Organic food and beverages sector Profile 1 - Norway

Organic food and beverages sector Profile [1] - Norway

1. Sector Overview
The production of organic food and beverages in Norway has seen significant growth over the past few
years, reflecting a growing concern for a more sustainable society and a healthy lifestyle. The first organic
farm in Norway was the Sletner farm in Mysen [2]. It was not until 1970’s that Norway saw broader support
for farmers producing organic.

The increased demand for organic products has been met by the Norwegian government by, for instance,
providing support to Norwegian producers that are willing to switch from conventional to organic methods.
Some farmers are also eligible to receive an annual grant for land that has been converted to organic
production [3]. However, organic food and beverages currently account for only 1% of the total share of the
food market. The governmental goal of 15% by 2020 is far from being reached, and the need for new
manufacturers and suppliers is significant.

Manufacturing of Organic Food

The total turnover of organic products was in the order of NOK 1, 2 billion (CAD 205 million [4]) in 2010,
accounting for 1% share of the total food market. The sector consists of approximately 2814 companies that
are certified by Debio. [5]

Production and sales of organic products in Norway has increased gradually over time, but is still in a start-
up phase with a number of challenges, especially aligning supply with demand.

There is no complete list of imports of organic products. Customs Tariff does not distinguish between
conventional and organic products, so these types of food are expressed as the same tariff item numbers in
trade statistics. However, some figures on import of organic products are available for specific sectors.
About 50% of organic grain for food and animal feed are imported in Norway. The total imports of
organic fruits, berries and vegetables, and preserved produce was 226.5 tonnes in 2010. This is an
increase from 2009 of 116%, representing the product group with the highest annual growth. The products
that are imported are those that are not feasibly produced domestically or the production is too low to meet
demand. In Norway, the export of organic food and beverages is not common, though exceptions include
organic eggs, salmon, and shellfish.

Major Producers
The organic food and beverage sector in Norway is dominated by Norwegian or partly Norwegian companies,
and is characterised of a mix of a number of large scale producers that control a major part of a particular
segment of the sector, and a greater number of smaller producers that are more specialised and active on a
more regional or local basis. The organic food sector in Norway covers a range of products including milk,
egg and dairy products; cereal based products; meat products; fruits and vegetables; beverages including
alcoholic beverages and other products such as coffee, tea, and spices.

Major producers and wholesale dealers include:

      Tine – Dairy products
      Q – Meieriene – Dairy products
      Den blinde ku – Dairy products (cheese)
      Synnøve Finden - Dairy products (cheese)
      Rørosmeieriet – Dairy products

Prior – Egg products
      Holte gård – Egg products
      Svansø – Juice
      Coop Änglamark – Juice
      Corona- Juice
      Sunt og Godt - Bread
      Goman - Bread
      Godt Brød AS - Bread
      Dinkelbakeriet - Bread
      Gilde – Meat based products
      Grøstad gris – Meat based products
      Prior – Meat products
      Svansø – Jam
      Hervik – Jam
      Mack – Beer
      Berentsens Brygghus – Beer
      Santa Maria – Spices
      Krydder AS – Spices
      Coop Änglamark – Spices
      Bama – Fruit and vegetables
      Helios (wholesale dealer) – Fruit and vegetables
      Coop Änglamark – Coffee
      Friele – Coffee
      Coop Änglamark – Chocolate
      Økosjokolade - Chocolate

In the dairy sector, Tine is the largest producer, estimated to control over 70% of the dairy market. Other
main producers of organic dairy products are, Q – Meieriene, Synnøve Finden, Den blinde ku and
Rørosmeieriet. The organic egg sector is dominated by two actors, Prior and Holte gård. The organic juice
sector has many producers, and some of the wholesales have their own brands such as Coop Änglamark.
Other producers are corona and Svansø. Gilde is the most significant actor when it comes to meat-based
products, other producers are Prior and Grøstad Gris. The organic fish market is relatively new, and only
well-stocked stores sell these products. Major actors on the fish market are Findus and Enghav.
Furthermore, the organic bread sector includes producers that are located in different parts of the country
serve their local market, such as Goman, Godt Brød AS and Dinkelbakeriet.

