Norwegian bakeries face competition from imported dough and half-baked goods

Several bakeries in Norway are increasingly importing dough and half-baked goods from abroad, creating heightened competition for traditional Norwegian bakers. Agriculture and Food Minister Geir Pollestad argues that the EEA Agreement prevents the imposition of tariffs on these imported items. Between 2010 and 2023, the import of bread and dough surged by 83%.

Pollestad points to the grain aid subsidy, which supports businesses using domestically produced grain, as a means of equalizing raw material costs between Norwegian bakeries and foreign competitors. From July 1, 2024, the subsidy rate will rise to 47 øre per kilogram, providing bakeries with more affordable access to raw materials like flour.

In September, it was reported that various Norwegian bakeries import dough and semi-baked products, offering goods at lower prices than traditional bakeries and intensifying market competition. Currently, importing these goods is nearly duty-free, which the industry views as its biggest challenge. Some politicians are suggesting urgent remedies for this crisis in the Norwegian baking sector.

Between 2010 and 2023, the importation of bread and dough nearly doubled, with around 100 companies importing approximately 60,000 tons to the Norwegian market in 2023. Major supermarket chains are the largest importers. Pollestad notes that consumers are often unaware of the origins of these products, mistakenly believing they are baked locally, while they are merely finished here.

Despite the challenges, Pollestad expresses commitment to finding solutions to increase the production of Norwegian grain and improve self-sufficiency in the country, aiming for 90% of flour used in Norway to be locally sourced.