Kiwi, Rema 1000 | The debate: The farmers are raging against the grocery chains: – It’s just a bluff

At the beginning of the Debate, Minister of Agriculture and Food Sandra Borch (Sp) was pressured by host Solvang. He wanted to know if she had calculated what all her wishes would cost. See the clip at the top of the case.

At the end of January, the online newspaper was able to document that the low-price chain Extra had increased the prices of 21 of 28 items since September last year. The competitors Kiwi and Rema 1000 set the prices correspondingly a few days later.

Prices in Norwegian grocery stores had thus increased by up to 70 per cent on some goods.

The price survey showed, among other things, that Broccoli had had a price increase of up to 78 percent, Grandiosa had received a price increase of NOK 10 per piece and Wiener sausages NOK 10 more expensive per package.

The price increase provoked major reactions

The increased prices in Norwegian grocery stores provoked great reactions, and were later widely debated in the media.

Executive Vice President of Norgesgruppen, Norway’s largest grocery group, had to prepare for the price increase in Dagsnytt 18. Later, Kiwi had to explain the price jump in Dagsrevyen.

None of the actors took criticism. They believed increased prices from the supplier and artificial, low prices were the reason for the price increase.

The price survey from the beginning of February revealed that both Kiwi and Rema – both with large price promises to Norwegian consumers, had adjusted their prices to the highest price in the low-price market.

Kiwi stated to Nettavisen that the price increases in February are due to increased prices from the suppliers and campaigns that had ended.

Rema 1000 did not answer a number of critical questions from Nettavisen. They believed that Nettavisen’s price test was not relevant at a time of increased prices among suppliers.

However, Extra decided to lower prices after they were taken to be far more expensive than Kiwi and Rema 1000.

Read also: Up to 70 percent price increase in the grocery store: Grocery expert warns

Outraged peasants

Ivar Gaasland, social economist at BI, thought that the price increase for butter and dairy products was unheard of.

He stated that Tine had no basis for increasing the price to the store chains. Milk had not become more expensive to purchase for the dairy giant.

Gaasland believed that both the suppliers and the grocery store had an explanation problem.

Increased raw material prices for, among other things, sugar and oil have contributed to increased costs for Orkla-produced goods. The grocery stores therefore pay more for the goods now than before.

However, this does not apply to Norwegian agricultural products. The suppliers will only pay more to the farmers for the goods after the agricultural settlement in May. The farmers have therefore been very upset by increased prices in the shops without being paid extra.

The farmers think the grocery industry is bluffing

Tonight, the increased food prices were also a topic in the Debate on NRK.

Host Fredrik Solvang wanted an answer to why farmers do not earn more when food prices increase?

Solvang asked Hans Jørgen Boye, initiator of the Peasant Uprising, what he thought about the fact that it is the shops that are left with increased profits, while they have hardly received anything more for milk in recent years.

– We do not agree to this anymore, said Boye, and warned that more and more farmers will close down.

When the Minister of Agriculture and Food, Sandra Borch (Sp), stated that she would set up a committee to look at the income of Norwegian farmers, and close the income gap between farmers and grocery chains, Boye reacted by calling it certain water. He thought it would not matter.

When asked if Boye believed that the grocery store was trying to make Norway cheaper, Boye answered:

– It’s just a bluff. It is purchasing power that determines what it costs.

– Is it reasonable that the shop earns more than the farmer on bread, asked Solvang Bjørn Gimming in Bondelaget.

– We know nothing about that, but we would like to know. There is not a fair distribution in the food value chain.

The farmers’ team thought it would be impossible to know what the right price was for both the farmers and Norwegian consumers when the price calculations remained secret.

– We wish they presented their numbers. We see huge profits in the grocery industry. There is something wrong here, Gimming told the host.

Debts on the terms of the competition

Director of policy and government contact in Coop, Ingvill Størksen stated that she thought the farmers should be paid better. She could tell that they earned one kroner on the bread that they sell for around 35 kroner in the shop.

However, she admitted that bread was one of the few agricultural products they made money on.

– We sell agricultural products at a loss, and then we have little to go on, she told Solvang.

– It is very strange to run a shop at a loss, I would not have been able to do that, said the host.

She emphasized that their challenge was that Norgesgruppen had up to 15 per cent better purchasing conditions.

Solvang interrupts Coop and ironically asks if they make money on ear warmers and wool socks.

Størksen again referred to different competition conditions.

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