Nine facts about Norwegian agriculture

Today, the average Norwegian consumes 19 kilograms of cheese and 20 kilograms of poultry annually. This is a staggering increase of 5 kilograms and 14 kilograms respectively since 1995.

These shifting dietary patterns reflect broader changes in Norwegian agriculture and food culture. From the lush grasslands of the west to the fertile plains of the southeast, farmers are adapting to new consumer demands, technological advancements, and environmental challenges.

The story of Norwegian agriculture is one of resilience and innovation. 

Only 3 per cent of Norwegian land is suitable for farming. Despite this, Norway has managed to maintain a high degree of food self-sufficiency. This achievement is even more impressive considering the country's northern location, with some parts lying within the Arctic Circle.

Norwegian agriculture extends beyond food production, playing an important role in preserving cultural heritage, managing landscapes, and contributing to rural economies. From the traditional dairy farms around the fjords to the high-tech greenhouses near urban centres, Norwegian agriculture is a vital part of the nation's past, present, and future.

The total gross output as normalised earnings for 2023 was NOK 41,6 billion (about 3.7 billion USD), excluding direct subsidies: 

1. Agricultural economy and food security in Norway

The number of agricultural holdings has declined from 99,400 in 1989 to around 37,000 in 2023. 

The total gross output of Norwegian agriculture was NOK 59.5 billion (about 5.3 billion USD) in 2023, including all subsidies. Sales of milk and meat are the two largest sources of income, with milk accounting for 26.8 per cent and meat for 35.6 per cent of total agricultural output.

Norway's food self-sufficiency rate has fluctuated between 45-55 per cent since 1970. 

This rate drops below 45 per cent in years with poor grain yields, as witnessed in 2012 and 2018. While Norway relies heavily on imports for fruits and berries, the country maintains high self-sufficiency in dairy products, eggs, and meat.

2. Farm sizes are expanding 

In 1999, the average farm size was 14.8 hectares.

25 years later, in 2024, the average size was 26.1 hectares.

The average farmland acreage on farms still in operation is steadily increasing.

3. Rented land is important

In 2024, approximately 48 per cent of total farmland acreage was rented land. 

The proportion of rented land in agricultural operation has been steadily increasing since World War II. 

This trend is largely driven by the expansion of farm holdings, as larger production areas are required beyond the land originally owned by farmers. 

4. Reduced consumption of milk 

From 1980 to 2024, Norway’s dairy cow population has declined from 375,750 to 203,000.

This development is linked to declining milk consumption, leading to lower total  production. 

Since 2000, milk yields per cow have increased, while total milk production has remained relatively stable, averaging approximately 1.5 billion litres annually. 

5. Meat consumption has doubled in 40 years

The annal consumption of beef, veal, lamb, mutton, pork, and poultry was at an all-time high in 2021, at about 407,000 tonnes in total. This is about twice the amount consumed in the early 1980s, although the increase per capita is somewhat lower. 

There has been some import of meat, especially beef. This is due to the declining cattle population as a result of reduced milk consumption and production.

The production and consumption of meat in Norway has been steadily increasing for the past 30-40 years, especially due to an increase in poultry meat consumption. Consumption of poultry peaked in 2013, and again in 2023. 

Consumption is highest for pork, at 25.5 kg per capita. The focus on nutrition and food safety issues can potentially cause considerable variations in meat demand. 

For example, publicity about the use of antibiotics (Narasin) in poultry feed led to a sharp decline in chicken consumption in 2014 and 2015.

6. Lamb/sheep = weak economy 

Norway’s sheep population increased by 9 per cent from 2014 to 2017, following measures to stimulate production.

This resulted in overproduction, reduced profitability, and a decline of the sheep population by 18 per cent in the years after 2017. Many smaller sheep farms have gone out of business in connection with farm succession.

7. Big game resources 

Game hunting is a good source of income for owners of forests and other non-cultivated areas.

During the 2023/2024 hunting season, 26,003 moose, 52,503 red deer, and 3,493 wild reindeer were felled.

The estimated total slaughter weights for big game animals felled in the 2023/2024 hunting season were 3,172 metric tonnes moose meat, 2,455 metric tonnes red deer meat, and 126 metric tonnes reindeer meat. 

