Denmark is Country of the Year at BioFach 2009

Be it the mermaid in Copenhagen, 7,000 km of coastline in Jutland or several hundred islands, Denmark, the country between the North Sea and the Baltic Sea, has a lot to offer – also regarding organic products. Many a product of Danish origin finds its way into German organic food customers’ trolleys. Denmark is not only the pioneer and trailblazer in terms of wind energy, but the Danes are also the leaders when it comes to organic product consumption. When the international organic market meets for the twentieth anniversary of BioFach in Nürnberg from 19-22 February 2009, exhibitors and trade visitors will be greeted by a fresh breeze of Scandinavian flair in the exhibition halls: Denmark is Country of the Year in 2009.

Picture on the right: Denmark at BioFach 2008

At the world’s leading fairs, BioFach for organic products, and Vivaness for natural personal care and wellness, around 2,900 exhibitors (2008: 2,764) and once again more than 46,000 trade visitors (2008: 46,484) are expected.

Each Dane spends an average 80 EUR a year on organic food (picture), which makes Danish consumers the leaders in the EU. Only the non-EU member state Switzerland has an even higher annual consumption at 102 EUR. By comparison: the per-capita consumption is 64 in Austria and 56 EUR in Germany. The British (47 EUR), Swedes (42 EUR), Italians (32 EUR), Dutch (28 EUR) and French (27 EUR) are positioned in mid field.

Denmark, which has a population of 5.4 million, was already the trailblazer for organic products in the 80s and 90s. The introduction of the official Ø label for organic production in 1987 provided safety and reliability for both consumers and the economy. According to the industry association, Organic Denmark, an 18 % increase in organic product sales in 2006 was followed by another remarkable 33 % growth in 2007. The retail trade achieved sales of approx. 450 million EUR. When we combine all sales channels, the figure was even as high as approx. 680 million EUR. The total of 45,370 farms in 2007 included 2,889 organic farms. 164,000 hectares and thus 6 % of the total 2.7 million hectares of agricultural land are used for organic production. Organic Denmark represents 3,000 members, who are made up of 800 organic farmers, 100 organic companies and consumers.

The in particularly heavily demanded organic products in Denmark include fruit and vegetables (picture: Egefeld). When it comes to dairy products, the Danes already spend one Danish krone in four on organic articles. Fresh organic milk accounts for a 30 % market share and eggs 17 %. Overall, organic products in Denmark have a market share of 6.5 %, which is more than double that of Germany with approx. 3 %. A powerful sales generator in the sector is the conventional retail chain Irma, which increased its organic sales by 13 % in 2007 and now achieves over 20 % of its total sales with organic products. Sales of organic food in the country’s various supermarket chains increased by between 29 % and 35 % in 2007 compared to the previous year. One major discounter even increased its organic sales by 60 %, after previously increasing the number of products from 39 to 90.

Organic products are particularly popular in the Danish capital of Copenhagen, where the organic market share is estimated at 10-12 %. 45 % of food requirements in schools, homes, hospitals and official authorities come from organic production methods. A share of 90 % is the target by 2009. The 2008 budget for school canteens has been trebled to two million EUR.

In addition to production for the domestic market, exports also play an important role: fresh milk, cows’ and goats’ milk cheese, beer, fruit juices, jams as well as first-class chocolates are all part of the Danish export product ranges. For the Danes, the country with the largest organic market in Europe, Germany, is right on the doorstep. Strong sales regions such as the Hamburg and Berlin areas are very accessible. The Danish export volume had already reached around 37 million EUR in 2006 and in 2007 the country’s largest dairy and also the biggest in Europe accounted for 430 million kg of organic milk in Denmark and Sweden, with 300 million kg of this in Denmark alone. Today it already supplies large quantities of organic milk to discounters and conventional supermarket chains in Germany. According to the company, a further 100 million kg could be sold very easily. There is heavy demand not only from Germany, but also from Great Britain, and the dairy has been supplying organic butter to the British supermarket chains Asda, Waitrose and Sainsbury’s since January 2008. In 2007, Danish processors ventured their largest international marketing campaign ever, when nine producers successfully presented a total of 20 products during “Danish Week” at Tegut’s 300 German branches in October.

Around 90 % of organic product turnover in Denmark is achieved by the conventional retail trade. For a long time the trend in the specialized organic food stores was some way behind. The first Danish organic supermarket Egefeld (picture) was founded in summer 2006 and has meanwhile strongly asserted itself (see our report). The customers voted it the best new store in Copenhagen, and even the district of Fredriksberg, Egefeld’s location, honoured the store’s inauguration by awarding an entrepreneurs’ prize. A number of farm shops and smaller organic stores have also opened recently and organic products are also making strong inroads into the areas of catering and restaurants. Several small cafes and a gourmet restaurant in Copenhagen offer their guests organic culinary delights.

Denmark will also be heavily geared to organic food in future with production set for a further boost. Market experts forecast spectacular prospects for the organic products trade. The Kairos Future agency of Sweden had already predicted a further 10 years of organic boom in 2007 and around 20-30 % of all food could bear the official organic label in 2017. Organic Denmark is actively supporting the growth. In January, the association published a new magazine, Økologisk, which combines lifestyle with consumer tips four times a year. At the end of 2007, the Babyclub Økobarn was founded, which attracted great interest among young parents. The Danish Minister for Food, Agriculture & Fisheries, Eva Kjer Hansen, is actively committed to the founding of a European Research Centre for Ecology and Agriculture in Denmark. In the field of ecological agriculture research, Denmark with its DACROF project at the Danish Research Centre for Organic Farming is already the trend-setter in Europe.

The Danish participation at BioFach and Vivaness in 2008 grew to an encouraging total of 30 exhibitors. This figure is to double in 2009. In addition to dairy products and sausages/cold meats, key product ranges also include beer, fruit juices, jams, fish, baked goods, frozen vegetables and grocery products. In connection with BioFach 2008 in Nürnberg, Minister Hansen emphasized the great significance of quality and credibility within the industry. She said that as far as the further development of the industry was concerned, in particular good cooperation between politicians and all market players was important for Denmark.

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