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How the Danes Discovered Britain: The International Integration of the Danish Dairy Industry Before 1880

Author

Listed:
  • Markus Lampe

    (Universidad Carlos III Madrid)

  • Paul Sharp

    () (University of Southern Denmark)

Abstract

The success of Danish agricultural exports at the end of the nineteenth century is often attributed to the establishment of a direct trade with Britain. Previously, exports went mostly via Hamburg, but this changed with the loss of Schleswig and Holstein to Prussia in the war of 1864. After this, quantity and price data imply narrowing price gaps and thus imply gains for Danish producers. Why then did Denmark not discover the British market earlier? We show that butter markets in both countries were integrated in the eighteenth century, but through the Hamburg hub. We then demonstrate that there were sound economic reasons for this well into the nineteenth century. However, movements to establish a direct trade were afoot from the 1850s. Thus, although the war certainly gave an extra boost to the process, the shock from the loss of the Duchies was not necessary for the future Danish success.

Suggested Citation

  • Markus Lampe & Paul Sharp, 2014. "How the Danes Discovered Britain: The International Integration of the Danish Dairy Industry Before 1880," Working Papers 0066, European Historical Economics Society (EHES).
  • Handle: RePEc:hes:wpaper:0066
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    References listed on IDEAS

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    Cited by:

    1. Peter Sandholt Jensen & Markus Lampe & Paul Sharp & Christian Volmar Skovsgaard, 2018. "‘Getting to Denmark’: the Role of Elites for Development," Working Papers 0125, European Historical Economics Society (EHES).
    2. Markus Lampe & Paul Sharp, 2017. "ÔRationalÕ Farmers and the Emergence of Modern Accounting in Danish Dairying," Working Papers 0115, European Historical Economics Society (EHES).
    3. Sofia Teives Henriques & Paul Sharp, 2016. "The Danish agricultural revolution in an energy perspective: a case of development with few domestic energy sources," Economic History Review, Economic History Society, vol. 69(3), pages 844-869, August.
    4. Eoin McLaughlin & Paul Sharp, 2015. "Competition between organisational forms in Danish and Irish dairying around the turn of the twentieth century," Discussion Papers in Environment and Development Economics 2015-16, University of St. Andrews, School of Geography and Sustainable Development.
    5. Richard Pomfret & Markus Lampe & Florian Ploeckl, 2014. "Spanning the Globe: The Rise of Global Communications Systems and the First Globalisation," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 54(3), pages 242-261, November.

    More about this item

    Keywords

    Butter; dairies; Denmark; hubs; international trade; market integration;

    JEL classification:

    • F1 - International Economics - - Trade
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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