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A Land of Milk and ButterHow Elites Created the Modern Danish Dairy Industry$
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Markus Lampe and Paul Sharp

Print publication date: 2019

Print ISBN-13: 9780226549507

Published to Chicago Scholarship Online: September 2019

DOI: 10.7208/chicago/9780226549644.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 05 July 2022

Industrial and Trade Policy

Industrial and Trade Policy

(p.163) 8 Industrial and Trade Policy
A Land of Milk and Butter

Markus Lampe

Paul Sharp

University of Chicago Press

We explain that although Denmark, unlike most of the rest of Europe, remained a free trader in the final decades of the nineteenth century, it continued to impose tariffs on dairy products throughout. Of particular importance was an exceptionally high tariff on cheese which, since it was a by-product of butter production using traditional methods, implied a large subsidy to that industry and constitutes an (initially unintentional) form of infant industry protection, allowing early enterprises to be profitable. This implicit subsidy diminished and eventually disappeared in importance, however, as the main by-product of butter became pork (from pigs fed on waste products) rather than cheese. Elsewhere, however, there is no indication of a conscientious industrial policy, and the government mostly supported the industry through education and extension services, as well as through the regulation of margarine after its invention in the 1870s (in common with most other dairy producing countries). There was not even a law for cooperatives until 1999.

Keywords:   cheese, margarine, trade policy, tariffs, government intervention, industrial policy

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