WORLD TRADE
ORGANIZATIONG/SCM/N/95/NOR/Add.1
1 October 2003
(03-5124)
Committee on Subsidies and
Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the Agreement
on Subsidies and Countervailing Measures
NORWAY
Addendum
The following communication, dated 29 September 2003, has been received from the
Permanent Mission of Norway.
_______________
With reference to Norway's subsidy notification for 2002, circulated as document
G/SCM/N/95/NOR on 17 July 2003, please find attach ed Chapter 10 of the said notification, thus
making Norway's subsidy notification for 2002 complete.G/SCM/N/95/NOR/Add.1
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10. THE AGRICULTURAL SECTOR
10.1 Introduction
The notification of the subsidies in the agricultural sector  gives an overview of general
developments in the Norwegian Agricultural Policy and of agricultural subsidy programmes.  The
notification is in line with previous notifications on Agriculture by Norway to the Committee on
Subsidies and Countervailing Measures.
Reference is also made to the notifications on domestic support provided to the Committee on
Agriculture.  The last notification (doc ument G/AG/N/NOR/41) covers the year 2001.
10.2 Information on the subsidy programmes
The various programmes are listed under the sub headings 10.2.1 to 10.2.7 below.  The
notification covers schemes in force from 1 July 2002 and until 31 December 2004.  The current
Agricultural Agreement is in force from 1 July 2003 until 31 December 2004.
Norwegian agricultural policy is implemented in pursuit of objectives concerning i.a.
production, income, productivity, regional development, the agricultural landscape and environmental
concerns.  The three latter objectives and the multifunctional role of agriculture in general, have been
given higher priority during recent years.
Target prices for farm products (administered prices for grain) and the fiscal support to be
accorded to agriculture are laid down in the a nnual Agricultural Agreement between the farmers'
unions and the Government.  The Agricultural Agreement is subject to ratification and appropriation
of budget funds by the Norwegian Parliament.  Al locations in the Agricultural Agreement are made
under Chapter 1150, Ministry of Agriculture of the State budget (cf. table one below for details).
Support is provided for grains and oilseeds, fruits and vegetables, milk and dairy products,
meat from bovine animals, veal, mutton, pork, poultry meat, eggs and wool.  For the various sectors
the below mentioned support schemes apply.  Di rect payments, of which most schemes are
differentiated by region, size of farms, arable land and number of animals, play a significant role.
10.2.1  The milk sector
Milk production is of vital importance in several rural regions as alternative forms of
agricultural production are scarce.  There is a major policy objective to secure employment and
economic activity in the countryside, maintenance of agricultural landscape, and to fulfil national foodsecurity policies including protecting arable land and securing a decentralised production structure.
Since 1 July 2002, base deficiency payments are granted for goat milk only.  In addition,
regional deficiency payments apply to rural areas.  The deficiency payments are paid for each litre of
milk delivered to the dairy.  The amount varies according to region, and the highest support is given inthe northernmost districts in Norway.  Structural in come support is also provided to each farm.  The
support is paid as a lump sum to producers with more than 5 cows or 27 goats for milk production.
The objective of the programme is to equalise income between larger and smaller holdings.
10.2.2  The meat and egg sectors
Producers of meat from bovine animals, veal an d mutton receive a base deficiency payment on
all output.  In addition a deficiency payment is provided to secure producer prices for wool.  Regional
deficiency payment is provided to producers of meat and eggs in less favoured regions.  The payment
is differentiated by region and by type of meat.  The rates are highest in the northernmost county inG/SCM/N/95/NOR/Add.1
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Norway.  Transport support is granted to equalise fa rm gate return due to differences in distance from
slaughterhouses, processing plants and major consum er markets.  A small amount of transport support
is granted to the egg sector based on the same rational as for the meat sector.
10.2.3 The grain sector
The Grain Price Support Programme aims at securing the sale of Norwegian grain and to
reduce the prices on raw materials for flour and for feed purposes.
10.2.4 Potatoes and horticultural products
Regional deficiency payments are provided to production of fruit, berries and vegetables.  In the
horticultural sector some transport support and storage support is also provided.
