DENMARK

The structure of fair trade

The Danish fair trade sector includes three major importers, who are also wholesalers: U-Landsimporten, Butik Salam and Svalerne. There are seven (100%) fair trade shops, whereas about 40 commercial stores and some 150-300 supermarkets sell a number of fair trade products. The main fair trade products sold by the supermarkets are foodstuffs from U-landsimporten.

The fair trade shops and importers are autonomous and democratically organized. There is no umbrella organization yet, nor an association of world shops. Since November 1994, the Max Havelaar fair trade mark has a Danish branch.

The sector involves some 10 salaried employees along with around 100 volunteers.

Retail channels include a mail-order catalogue, world shops, commercial shops and supermarkets. The world shops are not formally linked together.

Information is disseminated through newsletters, newspapers, brochures, magazines and local media. Information published in public media consists mainly of personal stories about members of fair trade organizations.

Budgets for education and marketing are not part of the general budget, but consist mainly of external grants and amount to some 10% of the budgets of fair trade organizations.

Efforts are currently being made to establish a national fair trade organization.

The market for fair trade

Wholesale turnover in Denmark amounts to some 2.5 million ECU, whereas the retail turnover of the seven world shops is about 3 million ECU.

Public awareness of fair trade is poor (10-15%), partly due to the small number of shops. However, products may be known better (25-30%), because people buy them not for the sake of fair trade, but because of their exclusiveness and quality. Price differences are not very relevant, because many fair trade products can hardly be compared to products in the general market, especially the exotic ones. The locations of the shops are rather favourable, and the availability of the products is reasonable and improving. Non-food products are more important than food products; for retailers they make up 80 to 85% of the turnover. Products sold by Butik Salam and Svalerne include clothes, jewellery, gifts, basketry, toys and musical instruments. U-Landsimporten is specialized more in food products such as coffee, tea, cocoa, sugar, spices, nuts and honey. The market share of coffee is very limited (less than 1%), but this percentage is expected to rise following the introduction of coffee with the Max Havelaar label in the Spring of 1995.

Turnover and the number of shops are increasing year by year.

Table 1: The structure of fair trade in Denmark
import organizations: 3
wholesale organizations: 3
retailers:
   world shops 7
   commercial shops 40
   supermarkets 150
points of sale: 200
staff: 20
trademark: Max Havelaar
retail channels:
   mail order yes
   individual fair trade stores yes
   chains of fair trade stores no
   commercial stores yes
   commercial chain of stores yes
budgets for education & PR: negligible
Table 2: The market for fair trade in Denmark
wholesale turnover: 2.5 million ECU
retail turnover:
   world shops 3 million ECU
public awareness of fair trade: 10-15%
public awareness of fair trade products: 25-30%
willingness to pay a higher price: not relevant as products are distinct
market share:
   coffee 0.1%
turnover per category: non-food 80-85%

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