Photo: DAFC
News article, 27. November 2024

Facts about the Danish food cluster 2024

The year is almost at an end and it’s time to gather a few facts about the food cluster.

The following is a summary of key figures and analyses, which are published every year about the Danish food cluster. 

The food cluster is an expanded definition of the agricultural complex. It encompasses the broader food and drink production, fisheries and the agro-industry.

Agriculture and the food cluster’s contribution to employment and income

Agriculture supports the employment of 119,400 people in Denmark and a value added of DKK 65 billion per year, corresponding to 2.3 per cent of GDP. Agriculture’s contribution to the Danish economy occurs through three channels: agriculture and horticulture, the closely connected processing industry, and derived activity in other industries. 

The agricultural complex is a business with substantial exports. More than 75 per cent of production is exported to international markets. In 2023, 83,800 jobs were underpinned by the agricultural complex’s exports, which amounted to almost DKK 97 billion.

The agricultural complex’s exports therefore generate activity in the economy, which also generates revenue for the exporting industries and all other sectors that supply goods and services to the complex. Such exports ultimately result in a total revenue creation of almost DKK 48 billion across all businesses that directly or indirectly make a contribution in this respect.

As regards export-driven jobs, the near markets are the most important. Germany, with an export value of DKK 20 billion and employment of 17,500, is the agricultural complex’s most important market. Slaughterhouses, dairies and agriculture are the fifth, eighth and twelfth most important export industries in the Danish economy, measured by GDP. From a cluster perspective, the agricultural complex is second only to the pharmaceutical industry, making it the second-highest income-contributing sector. 

Food cluster: one of Denmark’s largest export businesses

In 2023, the Danish food cluster exported goods to the value of DKK 199.8 billion, equivalent to 22 per cent of Denmark’s total goods exports, which makes the food cluster one of Denmark’s largest export industries.

The food cluster exports a variety of food products (e.g. fish, meat and dairy), bio-based products (e.g. feed and seeds) and agro-technology (e.g. farming machinery and packaging) to more than 200 countries. Some of our closest neighbours, such as Germany, Sweden and Poland, are among our largest trading partners, both in terms of imports and exports of the food cluster’s products. 72 per cent of the food cluster’s exports end up in a European country. At the same time, 84 per cent of Denmark’s imports of the same product groups originate from countries in Europe.

The food cluster’s growth in exports is owing to increases in exports in about half of the cluster’s product categories. This is due to a number of reasons, including the rise in exports of live piglets. Since the end of 2022, piglet prices in Europe have been high. This, combined with a larger number of exported piglets, has resulted in a rise in export value.

Denmark and the EU's food supply

Denmark and the EU are generally self-sufficient in food, with meat and dairy products in particular having a stable food supply. However, the degree of self-sufficiency for field crops such as cereals and oil seeds varies significantly. For oil seeds such as rapeseed and soya, Denmark and the EU are dependent on imports to cover domestic demand. Oil seeds are an important component in livestock feed, which means that supply uncertainty can impact animal food production in Denmark and the EU. 

The high level of self-sufficiency in Denmark and the EU can be attributed to a number of factors, including favourable conditions for differentiated crop cultivation. It also reflects the result of the reforms in the EU’s common agricultural policy, which has focused on encouraging competitiveness in domestic and export markets.

Consumer insight and Danes’ food culture

When the Danes shop for groceries, one in three prioritise products that are Danish produced. Ready-made food and eating out is also becoming popular during the week as well as at weekends.