This article is from Jan 20, 2021

Is the Danish economy dependent only on livestock?

Denmark consists of 61 milk and related product’s production plants which process 4.7 billion KGs of milkIt includes a major company called Arla Foods and 30 small dairy companies. Arla alone is the largest trading company to meet more than 90 per cent of Denmark’s demand for milk and dairy products.

The value of Danish milk exports is 1.8 billion euros per year. The domestic market is the market for large-scale domestic milk production.

According to a document released by the Danish government in 2014 ( Legislative Council Secretariat FSC46 / 13-14) with a population of 56.3 million, the country has 4.3 million hectares of agricultural land. About 62% of it is cultivated for agricultural purposes. Currently, there are about 130,000 people in Danish agriculture, of whom 73,000 are in agriculture and 58,000 in food production.

Factsheet Denmark January 2008

Denmark can produce enough food to feed 30 million people (six times its population) and currently exports about 20% of Danish’s total annual exports of agricultural and agricultural food products.

Economy sectors - Denmark

Denmark’s major exports:

Industrial production accounted for 73.3% (21.4% of machinery and equipment, and 26% for fuels, chemicals, etc.), 18.7% for the consumption of agricultural products and others (5.5% of total exports of meat and meat-related products in 2009; 2.9% of fish and fish related products). Denmark is a major exporter not only of food but also of oil and natural gas, as well as tourism and transportation.

Agriculture accounts for only 1.4% of gross domestic product (GDP) (World Bank, 2019). Industry, which accounts for 18% of the population, contributes 20.9% to GDP.

The service sector contributes almost three-quarters (64.9%) of GDP and consumes the largest share (80%) of the population. Denmark has a strong banking sector. Domestic banks account for more than 85% of total assets. Of these, three banks control 50% of the total assets.

Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.1 18.3 79.6
Value Added (in % of GDP) 1.4 20.9 64.9
Value Added (Annual % Change) 15.8 2.0 2.3

People living in Denmark pay the highest taxes in the world – up to half of their income. On top of this, they pays 25% value-added tax on most items and up to 150% tax on new cars.

Taxation In Denmark - Denmark Tax Rate | Sawamia Denis.

Most health care in Denmark is provided free of charge to the patient. University students do not have to pay any tuition fees and receive a grant to cover expenses while studying. Care grant for children, pension for the elderly. Maintenance assistants are also provided on their way home.

It is not a valid claim that Denmark’s economy grows only via livestock and cows. even though the income from livestock products and agricultural food products in Denmark is 20% of that country’s income. It is noteworthy that the Danish people keep livestock as a part of economic development.

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