Organic Farming in Denmark - 2005

by Tomas Fibiger Norfelt

	Agriculture in Denmark
	Organic Farming in Denmark
	The Development of Organic Farming in Denmark
	Organic Objectives and P rinciples
	Inspection and Label
	Domestic Sales
	Consumers
	Export and Import
	Advisory System
	Research
	Training
	Organisations
	Prospects
	Author

Agriculture in Denmark

Denmark is situated in the northern part of EU and is one of the Nordic and Scandinavian countries. Denmark is a flat country with rich agricultural land situated in a temperate climate. Summers are generally warm with an average temperature of 16.4 degrees centigrade and freezing temperatures are seldom experienced in winter for prolonged periods. The average temperature is 7.7 degrees centigrade. In total, 712 mm of precipitation fall evenly spread over the year.

The GNP per capita was in 2004 1,395,854 DKK, approximately 25,400 USD or 18,800 EUR*. Denmark has a strong economy, characterized by a balanced state budget, stable currency and low interest rates as well as low inflation. The attractiveness of the Danish business environment has been consistently documented in the World Competitiveness Report published by the IMD/World Economic Forum.

* 1 USD is approx. 5, .7 DKK, 1 EUR is approx. 7.4 DKK.

It is a small country (4,308,000 hectares) with a population of 5.4 million inhabitants. As there are only few large cities in Denmark, urban and rural environments are never far apart. Some 85 per cent of the Danish population live in cities - of these, 1.3 million reside in the Greater Copenhagen area.

In 2003 primary agriculture, including fur farming and horticulture, employed 77 , 600 people. Although the part played by agriculture in the Danish economy overall has steadily fallen in step with industrialisation and economic developments as a whole, it is still an essential occupation based on its net foreign currency earning capacity (13 per cent of the Danish export), its effect on employment and its importance in supplying everyday foodstuffs. A further 100,000 persons are employed in industries downstream from primary production, most notably the food processing companies. The total effect of agriculture on employment is 187,000 individuals (134,600 of these are wage earners), thus agriculture employs 7 per cent of the overall labour force.

In 2003 2.7 million hectares or sixty-three percent of Denmark's land area was cultivated farmland. The main crops are small grains, mainly wheat and barley, covering more than half of the agricultural area. Fodder crops, mainly grass and maize for silage, amounts to 780,000 hectares, but Denmark is also an important producer of sales crops such as rape seed, sugar beets and grass seeds of various types. Vegetables and potatoes cover 60,000 hectares.

The area devoted to agriculture peaked in the 1930s with 3.2 million hectares under cultivation. A reduction in the area has occurred as agricultural land has been given over to urban development and recreational activities, especially since 1960. At the same time profound changes have taken place in farm structures.

In the first half of the 20th century there were about 200,000 farms with an average area of 16 hectares, but after 1950 numbers began to decline slowly. From 1960 this trend accelerated, and during the 1960s an average of 5000 farms disappeared each year. In the 1970s and 1980s the decline levelled off to 2600 farms a year, and in the 1990s to 2300. In 2003 there were 46,500 farms with an average area of 57 hectares.

Looking at the dairy sector approx. 6,000 dairy farmers each held an average of almost 90 cows and a milk quota of almost 600,000 kg i n 2004. The average yield was in 2004 8,200 kg. The same figures were 10 cows and 3800 kg in 1965. Today there are 40 dairy factories, compared with 1,350 in 1960 whilst the number of slaughterhouses has dropped from 77 in 1962 to 2 in 2003. The poultry sector, grain trade and feeding stuffs and fertilizer supply have also been rationalised considerably.

According to Danish law, companies are not allowed to own farms, thus owner-occupancy and self-ownership is a sustaining and dominating element of farming in Denmark. There are only few corporation-owned units and co-operatively owned farming units. Only persons who hold an agricultural education (The Green Certificate) are allowed to buy farms of more than 30 hectares. The education to the green Certificate lasts 4.5 years with a mix of study period and practical training on farms.

The annual output of animal products can satisfy the requirements of 15 million people, or 300 per farm. 24.5 million pigs were produced in Denmark in 2004, which is so far a record high in the number of produced pigs in Denmark. Three-quarters of these for export. This constitutes 7 percent of Denmark's total annual export. Milk production is limited by EU regulations and amounts to a little less than 4.7 billion kg from 640 , 000 dairy cows. Denmark has a large production of mink and fox pelt, and the Danish fur auctions are the largest of their kind in the world.

More than two-thirds of the total farm production is exported. In 2003, 61 per cent of exports went to other EU countries while Japan and the US were main markets outside the EU. Agricultural export in 2003 was worth 54 billion DKK in foreign currency. The value of all Danish dairy export totals 1.6 billion EUR annually and the industry accounts for approx. 10,000 jobs.

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Organic farming in Denmark

Denmark is one of the top-ten countries in Europe as regards the organic share of the total cultivated area. There were in 2003 3,510 organic farms cultivating approx. 168,000 hectares corresponding to 6.3 per cent of the total Danish farmland.

