Strong Danish traditions in agriculture and food

With its participation in EXPO 2010, the Danish Agriculture & Food Council aims to show the high quality and good solutions delivered by Danish companies to the Chinese. 

The Danish Agriculture & Food Council is only three months old when Jan Laustsen, Director of Trade, leads the way to his office through the corridors of the building at Axeltorv, a busy square in downtown Copenhagen. He explains that five different Danish organisations recently joined forces and formally merged into one special-interest organisation on 3 June this year, representing the Danish farming and food industry. Many Danish companies within the sector have strong interests in the Chinese market, and that is the main reason for deciding to participate in EXPO 2010.

- The Danish Agriculture & Food Council will handle all financial, political and commercial interests of its members from agriculture and food associations in Denmark. Our goal is to facilitate and create the best possible framework for our members, and when some of them have strong interests in the Chinese market, it is only natural for us to become actively involved in EXPO 2010, says Jan Laustsen, who is also a member of the National Committee behind the Danish participation in EXPO 2010.

He continues:

- I have to be honest and say that, as a starting point, we are somewhat sceptical towards the commercial opportunities of a world exhibition. It is a principle for us. Having said that, however, we always evaluate the specific market we are dealing with. As EXPO 2010 takes place in China, in Shanghai, which already meets all our requirements to an interesting market - economic growth, buying power on the rise, increased focus on imported products - then it is only natural for us to get involved in EXPO 2010. We know that an EXPO is mainly an opportunity to do nation branding. However, our clear focus is to attract as much attention as possible to the companies we represent, which are Carlsberg, Kopenhagen Fur and Arla Foods.

What is the scale of the agriculture and food sector in Denmark?

- If we take the entire complex - agriculture, food and agro-industrial products - it accounts for around 20 per cent of combined Danish exports. It amounts to between DKK 100 and 150 billion a year, and we export to around 150 markets globally. We have some very strong traditions within agriculture and food production that are well recognised all over the world. Therefore we make a continued effort to maintain access to the various markets. We cannot take access for granted, as local authorities often impose strong regulations on their food industries. However, we are interested in being where the buying power is since our products belong to the more expensive end of the scale because of the high costs of production in Denmark.

What do you hope to gain from your participation in EXPO 2010?

- Firstly, we hope that this will be another step in our long-term strategy to get the required contacts in the Chinese market. In China, personal contacts and long-term connections are essential to create the right climate for business and negotiation. We would also like to be visible when the attention of the world focuses on China and Shanghai. We want to signal high quality and good solutions when it comes not only to food and related products, but also design and creativity as represented by Kopenhagen Fur. Of course, we would like to get as much branding as possible from the products produced by the companies we represent.

How important is the Chinese market to the companies represented by your organisation?

- It is very important. The Chinese market is growing rapidly. Despite the financial crisis, the Chinese market still experiences growth and an increasing demand for western products. It is also a market that needs a segmented approach because it is not just one market; it is hundreds of different markets. The fact that, in Denmark, we are flexible and able to adjust our products to selected groups of costumers on selected markets has been one of our strong points for many years. Therefore, the Chinese market is a perfect match for our way of doing business. It also fits well with our philosophy to focus on a long-term strategy instead of getting short-term pay off. We are prepared to do what it takes to develop important relationships in China. 

What is the current situation on the Chinese market?

- The opportunities are great, but so are the challenges. The food industry in China is heavily regulated, and the Chinese authorities must to approve each product and company. That makes it necessary to have a long-term strategy that aims at creating easier access for Danish products. We can only do that if we send out the signal that our products are of choice quality and have a high level of food safety, which is a great priority to the Chinese. Only if we keep ahead of our strongest competitors, can we earn a profit by selling our products on that market. To sum up, we think that the Chinese market has great potential, but success is not something that happens overnight. We need to put much effort into this.

Can you elaborate on why Danish food and farm products are interesting to the Chinese?

- The Chinese pay much attention to quality and perhaps not so much to price. Sometimes paying a higher price is a way of demonstrating how successful you are. There is strong focus on food safety and clean products, and we have a clear competitive advantage in this field. The Chinese are willing to pay more for imported products if they are safer, and we can fulfil those requirements. 

The official theme of the EXPO is "Better City, Better Life". How do you fit into this main theme?

- By using the word life, it has already become clear, because that is how we choose to interpret the theme. We argue that what you consume is a very important part of your lifestyle. Food is an absolutely necessary part of your everyday life, whereas fur is part of a more luxurious life style. Therefore, we definitely think we fit into the theme of EXPO 2010. Talking about ‘Better City’, high quality of food also signals a high standard of living, and that will perhaps influence the process of creating a different type of city in the future. However, it is important to say that we do not want to force the Chinese to adopt our life style. It should blend in with their way of living in respect of cultural differences.

How do think the Chinese will receive the Danish pavilion?

I think they will give it a positive reception. The Chinese know a lot about the Little Mermaid. In Denmark, we take the Little Mermaid for granted, but in China, she is very special. The fact that we offer this gesture of moving the real Mermaid to China will give us excellent exposure.