The development of Danish agriculture and agribusiness: Lessons to be learned in a global perspective

Abstract

The agri and food industry is a major industrial sector in Denmark. Around 20 % of total industrial turnover still comes from the food industry and that places the sector in a remarkable position seen from a global perspective. Compared to other countries on a similar level of economic development Denmark has an extremely important agriculture and agribusiness sector. Danish agri and food cooperatives seem to have been successful in obtaining international competitiveness. The transformation and the structural development of the cooperative sector has more or less been completed. In Denmark, cooperatives play a major role in the agri and food industry - especially in sectors close to the farmers in the food chain. Cooperatives have succeeded in building up greater market power to strengthen the marketing of farmers’ products. The development of the industrial structure among Danish agri-cooperatives has been very rapid during the latest decades. Through mergers and acquisitions the number of firms has fallen dramatically, and the result has been increasing concentration ratios in almost all groups of the food industry. Structural development, concentration and globalisation in recent decades have resulted in the agri and food companies now being among the largest in Europe. To a large extent, agriculture all over the world faces similar problems and challenges. For this reason, it is essential that know-how, experiences and lessons can be transferred and adopted by agriculture in other countries around the world. In many ways, the experience and the success behind Danish agriculture and agribusiness can be transferred to other countries. However, profound studies of specific needs and conditions are necessary. The transfer of knowledge from Danish agri and food businesses can take place through joint-ventures or foreign investments, in which mutual and equal benefit is obvious. However, the transfer of knowledge can
also be facilitated by development assistance from industrialised countries.