The table shows that the number of authorised organic farms was fairly constant from 1991 to 1994. In 1995 there was a large increase in organic farms equalling a growth of 55 percent compared to 1994. In 1996 there was a minor increase of 116 farms equalling 11 percent. The net growth for 1997 to 1999 was about 39 percent per year. And from 1999 to 2001 net growth was 367, equalling 11.8 percent. In 2003 we experienced the first decrease in the number of farms (5.5 per cent of the total organic farms).

	Number of organic farms and farmland
	Husbandry on organic farms
	Land use
	The size of organic farms
	Regional Distribution
	Conversion and funding
	Organic Production and Processing

Number of organic farms and farmland (1989-200 3 )

Source: Danish Plant Directorate, 1995- 200 3

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Husbandry on organic farms, 200 3

Source: Danish Plant Directorate, 200 3

Note that farms can have more than one type of husbandry and that a larger part of organic farms has dairy cattle and suckling cows than the average of Danish farm. The organic pig production is very limited.

Number of organic dairy farms and milk deliveries

Source: Danish Dairy Board

Land use

Plant Production on Organic Farms

Source: Danish Plant Directorate, 2002

The crop choice on organic farms differs considerably from the national average with their typically larger grass and green fodder areas and smaller cereal areas. Typically organic farms grow more nitrogen-fixing crops and under sown/catch crops, just as they gr o w vegetables on a proportionally larger area.

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The size of organic farms

The table shows a larger number of small organic farms and farms with more than 100 hectares than in average in Denmark. In 2002 the average size of organic farms was 48 hectares , whereas the average size of all farms was 52.7 hectares.

* 7 95 farms without cultivated farmland

Source: Danish Plant Directorate, 2003

Regional Distribution

The biggest share of organic farms is found in Jutland , followed by Zealand (20.9 percent) and Funen (5.9 percent).

In the southern part of Jutland approx. 12 per cent of the area is organic, in total Jutland accounted for 73 per cent of the organic production area. On the Danish islands, the size of organic farms is relatively smaller than on the mainland, Jutland. In 2002 the average size of organic farms on Zealand was 29.6 hectares, whereas it was 55.3 hectares in Jutland.

Source: Danish Plant Directorate, 2003

Conversion and funding

All EU countries are subject to the same rules for converting a conventional farm into an organic one. However, in Denmark the whole farm must be converted, whereas in other EU countries it is possible only to convert part of the production.

Government support has led to increased organic production. In addition to financial support to organic farmers, the Danish government also discouraged conventional farming by levying high taxes on products such as insecticides and pesticides.

In November 2003 support for organic farming was changed. The new scheme is more flexible and will hopefully encourage more farmers to convert. The new scheme has 3 elements:

	Support for converting to organic farming
	Support for environmentally-favourable extensification (MB). According to EU Council Regulation on support for rural development, article 22.
	Support for environmentally friendly farming (MVJ) . According to EU Council Regulation on support for rural development, article 22.

The MVJ scheme was earlier earmarked for conventional farmers, but is now open for organic farmers as well. It consists of various types of support, e.g. support for grass- and permanent pastures, wetlands, reduction in nitrogen fertiliser.

The MB support is 870 DKK per hectare per year for a period of 5 years. To receive MB the farmers must extensificate the management of the land in an environmentally-favourable way; without use of pesticides and with a limited use of nitrogen.

The support for converting is 1.150 DKK per hectare per year for the first two years of converting. After that it is 100 DKK per hectare per year for the next 3 years. It is not possible for farms with milk production to receive support for converting. The new Danish regulation plays together with the EU single farm payments.

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Organic Production and Processing

According to the regulations governing organic farming in Denmark, organic foods must be produced as naturally as possible. Chemically produced flavours, colours and artificial sweeteners are therefore banned from the processing of organic food products. According to the regulations, it is nevertheless possible to use a few non-organic additives.

A company that wishes to produce, process or package organic items must file a formal application to The Danish Veterinary and Food Administration. The applicant and the inspectorate draw up an "organic report" which lays down precisely how the organic element of the company's activities will be run. For example, it describes how organic produce must be kept separate from conventional produce, either by allocating a certain area for organic production on the premises, or by producing organic foods at specific hours.

Organic certification can only be issued once the final approval from the state inspectorate has come through. Inspection of organic production is an integrated part of the activities of The Danish Veterinary and Food Administration and ensures effective and regular inspection. The authorities visit a company several times a year, which gives them thorough knowledge of the company and insight into how best to ensure organic production in each case.

The Danish authorities take the production of organic foods seriously. If a company is found to be cheating, the management is reported to the police and can face fines or imprisonment. Furthermore, the management can be barred from producing or selling products for up to five years.

