BackTine Directors Report 2018
*Approved by auditor
Cows and goats are at the heart of everything TINE does. They deliver the raw material: “Possibly the finest milk in the world”. Milk is a raw material that must be treated and refined quickly. Milk is delivered every day throughout the year, regardless of holidays. To achieve this, the animals need to be kept healthy. Healthy and happy cows and goats give the best milk. TINE works hard every day to ensure the health and well-being of its animals. Norwegian cows and goats are some of the healthiest in the world, as evidenced by the fact that in Europe, only Iceland uses fewer antibiotics in its cattle and goats than Norway.
kg CO2e/kg of milk
Many years of research have made Norwegian dairy cows healthier and more productive than ever. In Europe, only Iceland uses fewer antibiotics in its cattle than Norway. Healthy animals release fewer greenhouse gases than animals battling with disease.
Each and every dairy cow in Norway has had its own health card since 1975. Health records were digitised a long time ago. Almost 93 per cent of active TINE members are also members of “Ku-kontrollen”, which collects health data. This information is used to both prevent and treat diseases. As a result, Norwegian cows have never been healthier, and the quality of their milk has never been better.
TINE can use regular health data from “Ku-kontrollen” to intervene early on and prevent or reduce disease, thereby helping farmers to maintain production. Nowadays, the average dairy cow produces just over 8000 litres of milk a year, compared with approx. 2000 litres in the “good old days” 75 years ago. The fact that more milk is being produced by fewer cows results in reduced greenhouse gas emissions – good for the environment. Norway is one of the very best in the world in this regard.
In times gone by, people thought of herds of Norwegian goats grazing in the mountains in summer. A frugal animal that uses sparse natural resources and keeps the vegetation down. But goats also rekindle memories of the bitter, rancid taste of milk and cheese.
The “Healthier Goats” project began in 2001. Its aim was to combat caprine arthritis encephalitis (CAE), goat plague and paratuberculosis in Norwegian goats. The Goat Health Service at TINE Consultancy headed the project.
The “Healthier Goats” project has now combated CAE, goat plague and paratuberculosis. It took 15 years to make Norwegian goats the healthiest goats in the world. The results are attracting a great deal of international attention, to say the least.
The goats have happier lives, their problems with disease are no more, and they live in freshly renovated barns where there are good procedures in terms of infection protection, feeding and care. Milk yields have increased while feed concentrates consumption is falling.
Norwegian goat’s milk now tastes like goats milk should taste – it is sweet and tasty. The bitter, rancid taste disappeared when the diseases were wiped out. Delicious milk from healthy goats is now being used to make new cheeses and other delicacies, to the delight of consumers.
Did you know that, Norwegian farms are in second place when it comes to using fewer antibiotics? Only Iceland is ahead of us. This low consumption of antibiotics has come about due to Norway’s long-term emphasis on good animal welfare. This has given us unique stocks of healthy dairy cows.
Good animal health makes a good contribution to our climate report, because healthy animals result in lower greenhouse gas emissions and produce more milk of better quality. As a result, very little of the milk produced here in Norway is wasted.
Norway provides the best milk quality in the world. Governmental requirements are in place that state cattle must be put out to graze or spend time out in a paddock for at least eight weeks a year. Only Norway and Sweden have such requirements when it comes to milk production. Besides strict governmental requirements, TINE has been working with an animal welfare indicator since 2016 for objective measurement of animal welfare. The indicator is based on international standards. Alongside health data from “Ku-kontrollen”, this should help to ensure that our more than 200,000 dairy cattle are healthy and treated well.
kg CO2e/kg of milk
Norwegian milk claims to be the world’s best in terms of both flavour and quality. Most of the credit for this must go to Norwegian dairy farmers. A lot of information has been handed down through generations, while milk production has undergone a formidable modernisation process over the past few years. Milking robots and modern computer equipment have turned many farms into digital workplaces – and yet the close bond between farmers and their animals is still at the very heart of what they do. Dairy farmers own the TINE cooperative, which gives them access to consultants, vets and other specialists.
