Denmark has a strong agricultural sector that contributes significantly to the country’s welfare society. Demand for the quality products produced here means that two thirds of Denmark’s agricultural production is exported. For years, Denmark has maintained a very strong position on world agricultural markets, and is among the world’s leading exporters of pork, fur and hides, seeds and cheese.

There are two main reasons for the success of Danish agriculture and its strong position.
- The co-operative movement
- The short distance between farm and fork

CO-OPERATIVES
The majority of the enterprises within the Danish food industry are co-operatives, owned and governed by farmers. Today around 97 per cent of all milk produced in Denmark is delivered to co-operative dairies and 89 per cent of the country’s pigs are slaughtered in by cooperatives.

These co-operatives were founded on the basis of economic solidarity; the purpose of co-operatives being to create the best possible financial conditions for farmers. Founded at the end of the 19th century, the cooperative movement eventually spread through many sectors and by 1940, for example, there were 1,400 dairies and 61 pig slaughterhouses being operated as co-ops.
      Since then, an important structural development has taken place. Co-operatives have merged to form larger and more effective units, and today only a few co-operatives are left. However, these are major companies involved in national and international activities and number among Denmark’s leading companies in terms of turnover and employment.

While Denmark’s co-operatives are expected to continue to expand in coming years, this growth will occur primarily outside Denmark. This will happen either through mergers with other co-operatives in other countries (such as Arla Foods being jointly owned by Danish and Swedish co-ops) or by way of Danish acquisitions abroad or by outsourcing processing to regions where production costs, especially salaries, are lower.

FROM FARM TO FORK
Denmark’s agriculture and food sector is based on close co-operation between research bodies, extension services, farmers, companies and the authorities. In other words, there is a close co-operation throughout the entire food production chain from farm to fork. This Danish model of food production is unique internationally.

Another important factor in the Danish farmers’ competitive ability is their access to professional advice. Uniquely again, the Danish advisory system is owned and operated by the farmers themselves and the advice centres that are scattered across the country ensure that no farmer is far from professional advice and guidance at any time.
      Counselling, help and information on specialised subjects such as new computer software for feed management is supplied by the national advisory centre and filtered down to the local branches.

A commitment to high quality, hygiene and health provides another explanation for the good reputation that the Danish food industry enjoys worldwide.
By fighting all serious contagious livestock diseases, Denmark has managed to create the veterinary basis for substantial exports to countries that have very stringent demands on animal welfare and food hygiene

AGRO-INDUSTRY
The third factor, which along with the co-operative structure and the continual collaboration all the way from farm to fork, is the role of the agro-industrial sector.
      By continually meeting the needs of farmers for new technology, equipment and techniques, the agro-industrial sector has underpinned the creation of some of the most modern and efficient manufacturing plants in Europe.

The Danish Meat Research Institute, for example, which is run by the co-operative slaughterhouses, was a pioneer in developing methods and equipment for determining carcass quality. And in recent years, an innovative co-operation between The Royal Veterinary and Agricultural University and The Technical University has resulted in the creation of a strong new platform for food science and research. Developments such as these will ensure that Denmark’s many-faceted agricultural sector has more than a sporting chance of remaining at the forefront of the world’s food and food ingredients industry.

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