Svansø and Hervik produce organic jam that is sold all over Norway. Santa Maria is a large producer of
spices and produces a line of organic spices. Other producers include Coop Änglamark and Krydder AS. Friele
and Coop Änglamark are major producers of organic coffee, while organic chocolate are produced by
Økosjokolade and Coop Änglamark.

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Wholesale of Organic Products
The total turnover of the Norwegian wholesale sector of food, tobacco and beverages was NOK 198 billion
(CAD 34 billion) in 2008. The wholesale sector in Norway is characterized by a handful of large grocery
chains, of which Norgesgruppen, Coop SA, Rema 1000 and Ica are the largest. In 2010, Norgesgruppen,
Coop SA, Ica and Rema 1000 generated turnover of NOK 56 billion (CAD 9,.6 billion), NOK 29 billion (CAD 3,8
billion), NOK 18,6 billion (CAD 3,1 billion) and NOK 58 billion (CAD 9,9 billion) respectively. In
addition,vinmonopolet, the sole retailer of alcoholic beverages in Norway, had a turnover of NOK 14 billion
(CAD 2, 4 billion) and employed 1,876 in 2010.

Biggest Segments
Dairy products are the largest segment of organic products and had a turnover of NOK 227 million (CAD 39
million) in 2010, followed by vegetables, the category of cereals and baked goods. These groups constitute
55% of all sales of organic foods in grocery and health food stores. Organic baby food constitutes 15% of
the total turnover in this segment and this is a big part, compared to other groups.

Worth mentioning is that almost all segments have been growing since 2006, but with a decline in 2010. The
decline is accounted for by decreasing sales of milk and bread products.

Maturity of the Sector
The organic food sector in Norway is well established. The main organization that certifies organic food in
Norway, Debio was established in 1986. Previously, organic products were sold in health food stores
or directly from producer to consumer. However, today, the big stores have organic products as part of their
product range. As already mentioned, Norway has a smaller organic production sector compared to the other
Nordic countries. Organic food counts for only 1% of the total share of the food market.

Research
Research concerning organic food production is concentrated in different institutions in Norway. Bioforsk
conducts applied and targeted research linked to multifunctional agriculture and rural development, plant
sciences, environmental protection and natural resource management. Bioforsk is located in Ås, outside Oslo.
The Norwegian University of Life Sciences (UMB), located in Ås, is also involved in research on organic food.
Other research institutions include National Institute for Consumer Research, Vestlandsforskning,
Bygdeforskning and Høgskolen I Hedmark.

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2. Market and Sector Challenges (Strengths and Weaknesses)

Consumer Behaviour
The Norwegian market for organic products has grown in recent years and it is no longer possible to have a
complete list of all organic products available to Norwegian consumers. As mentioned earlier, Norway’s
production and sale of organic products is relatively low compared to Sweden and Denmark.

However, Norway has seen an increasing trend of eating healthier coupled with increased concern for
sustainable development among Norwegian consumers. These trends make Norway a promising market for
organic food products. One concern that might be problematic is that consumers of organic products are
highly environmentally aware and might find it hard to justify the purchase of products that have been
shipped over long distances. This is, however, likely a greater concern for products that are possible to
produce in Norway. Products that occupy a niche market or that have no domestic substitutes might be
easier to export.

Brands are important factors when consumers make their consumption choices. A brand indicates the quality
of the product, but also other information such as origin and health. Canadian companies or producers that
want to export organic products to Norway might find it easier to do this by cooperating with existing
companies that already are well known in the market. A general trend is that retailers are establishing their
own labels, such as Ica´s I Love Ecolabel or Coop´s Änglamark label. Cooperating with one of these actors
with allow an exporter to gain more direct access to the Norwegian market.