Number of TINE owners10,120
Number of litres delivered per farm (joint operations) per year on average, including goat’s milk180,588
Number of litres (millions) delivered per day on average3.98
Month with the largest milk delivery, total number of litres (thousands)129,836
Month with the smallest milk delivery, total number of litres (thousands)105,587
Greenhouse gas emissions on the farm – average0.26
kg CO2e/kg of milk
kg CO2e/kg of milk
TINE is taking part in a number of exciting research project which aim to ensure reduced methane emissions from cows. This may be a very important contribution to the reduction of greenhouse gas emissions from Norwegian agriculture.
Because of the Paris Agreement, Norway is obliged to reduce emissions from agriculture. Adding an enzyme inhibitor to concentrated feed can significantly reduce the amount of methane emitted by cows. As a greenhouse gas, methane is approx. 25 times as powerful as CO₂.
Very promising test results in other countries
Provisional calculations and studies in Canada indicate that adding an enzyme inhibitor may reduce methane emissions by 30 to 60 per cent. This will result in a significant reduction in the amount of methane in the air. Methane emissions account for approx. half of the greenhouse gas effect from Norwegian agriculture.
Testing round bales from all over the country
But how farmers produce a coarse feed that results in minimal methane production in the rumen is also important. TINE, the Norwegian Institute of Bioeconomy Research (NIBIO) and various universities and research institutions abroad are now working together on a research project. The aim of this is to devise strategies regarding how farmers can produce grass resulting in minimal methane gas emissions.
“We have collected round bales from all over Norway, transported them to Ås and are about to analyse them for methane gas. The next step will be to manufacture silage in small laboratory silos and test the ‘most promising candidates’. Finally, a major production trial will be taking place at the Norwegian University of Life Sciences, where we will be testing the most promising silage on the entire herd and measuring the methane gas given off by the cows,” says Kim Viggo Weiby, climate consultant at TINE.
Must use more grass, with reduced methane emissions
Researchers are hoping to find out whether the time at which hay is made has any impact on the production of methane gas in the rumen. They also want to find out the significance of the species composition in the meadows and, not least, the quality of the fermentation; that is to say, the proportions of the various acids in the silage.
“Overall, this information will be important when we have to use even more grass in cattle rations in the future. We have to know what effect this will have on methane gas,” says Weiby.
The #Kukraft climate programme aims to produce the world’s most sustainable food transport by using green biogas made using cow dung. The 200,000 Norwegian dairy cows that supply TINE with milk will make the most important contribution towards attaining this target. The first vehicles that run on biogas made from cow dung are already operating on Norwegian roads.
That Norwegian dairy cows will be driving TINE’s climate initiative in the future – quite literally. A test project involving Greve Biogass in Tønsberg has provided new intelligence on the efficient production of biogas, and this is now forming a basis for the #Kukraft programme.
“#Kukraft is an important element in TINE’s environmental and innovation efforts, helping to switch our vehicle fleet to renewable energy. At least 100 of our vehicles must have switched to cow dung-based biogas by 2022. Being the first food producer in Europe to start using biogas from our own cow dung not only provides climate benefits, it also gives our dairy farmers – and TINE as a future energy producer – new opportunities,” says Lars Galtung, Director of Communication and Sustainability at TINE.
This test project has produced startling results from its production of biogas from cow dung in combination with food waste. This combination is achieving a 25 per cent better effect than traditional biogas production based solely on household waste, and it means that the supply of cow dung is resulting in the most efficient, most eco-friendly biogas production in the world!
Together with food waste, dung from one cow provides enough biogas to run a small car for about 25,000 km. In 2018, TINE heavy goods vehicles travelled 52.5 million kilometres, a distance requiring biogas produced from 17,000 cows’-worth of cow dung if all TINE transport were to be switched to biogas. We already have these “energy suppliers” in the barn.
If we can also include a 4.3-tonne reduction in CO₂ emissions per cow per year, 200,000 Norwegian cows belonging to the TINE “cow fleet” could run all their own transport if we use their dung for biogas production. It could therefore be possible to reduce emissions from agriculture by 860,000 tonnes of CO₂ per year. In other words, using the energy in methane gas from cow dung will make each and every glass of milk, every car journey and every single cow eco-friendlier.
#Kukraft is a positive climate initiative and a circular economy in practice. Milk from cows is turned into food, cow dung is turned into fuel, waste products from fuel production are turned into fertiliser – which is used for cows, and the cows then create food, fuel and fertiliser.
