Norway is facing a shortage of milk after the rise in demand for Norwegian yogurts and restraining quotas, creating controversy over a label for Norwegian products with imported milk powder from Germany.
In an unprecedented turn of events, Norway faces a milk shortage as the new year begins, disrupting the industry as major dairy company Tine relies on foreign milk powder imports to meet Norwegian market demand.
This shortage, fueled by adverse climate conditions and demand miscalculations, has sparked a debate around the “Nyt Norge” [Enjoy Norway] stamp on Norwegian dairy products, now containing German milk powder.
Tine, Norway’s largest dairy producer, distributor, and exporter, is under pressure to respond to the rise in demand for Norwegian yogurt. After a surge in milk demand during the COVID-19 pandemic, the market stabilized, leading to a decline in production in 2023 to align with the slower demand. Tine chairman Marit Haugen reported a 40% decline in sales of the company’s unflavored milk products over the past decade.
Consequently, milk quotas were lowered in 2023 to prevent overproduction, but the company did not foresee the parallel rise in demand for Norwegian-made yogurt and cheese. Quotas were raised, but they were insufficient to meet demands, and many farmers were prevented from producing more, reminiscing similar criticism against the company over a shortage of butter in 2011.
Recently, the poor quality of crops in the difficult summer of 2023, coupled with a deficit of 15 million liters of milk this winter, has further aggravated the milk crisis, leading Tine to predict a shortage of milk during the first three months of 2024.
In Norway, a country where people drink a lot of milk, although its consumption has halved in 30 years, milk production is prioritized over any other dairy products when there is a shortage — cheese is imported instead.
In response to the shortage, milk companies turned to foreign milk powder imports, prompting a reduction in duties on milk powder to sustain the Norwegian market. However, this strategy led to industry restructuring, causing job losses and facility closures.
To prepare for future competitiveness and future growth, Tine, having already discontinued milk production in the municipality of Ålesund in 2023, announced further optimization strategies in southern Norway, including the closure of facilities in Sem and Kristiansand by the end of 2025.
Further controversy surrounds Tine’s solution to increased demand, as some products now contain up to 3% German milk powder while being labeled “Nyt Norge.”
This sparked a nationwide debate, with critics arguing that the label should be reserved for all-Norwegian goods. Lene Westgaard-Halle, a member of Norway’s opposition Conservative party which has been critical of the current agricultural policy, and agricultural expert Ivar Pettersen, voiced concerns about the misleading use of the label and Tine’s failure to regulate the milk market.
Rejecting the accusation of bankruptcy, however, Tine insists that through finding solutions from imports to cover domestic imbalances, the company continues to provide Norwegian people with the quality products they deserve. Johnny Ødegård, head of Tine’s raw material handling, insisted that imported milk powder covers only 1% of Norway’s total milk needs.
Nevertheless, the decision to retain the “Nyt Norge” label was perceived by many as a deliberate attempt to mislead Norwegian customers. To preserve its reputation and appease indignant Norwegian dairy farmers, Tine recently apologized for keeping the label and published a review identifying products containing imported milk powder.
