Synnøve Finden owner Scandza is calling for higher compensation under Norway’s price equalisation scheme, designed to offset Tine’s economies of scale – otherwise competitiveness will keep weakening year on year, warns the company’s communications director.
Norwegian dairy company Scandza, which owns the Synnøve Finden brand, is calling for improved framework conditions for independent dairies in Norway. That is according to communications director Sofie Oraug-Rygh, speaking to Norwegian media MatvareWatch.
“We are concerned, because our competitiveness is weakened every single year. As long as the subsidies fail to keep pace with the market price, the situation will not improve,” she tells MatvareWatch, according to FødevareWatch.
The comments come during Arendalsuka, Norway’s political festival, where Oraug-Rygh is drawing attention to Norway’s price equalisation scheme. The scheme, introduced in 1997 and administered by the Norwegian Agriculture Agency, is designed to compensate independent dairies for the economies of scale enjoyed by dominant player Tine, thereby securing fairer competitive conditions in the Norwegian dairy market.
According to the Norwegian Competition Authority’s 2025 report, competition remains weak in several Norwegian dairy markets. Predictable framework conditions are essential if Tine’s competitors are to invest in and develop their businesses, the report states.
Subsidy eroded by rising milk prices
The current subsidy of 27 øre per litre is described as a “general correction”, but according to Oraug-Rygh, the amount fails to cover the real differences between companies.
“Every year, as the milk price rises, the value of the 27 øre diminishes,” she tells MatvareWatch.
She points out that Synnøve Finden has watched from the sidelines as Tine invests heavily in its facilities and increases efficiency – a development that makes it harder for competitors who entered the market after the former monopoly was lifted to keep up.
Asked how Synnøve Finden is strengthening its own position, Oraug-Rygh points to taste, production efficiency and new business areas such as Greek yoghurt, packed lunches, granola and protein products.
Political support, but an uncertain future
The company does not currently feel that the framework conditions work directly against it, and Oraug-Rygh describes broad political understanding of the issue. She notes, however, that an attempt to remove the competition-boosting measures during the last parliamentary term was rejected by the Storting.
“We are now focused on the fact that if competition is to survive going forward, the measures need to be strengthened,” she tells MatvareWatch.
Oraug-Rygh also points out that a general increase in the subsidy appears to be the most appropriate solution, rather than compensating for each individual structural advantage Tine holds.
By Maja Løvstrup
Source: FødevareWatch /MatvareWatch
Photo: AI-generated