Tanker drivers have a very important job to do, ensuring the quality of the milk they collect. The driver carries out the first of many quality checks before transferring the milk to the tanker. Quality and fat percentage are factors that influence the amount paid by TINE to the farmer for the milk. Milk containing antibiotic residues is not used. It is the driver’s job to keep the vehicle clean both inside and out. Competent drivers and good hygiene on collection are another important factor in our efforts to deliver “Maybe the best milk in the world” to consumers.
TINE Milk Supplies “owns” the milk at this point and the farmer receives a payment according to the target price negotiated in the agricultural agreement between the Government and farmers’ organisations. TINE does not define this price and it is the same for all farmers, whether they produce milk for TINE or others. The milk is taken over by the dairies when it is transferred to a tank at one of the TINE dairies – or at other, competing dairy stakeholders. Milk producers get the same price for their milk, regardless of the products in which the milk is used.
times a week
tonnes of CO2e
TINE is obliged to collect milk, so we collect milk from more than 8000 farms of all sizes all over Norway, all year round. Our tanker drivers have two important jobs to do. They transport the milk, and they check its quality. The tanker driver is the first element in our quality assurance, making sure that the milk is clean and fresh. Before pumping the milk into the tanker, it is checked to make sure the temperature does not exceed four degrees, that the tank is well ventilated and that the milk is of a correct, consistent white colour, with no lumps in it. If it meets all these requirements, pumping can begin. The driver himself/herself can stop the pumping operation if the quality is not as it should be – this provides an extra level of safety.
Every modern tanker is like a laboratory on wheels, with one main objective: to keep the milk clean, and to prevent the temperature of the milk exceeding four degrees. This is not as simple as it sounds, with the changing seasons and temperature fluctuations. Tapping takes place at the farm and regular samples are taken from the tanker, collecting them in a test container. Each sample is labelled with a QR code containing information on the farm from which the milk was collected. The driver then places the sample in the fridge on board the tanker before submitting it to the dairy for testing and analysis.
Trip computers are fitted in our tankers and distribution vehicles. These measure fuel consumption and driving behaviour, among other things, and have been an important tool in our efforts to ensure greener driving among our drivers. A course focusing on driving style has been held for the drivers. Surveys of tanker transport are showing a reduction in fuel consumption in excess of 10 per cent as a consequence of changes in driving style. A more defensive driving style is very significant when it comes to road safety in both summer and winter. It also results in less wear and tear on both the tyres and the vehicle itself.
Transport that is as efficient as possible is important both for rational transport and for the environment. This is true of inbound transport, interim transport and distribution. Therefore TINE has invested in a new computer tool and trained its staff. TINE also has talented staff who work with route planning for both tanker operations and distribution.
TINE’s aim is for all transport to be based on 100 per cent renewable energy by 2025. We must use a lot of different measures if we are to achieve this target.
We are seeing rapid development in respect of technology. TINE wants to be at the head of the queue when it comes to trying new technological solutions. Examples of this include the order of the Nikola One hydrogen-electric trailer and the partnership with Scania for testing a hybrid truck. Other types of green technology are also of interest, such as renewable fuel from forestry waste, hydrogen, biogas and electricity.
Not least, we have high hopes for our #Kukraft project, where the first TINE trucks will be running on eco-friendly biogas made from cow dung.
“At least 100 of our vehicles must have switched to cow dung-based biogas by 2022. Being the first food producer in Europe to start using biogas from our own cow dung not only provides climate benefits, it also gives our dairy farmers – and TINE as a future energy producer – new opportunities,” says Lars Galtung, Director of Communication and Sustainability at TINE.
The third of the operating time of a tanker is spent pumping milk into the tanker at farms. Using electric pumps for all tankers will allow TINE to reduce its diesel consumption by about 1 million litres a year.
This will reduce annual emissions of CO₂ by around 3000 tonnes. The first tanker with an electric milk pump began operating in 2018.
Milk is currently pumped from the farm tank to the tanker using a hydraulic pump connected to the power takeoff on the internal combustion engine. Only a small amount of the energy consumed is used for pumping the milk in this process: the rest is used to keep the large diesel engine running. A lot of this idling time can be eliminated by using new technology.
