You hear on the news and read on newspapers and amagazines about the money crisis that some countries in Europe are facing but have you heard about the “Butter Crisis” in Norway?

The Norwegian butter crisis started in late 2011 when during the summer the heavy rains affected the grazing of the cows and the production of milk decreased what made the price of the butter increase in at least four times (this happens due to the supply and demand economic model for price determination in the market in order to achieve the equilibrium). At the same time, demand increased really fast due to a low carbohydrate, fat-rich diet.

As Norway wanted to protect their own domestic dairy industry against foreing competition, tariffs for imported butter were and still are really high, what contributes for shortages of butter in the country.  Due to the extremely high tariffs, there are a lot of countries trying to take some advantage over Norwegians now. Some people were arrested trying to smuggle butter across the border, while Swedes are offering to to drive butter to the Norwegians at prices of up to ¢59 per kilogram!

That is the price that you pay when you decide be a completely independent country and wants to protect your own industry by trying to avoid the foreing competitors. When you face a crisis like that one, the only ones who can help are the competitors but of course they will make you suffer a bit before helping. That is how the business world works. So, if you have at least one butter block in your fridge you should feel a very lucky person!

As I have on butter block in my fridge and this whole butter talk made me feel like eating butter cookies I will say goodbye and make some cookies!

Gabi