Better times for reindeer herding

Finland’s Natural Resources Institute expects the 2015-2016 herding year to be at least as good.

The profitability of small businesses engaged in reindeer herding has shot up dramatically, according to a new study by Finland’s Natural Resources Institute (Luke).

Income for those working as independent entrepreneurs in the sector rose to an average of €17,500, equivalent to wages of 11 euros an hour. That is double what it was just one year previously.

Most income for people working in reindeer herding comes from the sale of meat products, but also includes sources such as subsidies from cooperatives and compensation for losses to predators, as well earnings from tourism and forestry.

The most decisive factors, however, are the volume of meat and market prices. During the last herding year, the price of reindeer meat paid to producers rose to close to €10 per kilo.

Savings in production costs were mainly the result of fewer working hours invested and lower vehicle fuel costs.

This story is posted on Independent Barents Observer as part of Eye on the Arctic, a collaborative partnership between public and private circumpolar media organizations.

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