Organic dairy production

Source: Danish Dairy Board

Organic fish

From April 2004 new rules opened up the possibility of producing organic fish in Denmark. According to the rules, organic fish from both salt water and fresh water aquaculture can be labelled with the Danish inspection label. Organically farmed fish will be different to conventionally farmed fish, e.g. there is a ban on adding colour to the feed, and it is only allowed to treat the fish with antibiotics once. Read more.

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The Development of Organic Farming in Denmark

Organic farming has its roots in alternative farming systems, and these systems have existed for many years both in Denmark and other countries around the world, questioning whether intensive agriculture, which uses artificial fertilisers and sprays to provide the greatest possible yield, is the best way to produce foods that promote human health. Furthermore agreeing that the impact of the production method on the surrounding environment should be included as a parameter of quality.

Roughly speaking the alternative systems have been significant in two periods in modern times. The first period was 1920-1940, and the second period was from 1960 and onwards.

In the 1920´s Denmark experienced a widespread interest in natural living and natural foods, not least influenced by the biodynamic agricultural system from Germany. In 1936 The Biodynamic Association was established by influential landowners from the aristocracy.

The development of modern organic farming in Denmark can be divided into four periods:

	1960-1980 - Organic pioneers emerge
	1981-1986 - Limited C onsumption
	1987-1992 - Mass media and P oliticians
	1992-2003 - Organic C ommercial B reakthrough
	2003-2005 - Standstill
	Highlights

1960-1980 - Organic pioneersemerge

Throughout the 1960s and 1970s we experienced acute environmental degradation. In particular, nitrate and pesticides in drinking water, residues of pesticides and medicine in foods, eutrophication of marine and fresh water, and eutrophication and acidification of terrestrial ecosystems caused the environmental problems. For these problems agricultural production carried a major responsibility and organic farming seemed to offer a solution to some of these problems. This led pioneers in organic farming to start out - many of them being young townspeople with no experience in farming wanting to show how real sustainable (organic) farming should be practised. The new term "organic" farming was based to a greater extent on the farming principles of the Howard Balfour method and the organic biological system, rather than the biodynamic approach.

In organic plant production, emphasis was laid on the avoidance of all chemical pollution by forbidding the use of chemical sprays and artificial fertilisers. Organic farming does not exclude loss of nitrogen when organic animal manures and legumes are used. It was however a clear objective to avoid all forms of pollution from agricultural activities and to avoid excessive use of organic fertilisers, and an upper limit was set for the amount of animal manures that may be applied per hectare. All this was designed to limit the losses of nitrogen. Alongside the environmental debate, the intensification of animal production methods stimulated increased concern about the well being of animals in modern farm buildings. For this reason concern for animal welfare became an integral part of the objectives of organic farming. Within a few years all these concerns created the basis of the framework of the first Danish organic regulations.

The organic pioneers worked alongside approx. 100 biodynamic farmers at that time. The production and consumption of organic goods were in this period very modest - under one per cent.

1981-1986 - Limited Consumption

More organic farms were established, and the Danish organic movement was organised in 1981 with the foundation of the Danish Organisation for Organic Farming (LØJ). The organisation was made up of farmers, consumers and processors with its own growing and breeding regulations and an independent inspection. The set of rules was to a large degree inspired by the IFOAM basic standards.

The Danish Organic Agricultural College was founded in 1982 to educate organic farmers and is also in charge of continuing education for conventional farmers. In 1985 The Danish Family Farmers Association established a special organic advisory service, in co-operation with The National Association for Organic Farming and The Biodynamic Association. From 1987 The Danish Farmers´ Union also contributed to the advisory work.

In the spring1982 the first organic carrots were sold in the Coop Denmark supermarkets. The interest from consumers was very limited, and the development in the 1980´s was slow. In January 1988 the best selling organic products were potatoes, carrots and celery root with a market share of more than 10 per cent of the total organic turnover. However the total turnover of organic fruit and vegetables was less than 1 percent of the total turnover of fruit and vegetables in Coop Denmark at that time.

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1987-1992 - Mass Media andPoliticians
In particular politicians and the mass media drove the development forward in this period. The Danish P arliament adopts the world's first comprehensive legislation on organic farming in 1987, not least inspired by media attention to lobsters dying of oxygen depletion in Danish costal waters.

An important step was the establishment of the Council on Organic Food and Agriculture in 1987. The council serves as a platform for consensus building on organic policies and has been a catalyst for initiatives in every area of the organic food production. It has representatives from the state, the organic farmers' organisations and the conventional farmers' organisations, the labour organisations, the processors, retail organisations and the consumers.

The Danish State control-label, red Ø-label, was launched in 1990 strengthening the consumption of organic products, leading to more processors and retailers being interested in producing and selling organic products, and State control of organic production was established to give the consumer confidence with regard to the genuineness of products.

The organised sale of organic milk was initiated by the organic farmers themselves in 1988 through the establishment of organic dairy circles.

1993-2003 - Organic CommercialBreakthrough
1993 was the "Year Zero" in the sales of organic products in Denmark. Suddenly the market turned around with a massive increase in the production and sales of especially organic milk and eggs.

