. The Consumer Council believes that dairy products may become more expensive after the Norwegian Directorate of Agriculture withdrew distribution support for Tine's competitors.
On Monday, Q-Meieriene announced that their existence was under threat. The background is that the Norwegian Directorate of Agriculture has decided to reduce the subsidy to Q-Meieriene by a total of NOK 50 million per year. Consumer Council now warns that dairy products could become more expensive after distribution support for Tine's competitors is cut.
More expensive products and less choice
Olav Kasland, director of the Consumers Council, says they think milk, yogurt and cheese may be more expensive, and the choice on dairy shelves may be poorer.
On Monday, Q dairies said they had taken urgent action and raised the prices of their dairy products.
"It was the only quick solution we could implement in such a short time to be able to compete and continue to create diversity, growth and innovation," said Kristine Aasheim, president of the board and press contact at Q-Meieriene.
At the same time, the Consumer Council is concerned.
- We are afraid of competition, because if they are not able to compete on price, it is a problem - says Olav Kasland.
No response to criticism
Ole Martin Buene, Tine's director of communications, however, believes that the time for the distribution support program is over and that Tine can better compete on price and choice, removing competitive advantage.
Q-meieriene and Rørosmeieriet complained about the decision of the Norwegian Directorate of Agriculture. However, the Directorate cannot comment on the criticism as they are the appeals body against a decision they have made themselves.
Communication Director of the Norwegian Directorate of Agriculture, Robert Rønning, confirms that they have received a complaint from Q-Meieriene about the cut. Rønning says the subsidy was introduced in 2004 as part of the Milk Price Equalization Scheme.
Q-Meieriene won't give up
The aim was to reduce the cost disadvantage of Tine's competitors in the distribution of liquid dairy products.
- The crux of the decision was that Q-Meieriene no longer meets the essential condition of the price alignment legislation for much higher distribution costs than Tine. This is why payments should be stopped, comments Rønning.
Q-Meieriene, on the other hand, believes that such a cut will have serious consequences for further distribution.
- We will never give up on this and luckily our consumers are with us. We have been fighting for predictable and fair framework conditions for 23 years so that we can move forward, Kristine Aasheim said on Monday.
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Source: dagbladet.no
