Norwegian potato supplier Grønt Partner faces closure over increased tariff, raises concerns over national potato shortage

Potato supplier Grønt Partner, which delivers tens of millions of meals to hospitals and nursing homes throughout Norway each year, is concerned about the increased potato tariff set to take effect in September. The tariff will significantly increase the cost of importing potatoes, which the company relies on, particularly during the spring and early summer when there is a shortage of local produce.

Øivind Moen, owner of Grønt Partner, has estimated that the tariff will cost the business an extra NOK 15-20 million ($1.7-2.2 million). For a company that turns over about NOK 70 million ($7.8 million), Moen believes this is an insurmountable cost. “We stand no chance of bearing this cost. Basically, we might as well just lock the door,” Moen said.

Moen also criticizes the timing of the tariff, arguing that the government is rushing its implementation. He points out that there is currently a potato shortage in Norway, largely because of crop damage caused by extreme weather last year. He believes it will take several years before Norwegian farmers are able to meet the country’s potato needs.

Opposition party Høyre has called on the government to scrap the tariff, fearing that consumers will ultimately pay the price for increased potato costs. Parliamentary representative Anne Kristine Linnestad predicts that the price increase will lead to reduced demand for potatoes, with more people turning to rice and pasta.

Despite these concerns, the government, led by Minister of Agriculture and Food Geir Pollestad, does not believe that the tariff will lead to bankruptcy for Grønt Partner. Pollestad anticipates a gradual increase in Norwegian potato production and emphasizes that the tariff rates will be reduced during periods of low local supply.