THEME | ORGANIC SUCCESS

Fruitful times for Danish organic food

Denmark was named organic Country of the Year at the world’s largest organic food fair, BioFach, which was held in Germany in February this year

By Inge Kjærgaard

The Danish Minister for Food, Agriculture and Fisheries, Eva Kjer Hansen, at the world’s largest organic food fair, Biofach, where Denmark was named Country of the Year.
Photo: Økologisk Landsforening

’Danish’ and ’organic’. Two words that go commendably well together. Denmark was named Country of the Year at the world’s largest organic food fair, BioFach, which was held in February in Nuremberg, Germany. With purchasers, wholesalers, producers of convenience goods and chefs flocking there from all over the world, the accolade bestowed on Denmark means bundles of attention before, during and after the fair.

“As Country of the Year, there is extra focus on Denmark and Danish organic food. At the fair, Denmark naturally gets more contacts, which then should result in increased exports,” explains Mette Gammicchia of the Agricultural Council of Denmark.

Sales of Danish organic food are flourishing; exports in 2007 reached almost DKK 500 million (EUR 67 million), a twofold increase compared to 2006. Exports for 2008 have not yet been totalled, but the figure will be somewhat larger than for 2007 although not the same increase, opines Organic Denmark, an association for farmers, companies and consumers.

Denmark has become an attractive collaboration partner in organic food for many foreign companies and retail chains.

“On the product side, Denmark is perhaps one or two generations ahead
of the demand in a number of the other European countries. Danish producers are especially good at developing products for all price levels and consumer segments,” says Klaus Bentzen of Organic Denmark.

Danish organic products also have strong credibility among Danish and foreign consumers alike, due in part to the very thorough product control.

“It is important that Denmark maintains the same strict product control. Danish organic food is wholly dependent on a continued high level of credibility,” says Klaus Bentzen.

A trend that has come to stay

The Danish organic food industry can especially thank the domestic market for its flourishing growth. Denmark’s per capita consumption of organic food is among the highest in the world – 5.8% of total food consumption in 2007.

“It has helped create a good foundation for Danish production that the domestic market is so big. And there is a unique collaboration between consumers, producers, the retail trade and the state,” explains Mette Gammicchia.

The collaboration comprises joint campaigns to promote increased consumption, and thereby production, of organic food in Denmark. The collaboration also ensures that production is driven by demand, thereby avoiding excesses of supply.

The financial crisis is on many people’s lips at the moment, but Organic Denmark remains optimistic about growth in organic food. Consumers have taken to it – and there is much to indicate that they are not altering their behaviour.

“The German market reacts quickly to changing conditions, so we have monitored Germany closely. But German buyers say that things are going well for organic food, a lot better than they had expected. Consumer behaviour seems to be stronger than financial crisis,” says Klaus Bentzen.

The financial crisis does not seem to be affecting sales that much on the domestic market either. No one knows what the future will bring, but the Agricultural Council of Denmark thinks that many markets will probably see a decline.

“The drop does not however appear to be so big in Denmark. Consumers who want organic food have made their decision regardless of what it costs. And with the big focus on sustainability, environment and health in the rest of the world, there will also be increasing demand there in the future. It is a trend that has come to stay,” thinks Mette Gammicchia.

After Germany, Denmark’s largest export markets are Sweden and the UK – countries to which Denmark already has significant agricultural exports.

“Danish producers can exploit the good position they already have in those countries. That is a great benefit.

Companies have solid market knowledge and know how to target the products to consumers there,” says Mette Gammicchia.

It is part of Denmark’s export strategy to concentrate on neighbouring markets, because consumers do not only think
of organic food – they also think of the environment.

“Consumers in the respective markets think it important that a product has not been transported from the other side of the globe. They want to take the environment into consideration. So Denmark’s export strategy focuses on nearby markets in Europe,” explains Klaus Bentzen.

Looking ahead, Denmark is set to plough its organic furrow in the same fruitful style.

“Danish producers will try even harder to satisfy consumer needs, both by following overall food trends, and by putting fresh development into old agricultural varieties, so they provide unique taste experiences,” he concludes.