There is a saying that Denmark is a country with “more pigs than people”. While the country is now famous for its design, architecture and green technology firms, the saying still holds true. Today, just as it was a century ago, the Danish economy relies heavily on the agricultural sector, which produces pork and dairy products. Known for its long summer nights and dark winter days, the country’s short growing season makes it difficult to compete with the world grain market. The climate, coupled with historical economic activity and the needs of a small welfare state, make Denmark’s specialization in animal products both intelligent and necessary.
Between 1388 and 1814, Denmark controlled Norway, which provided raw materials in exchange for surplus Danish grain, which primarily grew in a territory that had, historically, belonged to Germany. As it became more expensive to grow domestically, than it did to produce livestock and simply import the necessary grains, farmers began to focus on dairy and pork products. This slow specialization became particularly vital in the wake of Germany’s rapid industrialization and their recapture of Denmark’s “grain basket” in 1864. Denmark had always been a sea-faring nation as well, with the city of Copenhagen tying Scandinavia to international trade routes and a small but stable ship-building sector provided trade vessels to transport produce.
The government took on a protectionist stance to allow some smaller industry to develop and a system of cooperative farming began, with individual producers sharing the costs of machinery and risk. The entire economy was aided by a historical sentiment of risk-aversion, and remained stable, with a slow steady growth, throughout the early 20th century. Out of these cooperative farms, some of Denmark’s largest brands, like Arla, Lurpak and Danish Crown, were formed and now sell their products world-wide. Because of its reliance on foreign imports, the Danish economy has remained a supporter of free trade, which provides both a world market for Danish products and access to items that cannot be produced within its small boarders.