“TINE’s aim is for all 250 of its tankers in Norway to have battery-powered pumps. This will have an important part to play in achieving our aim of sustainable transport," says Vidar Hauan, Director of Tanker Transport at TINE.
Electric pumping is almost silent. This means that there will be a considerable reduction in the amount of noise at the farm while milk is being collected.
“We collect a lot of milk at night, so noiseless pumping of the milk will be an advantage for people on the farm while also enhancing the work environment for the driver,” says Frode Eggan, Fleet Manager for TINE tanker transport.
times a week
tonnes of CO2e
TINE essentially has two types of dairy: “Liquid” for producing milk, cream, yoghurt, sour cream and other liquid products, and “Solid” for cheese and butter production. We also have a third type of dairy known as a “Special Plants”. Small-scale production of special cheese types and solid dairy products such as Gamalost and Selbu Blå takes place here. Some plants dry milk or whey that is not needed for the production. The amount of milk delivered throughout the year varies depending on the season and due to calving.
Number of dairies31
Number of dairies with distribution storage15
Energy consumption at TINE SA529
Emissions from TINE SA16,365
tonnes of CO2e
Wastage at TINE SA1.65 %
% points (change 2011-2018)
Food wastage in the food industry74,400
Number of litres of liquid products produced (thousands)528,612
Number of tonnes of solid products produced83,949
Number of tonnes of whey dried each year (thousands)530,000
Number of tonnes of milk dried each year (thousands)45,600
When there is not much milk, almost all of it is used for liquid production. When there is a lot of milk, more of it is used for producing products like cheese that can be stored. Innovative use of technology, information and experience are crucial elements that allow TINE dairies to deliver the quality required by customers and consumers. At the same time, constant efforts are being made to reduce wastage, emissions and energy consumption.
tonnes of CO2e
% points (change 2011-2018)
TINE Meieriet Ålesund is using groundbreaking new technology to replace natural gas with district heating, thereby reducing its CO₂ emissions by no less than 66 per cent.
Olvondo Technology has entered into a partnership with Tafjord Kraftvarme and TINE Meieriet Ålesund in order to exploit new technology. New heat pumps based on Stirling technology will be producing steam from hot water from the waste incineration plant in Breivika. The new heat pumps are located in a separate building adjacent to the dairy.
The Ålesund project is groundbreaking for a number of reasons. “This is the first time district heating has been used as a source of steam production for industrial processes in Norway. The business model is new, too. Olvondo Technology is not selling its heat pump technology, but instead it has taken on the role of service provider and supplies energy to us in the form of steam on a long-term contract basis,” says dairy manager Jan Heggem.
TINE’s aim is for all its production and transport operations to be based on 100 per cent renewable energy by 2025. The Ålesund project alone will help to reduce TINE’s total emissions by five per cent.
TINE subsidiary Norseland Inc. in the US has bought up the family-owned Food Service company Lotito Food Holding LLC. Its aim is to secure further growth and reinforce the position of Jarlsberg® in the American market. As of 2 January 2019, Norseland Inc. will own 66.67 per cent of Lotito Food Holding LLC.
The most important element in this acquisition is that it will provide TINE with a good platform for growth. Moreover, TINE will achieve better control over the entire Jarlsberg® value chain and make the most of the brand value invested by TINE and Norwegian farmers over several decades. It is also important to secure good competitive and market conditions for Jarlsberg® in a situation where export subsidies are being phased out.
Lotito has undergone good profitability development over a number of years, and the Food Service channel (restaurant market) is seeing a higher growth rate than the grocery products channel in the US.
The world-famous Jarlsberg® cheese is not produced just in Norway. We currently have contract production in Ireland, along with production at one of our own plants in Ohio in the US. Norseland Inc., a wholly owned TINE subsidiary in the US, purchased Alpine Cheese Co in Ohio in 2012.
Alpine Cheese Co has been running contract production for Norseland Inc. in the US since 2000. This acquisition took place because the demand for Jarlsberg® exceeded the import quota of 6800 tonnes that was in force at that time. TINE began producing Jarlsberg® in the US in order to meet the increasing demand from the American market.
