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Market regulation

Since 1936, when the Marketing Act came into force, Nortura has had the responsibility for the market regulation of meat on behalf of the authorities.

Task as market regulator
The responsibility for market regulation entails ensuring the supply of meat all over the country and regulating the market so that there is a balance between supply and demand.

In 1950 Nortura, along with the other financial organizations in the agricultural cooperative, were additionally handed the task of charging the price in the market that the government and the Norwegian Farmer’s Union and the Norwegian Farmers and Smallholders Union agree on through the agricultural agreement, insofar far as market conditions allow.

Currently it is Nortura, the Norwegian agricultural purchasing and marketing Co-Op and Tine who act as market regulators in their respective areas.

Market regulation measures
Amongst measures designed to regulate the market are encouraging meat production if it is lower than demand and implementing measures to prevent overproduction if production is greater than demand.

In addition, import and export is used to balance supply and demand in the Norwegian market.

» Read more about Market regulation (in Norwegian) (.pdf)

 

Financing
The measures are financed by the farmers being subtracted a fixed amount for each kilogramme of meat in the price they receive for slaughter animals. The price is determined by the Sales Council.

The Sales Council
The Sales Council comprises representatives from the authorities, consumers, professional organizations, cooperatives, industry and retail.