All 27 EU member states have goals for growth in organic farm area. They hope to reap the benefits of organic farming for biodiversity, clean water, soil regeneration, farm incomes and rural economies.

Yet farm transition will not happen without strong growth in the organic market. Many nations are seeking inspiration from Denmark, where sector mobilization and supportive policy measures have been key drivers in achieving organic market shares –the world’s highest--of 30-50 percent for basic foods like milk, eggs, flour and many fruits and vegetables. Strong national policy support for organic market development is powering farm transitions to organic.

This policy brief provides practitioners with policy examples and lessons learned. Organic Denmark can also provide further detail and inspiration for new, effective policy and tailored initiatives and partnerships for organic market development.

Organic market growth does not happen on its own. Denmark’s experience is that small public investments can leverage platforms in retail and public sector meals and create a dynamic market development.

1.Use a Balanced Push-Pull approach

A key element in Danish organic policy, one now embraced in successive EU Organic Action Plans, is to ensure ambitious goals and policies for both “push” (from production) and “pull” from the market.  This creates stronger momentum, positive feedback spirals in supply chains, and minimizes the chances for over- or under-production. While many nations have organic farm transition subsidies, few have goals or major initiatives to develop the organic market. Early on, the Danes brought market initiatives front and center, because: No organic markets = No organic farms.

2. Create multiple funding sources as a motor for market growth

The first nation to use rural development programs to support organic market development, Denmark went on to mobilize multiple funding sources:

The Fund for Organic Agriculture launched in 2001, serves as an agile public funding mechanism, guided by an independent board of organic farmers, companies and representatives of retail, consumers and research. Starting with 1,5 million EUR but with 2-10 million EUR annually since, the fund finances activities targeting retail and public procurement, farm advisory services, export promotion and consumer awareness.

The Fund’s broad mandate avoids problems with stiff, multiple, complex schemes, while reducing costs for ministry and applicants.

Farm levy Funds, financed by all farmers in their dairy, meat, grain and vegetable sectors, were nudged by government to support organic market development initiatives.

Leveraging resources from broader policy agreements, has been a unique feature of organic policy in Denmark. By including organic farming as a central policy tool in agreements where organic delivers (water environment, clean drinking water, farm competitiveness etc), significant policy and funding has been leveraged to organics.

3. Leverage retail platforms and mobilize consumers

What market initiatives has policy supported?

Retail: Support for Organic Denmark, creating partnerships with retailers that leverage the powerful retail platforms to make organics available, visible, affordable and not least meaningful, by improving organic messaging, expanding organic product assortments, and presenting organic products more prominently in stores. It works!

Consumer motivation: Support for humorous and informative campaigns and nudging from the organic sector communicating “the why” of organic. This was clearly helped by having one, unified national logo (the red Ø label) now known by 99% of Danes. There is also support for experiencing organics. About 4 percent of Denmark’s population visit organic farms on “Organic Day,” when organic cows stampede onto fresh spring grass after winter.

Start-ups and brands: Support and inspiration for product innovation and value addition and access to better market data and forecasts for market development.  

Export promotion: Support for export readiness, collective visibility at international trade fairs, mobilization of embassies in promotions and better data for export markets.

Local, short-chain sales: Support for collective marketing of farmer-direct sales

4.  Show public sector leadership via Organic Public Procurement

Three national policy elements support mobilization of public procurement as pillar of organic market development in Denmark:

1. Goal for 60% organic in public sector kitchens. This sent a strong signal in 2012 to cities, counties, regions and national institutions, but also to wholesalers and food service companies that did not have organic on their radar. The 60% goal was built on lessons from frontrunner cities like Copenhagen, already at 60% organic then. Now at 90%.

2. Investments supporting capacity in cities and organic sector organizations, driving transition: Local governments received co-financing for transition planning and training of kitchen staff in preparing organic, low-waste, plant-rich meals in schools, hospitals, daycare, senior homes and public employee canteens. Transition in kitchens and supply chains was accelerated through support to organic sector organisations motivating wholesalers, food service actors and supply chains, and collaborations with kitchen worker trade unions.

3. Organic Cuisine Labels in gold, silver and bronze, boosting visibility, motivation and pride in organic public kitchens and private hotels and restaurants, while providing documentation of organic procurement. The model has been adopted in France, Germany and other nations

Policies for organic public procurement also geared private wholesalers and food service actors to drive organic transition in private food service e.g. hotels, restaurants.

5. Active use of Organic Action Plans – and close dialogue with the organic sector

A national Organic Policy Framework or Action Plan is essential for creating a thriving organic market and farm sector. Denmark was the first nation to develop a national Organic Action Plan back in 1995, and has used many since. A key lesson is the Importance of having a multistakeholder platformwithin the ministry (Organic Council), bringing the ministry and organic sector actors together with farm, environment, consumer and labor interests. This builds support for organic policy and ensures monitoring and follow up.

6. Investments in organic sector capacity to scale organics

Another impactful feature of Danish organic policy has been the focus on ensuring capacity in organic organizations, and the ministry itself, to drive change. Organic Denmark has played a role as catalyst and change agent in the market, building partnerships with retailers that inspire and motivate retail leaders to action and help them succeed.  

It is notable that the three top nations in organic sales—Denmark, Switzerland and Austria—all have sector organisations with the competencies and capacity to work strategically and operationally with retailers, partnering to grow the organic market.

This capacity does not exist in most nations. Policies can close this gap by working through and investing in organic sector organizations.

More info on organic best practices

Interested policy makers and advocates are welcome to contact Organic Denmark for more detail on organic policy measures and initiatives driving organic market development, as well as policy supporting farm transition please contact: