2,000 Danish farmers facing bankruptcy – The Post

2,000 Danish farmers facing bankruptcy

Bad new for a stagnating labour market in which 133,000 people are already unemployed

November 27th, 2014 11:55 am| by admin

Some 2,000 farmers are in danger of losing their farms next year.

While Danish consumers can look forward to cheaper milk and pork products, the drastic drops in prices mean farmers are facing a dire future.

Many of them are facing bankruptcy and the repossession of their properties.

READ MORE: Agriculture subsidies going astray

Worse than fertiliser restrictions
According to Heden and Fjorden, the advisory centre for agriculture based in Herning, the declining prices of pork and milk are impacting on farmers far more than the controversial restrictions on fertilisers, which has been highly debated.  

Morten Dahl Thomsen, the chief economist at the advisory centre, has calculated that the impact of the plummeting prices will be 15 times worst for pork producers and 12 times worst for dairy farmers than the controversial fertiliser restrictions. 

Thomsen believes debt relief settlements and finding new sources of funds are essential to save the farmers.

The market price of pork has dropped by 1.50 kroner this year due to the trade conflict with Russia, while Arla has lowered milk prices by 73 øre since April.

READ MORE: Russian sanctions threaten Danish agriculture

Stagnating labour market
Meanwhile,  Danmarks Statistik reports 133,000 people are unemployed, representing  five percent of the population. 

The unemployment rate has been at the same level for the past six months, suggesting a stagnation in the labour market. Just 100 people got a job in October.

"The labour market lost its momentum from the beginning of the year," Erik Bjørsted, the chief analyst at Arbejderbevægelsens Erhvervsråd, told TV2.

"It will be difficult to get the Danish economy going."