Who Really Profits From Expensive Beef? The Surprising Truth

Norwegian meat prices have risen as weekend beef has climbed past 600 kroner per kilo, sparking a debate over supply chain profits and consumer costs.

Margin Shifts in the Meat Value Chain

Data from NIBIO shows that Norwegian cattle farmers saw their profit margins increase by an average of 10.2 percent, while grocery store prices rose by 5.6 percent. Looking at the period from July of one year to the next, farmers’ incomes climbed by 13.6 percent. This marks a clear margin shift in the meat supply chain, with farmers increasing their margins 50 percent faster than retail price hikes. Between January and July, the trend remained identical.

Kristian Hovde, a cattle farmer with over 25 years of industry experience, notes that while this is an upward shift compared to past earnings, it still does not match profitability seen in other agricultural sectors like milk, grain, pork, and chicken. “It’s an upturn from what has been, but we are not anywhere near the earnings you get on other things in agriculture,” Hovde states.

Slaughterhouse Profits and Millionaire Executives

Farmers are not the sole beneficiaries of high meat prices. Slaughterhouses and meat producers are also posting strong financial results during a period marked by a severe shortage of Norwegian meat. Nordfjord Kjøtt, Rema’s primary slaughterhouse, recorded a 76 percent profit increase. The company’s managing director, Geir Egil Roksvåg, was ranked as Norway’s 169th richest person by Kapital in 2024. Similarly, Fatland Ølen, which holds exclusive agreements with Coop, delivered strong financial results, leaving its family owners with combined personal fortunes of 970 million kroner.

How Oversupply and Calf Slaughters Changed the Market

Meat pricing in Norway depends heavily on market balance, regulated largely by Nortura, a cooperative owned by farmers that slaughters two out of every three cattle in the country and manages brands like Gilde and Prior. When the market experiences a surplus, farmers must pay for cold storage warehousing. Hovde explains that during periods of oversupply, freezing and thawing costs total 12 kroner per kilo.

The market experienced a drastic shift from 2022 to 2023, when overfilled freezers drove cattle prices down by 8.5 percent. Prices dropped by 7 kroner, falling from 95 to 88 kroner per kilo for cattle, heifers, and slaughter oxen. To eliminate the massive meat surplus, Nortura introduced a slaughter bounty financed through the turnover tax, paying farmers 2,000 kroner per slaughtered calf to reduce the livestock population.

While the mass slaughter caused farmers to lose money temporarily—with retail prices climbing 9.9 percent during that same period—it ultimately achieved its goal. Over the subsequent two years, prices paid to farmers climbed steadily, adding 10 kroner more per kilo of meat by August.

Current Meat Shortages and Surging Imports

Nortura forecasts show a projected shortage of beef and veal by September 2026, alongside completely emptied cold storage facilities. To compensate for the domestic deficit, Norway increased its imports of beef and veal by 50 percent in 2025, according to Mona Hadi, a senior executive officer at the Norwegian Agricultural Directorate (Landbruksdirektoratet). The total value of imported beef and veal reached substantial figures, with meat arriving from 51 different countries, led by Denmark and Germany.

Addressing whether the market deficit was intentionally engineered to boost farmer earnings, Ole Nikolai Skulberg, director of the total market for meat and eggs at Nortura, rejects the notion. “The deficit is neither desired nor controlled. Here, the market has experienced a jump in demand,” Skulberg states. He emphasizes that beef production requires a long-term horizon of two to four years from insemination to final market delivery, preventing producers from matching rapid shifts in consumer demand.

Berg at NIBIO points to another contributing factor: high milk demand from mid-2024 through 2025 prompted dairy farmers to keep milking cows rather than sending them to slaughter, reducing the total volume of meat entering slaughterhouses. Skulberg highlights shifting consumer habits, including a strong protein trend and a growing preference for minimally processed foods like ground beef, which drove sales higher than initial projections.

Frequently Asked Questions

Why are Norwegian meat prices so high?

Meat prices have risen due to a combination of market supply adjustments, reduced numbers of slaughter-ready animals resulting from prior oversupply reduction programs, strong consumer demand for protein, and increased reliance on imported beef.

Who regulates meat production in Norway?

Nortura acts as the market regulator, managing the availability of meat and eggs and overseeing price adjustments based on market surplus or deficit conditions.

Why did Norway import more meat recently?

According to the Norwegian Agricultural Directorate, Norway increased beef and veal imports by 50 percent to offset a domestic production deficit caused by a shortage of cattle and emptied cold storage reserves.