The same year as general economical support for organic farming was established, the consumer prices in the biggest retail-store chain were lowered combined with an intensive marketing effort. A few figures illustrate the vastly positive effect: In the beginning of 1993 Coop Denmark sold weekly approx. 100.000 litre of organic milk. In the beginning of 1995 the sales were 350.000 litres weekly, and Coop Denmark could have found sale for minimum 200.000 litre more. Thus the demand increased in two years from 100.000 litres to more than 500.000 litres weekly.

In 1995 the Council on Organic Food and Agriculture developed an "Action plan for Organic Farming" with 65 recommendations to the Minister of Agriculture, Food and Fishery to encourage organic farming in Denmark. The Action plan I served as a base for much of the political work in the following years. It was followed by a second five year Action plan in 1999.

The Danish Research Centre for Organic Farming was established in 1996 co-ordinating Danish research in organic farming. In the same year The Danish Institute of Animal Sciences established Rugballegaard as an organic research station at Research Centre Bygholm, Horsens. The research station is officially approved as an organic farm. The aim of establishing the organic research station was to provide the scientists with the possibility to carry out analytic and comprehensive research, partly focusing on the conditions of the various animal species (feeding, livestock houses, welfare, etc.), and partly on the interplay between animals and crops (feed supply, grazing systems, utilisation of manure, crop rotations, etc.). Finally, the aim was to develop and demonstrate new techniques relevant to organic farming.

2003-2005 - Standstill

In this period Denmark experienced what should be described as a natural weakening - the export did not expand, the domestic consumption stagnated, and we experienced a surplus production. In 2003 we saw a 5.5 per cent decrease in the number of organic farms - the first decline since 1989. The year after the Danish Ministry of Food, Agriculture and Fisheries launched an information campaign to promote the EU organic logo.

The political focus has shifted from an environmental approach to a market approach. Observers of organic production in Denmark doubts today (2005) that the free sway of the market forces can ensure a continued growth in organic farming. But it is hard to predict the future. One thing however seems certain: Never has the alternative farming been so predominant and such a strong source of inspiration for the traditional farming community.

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Highlights - OrganicProduction in Denmark

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Organic objectives and principles

Organic farming differs from conventional farming in that it is based on principles of:

	Preserving the fertility of the soil
	Avoiding all forms of pollution
	Producing goods of optimum nutritional quality
	Utilising local resources and labour in a closed cycle
	Reducing the use of non-renewable resources to a minimum
	Providing domestic animals with good living conditions
	Ensuring that the farmer can generate sufficient income from his farm.

The use of industrially produced pesticides and other chemicals foreign to the environment are prohibited in organic farming, as is the use of artificial fertilisers. Genetically modified organisms (GMO) are forbidden in animal feedstuffs and in connection with plant production or processing.

Organic farming is also about animal welfare, and the regulations governing organic farming contain detailed guidelines as to how specific livestock should be bred and fed. Generally, it involves conforming to the objective of "providing all livestock with good conditions that are in keeping with their natural behaviour and needs".

A common feature of all organic objectives is that farming people are considered to be part of nature - in a rotation. Nature is so complex, however, that we do not have a full understanding of the consequences of our actions on it - we therefore work carefully. Finally, the cultural and social aspects of agriculture have a central place in organic farming.

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Inspection and Label

Denmark is exceptional in having an official set of regulations and a single unique symbol for organic products, and also in that the State undertakes inspections. In general Danes contrary to other neighbouring countries have great confidence in the State as a serious and neutral body of inspection and labelling.

All farmers who practice organic farming must be authorised in organic management. Amongst other things, in collaboration with an organic agricultural adviser, the farmer must set out a plan for converting to organic management. Authorisation is not granted until the farm has been inspected and the conversion plan accepted by the Plant Directorate.

An inspector visits all Danish organic farms from the Plant Directorate at least once a year. The control visit normally occurs during the summer period, whilst the crops are still in the field. In addition, an unannounced visit is paid to 25 per cent of the farms each year.

The control consists partly of a physical check, in which fields, animal buildings, and other farm buildings are inspected, and partly of an inspection of documents. The latter includes control on the purchase of feeds and manures, and inspection of the farmer's feeding, sowing and manure application plans.

When a product is sold as "organic", a control must also be made to see that any processing (such as that involved in the case of juice and sandwich spreads, etc.) complies with organic rules.
Furthermore, a control must be made of the wrapping and packaging processes to ensure that there is no mixing with non-organic products. Companies that, for example, process, pack or import organic foods must notify the public authorities.

In association with the company, the authorities will work out an organic report that, amongst other things, describes how organic products are to be kept separate from non-organic products, and how accounts for purchases and sales must be presented.