At an estimated first-hand price of NOK 100 per kg, this represents a total value of nearly NOK 575.3 million (51.7 million USD).

8. Organic paradox 

The total area under organic farming has decreased by 13 per cent since 2013. The organic area increased somewhat from 2019 to 2020 but continued to decrease again after 2020.

As of 2023, about 41,100 hectares were farmed organically, equivalent to 4.2 per cent of Norway’s total farmland. 

However, the sales value of organic foods in the food retail trade has increased steadily since 2010, with a slight decrease in recent years. 

Total sales of organic food amounted to a value of NOK 2.5 billion (224 million USD)in 2023. Due to price increases, it is not possible to know for sure whether increased value in sales is due to increased consumption or increased prices.

9. Norway's forest landscape

Norway's forests cover an impressive 39 per cent of the country's total land area, spanning 12.7 million hectares. 

This vast expanse includes both productive and non-productive forests, with 8.3 million hectares (25 per cent of Norway's land area) classified as productive forest land.

The forest ownership structure in Norway is predominantly private, with 96 per cent of the 126,125 forest estates under individual ownership. In 2022, the average productive forest area per estate was approximately 55 hectares.

Norwegian forestry has evolved into a significant source of capital income for forest owners, with modern harvesting methods dominating the industry. About 90 per cent of timber volume is harvested using advanced logging machines. 

Interestingly, 30,068 forest estates combine forestry operations with agricultural activities, showcasing the diverse nature of rural livelihoods in Norway.

Beyond their economic value, Norwegian forests play a crucial role in climate regulation. In 2022, these forests demonstrated their environmental significance by absorbing 17.9 million tonnes of CO₂, offsetting roughly 38 per cent of Norway's total greenhouse gas emissions. 

This highlights the importance of sustainable forest management for both the timber industry and global climate efforts. Norwegian forests provide two key benefits:

1. A renewable resource for timber production and economic growth.
2. They act as a substantial carbon sink, supporting Norway's commitment to reducing its carbon footprint.

Norway promotes sustainable forestry, balancing economic growth with environmental care to preserve its forests for future generations.

Agriculture in Norway

Plant production in Norway depends on topography, geology, and biology, while climate and geography determine which crops can grow and their expected yields.

“Norway has a marginal production area for many important crops and is one of the few European countries that cannot grow sugar crops,” explains agricultural economist Heidi Knutsen.

When discussing Norwegian agriculture, it is important to consider the country’s northern location. Some parts of Norway are in the Arctic, which makes agriculture a challenging endeavour.

“Due to Norway’s climate, grain yields per hectare are lower than in most other European countries. In many parts of the country, growing fodder crops, mainly grass, is essentially the only viable option,” says Knutsen.

As a result, Norwegian agriculture relies on grass-based livestock farming. Much of the country's grain is used as animal feed due to its quality.

One of the advantages of Norway's cool climate is that it helps limit the spread of plant diseases and pests. Soil, latitude, and climate all shape Norwegian agriculture.

Dairy production – a core economic value 

In a country where growing fodder crops like grass is often the only viable option, grass-based livestock production forms the backbone of Norwegian agriculture. 

This makes dairy cows the most important agricultural production, providing milk, meat, and helping maintain the rural landscape alongside grazing sheep.

However, times are changing for both the dairy cow and dairy farmer. 

While milk yields per cow are higher than ever, competition is growing. The import of cheese and other dairy products is at an all-time high, and more consumers are cutting back on meat.

The Norwegian dairy industry will have to adapt to these changing times. Challenges include reducing greenhouse gas emissions, finding alternative fodder to reduce soy imports, and maximising the use of Norway’s own grass resources. 

"Efficient by nature"

As previously mentioned, Norway is not naturally suited for agriculture. 

Nevertheless, farming productivity has steadily increased in relation to the resources used.

Even within the same agricultural areas and with fewer man-hours, production volumes have either increased or remained stable, indicating improved efficiency. Various forms of capital now substitute labour.

Reference:

Berg, K. & Bjerke, K. Norwegian Agriculture - Status and Trends 2024, NIBIO POP, 2024.

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