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ECONOMY

Cheaper beer and food staple prices

Beer drinkers had to wait a year for promised savings to materialise, but the lower prices now come at a time when other staples have also dropped in price.

Cheaper beer and food staple prices
Coffee is one of the products that is now cheaper for Danish consumers. Photo: Colourbox
Two recent analyses have delivered some welcome good news for Danish consumers, who pay the highest food and drink prices in the EU. 
 
The Economic Council of the Labour Movement  (Arbejderbevægelsens Erhversråd – AE) released a study on Sunday showing that the price of beer has finally fallen following the government’s reduction of levies a year ago. 
 
As part of its national growth plan Vækstplan DK, and in an effort to curb cross-border shopping in Germany, the government agreed to completely scrap a levy on soft drinks and reduce a levy on beer by 15 percent.
 
The problem for consumers is that these savings were not passed on to them, as a series of price checks and analyses showed that beer and soda prices remained virtually unchanged. 
 
Until now. The AE analysis shows that the price of soft drinks, mineral water and juice have fallen by 8.5 to 12.25 percent compared to last year’s prices, while the price of beer fell 3.5 percent through the first five months of 2014 compared to the same period last year.
 
“It’s good that something has begun to happen with the prices, but it sure did take long enough,” AE’s chief analyst Frederik Pedersen told Politiken. 
 
A spokesperson for the supermarket chain Coop, which operates Kvickly, Fakta and Superbrugsen stores, said that it was only natural that it would take awhile for the discounts to reach consumers.
 
“It takes time before we make new sales campaigns, which can be planned as far as six months in advance,” spokesperson Jens Juul Nielsen told Politiken. 
 
Nielsen said beer sales are brisk in his stores thanks to the lower prices.
 
“We can see it in the figures. We are selling considerably more canned soda and beer, and more than half of it is sold at a discount,” he said. 
 
It’s not just consumers who are benefitting from the price decrease. The Danish Brewers’ Association (Bryggeriforeningen) said that beer sales are up one percent on the year.
 
“We are happy to see that the levy reductions have made their way out to the supermarket shelves. The price fall can be the reason that beer sales are increasing,” the association’s Per Sten Nielsen said. 
 
According to Politiken, if those numbers hold throughout the remainder of 2014 it would mark the first time in 25 years that the sales of beer have increased in Denmark.
 
Other staples cheaper too
In a separate analysis, Politiken's annual price check revealed last week that all goods at the nation’s discount supermarket chains were 3.94 percent lower in June 2014 than in June 2013.
 
According to the price check, flour was 14 percent cheaper while bottled beer prices fell by eight percent and coffee prices were five percent lower. 
 
Las Olsen, an economist with Danske Bank, called it “sensational' that Danish discount stores were dropping their prices at the same time that global prices on food staples were increasing. 
 
“Grain, meat and coffee have increased across the board by 20 percent since the start of the year. But here at home we have seen falling food prices,” Olsen told Politiken. “That, I must say, is something new.”
 
Eurostat figures showed that in 2012, Danish consumers paid 143 percent of the EU average for basic food and drinks. Only shoppers in non-EU member countries Switzerland and Norway paid higher prices. 

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FOOD & DRINK

How does food qualify as organic in Denmark?

Denmark was the first country in the world to get its own organic law and the “Ø-label”, stating that food is organic, can be seen on around 13 percent of products across Denmark's supermarkets. But what does it mean about the food you're eating?

How does food qualify as organic in Denmark?

If you go to a Danish supermarket, you will notice many food products marked with a red “Ø” label. This organic label, which stands for økologisk (“organic”), was introduced in Denmark in 1990 and is “a very special stamp from Denmark,” according to Per Jensen, Organic consultant at agricultural advice company VKST.

It means the food you are eating has passed the Danish government’s regulations for organic produce; a law that was introduced in 1987 as the first organic law in the world and a law that has just raised the bar on how organic food is produced in Denmark.

The standards Danish organic farmers have to meet is higher than the regulations set out by the EU, which were first introduced in 1991.

“Organic essentially means no fertiliser,” Per Jensen told The Local. 

