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    Norway: Concerns about how increasing electricity prices affect farmers


    December 7, 2021 - M-Brain Nordic News

     

      Christian Anton Smedshaug, general manager of Norwegian analyst firm AgriAnalyse, fears that the price increases for electricity, fertilizers and building materials might be fateful for many Norwegian farmers. He explained that in the worst case, farmers who are involved in assessments of whether to invest with regard to loose farming requirements will find that it simply does not pay off because current operating costs make it unprofitable to operate and future investment costs rise rapidly. He thinks that Norwegian Minister of Agriculture and Food Sandra Borch should consider opening up for new additional agricultural negotiations in 2022 or compensatory measures for those with high consumption in order to provide agriculture with better ability to pay. He also thinks that it is especially important to look at the horticultural industry, which is affected by both rising energy costs and a difficult labour situation.

      Meanwhile, Bjørn Gimming, head of Norwegian agricultural association Norges Bondelag, believes that there is little opportunity to reopen for additional negotiations as the state budget has been adopted. He sees no other solution than more expensive food. Katrine Røed Meberg, head of Norwegian gardener association Norsk Gartnerforbund, said that some players in the market have received electricity bills that are up to 2.5 times higher than usual. Meberg agrees with Gimming that food prices must go up, but also believes that the state must take action.

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