The Covid-19 pandemic made 2020 a different year for agricultural trade as well. This is evidenced by the reports of the Norwegian Directorate of Agriculture on the markets for agricultural products in Norway and around the world.
Retail food items has experienced historic growth
The outbreak of the COVID-19 pandemic in March 2020 caused major changes in consumption patterns. The grocery trade saw a historic 17% increase in turnover, while sales in restaurants and catering declined significantly due to restrictions and closings.
Severe changes in eating habits and demand. We stopped going across the border for shopping, we were grilling more
Within a short time, new eating and shopping habits developed. We ate elsewhere than before. We stopped going to the canteens and rarely ate out. We didn't need packed lunches in the office, we stopped going across the border for shopping, we were more at home, we grilled more, we baked more. The effects of this are clearly visible in the overall presentation that we now provide in our reports, says section manager Harald Moksnes Weie of the Norwegian Directorate of Agriculture.
Increased demand for meat and milk. Fruit and vegetable producers found it difficult to recruit labor due to entry restrictions to Norway
The effect was, among others increased demand for meat and milk. There was a surplus of Norwegian pork for several years, but more grilling and little cross-border trade led to a historic shortage of Norwegian pork in 2020. For the first time in many years, milk sales in Norway have increased, and there has also been some increase in milk production. Fruit and vegetable producers found it difficult to attract foreign labor due to entry restrictions, especially at the beginning of the season. Norwegian fruit and vegetable producers have never achieved higher prices than in 2020.
We followed the situation very closely, but we were never close to "raising the alarm"
- In 2020, new challenges appeared and we followed the developments very closely, but we were never close to 'raising the alarm'. This is promising. We know that the pandemic will continue for some time to come and there will certainly be more challenges in 2021. We estimate that international agricultural trade markets will continue to function well even in a pandemic. The lack of manpower in the organic sector in much of the world creates uncertainty about how much will be produced, but beyond that, we currently see no sign that the trade in agricultural products will not work, says Harald Weie.
Each year, the Norwegian Directorate of Agriculture prepares market reports as part of the directorate's contribution to the Ministry of Agriculture and Food ahead of agricultural negotiations.
The Norwegian Directorate of Agriculture monitors agricultural trade across borders to be able to "sound the alarm" early if we see signs that the flow of goods between countries may collapse.
