Tine invests 800 million in Ireland, while 430 Norwegian employees have to leave. The management says the reason is cut by the export subsidy for cheese, writes the newspaper Klassekampen.
The dairy group will save NOK 1 billion in Norway and cut 10 percent of its employees. This will happen by the end of 2021.
The reason, according to management, is Parliament’s decision to phase out export subsidies for cheese, after the World Trade Organization (WTO) agreed to phase out all use of export subsidies for agricultural products.
Therefore, a new dairy in the Irish city of Cork will produce Jarlsberg cheese for the US market.
CEO Gunnar Hovland said in a press release that no part of the business would be protected, and acknowledges that dairies could be closed down. He goes on to say that there are discussions with union representatives in the group about how best to implement the cuts.
– “We want as far as possible to reduce the number of annual salaries through natural retirement, but at the same time can not promise that this will be possible without dismissals,” says press officer Bjørn Malm in Tine to the Class Fight.
At the same time, milk production may also be reduced. Malm says Norwegians drank almost 300 million liters less Tine milk in 2019 than in 1994. Several of Tine’s dairy products will be taken off the market, while new ones will be established.
– “In addition to other drinks, changing eating habits are also a cause of the decline. But we work hard and have great hope to be able to reverse the trend,” says Malm.
© NTB Scanpix / #Norway Today