Ready-boiled potatoes are placed in boxes, ready for departure to Norwegian hospitals and nursing homes. Grønt Partner supplies potatoes for tens of millions of dinners for the sick and elderly every year. But next spring it may look completely different. – My pleasant, good colleagues and I risk losing our jobs. It is obviously very serious. That’s according to production manager Terje Skifjeld in Grønt Partner. Production manager Terje Skifjeld in Grønt Partner believes the situation the company is in is serious. Photo: Tomine Walmsness / news Larviks businesses fear the government’s increased potato tariff, which will come into effect in September. It will make it much more expensive to import potatoes from abroad. – Total crisis Grønt Partner also mainly distributes Norwegian potatoes, but in the spring and early summer they always struggle to get enough. They have therefore been forced to import around 25 per cent from abroad. Exactly that gets a completely different price tag from September. – For our part, it will be a total crisis, says owner Øivind Moen. He has concluded that the customs will cost the company around 15 to 20 million extra. For a company with a turnover of around NOK 70 million, Moen thinks it will be too crowded. – We have no chance to bear that cost. So it’s actually just locking the door, says Moen. Bommar at the moment Norway is around 90 per cent self-sufficient in potatoes, and imports what we lack. But the government wants to increase the production of Norwegian potatoes, and is introducing this increased potato duty to achieve just that. But business owner Moen believes the government is in a hurry and that the customs duty is being introduced at the wrong time. There is a shortage of potatoes in Norway today, largely due to the extreme weather Hans destroyed large crops last year. Moen believes it will take several years before Norwegian farmers are able to supply all the potatoes both he and others in Norway need. – One is forced to introduce transitional arrangements, so that we can adapt to the market. As we see the situation, these potatoes are not available in Norway now. It takes a long time to cultivate, says Moen. Høgre asks the government to reverse The opposition party Høgre believes the government is forced to scrap the customs duty. They are concerned that Norwegian consumers will have to foot the bill for increased potato prices when the customs duty comes into effect. Anne Kristine Linnestad sits on the municipal and administration committee at the Stortinget for Høgre. Photo: Ragnhild Vartdal / news – The price of potatoes has already skyrocketed compared to what it was before, and we can see no reason why Norwegian consumers should get the extra duty and pay for it in addition, says Storting representative Anne Kristine Linnestad (H). She believes that the price of potatoes will increase so much as a result of the customs duty that the demand for potatoes will decrease. – Even more people want to switch from potatoes to rice and pasta, says Linnestad. Does not believe in bankruptcy The government, led by Agriculture Minister Geir Pollestad (Sp), does not agree that the customs will lead to bankruptcy for Grønt Partner. – I don’t believe in the premise that potato prices will go up and that they will go bankrupt, he says. Agriculture and Food Minister Geir Pollestad (Sp) is not surprised that Høgre is fighting against the government’s potato tariff. Photo: Haakon Laastad / news He believes that potato production in Norway will increase gradually. In addition, he underlines that the duty rates will be reduced in periods when there are too few Norwegian potatoes. Canceled contracts But business owner Moen says that it is not possible to turn around so quickly. This is a market with long contracts, where one is forced to plan far in advance. Grønt Partner has already found itself forced to drop several contracts with its foreign suppliers as a result of the price tag on the new customs duty. – Now I have contacted many of them, and they no longer have the potatoes. They are sold to others. And it is not the case that the EU stands at the border with 50,000 tonnes of potatoes in April, says Moen. Photo: Tomine Walmsness / news The Minister of Agriculture: – A little nudged Despite the gloomy future prospects in Larvik, the Minister of Agriculture has no plans to turn around. Pollestad will do what is necessary for Norway to be self-sufficient in potatoes. – It’s going to be a bit bumpy during a transition period, but it’s going to go just fine. There will be enough potatoes and the prices will not change, Pollestad. Published 16.07.2024, at 22.24
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Fears bankruptcy after new potato tariff – news Norway – Overview of news from different parts of the country
