Nortura has found itself in a meat crunch. The market has not taken away cattle that have been slaughtered, and throughout the autumn slaughter has been frozen. But on 1 January, the status will be that the price of raw materials for groceries has increased by 28 per cent since 2020, according to the Norgesgruppen. – It’s a bit strange, considering that it’s already very expensive. I don’t buy that much meat, and at least now I won’t do it if the prices are going to increase, says Magnus Romkes Wold (24) in Norgesgruppen’s Kiwi store in Oslo. Magnus Romkes Wold (th) and his friend Erik Aarum Kirkegaard (tv) say they would eat more meat if the price were lower. Photo: William Jobling / news – So that’s the price it says? – I like to think that it isn’t, but yes, it is. Unfortunately, he says. 20 million taco dinners in stock Nortura’s regulatory stock, which stores surplus meat, is 4.8 million kilos of beef. That equates to over 20 million taco dinners. The Nation has written several stories about the record store during the Christmas period. At the same time, 70 percent of Norwegians believe that food prices are high, according to the newspaper’s survey. Agriculture in Norway operates with its own price system. Nortura has a duty to receive animals for slaughter, and also has the task of ensuring balance in the market by setting a price for the meat that can be taken out onto the market. When the prices are set by the Nortura board twice a year, they look at the market balance, changes in costs, how Norwegian meat is protected by prices abroad with customs protection, and how sales are going for different types of animals. – It is completely wrong to lower the price Director Ole Nikolai Skulberg in Nortura Totalmarked believes the market is in balance despite the record high stock, and emphasizes the price pressure due to the war in Ukraine and the energy crisis. The kilo price for cattle will be set at NOK 3.50 next six months because costs are increasing, Nortura announced in October. – Now the volume in stock is not problematically large. In ongoing production, it is natural that prices will increase as a result of what is happening elsewhere in society, says Skulberg to news. Ole Nikolai Skulberg is director of Nortura totalmarked, which is the market regulator for meat and eggs in Nortura. Photo: Trond Stenersen While the kilo price for cattle will be raised to NOK 3.50 next six months because costs are increasing, frozen whole carcases will receive a discount of up to 17 per cent. – We have already started sales in the space of Christmas, and we see that the discounts are also having an effect in the market. – But why don’t you lower the price of all beef to avoid the meat piling up? – Now we are entering a period for the whole of the next six months where there is a deficit in slaughtering in Norway, so there is a need for the meat that is in storage. In that sense, it would be completely wrong to lower the price in a market that is not in balance, he says. Norwegians have to eat about 1 kilo more meat to take away Nortura’s stock. In total, approximately 100 million kilograms of meat are sold each year. Photo: Gorm Kallestad / NTB Believes more expensive meat affects sales During the pandemic, there was no stock to speak of, because Norwegians ate more at home and dropped cross-border trade. “Unfortunately, it does not appear that the producers have taken sufficient account of the fact that cross-border trade is back to normal when they have planned cattle production,” says communications director Stein Rømmerud in the Norgesgruppen. Stein Rømmerud in the Norgesgruppen sees that people buy less meat after the borders were opened for trade. Photo: Ola Hana / news Competitor Coop believes that grocery and Nortura must join forces to see how prices can be set to get more people to shop, and is aware that the market is out of balance. – The most important reason is that the price of meat has gone up quite a bit and that the Swedish trade is open again, says communications director Bjørn Takle Friis. Communications Director Bjørn Takle Friis at Coop. Photo: Coop Rømmerud also believes that the rise in the price of meat since 2020 is part of the explanation. – It obviously also affects sales, he says, and is supported by Bunnpris owner Christian Lykke: – Customers have major challenges with interest and electricity costs, says Lykke. The price of meat was more or less stable between 2015 and 2020. In the last two years, the price of meat in the shop has risen by 24 per cent, according to Statistics Norway. Bunnpris owner Christian Lykke sees that consumers are more concerned about price and buy less meat after the price jump of recent years. Photo: Kjartan Ovesen / news Bunnpris believes that increased prices will result in even more meat in stock. – There will be fewer steak meals, and it’s clear that if you want to enjoy yourself a bit, you have to be able to afford it, and then the price has to come down, says Bunnpris leader Christian Lykke. Increased food prices The comparison of food prices and the wage trend says something about whether you get more, less or the same amount for your money. When the development of food prices is higher than the development of wages, it means that food has become more expensive. Both figures are averages for the specified period. Read more about sources and reservations here. How much food prices have increased in the past year, comparison with wage development Food Nov 2021 – Nov 2022 Wage development Estimates for 2022 FRP believes the government should intervene Nortura sets the prices of meat and eggs is also politically controversial. The FRP believes the farmer-owned cooperative must lower prices when stocks grow. – It shows a system that doesn’t work and where you don’t take into account what the market demands. It’s not the first time it’s happened. Nortura dumped fully usable eggs instead of reducing the price this autumn, says parliamentary representative Sivert Bjørnstad (Frp). Storting representative Sivert Bjørnstad (Frp). Photo: Anne Cecilie Remen / news This autumn, eggs intended for human consumption were used for animal feed after a long period of overproduction, according to Nortura. – Couldn’t another solution be to reduce the import of meat, to strengthen our own farmers? – I am concerned that consumers should have the freedom of choice to buy what they want. Also on meat. I don’t think restricting imports even more solves the problem, he says. Bjørnstad believes that Agriculture Minister Sandra Borch (Sp) must have a chat with Nortura. – In the short term, I think the Minister of Agriculture should call Nortura on the carpet and ask if this is really such a good idea. If Nortura thinks so, the Minister of Agriculture should take action. Read also: Nordea believes the peak of price growth has been reached. Believes Frp is putting food security at risk. The Center Party has been the foremost defender of the price system. It will ensure that Norwegian farmers can produce food for a stable income without being outcompeted by cheaper production abroad. Borch recalls this year’s huge agricultural settlement, where the government took a large part of the bill instead of increasing food prices a lot. – The agricultural settlement, which the FRP wants to cut, and the market balancing that they are now working towards, are stabilizing factors for both farmer and consumer in the difficult situation we are now in, she tells news, and continues: – If we had left the market govern ourselves, as the FRP suggests, we would probably have lower Norwegian food production and worse food security. Agriculture Minister Sandra Borch (Sp), here together with Prime Minister Jonas Gahr Støre (Ap). Photo: Tariq Alisubh / news
ttn-69
Never had more beef in stock – still raising the price – news Norway – Overview of news from different parts of the country
