The prices of fruit have increased: It has become horribly expensive

Now it costs NOK 15 for a large orange, NOK eight for a pear and NOK five for a green apple. Fruit prices have skyrocketed.

Pears, oranges and pineapples are among the fruits that have risen sharply.

• Pears. In November, a kilo of pears cost NOK 24.90 at Rema, and earlier in May the price was NOK 32.90. On Tuesday this week you had to pay 39.90. This is a price increase of 60 and 21 per cent respectively. Also at Kiwi, the bulbs cost NOK 39.90 on Tuesday. In December, pears were almost NOK 15 cheaper at Kiwi, namely NOK 24.98 per kilo.

• Oranges. On Tuesday, a kilo of loose weight oranges cost NOK 39.90 at both the Kiwi store and the Rema store we checked, while Coop Prix charged NOK 43.90. In large parts of January, you could buy premium oranges at Rema for 14.90 a kilo. On 8 November the price was 29.90 before it dropped to 26.80 kroner eight days later. Today’s price is 168 per cent higher than in January and 49 per cent higher than the Rema price on 16 November. At the end of April, oranges cost NOK 32.88 per kilo at Kiwi, so on Tuesday the price was 21 per cent higher.

• Pineapple. At the end of November cost one pineapple NOK 29.90 at Rema and at the end of December the price was NOK 32.90. On Tuesday, the pineapple cost NOK 34.90. Compared to the price in November, the price has increased by 17 percent.

Kiwi also now charges 34.90 for a pineapple.

• Apples. At the end of November, you could buy green apples from Kiwi for 26.92 per kilo, while the price was 32.91 on 15 November last year. In January, however, the price was down to NOK 26.90 per kilo at Kiwi. Green apples in bulk – Granny Smith – cost 29.90 on Tuesday at both Rema and Kiwi and 32.90 at Coop Prix.

In December, you could buy red apples and Norwegian apples from Kiwi for NOK 24.90 per kilo for both types. These are admittedly a different type of apple, but we are not comparing apples and pears.

The figures we have used are based on receipts in the Æ app and Trumf and are without the discounts that come with these.

– Weather and weakened krone exchange rate

So why does everything go to heaven? Below you can read the explanations of the chains and the fruit wholesaler Bama.

This is what Coop says:

– The main reason is the demanding weather conditions that have been in Spain and Italy for a long time, which have led to challenges in terms of access and quality of fruit and vegetables. This, together with increased production costs, and not least a significantly weakened krone exchange rate, has led to increased prices, comments Harald Kristiansen, communications manager at Coop.

– Then we have also just put behind us a period of tough price competition in the run-up to Easter, which was the toughest for many years, and the fact that prices are now normalizing is completely normal, he adds.

Rema: January campaign on oranges

Rema also draws out the puzzling Norwegian krone. But indicates that there was an offer for oranges in the New Year.

– In January and before Easter, oranges were on sale, so these prices cannot be compared. Since we do not produce oranges in Norway, today’s prices are strongly influenced by the krone exchange rate, comments Category and Purchasing Director Line Aarnes.

– In addition, there is less supply of fruit in Europe during the transition of the season, which contributes to a higher price from suppliers, she adds. Rema states that they have not increased their margins as a result of this price increase.

Kiwi says the same.

– We have not increased the margins on fruit and vegetables, in fact quite the opposite. We receive new input prices from suppliers every week, and the prices of fruit and vegetables have increased as a result of the weak Norwegian krone, access to raw materials and other increased costs in the value chain, writes Kristine Aakvaag Arvin, Kiwi’s communications manager, in an email to VG.

The fruit wholesaler Bama, which is among others owned by Norgesgruppen and the Reitan family, also refers to the weak Norwegian currency.

– The prices of imported fruit are primarily affected by the weak krone. Then it is about less access to fruits such as apples, pears and oranges now in the seasonal transition from Europe to South America and South Africa, writes communications director Pia Gulbrandsen in an email.

– Currently, prices are also affected to a far greater extent by costs for everything from seeds and electricity to packaging, labor and transport than we have seen historically, adds Gulbrandsen and points out that it is the chains that set prices in store.

– If we compare with the same period last year, the price increase for fruit and vegetables is below the general price increase when we disregard the currency effect.

– Customers get dizzy

Professor Tor Wallin Andreassen at the Norwegian School of Economics (NHH) believes that previous campaigns are a real argument that prices are now higher. So are cost increases, a weak currency and there have been logistical problems with getting the goods to customers in the wake of the pandemic and the war in Ukraine.

– But at the same time, the chains move the price increases from area to area so that they maintain overall profitability. This makes us as customers dizzy and lose the precise perception of what a kneip or kilo of grapes really costs, he says to VG.

In this way, Andreassen believes, a belt is created with “acceptable” prices, from a lower limit where we think it is cheap, and up to an upper, expensive limit.

– Everything between these points is perceived as acceptable. I am so mean that I think this is a deliberate strategy from the actors. You lose your footing with regard to what things should cost. We consumers can’t bear to drive all over town to compare prices, concludes Andreassen.

PS! Are you wondering what offers the grocery stores are advertising for now? VG’s independent consumer service Kupp compiles these in a separate app – download it for free here!

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