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Danish hunger for organic meat dwindles as prices rise

Organic food has become less popular among Danish consumers since inflation pushed up the cost of many products last year.

Danish hunger for organic meat dwindles as prices rise
Organic meat became far less popular in Denmark as inflation set in during 2022. File photo: Liselotte Sabroe/Ritzau Scanpix

Consumers have chosen to deprioritise organic meat in particular, according to an overview of products published by Statistics Denmark on Tuesday.

Sales of organic beef, pork and chicken fell in 2022 by 20, 26 and 27 percent respectively.

Overall sales of organic food fell by 3 percent last year in comparison to 2021.

Inflation is key in explaining the trend, economist Brian Friis Helmer of Arbejdernes Landsbank told news wire Ritzau.

“Past studies have shown that price is the most important parameter when consumers shop, while things like organic come further down the list,” he said.

“And something like meat in particular went up in price last year, so when consumers need to make savings it’s likely to be with products like these,” he said.

The trend is likely to continue this year, the economist also said.

“You can easily imagine some of the trend continuing in 2023. We can see that inflation is still high even though it’s fallen back a little bit. So there’s still a decline in real wages,” he said.

“We expect that when we get through the worst period of inflation, we will see organic food sales start to come back – maybe in 2024.”

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COST OF LIVING

How much could Danish agriculture CO2 tax affect food prices?

A new model for CO2 emissions tax on agriculture could mean customers pay more for a packet of beef, according to the expert committee which recommended the model.

How much could Danish agriculture CO2 tax affect food prices?

An expert committee on Wednesday presented its proposals for a carbon emissions tax on agriculture, including calculations of how the carbon tax will affect the price of products like meat and milk for consumers in Denmark.

The committee proposed a starting level of 750 kroner per ton emitted, along with two other options: 325 kroner and 125 kroner per ton emitted.

The highest rate, 750 kroner, would result in the price of 500 gram packed of beef increasing by 4.5 kroner, the head of the committee, Michael Svarer, said at a briefing.

For the 325-kroner rate, this would fall to 2.3 kroner. If the tax was 125 kroner per ton emitted, the price of 500g of beef would go up by 1.4 kroner.

For a litre of milk which currently costs 13 kroner, the price increases at each increment of the emissions tax would be 0.6 kroner, 0.3 kroner and 0.2 kroner respectively.

READ ALSO: Danish expert committee proposes CO2 emissions tax for agriculture

On average, the price of dairy and meat products would go up by just under 4 percent by 2030 if the model was imposed.

However, this is not expected to have an impact on inequality once factors like wage increases are taken into account, the committee found.

Any final decision on a CO2 emissions tax on agriculture must be made by parliament in the form of majority support for a bill. The government is not obliged to follow Tuesday’s recommendations.

The numbers should also be treated as a guide rather than hard fact, Svarer noted during the briefing.

“There are many steps you must go through and there’s naturally a lot of uncertainty,” he said.

Prime Minister Mette Frederiksen has previously stated she did not want a green tax to push up food prices.

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