Norway's food prices continue to rise. The differences are huge - taking for example our Swedish neighbors. We are talking mainly about dairy products, vegetables, fruit and meat. Nettavisen's partner, enhver.no has analyzed 3500 historical food prices. The prices in the years 2013-2019 were taken under the microscope. The research covered mainly popular, medium-sized retail chains such as Rema 1000, Coop Extra and Kiwi. What is the situation in practice? What about products imported from abroad?
Food prices in Norway and inflation
Food prices are currently above inflation. Consumer Price / Inflation Index (Konsumprisindeksen) in the reported period was 16,2 percent. For example: Norvegia cheese is now 30,7 percent more expensive than in 2013. Frozen salmon is 27 percent more expensive, minced meat (the chain's own brand) is 23 percent more expensive and milk is 21,9 percent more expensive.
Food prices are still going up.Lack of competition causes price increases
Very few "foreign" products are imported in Norway. As a result, food chains and producers have no one to fight with in the fight for the interest of the Norwegian consumer. Very few products are imported.
“First of all, agricultural goods are protected. Market regulations and, as a result, lack of competition from foreign entities result in a weak increase in production efficiency, lack of innovation development, poorer product development and high prices. Protecting the market against imports means that it is possible to set higher milk and meat prices than if the goods were more exposed to competition . Therefore, Nortura and Tine distributors can raise prices without any serious consequences - comments Ivar Gaasland, professor at the Higher School of Commerce (BI) in Bergen.
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Experts speak with one voice in unison - there is only one solution to the problem - an increase in imports. Then the prices of local products would have to be automatically lower. The appearance of competition would also stimulate the creativity of producers and distributors. In order to keep the customer with them, production companies and individual retail chains would have to reach for innovative solutions.