July was another month when food prices made another sharp drop. Food is 4.9 per cent more expensive than a year ago, according to Statistics Norway. The farmers’ association believes that the price increase is far too high, and points to examples of “inexplicable” price increases in the shop: Beef: Has become 4.8 per cent more expensive in the past year, the figures from Statistics Norway show. From the farmer, on the other hand, the price has fallen by 5.1 per cent, partly because there have been record high stocks of meat this winter. Bread: Costs 4 per cent more than a year ago, despite the fact that flour prices according to farmers have been stable. When Bjørn Gimming compares what he gets paid for what he delivers, he wonders why prices in shops have risen sharply recently. Photo: Jon Petrusson / news – This means that the pricing in the shop has no connection with the price I get for my raw materials, says leader of the Norwegian Farmers Association, Bjørn Gimming, who is a cattle farmer himself. Announces more measures He wants to get to the bottom of how prices are set, and is worried that the competition is so weak that prices in the grocery store can be raised a lot without the customer having anything to say. The Støre government is also critical of the sharp rise in food prices over the past year. Business Minister Cecilie Myrseth (Ap) that the government is working on several measures to be launched during the autumn to improve competition in the grocery industry. Business Minister Cecilie Myrseth (Ap) is working on several measures to be launched in the autumn to improve competition in the grocery industry. Photo: Erik Waagbø / news – There will be more measures to improve competition in the grocery industry in the autumn. Our goal is that people should get better advice, prices should go down, and there should be a better selection in the shops, says the Minister of Business. The grocery chains did not want to answer news’s questions, and referred to industry director Bendik Sollum Whist in the interest organization Virke. He points out that there are several links between the farmer and the grocery stores, and that these links have had increased costs in recent years. – Then of course it also becomes more expensive for the shops to buy in the products, and then the prices go up. There is a direct causal relationship, he says. – On minced meat, for example, there is hardly any earnings. So to claim that there are very high margins here is simply a bit strange, says industry director for groceries Bendik Sollum Whist in the main organization Virke. Refers to margin study On the other hand, he believes that the competition between grocery stores is fierce, but points out that the government should look at the competitive situation among suppliers, not the grocery stores. He dismisses the farmer’s union leader’s criticism as “funny”. – It indicates that he has not read the Norwegian Competition Authority’s margin study that came out just before the summer. The conclusion was that the margins in the grocery chains have been low and stable over time, says Whist. Last year, the Støre government asked for a margin study from the Norwegian Competition Authority. The inspectorate checked the profitability from the farmer to the goods in the shop. The inspectorate did not check the price increases in the past year, but what happened in the wake of the pandemic and the war in Ukraine. The inspectorate also pointed out that the profitability of the grocery stores is very good. This is in stark contrast to the fact that the chains themselves say that the competition for customers is fierce. Then one would expect lower profitability in order to lure customers with lower prices than the competitor, according to the inspection. 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 last year, in comparison with wage trends – The grocery chains decide On the farm in Halden, the Farmer’s Association leader supplies both beef and flour – which will one day become cuts of meat and bread sold in the shops. When he compares it with what he gets paid for what he delivers, he wonders why the prices in the shops have risen sharply. – The large price increase must be due to the other links in the value chain. And ultimately, only the grocery chains decide what the price in the store is, he says. These cows may become food one day. But the price farmers are paid for beef has fallen by 5.1 per cent in the past year. Photo: Jon Petrusson / news When it comes to the price of red meat in the shops, the industry director believes the margins are very low. – On minced meat, for example, there is hardly any earnings. So to claim that there are very high margins here is simply a bit strange, he believes. Published 13.08.2024, at 07.00
ttn-69
The farmers’ association critical of food prices – now the government announces several measures – news Norway – Overview of news from different parts of the country
