Rural Development Policy and Food Industry Development: Investigations of Small Firms in Denmark

Abstract

Food industry firms in remote areas face a set of constraints, which have motivated the form and function of assistance instruments under various regional and rural development programmes. Recent food industry developments present new challenges to these firms, for which available assistance may be less appropriate. This paper employs telephone interviews and workshop discussions with firms in isolated locations to investigate their satisfaction with assistance programmes, their ability to innovate (through product introductions) and respond to challenges in the food industry (the emergence of power buyers). Further investigation was carried out on the topic of firms' formation of networks, and the use of available assistance in doing so. Firms' evaluations of support received in satisfying specified objectives are not correlated with their views on which objectives should be addressed. Some concrete suggestions for network activities had been made, but overall the development is at an early stage.