Norway’s leading dairy cooperative, TINE, is investing over 2 billion NOK in the production of yellow cheese at two of its dairies while simultaneously closing two others.

TINE’s board has approved an investment of 2.2 billion NOK in cheese production at its Verdal and Byrkjelo facilities over the next ten years. At the same time, the company has decided to close its dairies in Ørsta and Tresfjord within a period of 3 to 7 years.

Currently, TINE has an overcapacity of 30% in yellow cheese production. To ensure a more efficient and resilient operation in the coming years, the company is now reviewing its production capacity and facility structure.

• TINE is making a significant investment in the future of yellow cheese production because we want to remain a strong and competitive brand in the years ahead. At the same time, we must make difficult decisions, and the board has decided to close the Ørsta and Tresfjord facilities. This is necessary to enhance industrial efficiency and secure a sustainable economic foundation for our 7,700 dairy farmers across the country—especially as we face increasing imports and growing competition in the Norwegian dairy market,” says TINE’s Chairperson, Marit Haugen.

Additionally, a further review will be conducted regarding block cheese production at the Elnesvågen and Sømna dairies. A separate analysis will also be carried out to determine the optimal use of milk in Nordland, considering logistics and vulnerability assessments. This includes evaluating the Sandnessjøen facility.

• The world is changing, and geopolitical instability creates uncertainty around trade and tariff regulations. It is crucial that we gain a thorough understanding of how this might impact us in the future. This review will provide us with a stronger foundation for shaping TINE’s facility structure in an increasingly complex market. Our goal is to be as well-prepared as possible to make long-term decisions that benefit Norwegian dairy production, industry, and consumers,” emphasizes TINE’s CEO, Ann-Beth Freuchen.

Read the full press release HERE

Photo: TINE