Norwegian potato prices skyrocket, contributing to overall rise in food costs

Prices for Norwegian potatoes have increased to around 30-40 kroner per kilo, which is five times higher than in the European Union. The price increase has contributed to an overall rise in food prices in Norway, which were 4.9% higher in June than the same time last year.

Morten Tømte, leader of the Farmers’ Union and a farmer himself, found Norwegian potatoes priced at 41 kroner per kilo at his local Coop store. This is a significant increase from the 14 kroner per kilo he receives for his potatoes. Tømte argues that the high prices are not the farmer’s responsibility and calls for more transparency in how prices are set in stores.

Several retail employees are also questioning the price hikes. Elisabeth Sunde from the Trade and Office Union suggests that the three major actors in the Norwegian market – Norgesgruppen, Coop, and Reitan – can raise prices due to their market monopoly and are making profits at the expense of consumers.

The competition authority’s margin study last year found unchanged margins but high profitability for grocery stores. The study concluded that grocery stores did not charge extra to benefit from the price shock following the pandemic and the war in Ukraine. However, it pointed out that profitability is very good for grocery stores, contradicting the chains’ claims of tough competition.

Coop, Rema, and Norgesgruppen reject the accusations from the Farmer’s Union and the Trade and Office Union. They insist that price increases are due to real price and cost increases, and they do not directly buy goods from farmers. They also emphasize their low margins on Norwegian agricultural products and deny setting the price farmers receive for their goods.