the Valio cooperative, of which it is itself a member. Valio is the biggest milk product producer in the country and one of the biggest food exporters in Finland.

Despite this favourable arrangement, further action needed to be taken to ensure the sustainability of the Sianoja dairy business.

The profitability of Finnish dairy farms has been steadily decreasing due to low dairy commodity prices and increasing production costs. Out of the total of 45 000 farms currently operating in Finland, less than 5 000 are dairy farms and the number is falling by some 8% each year. Ten years ago, in Finland there were around 10 000 dairy farms.

In this context, the Sianoja family farm decided to invest in alternative, renewable sources of energy to decrease their energy costs and support their long-term competitiveness.

The aim of this project was to increase the farm’s profitability by investing in solar energy production to reduce electricity costs.

In the first instance, the farm owners sought advice from the farm advisory service which is supported by the Finnish Rural Development Programme (RDP). A local company then installed a solar panel system, half of which would be directed east and another half west. This would maximise the opportunity for energy production during morning and evening milking times, when the need is highest. In total, 88 solar panels were installed on roofs of the farm buildings, generating 24.8kW of power.

The farm consumes 110 000 kWh annually and the solar panels produce enough energy to cover one fifth of this over the course of a year.

In the summertime, the panels produce enough energy to cover one third of the electricity consumed by the farm, so at these times, the extra energy is sold back to the local electricity network. The payback time of the investment is expected to be about ten years.

In Finland, solar panels are usually set up to face south. However, for dairy farms it is more effective if the panels face east and west.

CAP funding for farm advisors can help provide low cost advice to farms which can result in economic, environmental and social benefits.

“The investment has been so profitable that I’ve been thinking to extend it, installing solar panels also to south direction.”

Juha Sianoja, farmer