Government to intensify efforts against high food prices

The government has launched a comprehensive analysis of food prices in Denmark. This follows significant price increases in recent years, where climate factors, war and the after-effects of Covid-19 have played a role.

According to a new analysis from the Minister of Industry, Business and Financial Affairs, food prices have risen by 24 per cent since the beginning of 2022. The reasons include extreme weather events, the war in Ukraine and global supply problems resulting from the pandemic. At the same time, the analysis shows that income and costs in the food sector have developed differently across industries. For example, agriculture has had a higher average profit in the period 2019–2024 compared with 2015–2018.

Minister of Industry, Business and Financial Affairs Morten Bødskov emphasises the importance of the work:

-“Prices have risen sharply, and for many Danes everyday life with high prices is tough. We need to do something about that. Rising prices hit Danes on low incomes particularly hard. That is why the government is negotiating targeted food allowances. But the work does not stop there. We need to get to the bottom of the prices.”

The analysis constitutes the first part of a larger effort, with the next phase examining the competitive situation throughout the entire food value chain. This work is being carried out within the Forum for Consumer Prices, which involves both industry stakeholders and consumer organisations.

-“The first partial analysis is complete and indicates that income and costs have developed differently across the value chain. In the next partial analysis, today’s meeting in the Forum for Consumer Prices plays an important role. Here we examine the entire value chain and look at opportunities to strengthen competition and create better prices on supermarket shelves and in refrigerated counters,” says Morten Bødskov.

According to the government, a working family with children and their own home – even before the upcoming food allowances – will have around DKK 30,000 more available for consumption in 2025 compared with the previous year.