Analysis of Danish Cheese Manufacturing industry

xIt means that there will be huge value on the state economy. В«Len countries such as Ireland, the Netherlands, Denmark and in selected regions in Germany and France, receptors can look forward to milk production increases of between 15 percent and 50 per cent, which could largely be achieved between 201 5 and 2020. В» (http:// www. Therapies. Com/articles/2875/European-cheese-market, 2011) There will be more taxes in government treasure and increasing of cheese manufacturing volume.

Legal Environmental Legislation was increased in the past ten years and some of these laws are affected on productivity. For instance, big attention on parks and forests means that some territory was taken from farms and had an influence on the cheese manufacturing industry. New limits of polluting environment are also having an effect on farmers and some of them must to close their businesses. Denmark has its own strict regulations – Denmark Food Act. This country also is a member of Euro Union and need to follow all directives about all food and agricultural products.

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The Danish Ministry of Family and Consumer Affairs sets food policy and responsible to control high quality of products and reliable information for customers. Ethical Danish farmers try to reduce emissions of ammonia and odor by following Danish laws. In addition to it, some social groups like vegans and hippie hate cruelty to animals. Environmental There is temperate climate in Denmark. This is means that mild winters and cool summers are normal in it. These factors have influence on Danish agricultural industry including cheese manufacture.

The second way is not profitable as Rural-food via the reduction of costs has cheaper goods than smaller businesses, In other words, consumers will by cheap goods and small independent firms will go bankrupt. Using this theory, we may conclude, Threat of Entry is LOW. Threat of substitute products or services According to the official statistics of CALL (http://www. Call. It/en section=production_cheese, 2013), we may see that Germany and France are leaders of cheese production. It means their products may substitute Danish cheese on the mommies and foreign markets.

This fact means Threat of Substitutes is HIGH. Bargaining Power of Customers salary and may buy domestic and import goods and products. Consumers began to prefer healthy and organic food. It is transform domestic market of Denmark. Companies understand that they need to listen their consumers and produce organic food for their citizens and for import. If this factor may be used, we may say that Bargaining Power of Customers is STRONG Bargaining Power of Suppliers The raw material for cheese manufacturing is milk. В«Approximately 62% of Denmark total land mass is used for agricultural purposes.

Denmark produces enough food to feed 20 million people (four times its population). В» (http://www. Tats-sea. Agro. Go. Ca/Euro/ 4586-Eng. HTML, 2010) It means there are a lot of milk farms and they have high competition level. All of them need consumers to take profit. If cheese manufacturing firms do not agree with cost of milk they may change supplier. To sum up this point of analysis we may tell Bargaining Power of Suppliers is LOW. Rivalry/Competition Danish cheese manufacturing industry consists of Rural-food and 30 smaller dairy companies. It means that there is no any global competition on the domestic market.