Principal Danish promotion organizations include the Agricultural Marketing Board and commodity export boards. Pork and dairy products -- which account for about 60 percent of Denmark's agricultural exports -- receive the bulk of export promotion funding. Promotional funds are spent in such principal markets as the United Kingdom, Germany, the United States, Italy, France, the Middle East, and Japan. Denmark is also interested in new markets in Korea, Malaysia, Indonesia, and Southern China. Total government allocations to export market promotion were $2.7 million; producer and industry assessments totaled $24.4 million.(3)
The Agricultural Marketing Board (AMB), a private-sector organization, was established by statute in 1961 by the Agricultural Council. A structural reorganization in 1977 integrated the AMB as a division of the Agricultural Council. Funds are transferred annually to the Council for AMB promotion activities by the commodity boards and Denmark's Promotion Council (government appropriation) as well as from the Agricultural Financing Fund (funds generated by customs duty rebates from Sweden) and from land tax revenues. In 1995, AMB financing from the government and land tax revenues (Pro-Mille funds) totaled 15.2 million DKK ($2.7 million). AMB funding from user fees, memberships, and interest totaled 39.4 million DKK ($6.9 million). Total AMB funding covers administrative costs of operating the organization and its office in Japan as well as its export promotion activities and participation in international trade fairs.
AMB serves as the coordinator for export and domestic promotion of agricultural products primarily through participation in international exhibitions and the staging of in-store, restaurant, and consumer advertising campaigns. It carries out market analyses (e.g. distribution of Danish food in Kuwait, Saudi Arabia, and the United Arab Emirates) and arranges visits of trade and press teams. It operates offices in Japan and employs several traveling promotion specialists to service overseas markets. The Board also shares the services of consultants employed by the government-funded Export Promotion Council in markets with growth potential such as the Middle and Far East. AMB also coordinates and helps fund Danish participation in major international trade shows in Europe, Russia, China and other countries.
The commodity export boards represent both the cooperatives and other producer and industry groups. They act as coordinating channels and have as their objective the development of agricultural export markets for bacon and pork, dairy products, beef, poultry and horticultural products. In addition to market promotion, they coordinate marketing and related measures within the sectors, including administration and distribution of the revenue obtained from production levies, price leveling activities, and sales to state trading countries. They receive no government grants or funds (except those channeled through the Export Promotion Council), but since 1978 have administered certain transfers of the land tax revenue. The following boards are involved in export promotion: the Danish Bacon and Meat Council, the Dairy Export Board, the Joint Beef Board (covers beef, veal and horsemeat), and the Danish Commercial Horticultural Association.
Denmark's overall expenditures for export market development during the last 5-6 years have been heavily influenced by funding for individual commodity export boards, particularly cheese, where individual producing firms have tended to take on more of the promotion and advertising work. A trend begun in 1987 sought to keep the responsibility for export promotion closer to individual exporters, with the intention of allowing marketing boards to concentrate on coordination. Market development expenditures channeled through the marketing boards are expected to be matched by individual large exporters.
To increase Danish exports of agricultural products and industrial equipment, the Danish Minister of Agriculture led a high-profile trade mission to Malaysia and the Philippines in late August 1996. The mission includes 30 Danish industry officials, 20 officials from farm organizations and the Ministry of Agriculture and 15 journalists. The government of Malaysia asked the Danish government to help develop its port facilities. Danish agricultural officials will look at the potential for fresh pork exports to the Philippines, although high European pork prices make other markets less attractive in the short term.
The Danish pork exporters' association is continuing to work with the EU to obtain EU financing for market promotion. Denmark first sought the funds last year to compensate its producers for reductions in EU export subsidies under GATT 1994, but has not yet succeeded in establishing a market promotion fund.
Denmark recently released a brochure to promote its dairy and food industry worldwide. The brochure emphasizes Denmark's quality, ethics and environment in its food processing. The brochure reflects Denmark's' food production strategy, which includes several initiatives related to healthy and nutritionally correct food, quality assessment programs, a voluntary labeling scheme for high-quality products and an increase in public sector agricultural research.