“However, you can use manure from farms that use fertiliser. The organic Danish farmers’ unions have pushed to change the rules so that from the 1st August 2022, no more than 45kg of nitrogen per hectare of manure can be used from farms using fertiliser that isn’t organic,” Jensen said.

Nitrogen is essential for plant growth but its supply can be limited, which is why it’s often applied as a fertiliser. There can however be some negative impacts on using fertiliser, such as polluting groundwater, which is why organic farmers don’t use it. But in Denmark, the country’s organic law goes further than many countries to eliminate traces of nitrogen. 

“On an organic farm in Denmark you need 20 percent of clover-like plants sewn in your field every year. These plants, like peas and horse beans connect nitrogen from the air, into the soil, so you don’t need to rely so much on manure. Some farmer don’t use manure at all and rely on clover plants,” Jensen explained to The Local.

There’s also a law that states 50 percent of crops in organic farms must make the soil rich in carbon, as well as a time limit of 8 hours on how long live animals can be transported.

This organic law is set and checked by the Danish government each year, on top of the regular EU checks. It results in food being given the prestigious Ø label and red crown and when exported, or bought in Danish supermarkets, consumers are “getting something special – there are no pesticides or herbicides in these products and they have a high level of credibility,” Jensen reiterated.

How much food is organic in Denmark?

In 2021, 11 percent of total farmland in Denmark was organic, which is roughly 312, 000 hectares. 

Organic food made up roughly 13 percent of the total retail food market in 2020 and proportionally, the organic market in Denmark is the biggest in the world, according to the Danish Agriculture and Food Council.

It states that the most popular organic products are eggs, (30 percent of total egg production is organic) oatmeal, wheat flour, carrots and bananas. One in three litres of milk bought by Danish consumers is organic and half of milk in Danish schools is organic.

In 2015, the Danish government announced “the world’s most ambitious” organic plan. It included doubling the amount of land dedicated to organic farming by 2020 compared to 2007 and serving more organic food in the nation’s public institutions.

According to a 2021 report by the University of Copenhagen, 22 percent of the food served in Denmark’s canteens, kindergartens and other public sector workplaces was organic. That compares to 39 percent in Sweden and just 1 percent in Norway.

In 2016 the City of Copenhagen announced that  88 percent of all food served in the city’s public institutions was organic, which was believed to be the highest percentage of organic food anywhere in the world.

However Jensen, organic consultant at agricultural advice company VKST, told The Local the ambitions to expand organic farmland had not yet been fulfilled. 

“Due to the war in Ukraine, the cost of manure is very expensive. So don’t expect a big increase in organic food at the moment,” Jensen said.

“Some farmers will stay as organic farmers no matter what. But others will change depending on the price. Sometimes being organic will be better money for the farmer but other times it won’t so, they’ll change to non-organic to grow for the best economical result,” he added.

Is organic food healthier?

A group of Danish researchers and academics presented a 136-page report to the Norwegian Food Directorate in 2021, which could not agree on whether organic food was healthier to eat than non-organic food.

“When it comes to nutrients it’s exactly the same as non-organic,” Karin Østergaard senior lecturer of Food Science and Nutrition at VIA University College, Aarhus, told The Local.

“The pesticides disintegrate into the soil quickly and you can’t use pesticides at all just before harvesting so you won’t find them when you eat the food,”  Østergaard said. She added that the limits set on pesticide use, plus all examinations on the food and health research means you shouldn’t be worried.

“The level of traceable pesticides on food in Denmark is very low compared to the EU in general and certainly outside the EU. So if you buy Danish products that are non-organic, you are still getting a very good product,” she added.

There was alarm in 2019 when traces of pesticides were found in drinking water in Denmark. Østergaard explained that these were aggressive pesticides that were banned many years ago that took a long time to reach the ground water. “The pesticides used today are not such a problem”, she said.

Despite the debate, organic food remains popular in Denmark.

“I think it’s because people today are beginning to think more of what they’re eating and they want a better product and that’s why they go to organic because they know it’s not been sprayed with fertiliser and the product is not a lot more expensive than non organic,” Jensen said.

But he predicts a drop in the number of people buying it.

“Right now there are other things that influence what people are buying, such as the rising cost of living so then you just have to buy the cheapest product.” 
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