Danish consumers are facing significantly higher prices for ground beef, with a 20% increase in the past year. This surge is driven by a combination of factors, including high global demand, declining European production, and political uncertainty within Denmark.

The demand for Danish beef exceeds the current supply, causing prices to rise. Danish Agriculture & Food Council indicate a high demand for Danish beef, especially from Southern European restaurants. However, Denmark imports more beef than it exports, and global beef prices are also elevated.

Beef production is declining across Europe due to farmers closing down or being hesitant to start new operations. Uncertainty surrounding future animal welfare rules, the green tripartite agreement, and EU budget allocations are causing Danish farmers to delay investments needed to increase production. These factors contribute to the reluctance to expand operations and meet the growing demand.

While beef production is increasing in other parts of the world, such as South America, there are concerns about dependence on foreign sources. The price increases are felt throughout the supply chain, from farmers to slaughterhouses, middlemen, and ultimately, supermarkets.

Supermarkets acknowledge their role in keeping prices down but point to rising purchase prices from suppliers as the primary driver of inflation. Salling Group, a major grocery retailer, has introduced smaller package sizes and a ground beef and chicken blend to offer consumers more affordable options. They are urging suppliers to take similar measures to prevent further price increases.