BackTine Directors Report 2018
*Approved by auditor
Our business concept involves producing pure, natural ingredients to make tasty, healthy food in close partnership with nature, agriculture, consumers and trade.
For more than 135 years, TINE has built its business on meticulousness in terms of both food product and production expertise.
TINE has more than 1200 product lines in its portfolio that are produced at 31 dairies spread all over the country. Furthermore, TINE has two central storage locations and two terminals, in addition to several Norwegian and foreign fully and partly-owned subsidiaries, such as Diplom-Is AS, Ostecompagniet AS, Fjordland AS, Wernersson Ost AB in Sweden, Norseland Inc. in the US, Norseland Ltd. in the United Kingdom and TINE Ireland Ltd. in Ireland. The majority of TINE’s international business is in the US, Sweden, Denmark, the UK, Australia and Ireland.
Jarlsberg® is currently TINE’s biggest brand on an international level and is sold in 16 countries, including Norway. Jarlsberg® is produced at our Norwegian plants and our own Alpine Cheese Co. in Ohio in the US, and contract production takes place at Dairygold Ltd. in Ireland. Total international sales of Jarlsberg® increased by 9.6 per cent compared with 2017.
Other TINE exports include TINE Gudbrandsdalsost and Snøfrisk®. At the end of 2018, the TINE Group had 5355 employees, operating revenues amounting to NOK 23 billion in 2018 and an operating profit of NOK 1537 million; the same as in 2017.
TINE has three roles to safeguard: As a market regulator on behalf of the authorities, as a commercial brand supplier and as a member organisation for the owners.
↓ Commercial brand supplier
With operating revenues amounting to NOK 23 billion a year, TINE is one of Norway’s largest stakeholders in the food industry. TINE thrives on consumer trust by delivering brands that meet expectations.
↓ Cooperative organisation
TINE’s objective is to operate an efficient, quality and market-oriented food enterprise on a cooperative basis. TINE works to ensure that its owners achieve the best possible financial results from their dairy production, safeguarding owners’ other interests.
↓ Market regulator
As a market regulator, TINE is required to accept milk from all milk producers in Norway. This means all dairy farmers are able to deliver the milk they produce at a set price (target price). TINE is also required to supply other industry stakeholders with milk supplies.
In simple terms, market regulation involves TINE Milk Supplies (TINE Råvare) accepting responsibility from the authorities and ensuring that there is enough milk (milk commodities) in Norway. This level is stipulated in negotiations between Norwegian authorities and the agricultural trade unions.
The scheme is self-financed by Norwegian dairy farmers, where TINE secures the farmers’ provisions and prices in line with the Agricultural Agreement and stable supply of goods in all markets at approximately the same price.
The market regulator is also obliged to ensure supply, guaranteeing all dairy companies the necessary access to commodities, as well as receiving milk from all producers in Norway.
The Sales Council is a public body with autonomy. The Sales Council’s primary objective is to effectively regulate the market for various agricultural products, at the lowest possible cost.
Norwegian dairy stakeholders include: Synnøve Finden AS, Normilk AS, Q-Meieriene AS and Rørosmeieriet AS.
Organisation chart as at 31/12/2018