As things stand at present, only rindless Jarlsberg® is produced at Alpine Cheese, but with further investments TINE will also be able to produce round Jarlsberg® at the same plant. TINE is aiming for further growth of Jarlsberg® on an international level. The purchase was an important strategic operation to help meet this target.
TINE Meieriet Dovre, one of the oldest dairies in Norway, began producing white cheese and brown cheese in beautiful surroundings in Gudbrandsdalen a hundred years ago, and this fact was celebrated in 2018. Nowadays this little dairy and its 13 employees produce hvitmuggost.
TINE Meieriet Dovre is one of 10 TINE plants manufacturing special products. The dairy produces hvitmuggost cheeses for the Fryd and Norske Ostespesialiteter brands. All Dovre cheeses are made from local ingredients, giving the products their unique flavour. In total, this dairy produces around 230 tonnes of cheese every year. The dairy recently underwent a NOK 8 million refurbishment, with new process milk tanks and adaptation of the building.
“There will be more happening when we come to raise the plant to where we want it. The production equipment is starting to reach the end of its life. 30 years is a long time for dairy equipment. We are constantly working to upgrade our equipment and premises still further,” says dairy manager Sigrid Svanborg. This is the only dairy in Norway to manufacture camembert and brie, and Dovre cheeses are some of the very best on the market despite the fact that the production equipment is old, and a lot of work is done manually. The silver medal from the 2018 World Cheese Championships in Bergen is clear evidence of this.
TINE has a total of 17 distribution warehouses all over Norway, with production in almost twice as many locations. Not all products are manufactured at all production locations. In practice, this means that a range of goods are transported from the production locations to the distribution warehouses. This system means that milk in Norway is produced in areas close to where consumers live. The emphasis is on eco-friendly trip computers for this part of TINE’s distribution as well.
tonnes of CO2e
Trip computers are fitted in our tankers and distribution vehicles. These measure fuel consumption and driving behaviour, among other things and have been an important tool in our efforts to ensure greener driving among our drivers.
A course focusing on driving style has been held for drivers. Surveys of tanker transport are showing a reduction in fuel consumption more than 10 per cent as a consequence of changes in driving style. A more defensive driving style also results in less wear and tear on the vehicle and tyres and has a major impact on road safety in both summer and winter.
TINE’s heavy goods vehicles travel 52.5 million kilometres a year. This is equivalent to travelling 1300 times around the world. With so much driving, even small improvements that we make will have major environmental benefits. Our aim is for all our transport to use renewable energy by 2025. TINE would like to be at the cutting edge of efforts to bring about a green transformation in the transport industry.
In early 2016, TINE began a comprehensive environmental initiative for all its transport operations. We are aiming to replace all our trucks with the most modern engine technology based on EURO-VI or newer by 2020. This will reduce particulate emissions to almost zero compared with today’s engines: this is particularly important in large towns and cities, where this is a problem in winter.
We are upgrading our drivers as well! New trip computers provide immediate feedback on driving behaviour and help to reduce idling and abrupt acceleration and braking; and in combination with better route planning, this has already ensured that we have fewer vehicles on the roads.
TINE has also reviewed its interim transport over the past few years. This relates primarily to transportation from producing dairies to the dairies from which goods are distributed. As a result, significantly more goods have now been transferred from road to rail. This is a positive factor for the environment.
tonnes of CO2e
More than 600 drivers transport fresh and chilled products directly from 17 distribution warehouses to 23,900 stores, schools, nurseries, hospitals, military facilities, coffee bars, kiosks, hotels and restaurants all over Norway – including Svalbard. There are no middlemen here. Direct transport means fresh products and the shortest possible route to consumers, as well as lower greenhouse gas emissions. Of major suppliers of goods, TINE is the only one to have its own nationwide distribution facility. The fact that TINE distributes to all stores is best for the environment and means that food has travelled as short a distance as possible – after all, cows live all over Norway.
Number of kilometres travelled at TINE SA18.2
Emissions at TINE SA14,023
tonnes of CO2e
Number of vehicles493
Number of tonnes transported660,000
Number of deliveries each year2.2 million.
(number of orders, not unique deliveries)
Average number of deliveries every day6,030
(number of orders, not unique deliveries)