New report points to a small number of large suppliers dominating the Norwegian market – but TINE rejects claims that dairies are driving up prices.

A new report on Norway’s grocery sector highlights that a small number of large suppliers – including in the dairy industry – hold a dominant position in the market.

According to the analysis by Norwegian Economic Analysis, this is a contributing factor behind the price level, although the sector as a whole is not considered to stand out negatively in an international comparison.

However, TINE, Norway’s largest dairy company and farmer-owned cooperative, rejects the conclusions.

– “We have read the report and believe that parts of the argumentation are inconsistent,” says Svein-Egil Jørgensen, Special Adviser at TINE, according to Danish business media FødevareWatch.

He also points out that the farmgate milk price in Norway is publicly set for six months at a time – and is expected to decrease from 1 July.

Costs rather than market structure

Nortura, a farmer-owned cooperative within meat and eggs, also rejects the idea that suppliers are driving price increases. Instead, the company highlights rising costs for energy, labour and packaging as the main drivers.

At the same time, Nortura emphasises that its objective is to ensure a fair settlement for farmers – not to maximise profits.

Both TINE and Nortura therefore reject that the supplier segment is the primary driver of high food prices.

By Maja Løvstrup
Source: FødevareWatch
Photo: TINE