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In Sweden, grocery prices are half the prices paid in Norway. A thin pack of 10 slices of bacon in Norway costs NOK 30 (USD $5.30). In Sweden it's one-third that price. A liter of milk costs more than NOK 14 ( USD $2.50)in Norway. Norway prices:a dozen eggs are at least NOK 39 (USD 7). A loaf of bread costs NOK 30, but can go as high as NOK 40 ( $7.10 USD)
Swedish stores have a wider choice of produce.
There may be other reasons, as well.High tariffs on imported products protect the local producers. Norway's farmers have a very strong lobby and receive state aid. "Norwegian agricultural policy helps keep the cost of Norwegian produce high," Christian Rygh, of the Norwegian agricultural authority told the newspaper Aftenposten. All told, farmers receive an annual pay raise of NOK 25,000 on the average ( nearly USD $5,000) and are the most highly subsidized farmers in the world. This steep price of local agricultural products allows merchants to jack up the prices, while Norwegians are not necessarily price-conscious.
Still other reasons: Norway has small grocery stores on every corner and this adds to distribution costs. These shops are more expensive and are less profitable that the major chain stores that are found in Sweden.
Norway is the world's third largest oil exporter, and a major exporter of natural gas. This high level of income might correlate with higher price levels. And again, Norwegians do not tend to be price-conscious...But when the food-bill goes up, a trip across the border to buy cheaper groceries and meat products can save some NOK!
So, it's across the border to Sweden. Check the customs sign. Anything to declare?
This reminds me of this summer when our government shut down. The gas stations across the border (WI) said their sales were up huge amounts. The reason....lottery tickets. Wisconsin was happy with our shut-down.
ReplyDeleteBy the way: I think it would be cool to grocery shop in Sweden!
ReplyDeleteThank you sharing this information, thanks. I will come back again for more interesting stuffs like this one, you got earlier.
ReplyDeleteWelcome to Green Herbz 2014 Potpourri Herbal Spice