In addition, a very comprehensive control of organic production is carried out at least once a year. To strengthen the control of organic products The Danish Veterinary and Food Administration also makes crosschecks. Each year a random selection of companies is made, and their accounts are compared with those of their suppliers and customers. This process establishes whether the amount of organic products bought and sold tallies between companies.

If, at a control visit, it is established that a company is not complying with the regulations for organic production, the authorities will step in. In minor cases the company will receive a sharp reminder to comply with regulations. Serious cases can lead to an order, fine and possible report to the police.

The "Ø"-label is an inspection label launched in 1990. The regulations associated with the Ø label are based on EU legislation - although Danish rules still apply in a few areas because EU legislation still does not cover all aspects of organic activities. Fundamentally the red Ø label signifies that the Danish authorities have carried out a control on the farms and work places that produce, process, package or label the goods in Denmark. The red Ø-label shows that the latest preparation of the organic product has taken place in a Danish company under inspection of the public authorities. Therefore, the label can be seen both on foods of Danish origin and on imported foods processed or packaged and labelled in Denmark.

Maintaining confidence in organic production is dependent on adherence to and strengthening of the Ø-label. The production standards on which the symbol is based must satisfy the standards of both consumers and organic producers as to respect for the environment, health, livestock, welfare etc.

Approximately 94 per cent of the Danish consumers are familiar with the "Ø"-label, and 81 per cent have confidence in the label. A study shows that 85 per cent of the consumers do not trust foreign organic products without the Ø-label. The more distant and exotic the product is, the less confidence the consumers had.

The red Ø-label symbolises the organic origin; the crown in the middle symbolises the Danish Ministry of Food, Agriculture and Fisheries. The red colour symbolises that the inspection is Danish - the Danish flag being red and white.

In autumn 2004 the Danish Ministry of Food, Agriculture and Fisheries launched an information campaign to promote the EU organic logo, which was introduced in 2000. It might seem paradoxical that Denmark was initiating a campaign for the EU logo since an effective national organic logo already existed. The authorities wanted however to contribute to the development of organic movement in the EU, and increased trade is regarded as necessary if the organic production is to continue its development. The campaign will run until September 2005. The campaign targets the entire organic food chain from farmers to the processing industry, retail trade and consumers. A mid-evaluation of the campaign in 2004 showed that 42 per cent of the population in 2004 was familiar with the EU logo. Before the campaign only 7 per cent were aware of the EU logo.

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Domestic Sales

Until the beginning of the 1990s, most of the organic products in Denmark were sold at the farm gate, markets or from health-food shops. The situation is very different today where 85 percent of all organic products are sold in the supermarkets. One could describe the Danish market for organic foods as relatively mature; it does not suffer seriously from the supply shortages and barriers, which dominate other markets outside Denmark. A study from 2003 shows that supermarkets actively promoting organic food still experience growing market shares. The IRMA chain experienced a 19 per cent growth in the organic turnover in 2004. In total organic products represent 11 per cent of the turnover in IRMA.

The advice from supermarkets is that organic products needs to differentiate in taste, quality and "storytelling" if sales are to propel.

The most successful product in the Danish organic food sector is organic cereal. 29.5 per cent of the rolled oats sold in Coop Denmark is organic. On almost the same level is milk - especially in the capital, Copenhagen, the consumption of organic milk is high. - In one IRMA outlet in greater Copenhagen 9 out of 10 litres are organic. Organic eggs account for around 17 percent of egg sales and organic carrots represent 13 percent of the total carrot sales in the supermarkets.

Organic dairy production and market share

Source: Danish Dairy Board

Consumption of organic vegetables is low but increasing steadily, the market share is estimated at over 6 per cent of the total vegetable market. Potatoes, carrots and onions, in terms of volume, dominate the sale of organic vegetables. Production and consumption of organic bakery has decreased in recent years.

The production of organic meat does not match the volumes of organic milk and organic vegetables. Managers from Danish supermarkets indicate that prices on organic meat are too high compared to conventional meat, thus being a curb on sales. However, a campaign in 2004 in supermarkets for organic beef, coordinated by The Danish Association of Organic Agriculture, resulted in an increase in sales of 70 per cent.

In 2003 there was a turnover of 2 billion+ DKK in organic foods and beverages in supermarkets and department stores, equalling approx. 3.5 per cent of the total turnover of foods and beverages in these outlets. Low-fat and skimmed milk account for 25 per cent of the total organic turnover followed by eggs, cheese and carrots. Products such as organic pork and organic apples each account for less than 1 per cent of the total turnover.

Total market shares in percentage - selected organic products

Source (200, 2001 and 2002): GfK Danmark A/S

* - Market share in Superbrugsen s upermarkets, Coop Denmark 2002

Domestic production of organic milk has increased 400 percent since 1996. It is therefore hardly surprising, that the balance between supply and demand of organic milk in the last few years has been increasingly distorted. In 2001 Arla (dairy) accepted 415 million kilos of organic milk, but only 165 million kilos were marketed as organic. The rest was sold as ordinary milk. In 2002 the Product Manager, Mr. Karsten Jeppesen, Arla, explained, that only half of the organic milk is utilised as such, but that organic milk makes both ends meet economically for Arla.

