Expenditures and Activities of
European Union (EU) Member Countries
Principal Danish export promotion organizations include the Agricultural Marketing Board, the Danish Dairy Board, and the Federation of Danish Pig Producers and Slaughterhouses. 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, Austria, Sweden, Finland, the Middle East, Japan, and South Korea. Total government allocations to export market promotion in 1998 were $4.5 million; industry expenditures by the commodity boards were $8.7 million.
Danish Promotion Activity
Danish market promotion activities are funded primarily from producer levies and supplemented by partially rebated land and pesticide taxes, as well as a small appropriation from the legislature. These funds, which totaled about $89 million for 1998, are used primarily for domestic promotion. About $13 million is used for export promotion. Approximately $2 million of this amount is used to support activities of the Agricultural Marketing Board (AMB), which operates an office in Tokyo and coordinates Danish participation in international trade fairs. AMB is a private-sector organization that is a subdivision of the Danish Agricultural Council.
Since 1995, the Danish Dairy Board has promoted exports only for Lurpak brand butter. The Dairy Board no longer has offices abroad. Promotion activities are directed toward the United Kingdom, Germany, and the Middle East, which account for 85 percent of Denmark’s butter exports. In the United Kingdom, television advertising dominates the budget. Other activities are brochures distributed to households and store promotions. In Germany, the activities are concentrated around Berlin and northern Germany, where the distribution is best organized. Television advertising, consumer promotions, and trade activities are dominant. In Japan, participation in FoodEx is financed by these promotion funds.
The Danish Marketing Board, under the Agricultural Council, maintains an office in Japan to assist its members with sales promotions, especially for dairy and pork exports. The office helps pork exporters in their campaigns and cheese exporters in their price negotiations. The board also partly finances Danish national pavilions at major food fairs. The annual budget is $2.2 million.
Denmark is a major agricultural exporter, and limits its imports of most agricultural products. The United States is by far the major supplier of products such as nuts and dried fruits (raisins and prunes), holding a market share close to 100 percent. The most active competitor in the Danish market is France’s SOPEXA, which promotes French cheese and poultry as well as wine and fruit. Other countries promoting wine in Denmark include Germany, Italy, Spain, Portugal, Bulgaria, and Australia. In the fruit and vegetable sector, France and Italy mainly promote apples and pears while South Africa, New Zealand, and Israel promote citrus and exotic fruits and vegetables. Norway conducts seafood (salmon) promotions in Denmark.