In Norway, low-cost stores have the biggest share among food stores, and this indicates that Norwegian
consumers are concerned with price. This has proven to be a problem for convincing consumers to buy more

expensive organic products. This is not a problem for those already buying organic, but it has proven difficult
to influence broader segments of consumers to choose organic due to the higher prices.

A survey conducted by Nordic council of ministers in 2009 showed that 72% of the respondents ranked price
as the most important factor when it comes to groceries, with only 11 % stating that organic products
influence purchasing decisions.

An annual survey, “økobarometeret 2011”, showed that 66% of the respondents tend to buy organic
products. The survey also shows that the major reasons why consumers buy organic products is to support
a healthy lifestyle, concern for the environment and the wellbeing of animals, but also the taste of the
organic products.

The survey also lists reasons why people do not buy more organic products; the price is a major reason,
though information and the range of products are also listed as significant.

Expected Growth of the Organic Sector
Organic food is mainly channelled through the wholesale sector, accounting for 82% of all organic food sales.
The four major grocery chains described earlier are the main actors in the sector. After several years
of increases in the market for organic products, 2010 saw a slight decrease in sales of organic foods
in grocery and health food stores by 1.7%. In 2011, the negative trend turned and sales of organic food
were up in all segments except organic bread. This is due to reduced investment in organic fresh bread.

The Norwegian government has set itself ambitious goals in the organic production area, with a target of
15% of the total food production and consumption by 2020. This indicates that Norway is a country that is
willing to focus on this sector and makes Norway a promising market for Canadian organic products. To reach
this ambitious goal, the Norwegian government has adopted several measures including strengthened the
direct subsidies, launched campaigns for organic products, and provided guidelines for future policies and
initiatives.

Trade Policies
As a member of the internal market of the European Union, Norway has to follow the EU practices of imports
of organic products. The EU regulations for export of organic products into an EU member changed in 2009.
In short, products that are exported should be approved in the export country by a controlling agency that
has been approved by the European Commission. Throughout 2012 this regulations will run parallel with the
old regulation that stipulates that the importer need permission from the competent authority in the country,
i.e. the Norwegian Food Safety Authority. Norway does not share all the legislations with the EU; different
products are subject to different pieces of legislation. For example, agricultural products are not covered by
the EFTA agreement, but agreements exist for the trade of agricultural products, and there is extensive
cooperation where there are common interests and views. It is important to note that some products are
protected by high tariffs, including meat, cheese, grains, flour, potatoes, carrots, and other agricultural
products that can be produced in Norway.

Furthermore, the European Union and Canada are currently negotiating a free trade agreement that would
further simplify the processes of exporting Canadian organic food to Norway.

Controlling Organisations of Organic Products in Norway
All providers of organic products in Norway are certified by Debio. Debio ensures that farms and fish farms,
processing and marketing enterprises, importers and others follow the regulations for organic production, and
meet the requirements for marketing organic products under Debio’s Ø-label. The Ø-label can be applied to
imported products that are certified by an accredited body in the country of origin, in accordance with
regulations that correspond to Norwegian rules and regulations. Another well-known label, for biodynamic

products, is Demeter, which is an international organisation for controlling products that follows the
biodynamic standards of production.

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Bibliography
Forsberg, Ellen Marie. (2004). Økologisk mat I Norge- Økonomiske prosesser mellom samvirke og marked.
Hovedfagsoppgave i sosialantropologi. Universitetet i Oslo. Retrived 03.02.12
from: http://www.duo.uio.no/publ/sai/2004/19775/forsberg.pdf

ECON Senter for økonomisk analyse. (2000). Evaluering av støtteordningen for økologisk landbruk. Utarbeidet
for Statens landbruksforvaltning. Rapport nr: 72/00. Retrived 03.02.12 from: https://www.slf.dep.no/

Statistikk 2010 - økologisk produksjon, private standarder.
   http://debio.no/_upl/statistikkhefte_2010.pdf

