Danish Pig Sector Internationally Competitive

30 January 2012, at 10:11am

DENMARK - The Danish pig industry is in many respects competitive with foreign countries, but the historic gap is eaten up by distorting terms, according to a new analysis of the entire pig sector's competitiveness.

Exports of pork are one of Denmark's main exports and has had, for many years, a major impact on the country's total export revenue.

"Denmark shows records of specialisation in the country's exports made by the OECD, the top five Danish products are from the food industry," says Leif Nielsen, Chief Economist, Business Organisation Food & Agriculture.

Danish pork has historically had a relatively large impact on its exports. Over the past year, growth has been put under pressure due to competitiveness. Countries such as Spain, Holland, and Germany have, in recent years, greatly increased their exports of pork.

Competitors' success is due to favourable conditions for both primary producers and processors. High taxes, environmental costs and administrative burdens have further deteriorated the conditions in an otherwise strong Danish industry.

"The Danish slaughterhouses have managed to develop exports to new markets such as China. This is seen by the export of meat increasing by 24 per cent from DKK 970 million in 2009 to DKK 1.2 billion in 2010. We do not expect it to stop here, there is a potential for over DKK 2.5 billion to be exported to China by 2019," says Mr Nielsen.

Read more about the Danish pig sector's competitiveness in 2011 .