TWIFT | Other | Growth Projections of Danish Organic Export Prices in 2020

Growth Projections of Danish Organic Export Prices in 2020

According to Danmarks Statistik, Danish exports of organic products will rise again after a massive decline in 2018. Organics of Danish production have been requested in foreign countries for many years. 

Well, in recent years, the demand price from other countries has fallen sharply. According to official statistics, the export of organic products from Denmark decreased by more than 45 million DKK in 12 months from 2017 to 2018. At the moment, its figure is approximately 3 billion crowns. 

The Danish Council on Agriculture and Food states that the process of the export price reduction is completed now and from the beginning of the next 2020 year, organic prices for foreign consumers will be increasing.

Most of the products that are exported from Denmark go to the European Union countries. One of the most popular importers of Danish organics is Germany. The German population is buying up to 42% of all Danish organic products exports. The remaining export share falls on two other large markets — Sweden (about 15%) and Asia (10%).

Well, Denmark is constantly expanding the network of organic export. New markets open up every year as well as new opportunities for the Danish state. This was stated by Mette Gammicchia, the head of the Department of the Danish Council on Agriculture and Food.

— “Danish organic conquers more new markets in foreign countries. So, this year our organic products were sent to markets in China, Germany, and Italy, where the interest in Danish organic products is high” — Mette Gammicchia claims.

According to the National Statistics Office, Denmark imports more organic products than exports. So last year, its export indicator amounted to 4.4 billion DKK, and a year earlier it was 3.9 billion DKK. Such low figures for the export of goods are associated with a low level of productivity in 2018.

Danish plant products are in great demand in European countries than livestock products. Thus, the export of fruits and vegetables from Denmark in 2018 amounted to approximately 400 million DKK, and the exported beef and other types of meat amounted to about 344 million DKK.

It’s forecasted that Danish exports, after a significant drop that year, could again grow to 3.5 billion DKK. This may be due to export difficulties in France and Japan. At the moment, organic dairy products remain the most popular products in the export line. Their share is more than 1.2 billion DKK.

Moreover, the promotion and growth of organic exports in 2020 will happen at the international level. This is reported by the US Organic Trade Association.

Next year, the Association will present American organic products at major exhibitions around the world, ranging from the top organic food exhibitions in Germany to all the famous food shows in the Persian Gulf, Canada, Australia, and the Pacific.

The USDA is actively promoting global organic exports. So, this year about 3 million $ were allocated to organic chemistry. The Ministry plans to consolidate existing sales platforms to open new markets in different parts of the world.

So, at the Anuga Cologne, one of the world’s largest food and beverage exhibitions, the Organic Pavilion with goods from 12 American companies were presented. Notably, 9 out of 12 organic companies were new brands for this show.

According to the participating companies, more than $ 13 million of new sales were made at the exhibition. A successful November trade mission in Seoul, Korea led to a forecast of more than $ 7 million in new sales for the four participating companies.

In early December, four environmentally friendly companies took part in a trade mission at the Natural and Organic exhibition in the Middle East in Dubai, where they met with regional buyers and learned more about export opportunities to the Persian Gulf.

Such a program of access to international markets received significant funding of about $ 812 thousand. At the beginning of the year, the association launched the Agricultural Trade Facilitation project with the financing of 1 million 127 thousand US dollars. This is a significant amount to promote global organic exports in the world.

Despite the fact that investment in organic products in Denmark is much smaller, international interest in organic exports and the allocation of financial investment in this area speaks of its progress.

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