The cows bleat and head straight up towards feed mother Ann Kristin Nes, who shakes the bucket with kraft fodder. We are at the far end of the sea gap in Askvoll in Vestland, where the cows graze in the summer. Little do the four-legged cows know that overnight they have become worth NOK 45,000 less. – I hope that the food chains reduce the price correspondingly in the shops, and that they don’t blow the whistle this time too, says Nes. The background is that Nortura, which is the farmers’ own cooperative, adjusted the price of beef by four kroner at the end of August. Where the price of “ordinary goods” is determined through supply and demand, the price of agricultural goods is “agreed” through active market regulation. 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, compared to wage trends Nortura’s aim is to raise the sale of meat, which has fallen in line with the general increase in costs. – We feel that the Norwegians are tightening up a little extra. That’s why the price had to come down, says Ole Nikolai Skulberg, who is director of Nortura. Higher interest rates and rising prices mean that the demand for beef has decreased, says Ole Nikolai Skulberg, director of Totalmarknad meat and eggs in farmer-owned Nortura. Photo: Trond A. Stenersen / news The drawing may indicate that the consumer goods industry is following the price signal, and reducing the price, but by how much is uncertain. Although it is the farmers’ own cooperative organization that is responsible for the adjustment, the reaction among Norwegian farmers has been negative. Ann Kristin Nes has 37 suckler cows, bulls and calves, and delivers 12,000 kilos of beef a year. She tells news that the price reduction “leads to even worse profitability in an industry that is already struggling”. Figures from the Operational surveys in agriculture from 2021 show that cattle producers had an average annual income of NOK 184,000. An industry with enormous profits While the cattle farmers struggle with low incomes, the Norwegian food chains Norgesgruppen, Reitan Retail and Coop are at the other end of the scale. The three chains largely divide the Norwegian food market between them. The key figure shows a very lucrative industry (see below). Good annual result The Norges group had an annual result of NOK 2.9 billion last year. The previous year it was 3.9 billion. Reitan Retail’s annual profit was NOK 2.5 billion last year and NOK 3.3 billion in 2021. Food stores in Denmark, Reitan Convenience and Uno-X Mobility are included in the profit. Coop Noreg’s annual profit was around NOK 500 million in both 2021 and 2022. The concentration of power in the grocery trade has been the subject of several analyzes and political initiatives in recent years. Symbolized by the “Daily Leggvare Project” under the auspices of the Competition Authority, and several hearing proposals signed by the Minister of Industry. Earlier this year, the food giants were summoned to the government to explain why prices were rising so quickly. Norwegian cattle producers will lose NOK 360 million if the meat price over time is as low as today. Photo: Bård Siem / news Kundar expects cheaper meat A few miles further east, in a Rema 1000 store in Førde in Sunnfjord, 16-year-olds Signe Langeland and Isabell Foss put meat dough in the trolley. They are positive that Nortura has reduced the price of beef. At the same time, they expect chains such as Rema 1000 to do the same. – It is important to get the protein and nutrients that are in the meat. If it is too expensive, it will not be bought, says Signe. Isabell Foss and Signe Langeland think it is a mistake that farmers are paid less for their meat, while the food chains have revenues in the billions. Here in a Rema 1000 store in Førde in Sunnfjord. Photo: Bård Siem Isabell nods. They believe that farmers should be paid better for the important work they do. – The big chains can get less, says Isabell.
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Farmers lose millions as meat prices fall – news Vestland
