Norwegian butter crisis

Norwegian Butter Crisis

The Norwegian Butter Crisis (Norwegian: Smørkrisa) was a short-term economic crisis that occurred in Norway in late 2011. The crisis was characterized by an acute shortage of butter, leading to soaring prices and consumer panic.

Background

The crisis was triggered by a combination of factors, including a surge in demand for butter due to the popularity of low-carbohydrate, high-fat diets, and poor milk production due to unusually heavy rainfall during the summer months. The crisis was exacerbated by the Norwegian government's high tariffs on imported butter, which made it difficult for foreign suppliers to fill the gap.

Impact

The butter shortage led to a significant increase in prices, with some retailers charging up to 50 euros per kilogram. This led to widespread consumer panic and even instances of butter smuggling. The crisis also sparked a debate about Norway's agricultural policies, with critics arguing that the government's protectionist measures were to blame for the shortage.

Resolution

The crisis was eventually resolved in early 2012, when the Norwegian government temporarily reduced tariffs on imported butter. This allowed foreign suppliers to meet the high demand, and by February, butter prices had returned to their pre-crisis levels.

See also

• Economic history of Norway
• Agriculture in Norway
• Tariffs