Current status of Danish agriculture and food processing industry

1. Overview of natural conditions and production capacity

Denmark is a country with favorable natural conditions for agricultural development thanks to its temperate climate, evenly distributed rainfall throughout the year, fertile soil and relatively flat terrain. About 61% of the country's land area is used for agricultural purposes. The average farm size is 83 hectares, with more than 20% of farms having an area of over 100 hectares. The agricultural structure includes both crop and livestock farming, in which the two main industries are meat and milk production - which are high-value export items.

The main crop grown in Denmark is cereals, with around 85% of the production used as animal feed. Livestock production mainly includes pigs, dairy cattle, beef cattle and poultry. Denmark is known for its modern, highly transparent food production system, which allows for clear traceability from farm to fork, while ensuring strict standards of food safety and animal welfare.

Despite a population of only 5.8 million, Denmark produces enough food to feed around 15 million people – a testament to the efficiency and productivity of its agricultural sector. Much of the surplus is exported, with the sector accounting for around 22% of the country’s total exports. Major export markets include Germany, Sweden, the UK and China, with key exports including pork, dairy, fish and cereal products.

2. Factors that contribute to the success of Danish agriculture

The efficiency and high productivity of Danish agriculture come not only from favorable natural conditions, but also from the production organization system, support policies and human capacity. Some key factors include:

High level of farmer education: Danish farmers are highly educated and skilled, many of whom are well-trained from agricultural institutions or universities.
Continuous innovation: Research, development and technology transfer activities are taking place vigorously in both the public and private sectors. Technological innovations are rapidly applied in production practices.
Effective cooperative model: Most large enterprises in the food sector are cooperatives owned by farmers themselves, helping them to link their interests from production to consumption. A reasonable profit-sharing mechanism creates motivation to improve production efficiency.
Sharing knowledge instead of competing: Farmers tend to cooperate, share experiences and technology instead of seeing each other as competitors. Knowledge transfer in the value chain is done effectively and quickly.
Comprehensive traceability: Modern management systems enable tracking and control of the entire production chain – from farm to supermarket – ensuring safety and transparency for consumers.

3. Organic production and sustainable development

Denmark is a leader in organic farming and sustainable development. About 12% of the agricultural land is farmed using organic methods. Danish consumers are particularly fond of organic food, with 30% of milk consumed being organic – the highest proportion in Europe.

The Danish agricultural sector places a comprehensive focus on sustainability factors, including reducing greenhouse gas emissions, using resources efficiently, protecting the environment, ensuring animal welfare and supporting rural community development. The United Nations Sustainable Development Goals (SDGs) are integrated into the sector strategy and implemented at the corporate level.

4. Collaborative production model – the foundation of success

Danish food clusters are based on cooperatives – a model that has been in place since the late 19th century. The principle of “one farmer, one vote” creates democracy and transparency in governance. This model has proven effective when the first cooperatives such as dairy processing plants or slaughterhouses helped small farmers access technology, increase the value of their products and participate in global supply chains.

Over 50 years of consolidation and professionalisation, large cooperatives such as Arla Foods and Danish Crown have become world-leading food companies. They integrate the entire value chain – from raw material production, processing, distribution to export – and deliver sustainable returns to their farmer members.

5. Agricultural support policy within the EU framework

Denmark benefits from the EU's Common Agricultural Policy (CAP), which includes:

Pillar 1: Direct subsidies to farmers to maintain incomes and encourage competitive, sustainable agricultural production.
Pillar 2: Rural development through programs to support production modernization, environmental improvement and promotion of organic farming.

To receive support, farmers must meet strict standards on environment, animal welfare, food safety and land management.

6. Key food processing industries

Pork: The pig industry is one of the most successful. Thanks to high specialization and genetic improvement, productivity has almost doubled in 30 years. The use of veterinary drugs is among the lowest in the world, and growth hormones are completely absent. Residue monitoring systems are tight and effective. The environmental impact of raising a pig is now half what it was in 1985.

Dairy products: The dairy industry takes advantage of large-scale production to optimize costs. Each cow now produces twice as much milk as it did 30 years ago. Transparency and food safety are absolutely guaranteed thanks to a strict traceability system and tight control over the use of drugs.

Beef: The beef industry focuses on high quality, hormone-free, full life-cycle traceability, and resource optimization. Measures to reduce methane emissions from feed are being researched and implemented.

Poultry and eggs: 60% of production is exported. Denmark is the first EU country to be certified “salmonella-free” in eggs and chicken meat. Antibiotic use is very limited thanks to good disease control and high feed quality.

Aquaculture: With the advantage of vast oceans and remote territorial waters in Greenland and the Faroe Islands, 95% of Danish fish production is exported. 72% of catches are MSC certified, 55% of freshwater aquaculture is ASC certified. The trend of land-based fish farming in recirculating systems is growing rapidly.

Plant-based foods: Production of protein-rich crops such as peas, faba beans, etc. doubled between 2017 and 2022, creating thousands of jobs and contributing billions of DKK to the economy. The PlanteVærket community coordinated by the Danish Agriculture & Food Association is connecting the entire plant-based food industry value chain, expanding domestic and international markets.

7. Food safety and quality standards

The entire Danish food industry applies the international food safety management system (HACCP), reaching a rate of 100%. Food safety regulations in Denmark are not only based on EU standards but are also implemented more strictly in practice. Many businesses also apply higher internal standards, or establish separate contracts with specific consumer groups.

8. Some big brands are present in Vietnam

Arla Foods: Fresh milk products, butter, cheese, formula milk...
Danish Crown: Pork, beef, sausages, processed products.
Carlsberg: Beer, soft drinks.
Toms: Danish specialty chocolates and candies.
Lurpak: Premium avocado, popular in the high-end segment in Vietnam.

9. Importing raw materials – an opportunity for Vietnam

Due to climate restrictions, Denmark still has to import many raw materials for the food processing industry - especially tropical ingredients such as spices, fruits, cocoa beans, coffee... This is a clear opportunity for Vietnamese businesses.

Potential product groups:

Fresh and processed fruits: mango, banana, coconut, dragon fruit, juice...
Seafood: catfish, shrimp, squid, clams...
Rice and rice products: rice noodles, rice paper, rice noodles...
Spices and herbs: pepper, ginger, cinnamon, star anise, cardamom…
Coffee and cocoa: raw materials and processed products.

However, to successfully penetrate the Danish market, Vietnamese businesses need to understand EU technical regulations, meet requirements on food safety, labeling, traceability and sustainable development. Establishing trusted relationships with local partners also plays a key role in maintaining and expanding the market.

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