10.2.5 Headage and Acreage support
A major part of the budgetary support is paid within the Acreage and Agricultural Landscape
Scheme and the Headage Support Programme.  The support is based on the size of cultivated area and
the number of animals, and the support is differentiated by region, farm size and kind of animal.
Certain environmental criteria have to be fulfilled in order to receive support.  In animal husbandry
there is a maximum level of support per farm.  The maximum level of support varies according to
changes in rates.  In plant production the level of support is dependent on the size of cultivated area.
10.2.6 Vacation and replacement
To enable livestock farmers to have sufficient holidays and time off they are refunded
expenses for hiring relief personnel under the Vacation and Replacement Scheme.  Eligible farmersmust have an approved substitute scheme and expenses must be documented.
10.2.7 Market regulation
Market regulation is mainly financed through a marketing levy.  Producers become liable for
the marketing levy when selling a product.  The aim of the market regulation is to equalise prices to
producers and consumers in different regions and to secure supply of agricultural products in allregions of the country.
10.3 Expenditures and market structure
Deficiency payments, the structural income support, the acreage and headage support as well
as the Vacation and Replacement Scheme are granted directly to farmers.  The rest of the programmes
are market regulation schemes and other indirect schemes.
The amounts of support measured by total budget expenditures for 2002 and 2003 are listed in
tables 1 to 5 below.  All numbers for 2002 are  account figures.  The source is the NorwegianAgricultural Authority (SLF).  The figures fo r 2003, are taken from Proposition No 70 (2002-2003) to
the Norwegian Parliament by the Ministry of  Labour and Government Administration, and are
provisional budget expenditure figures.
Tables 1 to 10 provide updated information on Agricultural Support in Norway as well as
market information on major agricultural commodities.
In Table 1 Price Support and Other direct payments to producers are totals from Table 2 and
Table 3.  The rates in Table 5 and 6 multiplied by eligible volumes of milk and meat equals Price
Support in Table 2.G/SCM/N/95/NOR/Add.1
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Table 1
Chapter 1150, Agricultural Agreement, Million NOK
2002 2003
Agricultural Development Fund 756.0 687.8
Market Regulation 71.5 83.7
Price Support 2,241.9 2,078.8
Other direct payments to producers 7227.5 7,120.8
Total 10,296.9 9,971.1
Table 2
Chapter 1150, Price Support, Million NOK
2002 2003
Milk and Milk Products 504.2 458.5
Beef, veal, mutton and pork 896.6 720.8
Cereals 517.0 581
Wool 179.6 165.7
Other 147.5 152.8
Total 2,241.9 2,078.8
Table 3
Chapter 1150, other direct payments to producers, Million NOK
2002 2003
Structural income support 1,306.2 1,243.5
Headage support, animals 2,251 2,258
Acreage and cultural landscape scheme 3,259 3,216.9
Production support on market crops 56 51.3
Transport support, meat and eggs 82 80.5
Other 273.3 270.6
Total 7,227.5 7,120.8
Table 4
Base deficiency payment, amount per unit (NOK per litre/kg)
1.7.02-30.6.03 1.7.03-31.12.04
Milk 0 0
Beef and veal 1.81 0
Mutton 3.81 3.81G/SCM/N/95/NOR/Add.1
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Table 5
Regionally deficiency payments, amount per unit (NOK per litre/kg)
1.7.02-30.6.03 1.7.03-31.12.04
Milk10.00/1.68 0.00/1.68
Meat20.00/13.00 0.00/13.00
The schemes in tables 1-5 are the result of the annual Agricultural Agreement between the
farmers' unions and the Government.  The agreement is subject to ratification by the Norwegian
Parliament.  While the framework usually does not change from one year to another, there is an
ongoing process of review and evaluation of the programmes.
An assessment of the trade effects of the subsidies is not available.  Below however, are
statistics on production, consumption, imports and exports of the major agricultural commodities.
Most 2002 figures are provisional and 2003 figures are forecasts.
