U.S. Exports Poised for Gains Among the Danes

By Hasse H. Kristensen

With an area of 43,000 square kilometers and a population of 5.2 million, Denmark might seem quite a minor customer for U.S. goods. But its modern infrastructure and distribution system, prosperity and location at the mouth of Baltic Sea make it an excellent target for U.S. exporters.

An Inviting Market

Denmark’s standard of living and per capita gross domestic product (GDP, which hit $32,660 in 1997) are among the world’s highest. In the last few years, Danish consumer-ready food imports have jumped 10-20 percent a year and spanned the full range of products.

As in most industrialized countries, Danes have limited time to prepare and eat meals. Household size has averaged 2.2 persons since 1987. About 90 percent of Danish women hold jobs outside the home. The high number of small, two-income families with long work days translates into a growing market for convenience foods – frozen, dried and canned.

Danish consumption of ready-made meals has surged from 20,000 metric tons in 1982 to 53,000 tons in 1997. Denmark’s per capita consumption of frozen foods stands at 111 pounds a year, the highest of any country in the European Union (EU). Ready-made meals make up 20 percent of Denmark’s frozen food market, and this share will likely expand as microwave ovens become more prevalent; the share of Danish households with microwave ovens (currently 40 percent) has been growing nearly 5 percent a year. About 95 percent of Danish households have freezers.

The growing internationalization of today's society–through commerce and communications, the power of television and increased travel–inspires people to try new dishes. This trend has created a market for foreign foods in Denmark, and spawned a parallel one for flavorings, spices and herb mixes, such as Tex-Mex products.

The Danes’ growing health-consciousness will also continue to foster changes in traditional eating habits, such as greater demand for pasta and turkey or chicken in place of pork. Demand for products low in fat and high in nutritional content will increase. U.S. products with strong potential in this market include juices, fruits, salad dressings, snacks and herbal teas.

Danes Don’t Judge a Book by Its Cover

But Danes expect good value for their money – and they’re spending an increasingly smaller share of their per capita income on food. So manufacturers and traders must continually develop products and conduct aggressive sales campaigns to maintain or boost market share.

Consumers have discovered that they can get comparable quality at lower prices if they avoid brand names. This trend offers opportunities to suppliers whose products have a generic, price-driven appeal. Exporters of brand-name products should study prices and market penetration by cheaper, similar products.

Making a Mark in Denmark

Since Denmark joined the EU in 1973, the U.S. share of total Danish agricultural imports has dropped from 18 to about 4 percent. Much of the decline has resulted from EU-wide trade barriers on bulk products, especially grains and oilseeds. In fiscal 1998, U.S. exports of agricultural, fish and forestry products to Denmark came to $270 million–$89 million of it consumer products. The United States typically supplies just 2-3 percent of Denmark’s nearly $3 billion in annual retail food imports.

Today, U.S. agricultural exports to Denmark consist mainly of leaf tobacco, wood products, soybeans, fish, almonds, seeds, raisins, canned sweet corn, essential oils, pet food and wines. The United States is by far Denmark’s top supplier of tree nuts and dried fruits, with a market share of nearly 100 percent. It also holds respectable shares of the fish, wine, peanut and sweet corn markets.

Future Hot Prospects

Most of Denmark’s fresh vegetable imports come from other EU members or from Southern Hemisphere countries, which have complementary seasons. But Danish importers are world-class traders, always on the lookout for a good deal. All kinds of U.S. fresh vegetables have potential in this market, especially asparagus and mushrooms.

Danish demand for organic products is rapidly increasing. This trend encompasses such varied items as beverages (tea, coffee, wines, beer), condiments (including honey and jam), baby food, raisins, rice, nuts and in fact all prepared foods.

Sales of organic products sold through FDB–Denmark’s largest food retailer, with a 39-percent market share–are climbing by 35 percent a year. Overall, organic foods account for 5 percent of FDB’s sales, a share that will likely more than double to 11 percent by the year 2001. Products with strong growth potential include meat, eggs, coffee, wines and breakfast cereals.

In forestry products, the U.S. market position is especially strong in plywood. The United States could also become a major supplier of oriented strand board (a less expensive alternative to plywood sometimes used in flooring and roofing) and hardwood for furniture and flooring.

The market for dog and cat food is growing slowly, with imports filling 50 percent of demand. U.S. products are highly competitive and should easily boost their current annual sales of $51 million (10 percent of the market).

The Danish market for wines is expanding steadily. U.S. market share has surged in the past decade: a notable achievement given the stiff competition from France, Italy, Spain and Germany–some of the world’s premier wine producers, and EU members themselves. U.S. wines are well known, and could capture 10 percent of the market within a few years. Small importers are constantly looking for suppliers of small quantities, and large importers are always seeking exporters who can ship about 250,000 liters a year.

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The author is an agricultural assistant at the U.S. Embassy, Office of Agricultural Affairs, Copenhagen, Denmark. Tel.: (011-45) 35-26-10-81; Fax: (011-45) 35-43-02-78; e-mail: agcopenhagen@compuserve.com

Some Restrictions Apply

Denmark is one of the world's largest agricultural exporters, routinely producing enough to provide for three times its population. With still more to gain from open markets, it’s no surprise that within the EU, Denmark is a staunch advocate of global trade liberalization.

Most Danish import requirements correspond to EU regulations. Common Customs Tariff duty rates (c.i.f. basis) apply to all dutiable products from non-EU countries, except items governed by the Common Agricultural Policy. Items in the latter category – including cereal grains, rice, milk products, beef, veal, olive oil and sugar – are subject to charges designed to make import prices equivalent to those of EU products.

In general, Danish importers carry the responsibility for assuring that consumer food imports comply with Danish government and/or EU regulations. Still, U.S. suppliers would do well to keep certain things in mind.

U.S. exporters must stay alert to the three areas where barriers most obstruct trade with the EU: product specifications, product approval, and documentation and labeling. For example, many companies have encountered different requirements for additives, coloring agents and sweeteners; such difficulties will likely persist.

Denmark also has its own import requirements on a number of food products. These tend to be more restrictive than those of the EU. Denmark prohibits imports of food products from animals treated with growth hormones. Because Denmark is free of Newcastle Disease, it also bans imports of fresh poultry meat: only poultry that has been cooked to 70 degrees Celsius is permitted entry.

Imports are subject to the Veterinary and Food Directorate’s "positive list," which identifies the types, amounts and labeling requirements of additives permitted in food products sold in Denmark. Imports are also subject to the requirements of the Government Labeling Announcement.

For more import information, check with Danish authorities at:

Last modified: Thursday, October 14, 2004 PM