Since 2007, the private dairies such as Synnøve Finden and Q dairies have received more subsidies and less taxes. This has enabled them to compete with the dairy giant Tine. But in the Hurdal platform, the government promised that these competition-promoting measures would be phased out. Synnøve Finden thus fears for the future and has already introduced an investment freeze. – This means that we are slowing down in terms of innovating, coming up with new products, streamlining and renewing our machines so that we maintain both our efficiency and our competitiveness, says Erik Brekstad, who is the factory manager at Synnøve Finden in Alvdal. MATURE: Erik Brekstad, factory manager Synnøve Finden Alvdal fears for his 230 jobs and believes it is time for change. They were visited by Conservative leader Erna Solberg on Wednesday. Photo: Geir Olav Slåen / news May lose jobs Sofie Oraug-Rygh is director of Synnøve Finden/Scandza. She believes this will have major consequences for the private dairies. Among other things, she believes that jobs in the rural areas will disappear. In Alvdal, they have 230 jobs at the dairy. NO BUTTER ON THE DISK: Erik Brekstad and Sofie Oraug-Rygh, director of communications and government relations at Synnøve Finden/Scandza, explain that if the competition disappears, everyone loses. Photo: Geir Olav Slåen / news They are supported by Conservative leader Erna Solberg. She stopped by the dairy in Alvdal when she visited Innlandet. – I am afraid that district jobs will be lost. Afraid that consumers will get a poorer selection and higher prices. And that farmers get less demand for milk-based products, says the former prime minister. Fears that the monopoly may be revived Tine dairy had a state monopoly on all milk in Norway until 1995. Oraug-Rygh in Synnøve Finden says they fear that this may be revived if the private dairies are no longer able to compete. – Synnøve Finden and the Q dairies as we know them today will disappear and we believe that ultimately the monopoly will be resurrected, says Sofie Oraug-Rygh. Q-Dairies also say they are in a demanding situation now. Kristine Aasheim is chairman of Q and says they invested over 1.1 billion in the last 2 years at Jæren and in Gausdal based on political promises of stable framework conditions that ensure competition in the dairy sector. In order to deliver milk to the whole country, Q-Meieriene with its two dairies has one more transport leg than Tine. They have to get the milk delivered to the wholesalers all over the country, before they distribute and deliver on. Tine, on the other hand, has the opportunity to deliver directly to the country’s stores. SHAKE THE SYSTEM: Chairman Katrine Aasheim of the Q-dairies is not satisfied. She thinks it is time to shake up the fixed structures. Photo: Q-Meieriene Q-Meieriene received partial support to manage this extra cost until last autumn, when a decision was made in the Norwegian Directorate of Agriculture that the company was no longer entitled to this transport support. The dairy has complained about this. – We bleed every day and lose volumes. We are very concerned about the investigation that is now being carried out. How will the authorities achieve healthy domestic competition if it is not arranged so that the competitors of super-dominant Tine actually get to start on the same starting line in the competition?, asks Aasheim. She adds that they want the whole scheme to be evaluated together. – We promise that we will fight for competition, diversity and freedom of choice for consumers, says Aasheim. The scheme is to be evaluated Ole Martin Buene is communications director Tine. He says that Synnøve Finden has had a lower raw material price than Tine has had through the subsidies they have received. An evaluation of the scheme as it stands today has been initiated. The Norwegian Directorate of Agriculture implements this together with the Norwegian Competition Authority. Buene hopes it concludes that all players in the market must compete on equal terms. – It is essential for competition in the market, which in turn is good for farmers as well as for consumers, he writes in an e-mail to news. EVERYDAY FOOD: Agriculture Minister Sandra Borch points out that they are evaluating the competition-promoting measures for the fifth year and that this must be done in good dialogue with the industry itself. Photo: Torbjørn Tandberg Agriculture Minister Sandra Borch emphasizes that it has not yet been decided what will happen with the competition-promoting measures. She says the government will only draw conclusions when that evaluation is ready. The dairies have had a price equalization scheme which means that the price differences should not be so great. She assures that this arrangement remains in any case and is important for the entire milk sector. Borch also says that they have to look after Tine as an important player. – It is important and I think people are concerned that we can deliver milk throughout the country and that we have dairies that take responsibility for ensuring that we have access to milk throughout the country. We wouldn’t have had that without Tine, explains the Minister of Agriculture.
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Synnøve Finden introduced an investment freeze and fears that Tine will get a monopoly again – news Innlandet – Local news, TV and radio
