Reindeer Husbandry in Norway - Economic Issues | | Print | |
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Economy The economic situation among reindeer herders in Today, the income of individual reindeer herders consists of the production of meat and raw materials such as skins, bones and horns. Additional sources of income include financial subsidies and compensation. There are some variations between the six regions but also between individual reindeer herders in how much meat production represents of their total revenue. Meat production in general brings more than 50 % of the income to reindeer herders in all four regions except More than 50 % of the costs in the industry in all the six areas of reindeer husbandry are related to the costs of running and maintaining mechanical equipment. Other high costs are related to other equipment and constructions. (Dieđut, Analyse av den samiske reindriftens økonomiske tilpasning, nr 4, 2006, Sámi Instituhtta, Norden) State economic Support for Reindeer Husbandry – the Reindeer Husbandry Agreement Norway has since 1976 an agreement for reindeer husbandry which is called the “Reindeer Husbandry Agreement” (Reindriftsavtalen) and the main purpose of this is to preserve and develop reindeer husbandry based on its traditions. The agreement is a result of the Norwegian authorities' views on reindeer herding and especially in relation to the support of the Sámi culture and reindeer husbandry as a Sámi industry. The agreement reflects the political objectives and guidelines for reindeer husbandry. NBR, the organization of Norwegian Sámi reindeer herders, and the state through the Department of Agriculture and Food annually negotiate on economic measures but also professional, social and organizational issues. The first agreement was drawn up in the 1970’s. The agreement builds on various elements, such as the importance of reindeer husbandry, the main objectives of the Agreement and its primary goals. The economic support for the years 2008/2009 amounted to 97 million NOK (10.1 M Euro). The financial support agreement includes activity supports, production bonuses, early slaughter supplements, calf slaughter payments, district support, special transition assistances and other payments According to the agreement for 2008/2009, for example, each Siida unit gets an activity support corresponding to 10 000 NOK (1 100 €), and if the Siida unit should be able to get activity support with production bonus equal to 25 percent of taxable income, the unit must have sold reindeer meat for at least 50 000 NOK (5 500 €) per year. Support for early slaughter is 7 NOK (0,77 €)per kilo for reindeer that has been slaughtered in the summer pastures and 4 NOK (0,44 €) per kilo for reindeer slaughtered between the time 11 October and 31 December. Support for early slaughter has led some districts in the past to slaughter before the New Year. The support for calf slaughter in 2008/2009 amounts to 200 NOK (22 €)/ calf. The stated purpose of this support is to promote a certain type of herd structure so that it consists of more productive animals in relation to limited pasture availabilty. The purpose of district support is to give districts more responsibility with the help of increased economic activity freedom and it will also be used for emergency preparation in the case of poor reindeer grazing conditions. Also within the agreement is 35.9 M NOK (3,949 M €) for the Reindeer Husbandry Development Fund (in Norwegian called RUF) and money from RUF can be used as loans and / or grant support for example to extreme losses of reindeer in the case of accidents, training scholarships and development of related industries to reindeer herding. (Foreskrifter til Reindriftsavtalen 2008/2009 m.m., Reindriftsforvaltningen, Alta 2008) |