Friday, October 21, 2011

Hvor mye koster det?

How much is that?
Back "in the day", Wisconsin became aware of a new spread called "Margarine" , but because it competed with the Dairyland Favorite "Butter", it was illegal for Wisconsin stores to sell it. So, if we wished to buy the much cheaper product, we had to go "out of state!" Living next to the Mississippi River made it easy to drive over the river into Iowa and buy the "illegal" and cheaper margarine. Apparently, similar shopping is happening to Norwegian shoppers , who are going across the border into Sweden to buy cheaper products. Swedish stores on the border are doing well!
This is a typical Swedish store open for business.
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Norwegian grocery stores have the highest prices in Europe and the worst selection of goods, according to comsumer advocates. A government study-group is trying to discover the reason. Food producers, retailers and wholesalers all blame each other. " The reality is that we have four major chains that control the entire Norwegian market" says one spokesperson of the group. Another finding is that when volume is high and suppliers wish to have their product displayed and sold in a store, the supplier might offer a "bonus" to the retailer, which the retailer tends to keep, instead of passing it on to the consumer. It has been said that the grocery chains' owners tend to be among the wealthiest in Norway. So, let's go shopping in Sweden!

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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.

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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.

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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.

IKEA. A popular and well-known Swedish store.

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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?

3 comments:

  1. 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.

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  2. By the way: I think it would be cool to grocery shop in Sweden!

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  3. Thank you sharing this information, thanks. I will come back again for more interesting stuffs like this one, you got earlier.
    Welcome to Green Herbz 2014 Potpourri Herbal Spice

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