The Butter shortage in Norway

open quoteMany Norwegians who live close to Sweden do their grocery shopping across the border where prices are lower, but to import butter has proven more difficult.

“They (Norway) have, as we see it, very restrictive trading politics, borderline protectionist,” Jonas Carlberg at the Swedish Dairy Association (Svensk Mjölk) told daily Dagens Nyheter, adding that the high custom duty is a way to protect domestic production in Norway.

But the shortage has made people turn to desperate measures, according to news agency TT.

A Russian man was caught on Friday trying to bring 90 kilogrammes of butter over the Swedish border to Norway without paying the custom duty.close quote (Read more)

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Prices spike as butter shortage spreads through Norway (Read more)

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A comment from reddit:

open quoteIn Norway, all milk and butter production is ruled over by an old and state-sanctioned cartel/corporation called TINE. The goal of TINE is to raise the prices on dairy products as high as humanly possible; with this, they have great success. For example: Currently, one litre of milk costs 14 Norwegian kroner = 2.431184 US$. Keep in mind that 1 US gallon = 3.78541178 litres and you can calculate the price/gallon for yourself…

As a result of this huge overprice, the result is the same as it always have been: overproduction. More is being produced, than sold. So what happens?

TINE implements quotas; each farmer is only allowed to produce x amounts of milk each year. This year, however, the production was smaller than otherwise due to the weather. So what does TINE do?

Nothing. Every grain of their being is geared towards reducing production, so they have no ideological idea that they can even do anything else. In spite of this shortage having been advertised from months and months away, they never increased the quotas for the farmers that could produce more.

I would also like to point out a couple of dirty tricks the TINE corporation uses to shut down any and all competition:

They have invented the Jarlsberg cheese, a cheese that was made exclusively to use much milk; they also lobbied for export subsidies for said cheese. We use milk worth 90 NOK to produce Jarlsberg, then it is exported for around 35-40 NOK; the other 50 NOK, around 8-9$, are subsidized by the state. This way we pay the Americans to eat our surplus milk storage and keep prices high.

Oh, and they have also blocked our enjoyment of Edamer. You see, some time ago dutch edamer cheese got popular in Norway. TINE lobbied the department of agriculture and had a tariff put up, then started producing their own shitty copies.

Same story with feta cheese. Around the early 2000’s, Arla corporation that operates in Denmark/Sweden started marketing and creating a market for feta cheese in Norway. They made great success with this. What happened then was that TINE sent a little letter to the agricultural ministry, which was, as per custom, precided over by a previous TINE CEO, and had them reinterpret the rules creatively. Previously imported cheese was judged based on the weight of the cheese itself; feta cheese on the other hand is lying in an oil solution to give it taste. Now the rules were suddenly interpreted so that the oil solution is counted as part of the cheese, thus doubling the import tolls on feta cheese. Oh and suddenly TINE launched their own shitty feta rip offs on the market as well.

tl;dr: The “butter crisis” is a result of a centrally planned Soviet-system of milk production, coupled with a rush for profit by the TINE corporation. As a result the consumer is sucked dry by the unscrupulous monopolist cunts.close quote

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