Rural development policy and food industry development: investigation of small firms in Denmark

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.