Norway’s largest dairy co-op, TINE, has warned that the export of Jarlsberg cheese could cease if government phases out export subsidies.

TINE, based in Oslo, said there could be consequences for Jarlsberg and 750 Norwegian dairy farms if the government proposal becomes law.

Norwegian Minister for Foreign Affairs, Borge Brende presented a white paper, which outlines the country’s "trade policy priorities in a changing global economy."

He said that "in order to ensure the strength of the economy, we need to make active use of the opportunities in existing trade agreements. We also need to negotiate more and better agreements along several tracks, but firmly rooted in the multilateral trading system."

Oslo plans to phase out all export subsidies by the end of 2019, including the one covering cheese.

TINE sold more than 44,000 tonnes of dairy products outside Norway in 2014, 75% of which was produced under licence in countries including Ireland, where Dairygold produces Jarlsberg cheese for them.

Jarlsberg cheese represents 90% of the 11,689 tonnes of cheese produced in Norway and shipped to US and Canada.

Lars Galtung, communication director of TINE said "If this becomes a reality it will have consequences for Jarlsberg. TINE exports from Norway will be unprofitable and it will be a challenge when 25% of Jarlsberg cheese sales abroad comes from Norway’.