Working Life, Power | One of four kroner tomato farmer Håvard (44) earns goes to electricity and gas: – I am extremely worried

Skavland Gartneri is located on the island of Talgje, a 40-minute drive and three tunnels from Stavanger city center. The farm was bought by Håvard Skavland when he was 18 years old. He is a third generation tomato farmer, and runs the garden together with his wife Edle Skavland.

The tomato plants need heat and light in the 26,000 square meter greenhouse to grow. Before, Skavland produced with 100 percent natural gas, but during the last five or six years, the nursery has phased in more and more electricity in production to become more environmentally friendly.

In the last year, the price of both gas and electricity has multiplied.

– If gas and electricity prices do not normalize soon, it will be critical for us and for many others, Skavland.

In line with higher electricity prices, the price of packaging, cardboard and plastic film for tomatoes has risen. However, Norwegian tomatoes are in tough competition with imported tomatoes from abroad, and Skavland can not bear the increased costs in the final price to consumers.

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Must throw tomato plants

Skavland was inspired when he saw the mother of a small child Anita Bjørnevig Knutsen talks about sky-high electricity bills on Debatten on NRK on Tuesday. It feels unfair that the state, power companies and oil and gas companies get super profits at high energy prices at the same time as households and small, energy-intensive companies almost collapse due to rising prices.

– Norway delivers huge amounts of gas abroad, which generates more than two billion kroner every day to the Treasury. But it does not help me who will produce food, says Skavland.

On Thursday, it became clear that the governing parties have agreed with budget partner SV to find measures that can ease the burden of sky-high electricity bills for consumers. It is currently unclear what the measures are about.

For tomato farmer Skavland, who produces 1,000 tonnes of tomatoes a year and has had to shell out galloping electricity and gas prices over the past six months, crisis support cannot come fast enough.

– We have had to throw away 15 percent of the tomato plants, simply because there is so much uncertainty in the markets and uncertain times. It is about both electricity prices and gas prices, says the 44-year-old.

Many companies have hedged against sky-high electricity bills with long-term agreements. Skavland entered into a fixed price agreement this autumn, which has spared him the worst peaks. However, he can not get a fixed price for gas, because he has too low consumption.

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Fear a tough winter

When energy prices were relatively low last year, Skavland paid around four million kroner in gas and electricity bills. This corresponds to about ten percent of turnover.

– This year we are going to pay nine million kroner, or around 22 percent of the turnover, says the tomato farmer.

With a tough winter and high peaks, the nursery can quickly end up with NOK 15 million in energy costs next year. This corresponds to 33 per cent of the income, and there is not much left for other expenses that must be covered.

Skavland is constantly trying to implement measures to use less energy per tomato. The family business has invested around NOK 80 million over the last ten years in new greenhouses, dehumidifiers, curtains, LED lights and other technical solutions to become more environmentally friendly.

– I am extremely concerned now and hope the politicians address this so that we get stable framework conditions for the greenhouse industry in Norway, says Skavland.

In addition, the uncertainty associated with the coronavirus has crept back. Skavland is waiting for up to 16 foreign workers around Christmas time to help him take care of the winter production.

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