This is Demeter:
http://www.demeter.net/

Norges handel med landbruksvarer:
http://www.regjeringen.no/nb/dep/lmd/tema/nternasjonalt_samarbeid_om_mat_og_landbr/wto-
og-landbruk/norges-handel-med-landbruksvarer-.html?id=87074

Import og eksport:
http://www.mattilsynet.no/import_eksport

Regler for foredling, import og omsetning:
  http://www.debio.no/_upl/regelverk_foredling_07.pdf

Fakta om økologisk mat:
http://www.okologisk.no/

Den økologiske forbruker - Hvem kjøper økologisk og hvorfor gjør de det.
http://www.oikos.no/newsread/ReadImage.aspx?DOCID=3347&QUALITY=10

Varehandel:
www.ssb.no

Produksjon og omsetning av økologiske landbruksvarer
http://www.okologisk.no/fakta/tall-og-rapporter/

Reference List
Landbruks og matdepartementet (Ministry of agriculture and food)
http://www.regjeringen.no/en/dep/lmd.html?id=627

Mattilsynet (Norwegian Food Safety Authority)
http://www.mattilsynet.no/portal/page?
_pageid=54,40103&_dad=portal&_schema=PORTAL&language=english

Tollvesenet (Norwegian customs)
http://www.toll.no/default.aspx?id=3&epslanguage=en

Statistisk sentralbyrå (Statistics Norway)
http://www.ssb.no/english/

Debio, all providers of organic products in Norway are certified by Debio:

http://www.debio.no/section.cfm?path=1,61?path=62

Nærings og handelsdepartementet (Ministry of Trade and Industry)
http://www.regjeringen.no/en/dep/nhd.html?id=709

Oikos, is the national movement of organic producers and consumers in Norway:
http://www.oikos.no/newsread/news.asp?DOCID=10123&wce=dokument

Canadian Government Contacts
Embassy of Canada to Norway
Contact: Alanna Zulkifli,
Trade Commissioner
Email:   alanna.zulkifli@international.gc.ca

Foreign Affairs and International Trade Canada
125 Sussex Dr.
Ottawa, ON K1A 0G2
Website: www.tradecommissioner.gc.ca

Agriculture and Agri-food Canada, (AAFC)
Contact: Martin Foubert,.
Deputy Director, Trade Commissioner and Market Development Division
E-mail:   martin.foubert@agr.gc.ca
Website: www.agr.gc.ca

Useful Internet Sites
Canada Organic Trade Association
Contact: Matthew Holmes
Email:    mholmes@ota.com
Internet: www.ota-canada.ca

Agri-food Group Quebec
Contact: Nicolas Moisan
Email:   nicolasmoisan@groupexport.ca
Website: www.groupexport.ca

Manitoba Trade and Investment
Contact: Brad Havixbeck
Email:   brad.havixbeck@gov.mb.ca
Website: www.manitoba-canada.com

STEP
Contact: Jennifer Evancio
Email:   jevancio@sasktrade.com
Website: www.sasktrade.com

Export Development Canada (EDC)
Contact: Angela Pigeon
Email:   apigeon@edc.ca
Website: www.edc.ca

[1] The Government of Canada has prepared this report based on primary and secondary sources of
information. Readers should take note that the Government of Canada does not guarantee the accuracy of

any of the information contained in this report, nor does it necessarily endorse the organizations listed
herein. Readers should independently verify the accuracy and reliability of the information.

[2] Forsberg, Ellen Marie. (2004)

[3] ECON Senter for økonomisk analyse. (2000)

[4] All currencies are calculated with the exchange rate of February 2, 2012. CAD: 5.83

[5] All providers of organic products in Norway are certified by Debio. Debio ensure that farms and fish
farms, processing and marketing enterprises, importers and others follow the regulations for organic
production, and meet the requirements for marketing organic products under Debio’s Ø-label.

Author: Commissioned from Oxford Research, www.oxfordresearch.se