Table 6
Cow's milk
Year Received by diaries Consumption, million kg
Million litres Whole, low-fat and
skimmed milkCream and sour cream
1994 1,727 694.5 28.4
1995 1,709 682.5 28.6
1996 1,688 663.0 28.8
1997 1,684 642.1 29.2
1998 1,672 620.1 29.9
1999 1,647 590.5 29.7
2000 1,559 572.8 29.8
2001 1,518 553.0 29.9
2002 1,505 551.6 31.9
2003 1,522 544.7 33.9
Sources:  Budget Committee for Agriculture, aggregate accounts (Budsjettnemda for
Jordbruket – Jordbrukets totalregnskap 2002 – 2003).  Submitted 2003
Table 7
Cheese (million kg)
Year Production Exports Imports Consumption
1994 79.7 21.9 2.3 59.7
1995 83.4 23.1 2.4 61.5
1996 85.6 22.5 2.6 63.4
1997 86.9 24.1 2.6 64.6
1998 90.4 22.5 2.6 66.6
1999 83.2 23.3 3.0 65.1
2000 82.5 19.4 3.2 65.9
2001 81.6 18.8 3.3 65.9
2002 81.9 17.2 4.3 66.8
                                                     
1 10 zones, varying rates, lowest and highest cited
2 5 zones, varying rates, lowest and highest cited (varies also for kind of meat)G/SCM/N/95/NOR/Add.1
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Sources:  Production and consumption: B udget Committee for Agriculture, aggregate
accounts (Budsjettnemda for Jordbruket – Jordbrukets totalregnskap 2002 – 2003).  Submitted 2003
Exports/Import: External Trade, Statis tics Norway (Statistisk Sentralbyrå)
Table 8
Butter (million kg)
Year Production Exports Imports Consumption
1994 17.6 4.0 0.0 13.0
1995 17.7 4.4 0.0 13.3
1996 16.2 2.4 0.0 13.1
1997 15.4 2.5 0.0 12.2
1998 15.4 2.3 0.0 12.3
1999 18.6 5.1 0.2 12.4
2000 16.2 3.8 0.2 12.4
2001 15.0 1.5 0.2 11.8
2002 15.3 1.1 0.4 13.1
Sources:  Production and consumption: B udget Committee for Agriculture, aggregate
accounts (Budsjettnemda for Jordbruket – Jordbrukets totalregnskap 2002 – 2003).  Submitted 2003
Exports/Imports: External Trade, Statistics Norway (Statistisk Sentralbyrå)
Table 9
Cereals (million kg)3
Year Production Imports4Exports Consumption
Wheat
1994 253.1 301.4 7.3 539.6
1995 308.0 125.5 0.0 443.0
1996 263.0 227.8 2.3 448.6
1997 251.7 213.1 0.0 465
1998 321.2 168.6 0.0 n.a
1999 225.8 357.5 2.3 511.4
2000 308.6 204.2 0.0 395.3
2001 254.4 249.3 1.8 430.2
2002 268.0 244.1 0 469.4
                                                     
3 Consumption figures may differ from production + import - export figures, due to changes in stocks
and storing losses.
4 Figures of import and export from 1995 and thereafter are based on External Trade Statistics by
Statistics Norway.G/SCM/N/95/NOR/Add.1
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Year Production Imports5Exports Consumption
Rye
1994 7.0 36.8 0.0 41.9
1995 14.3 25.3 0.0 10.06
1996 12.0 18.3 0.0 44.1
1997 12.1 20.3 0.0 35.07
1998 14.4 28.4 0.0 n.a.
1999 5.0 31.0 0.0 49.5
2000 9.3 1.8 0.0 35.6
2001 6.3 27.6 0.0 33.5
2002 8.2 25.8 0.0 35.4
2003 7.3 n.a n.a n.a
Barley
1994 492.8 206.0 0.0 667.1
1995 535.9 161.4 0.0 665.0
1996 586.7 195.5 0.0 700.5
1997 591.5 27.9 0.1 665.8
1998 594.3 105.1 0.1 n.a.
