Economy, Agriculture

For many years Danish governmental policy favored small landholdings, and the merger of small holdings to form large estates was discouraged by law. However, legislation passed in 1989 legalized the formation of larger farms. About 75 percent of the farms of Denmark were less than 50 hectares (124 acres) in size in the early 1990s. Most agricultural activity is concentrated in Jutland.

Of the 2.3 million hectares (5.7 million acres) under cultivation, about 60 percent are devoted to cereals. Important root crops, which in 2001 amounted to 1.5 million metric tons, include potatoes, sugar beets, and fodder beets. Cereal production was 9.4 million metric tons and consisted chiefly of wheat, barley, and rye. The meat and dairy industries are important, especially the production of pork products.

A notable feature of agriculture in Denmark is the influence of the cooperative movement. Cooperative associations dominate the production of dairy products and bacon. A large percentage of the agricultural produce of the country is sold through marketing cooperatives. Most cooperatives are organized in national associations, which are members of the Agricultural Council, the central agency for the cooperatives in dealings with the government and industry and in foreign trade.