COOP Denmark, one of the major Danish retail conglomerates and a retail co-operatives part of Coop Norden, has focused on organic products as part of its core strategy, and its organic market share lies around 5 per cent of their total food sales. In 1993 COOP reduced prices on organic products, which resulted in a substantial increase in demand. The reduction in prices and aggressive promotion in the media have increased the demand for organic products over the years. However the annual growth has slowed down since 2001.

Coop Denmark announced in summer 2003 that the domestic sales are becoming more and more polarised. The sales of organic products are increasing in urban areas whilst decreasing in rural areas.

Annual growth rates in organic sales for COOP Denmark

Source: Organic Denmark

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Consumers

Denmark has the largest per capita consumption of organic products within Europe. Important motives for buying organic products are concern for the environment and animal welfare but egotistical motives like own health and quality are increasingly important.

95 percent of the Danish consumers have purchased organic products at least once in 2002, and 89 percent at least twice. A large share of the Danish consumers is willing to pay a premium for an organic product (Gfk, ConsumerScan, 2002). An excess price of more than 20 per cent for the organic product in comparison with the conventional product is the limit for most Danish consumers. Extreme pricing is therefore a serious barrier to higher turnover. Based on a study, the Danish Associate Professor Jens Vestergaard from the Aarhus School of Business argues, that manufacturers should start lowering their prices to achieve a higher turnover. In general he is impressed with the Danish organic companies' ability to experiment and yet to gain foothold on the very difficult market for food products. He predicts, however, that in future it will mainly be the major organic producers that will be in the lead. The organic sector is approaching "normal" economic conditions, says Jens Vestergaard.

The typical Danish organic consumer is

	Well-educated
	Living in urban areas
	Having children younger than seven years
	Higher income, can afford to spend a larger part of budget on food
	Older than 40 years
	Being environment-conscious
	Being health-conscious
	Woman

Development in consumption of organic produce in per cent

Source: Gfk ConsumerScan, 1999, 2002 , 2003

As it can be seen, 55 per cent of Danish consumers spent up to 2.5 percent of their food budget on organic products, but these consumers only constituted 11 percent of the total organic turnover in Denmark.

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Export and I mport

Both export and import of organic products has increased considerably during the 1990´s but has slowed down in last year. Danish exporters experience that national regulation and certification making export difficult.

10 per cent of the Danish organic production is exported. Danish exports of organic food products totalled 224 million D KK (31.9 million USD ) in 2002, compared to 290 million DKK for 2001 . Sales of Danish organic food products in the United Kingdom fell to 75 million DKK for 2002 compared to 140 million DKK for 2001.

Per cent of total export

Source: Organic Denmark

Meat and dairy products had earlier a larger share of the total volume, but other product types such as cereals, groceries, beverages and snacks are gaining importance.

Export of Danish organic produce - markets and value

Source: Organic Denmark

The largest markets for Danish organic products were United Kingdom, Germany, Sweden and the United States (representing 75 per cent of the total Danish export of organic products).

According to the Ministry of Food, Agriculture and Fisheries, the export of organic foods is in its infancy because organic producers' first priority is to satisfy the demand on the domestic market. As production rises, export opportunities will become more evident.

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Advisory System

Denmark has an extension system which is unique as it is owned and run by the farmers themselves. It is therefore impartial towards public authorities and private interests. The objective of providing advice is to improve economic, working and living conditions for farmers' families, but also to develop quality products and a greater consideration for ethics and the environment in agricultural production.

The extension service run by the Danish farmers' unions, Danish Agriculture, has two levels.

Regionally, there are approximately 60 agricultural centres advising the farmers on a direct basis. Today approx. 150 advisers (the equivalent of 50 full-time jobs) provide advice on organic farming. Besides providing organic farmer with the latest information, the organic advisers supply information to conventional farmers who are gradually being inspired by organic methods of production, e.g. the increasing use of clover and grass on dairy and arable farms.

The second layer in the extension service is the National Centre. Here specialists co-ordinate the advisory development. Within organic farming it is done by an internal group of 14 specialists representing the various professional fields. The organic specialists at the National Centre act as knowledge bank and supply local advisors with the latest information within specialised areas of agriculture, develop new computer software, conduct experiments and run surveys etc.

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Research

Danish research in organic farming has increased considerably since 1995, but there is still a need for targeted research activities to help promote and develop organic farming.

Many of the concerns of farming today such as consideration of the environment and nature, animal welfare, product quality and health are all fundamental aspects of organic farming. The promotion of organic farming has been part of Danish government policy for several years. A major initiative in this respect has been the establishment of the Danish Research Centre for Organic Farming in 1996. The remit of DARCOF is to initiate and co-ordinate Danish research in organic farming. The centre synthesises and communicates scientific information across traditional boundaries and disciplines.

