Beef prices in Denmark have surged by 20% in the past year, prompting concern among consumers and raising questions about the factors driving the increase. Only coffee, chocolate, and cocoa powder have experienced greater price hikes. The rising cost of beef is attributed to a combination of global and domestic factors, including high demand, declining production, and political uncertainty.

The demand for Danish beef exceeds the available supply, contributing to the price increase. There is also high demand for Danish beef in Southern Europe, where restaurants favor it. However, Denmark imports more beef than it exports, and global beef prices have also risen sharply, particularly in the United States.

Beef production in Europe is declining due to farmers closing down and fewer young people choosing to enter the industry. Many Danish farmers primarily focus on milk production, with beef as a by-product. Increased efficiency in milk production requires fewer cows, further reducing beef output.

Political uncertainty in Denmark is discouraging farmers from expanding production. New animal welfare rules and the green tripartite agreement create uncertainty about future regulations and taxes on beef production. Discussions surrounding the EU budget and support schemes also contribute to the hesitation to invest in increased production.

Supermarkets are aware of the rising beef prices and their impact on consumers. Salling Group, which owns Netto, Føtex, and Bilka, acknowledges its responsibility to combat price increases but attributes the rise to higher purchase prices from suppliers. The group has implemented measures such as reducing package sizes to offer lower-priced options.

Salling Group has introduced a mixed product of minced beef and chicken to meet customer demand for more affordable options. The hope is that suppliers will follow suit and help stabilize prices. The complexity of the supply chain, from farmers to slaughterhouses to supermarkets, also affects the final price seen by consumers.