1999 613.3 16.5 0.2 584.4
2000 557.0 6.3 0.2 592.9
2001 614.8 23.0 0.2 533.9
2002 606.0 1.8 0.2 571.7
2003 617.7 n.a n.a n.a
Oats
1994 291.9 17.5 0.0 341.8
1995 347.4 60.0 0.0 326.0
1996 331.0 109.6 0.0 355.8
1997 322.5 58.4 0.0 406.8
1998 320.0 18.7 0.0 n.a.
1999 374.0 6.2 0.0 353.1
2000 383.9 11.3 0.0 357.6
2001 326.9 1.0 0.0 381.1
2002 312.0 6.7 0.0 303.9
2003 332.4 n.a n.a n.a
Sources:  Production: Budget Committee for Agriculture, aggregate accounts (Budsjettnemda
for Jordbruket – Jordbrukets totalregnskap 2002 – 2003).  Submitted 2003
Exports/Imports: External Trade, Statistics Norway (Statistisk Sentralbyrå).
Consumption: Norwegian Agricultural Authorities (SLF).
                                                     
5 Figures of import and export from 1995 and thereafter are based on External Trade Statistics by
Statistics Norway.
6 Only rye for feed purposes.
7 Includes triticale.G/SCM/N/95/NOR/Add.1
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Table 10
Meat (million kg)8
Year Production Exports Imports Consumption
Beef and
Veal
1994 86.6 1.4 2.0 91.0
1995 84.2 1.9 3.3 86.7
1996 85.1 1.7 5.2 88.5
1997 88.1 3.1 3.3 86.7
1998 90.8 3.7 3.7 90.1
1999 95.6 9.7 3.5 90.2
2000 90.9 2.5 3.7 92.3
2001 85.8 2.8 5.7 90.3
2002 87.2 2.3 6.2 91.1
2003 83.4 0.0 4.5 91.0
Mutton
1994 25.1 0.0 0.5 24.3
1995 25.2 0.0 0.7 26.4
1996 25.8 0. 0.3 22.9
1997 24.6 1.1 0.1 24.5
1998 23.3 0.2 0.2 24.5
1999 22.9 0.5 0.5 23.5
2000 23.5 0.0 0.9 24.3
2001 24.5 0.2 0.8 22.8
2002 25.1 0.6 0.9 25.3
2003 24.6 0.0 1.2 25.4
Pork
1994 91.4 0.4 5.5 99.0
1995 96.1 0.2 6.3 101.8
1996 10.3 0.3 5.1 105.9
1997 105.5 4.3 2.3 105.9
1998 106.4 0.8 2.9 106.5
1999 109.3 11.6 3.2 102.8
2000 102.9 1.9 3.6 105.1
2001 108.8 0.7 3.4 111.0
2002 104.0 0.3 2.4 106.4
2003 105.8 0.0 1.9 102.6
                                                     
8 Consumption figures may differ from production + import - export figures due to changes in stocks.G/SCM/N/95/NOR/Add.1
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Year Production Exports Imports Consumption
Poultry meat
1994 25.6 0.1 0.4 27.1
1995 28.6 0.1 1.1 28.3
1996 32.4 0.0 0.2 30.6
1997 33.4 0.0 0.2 33.6
1998 32.4 0.0 0.2 31.4
1999 36.6 0.0 0.3 37.5
2000 42.6 0.1 0.3 39.7
2001 38.4 0.0 0.3 44.7
2002 46.0 0.1 0.3 46.4
2003 47.7 0.0 0.0 47.9
Eggs
1994 51.5 0.0 2.2 48.1
1995 49.3 0.2 1.5 49.3
1996 48.8 0.7 1.5 48.8
1997 46.9 0.7 1.8 46.9
1998 47.3 0.7 1.7 45.2
1999 47.9 2.2 0.4 44.9
2000 48.1 1.9 0.3 44.5
2001 47.2 2.2 0.6 45.2
2002 47.5 1.4 0.6 45.6
2003 49.5 2.2 0.4 46.2
Sources:  Production and consumption: B udget Committee for Agriculture, aggregate
accounts (Budsjettnemda for Jordbruket – Jordbrukets totalregnskap 2002 – 2003).  Submitted 2003
Exports/Import: External Trade, Statis tics Norway (Statistisk Sentralbyrå)
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