DARCOF is a "centre without walls" where scientists remain in their own environments but work across institutions. Activities in DARCOF are co-ordinated by the secretariat at Research Centre Foulum, Denmark.

Research concerning all aspects of organic farming and food processing has been initiated by and carried out by various Danish research institutions, e.g. The Danish Institute of Agricultural Sciences, National Environment Research Institute, Denmark, The Royal Veterinary and Agricultural University, Technical University of Denmark, Danish Institute of Agricultural and Fisheries Economics and Danish Agricultural Advisory Service, National Centre .

Under the auspices of DARCOF an open access archive, Organic Eprints, for eprints related to organic agriculture has been established in 2002. Researchers and organisations are invited to join the archive.

The Organic Research Station Rugballegaard forms part of The Danish Institute of Animal Sciences. Officially approved as an organic farm, Rugballegaard is the only research station for organic farming in Denmark. Rugballegaard has 140 hectares of farmland together with a herd of approximately 60 milking cows, 50 sows and offspring. The aim of establishing the organic research station has been to provide the scientists with the opportunity to carry out analytic and comprehensive research, partly focusing on the conditions of the different animal species (feeding, livestock houses, welfare, etc.), and partly on the interplay between animals and crops (feed supply, grazing systems, utilisation of manure, crop rotations, etc.). Another aim has been to develop and demonstrate new techniques relevant to organic farming.

In 2005 The Danish Institute of Agricultural Sciences published a study, where they examined the importance of food type on the health of rats under standardised experimental conditions. They found for some aspects that rats benefited from eating organically grown food. Read more. In 2004 a study from DIAS showed that organic milk contains significantly more vitamin E and carotenoids than conventional milk.Read more.

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Training

Denmark has the oldest organic agricultural college in Europe, The Organic Agricultural College. Twenty to thirty agricultural students graduate each year.

The Organic Agricultural College provides an education programme for those aspiring to become an organic farmer, and is particularly designed for young people from Europe. Organic Farmer is a two-year course focusing on both theoretical and practical experience, leaving the student with a fine knowledge-base with which to implement an organic farming career. The college is also conducting short courses for farmers who want to improve their knowledge, and occasionally it conducts courses for target groups like cooking organic food and construction of straw houses.

The Danish education as skilled farmer takes 4.5 years. The students join a college 3 times at a total of 13 months and have apprenticeship training on a farm for a total of 30 months. The students need to get the apprenticeship training at 3 different farms, and they can have apprenticeship training up to 6 months abroad.

Other agricultural colleges in Denmark offer organic courses and training. Besides agricultural colleges, agricultural advisers and farmers' associations offer many in-service courses for organic farmers. These are typically one to three days long and are in various fields of organic farming. The supply of these in-service courses is higher than the actual demand.

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Organisations

The successful development in recent years in production and sales of organic products is to a large degree based on a consistent and fruitful co-operation between the many specialised organisations and agencies within Danish organic production and manufacturing.

• Governmental organisations
• Non-Governmental Organisations
• Research and Advisory Service

Governmental organisations

The Organic Foods Council

Appointed in 1987. The aim of the Council is to encourage, monitor and assess the opportunities to develop Danish organic food production, to assess the current advisory and research work, to formulate proposals for additional activities and to comment on standards for the control of production, marketing, storage, transport, labelling, distribution and retailing of organic goods.

The Danish Directorate for Food, Fisheries and Agro Business

Under the Danish Ministry of Food, Agriculture and Fisheries. Administers EU market schemes on farm products, fruit and horticultural products in addition to fish produce. The directorate is the sole Danish payment agency, which takes care of all payments financed by the European Agricultural Guidance and Guarantee Fund (EAGGF). Deals within organic agriculture with national strategy issues, product development issues, and equivalence agreements and pending negotiations with foreign certification bodies, Action Plans on organic farming and EU-related issues.

Danish Plant Directorate

Under the Danish Ministry of Food, Agriculture and Fisheries. The assignments of the Danish Plant Directorate cover legislation on seeds, feeding stuffs, Plants, potatoes, fruit and vegetables, use of fertilisers and the establishment of vegetation cover, EU agricultural schemes and organic farming. The Danish Plant Directorate lays down regulations, performs administrative functions, carries out inspections, e.g. on organic farms, prepares legislation, provides service to the authorities and prepares policies. It has several offices across Denmark. The inspections on organic farms take place when crops are still in the fields so that the inspectors can verify that everything is up to standard.

The Danish Veterinary and Food Administration

Is part of the Ministry of Food, Agriculture and Fisheries. The Food Administration accredits and checks the processing and trading of organic food products. Eleven regional veterinary and food control centres handle food control and veterinary inspection.

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Non-Governmental Organisations

Danish Agricultural Council
Is a joint committee for various professional farmers' associations and the food industry. Prime objective is to further the co-operation within the business in relation to the Government, the Danish Parliament, the authorities, and other domestic and international trade organisations. A subcommittee deals with organic farming.

Danish Agriculture
Is an amalgamation of the two agricultural organizations The Danish Farmers' Unions and The Danish Family Farmers' Association. The organization was formed in January 2003. The object of Danish Agriculture is to handle the interests of Danish farmers - i.e. professional, political, social or cultural interests. The organization works for all farmers, irrespective of farm size, branch of production or special fields of interest. Deals with organic farmers interests in a subcommittee for organic farmers.

The Danish Association of Organic Agriculture

Established in 1981. A merger between various organisations in 2002 let to formation of one association for organic farmers, consumers and companies. It publishes a Danish bi-weekly for organic agriculture, named Organic Farming. The association disseminates information about organic farming and its products and contributes in co-ordinated marketing efforts for organic products. The association has stepped up its extension service in 2005.

The Biodynamic Association and Demeter Association

Established in 1936, representing the Biodynamic farmers. Publishes a magazine in Danish named Biodynamisk Jordbrug.

The Danish Consumer Council

It represents the interests of consumers and is independent of public authorities and commercial interests. Founded in 1947, the Consumer Council is the spokesperson for consumers' interests, lobbying vis-à-vis the Government, the Danish Parliament, public authorities and the business community.

Network for Ecological Education and Practice

Founded in 1994, with the object ive to establish a foundation for information, exchange of experience and dialogue about initiatives in promoting a sustainable development in Denmark. This is done by informing about meetings, courses etc., and by establishing connections between projects and people. The Network publishes the newsletter Eco-net Newsletter in Denmark.

The Danish Society of Practical Ecology

The Society disseminates information and gives advice on organic gardening. It publishes the magazine Practical Ecology (only in Danish). The Society has founded The Organic Garden - an organic demonstration garden (10 hectares) in Jutland. Read more.

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Research and Advisory Service

Danish Agricultural Advisory Service, National Centre

Acts as knowledge bank and supply local advisors with the latest information. We bridge the gap between agricultural research, advisory services of the local advisory centres and farmers. A department at the National Centre deals exclusively with organic advisory service. The author of this article belongs to this department. A Special Committee on Organic Farming representing organic farmers nationally vouch for the adaptability and quality in the advisory service.

The Organic Agricultural School

Self-governing institution established in 1992. It offers agricultural education module, professional/technical education, manager course, and extended manager course. It also offers additional training courses and management consultant- and counselling functions related to organic farming projects.

The Royal Veterinary and Agricultural University

The Department of Agricultural Sciences

Founded in 1856. Research is carried out within the fields of natural science, veterinary medicine, animal science, environmental science, agriculture, horticulture, landscape architecture and landscape ecology, forestry, food sciences and human nutrition. The Department of Agricultural Sciences at The Agricultural University works mainly with research and teaching in areas related to plant breeding, crop science, plant nutrition, and the qualitative and quantitative aspects of agricultural and horticultural crop production in temperate and warmer climate zones. The Organic Farming Unit is responsible for the development of teaching activities and for the promotion of research activities within organic agriculture at the Department of Agricultural Sciences.

Technical University of Denmark

The Institute of Environment and Resources

E&R aims to develop technical and sustainable solutions to minimise the impact of society on the hydrologic and geologic environment. The institute is committed to research and teaching at an international level.

The Danish Research Centre for Organic Farming

E stablished in 1995 as a so-called "centre without walls" where the actual research is performed in interdisciplinary collaboration between the participating research groups. The remit of DARCOF is to co-ordinate research for organic farming, with a view to achieving optimum benefit from the allocated resources. Its aim is to elucidate the ideas and problems faced in organic farming through the promotion of high quality research of international standard.

Danish Institute of Agricultural Sciences

E stablished in 1997 and is a sector research institution under the Ministry of Food, Agriculture and Fisheries. Aims to conduct research and accumulate knowledge of importance to agriculture. Emphasis is on responsible resource utilisation, environmental impacts both internal and external, animal welfare, and the quality and competitiveness of the products.

Danish Institute of Agricultural and Fisheries Economics

Conducts e.g. research in economics of organic farming

Prospects

Consumers, politicians, companies and farmers are all looking for ways to secure a sustainable development in Denmark. Organic farming is playing a vital role in this context. The challenge is to:

· Maintain the integrity and the quality of the organic products

· Develop organic farming further

· Inform the consumers about organic products

· Get the political establishment to maintain focus on organic farming as an effective environmental tool and not just a market opportunity

· Get conventional processors involved in the processing and promotion of organic products both home and abroad

Denmark has an excellent starting point due to high degree of innovation in farming, political and consumer attentiveness and market-oriented retail chains.

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Author

Information Officer Tomas Fibiger Norfelt, Danish Agricultural Advisory Service, National Centre, Udkaersvej 15, DK 8200 Aarhus N, phone +45-87405000, fax +45-87405010, e-mail tfn@landscentret.dk, website: www.landscentret.dk

April 2005

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