CONTENTS
Vegetable foods | Animal foods | ||
1866-77 | 100 | 100 | |
1878-87 | 79 | 95 | |
1888 -97 | 62 | 81 |
Milch cows | Pigs | ||
1871 | 808,000 | 442,000 | |
1893 | 1,011,000 | 829,000 | |
And not only did the number of cows increase, but the average
yield of butter per cow increased from 110 pounds in 1880 to 200
pounds at the end of the century.
Shipping, commerce and industry from 1880 made good progress parallel
with the agricultural production. Thus it became possible to absorb
the whole growth of the population in the urban trades and to
let the agricultural population have their share of the improved
standard of living by the strongly increasing productivity per
person.
It was fortunate for Denmark that when most European countries
tried to stem the fall of prices by high import duties on agricultural
products, the English market remained open. With the growth of
the industrial population the English farmers found it more profitable
to sell whole milk directly to the towns than to make butter;
and the Danish farmers found a market for their increased output.
Thus, external as well as domestic factors helped the development
of Danish agriculture to a hitherto unknown degree.
Of the internal factors the most important was the spirit of self-help
in the farmers, expressed through their cooperative production
societies. These made it possible to combine the advantages of
small-scale intensive farming with those of largescale machinery,
and they relieved the farmer of business responsibilities, permitting
him to give full attention to the production of crops and animals.
The typical features of modern agriculture in Denmark, i. e.,
the importation and production of raw material for feed, and the
exportation of finished products in the form of butter, bacon,
and eggs, were closely linked with the cooperative movement.
The branch of animal husbandry which was first developed in Denmark
was butter and cheese making. In 1880, L. C. Nielsen, a Danish
engineer, invented the mechanical cream separator [in Denmark
called the Centrifuge] capable of continuous operation. This invention
opened the way to dairying on a large scale, and, as we shall
see, facilitated the application of cooperative methods. Before
the invention of the centrifuge it was only the large estates
in Denmark that were able to produce butter in quantities and
of a quality to meet the demands of the English market. Now the
opportunity came to the mediumsized farmers and the smallholders.
In the seventies the influence of the Royal Agricultural College
had begun to make itself felt, and through the tireless efforts
of two of its professors, N.J. Fjord and Th. R. Segelcke, a new
interest in scientific dairying and feeding was far-reaching.
For a hundred years the Royal Agricultural Society had urged the
improvement of livestock, and local agricultural societies now
carried the message to the farmers.
As early as 1866 Dean Hans Christian Sonne had adapted the principles
of the Rochdale pioneers to the first Danish cooperative store,
in the little town of Thisted in Jutland. This society was intended
to serve the needs of town workers; but when the movement began
to spread, it was among the farmers that consumers' cooperatives
took firm root. Farm journals had carried articles on semicooperative
dairies in America, Switzerland and elsewhere, and several attempts
had been made to establish dairies more or less on cooperative
lines, but it was in 1882 that the first real cooperative dairy
was organized. Since then, it has become a model for other societies
not only in Denmark but in the world at large. The story of its
founding is interesting.
One day in the winter of 1881-82 a young travelling dairyman put
up at a small inn with the apt name of "The Beergood Inn"
on the west coast of Jutland. His conversations with the farmers
led him to send out invitations to the neighboring farmers in
the village of Hjedding, asking them to meet and discuss the problem
of more efficient dairying. A number of the farmers responding,
the young man outlined an idea he had about the making and marketing
of butter. His plan was to engage an expert to teach farmers the
best way of churning, and to establish a central salesroom to
which the butter was to be taken for sale after being churned
in the homes.
The farmers expressed an interest in the idea, but for some reason
did not adopt it. They arranged another meeting to discuss the
idea of a common market. It was probably through the initiative
of a young dairyman, Stilling Andersen, that the group decided
that instead of making butter and marketing it jointly, they would
build a creamery and send their raw milk to it. The invention
of the cream separator just at this point indicated to them the
possibilities of such a cooperative enterprise. The farmers realized
that it would be good economy, and good dairying too, to collect
the milk from different herds and have it worked at some central
place. Some of the farmers who owned fine herds had to be persuaded
that the gain would be worth the risk they would take in mixing
the milk. Those who were willing to join at first represented
only 300 cows, but Stilling Andersen, in order to achieve the
necessary minimum, promised to buy the milk of a hundred additional
cows, and to enter the undertaking as a cooperator as well as
the manager at a modest salary. whereupon the plan was adopted.
A committee of five members was elected and one of them, Niels
Kristensen, was entrusted with the task of drafting the rules
of the cooperative. With Stilling Andersen and another farmer,
N.H. Uhd, he set to work the night of the meeting, and by five
o'clock the next morning they had drawn up the contract and rules
of the new society. All the members were to own the dairy in common.
They were to obtain the capital to erect the building and buy
the equipment through a loan based on the security of the real
property of the members, who were jointly responsible. Any surplus
was to be divided according to the amount of milk delivered; the
democratic principle was maintained in the rule that each member
was to have only one vote at the general meeting regardless of
the number of cows he owned.
As soon as the experiment at Hjedding showed itself to be successful,
other communities began to build cooperative dairies in the neighborhood
and in other parts of Denmark. The farmers soon realized the advantages
of the cooperative dairies over the existing "Fællesmejerier".)
The cooperative dairy returned the skim milk to the members at
a nominal price, whereas the private dairy usually fed it to its
own pigs. The private dairy also had to meet the problem of "thin
milk" (diluted with water), a practice undreamed of in the
cooperative, the success of which depended on the honesty of the
individual members. When the villagers "saw that the bailiff,
the schoolmaster and other respected members of the community
joined", it was not long before the milk waggon was stopping
at every farm and smallholding of the village. It became
the rule that a farmer should deliver all his milk, except the
quantity needed for use in the home, to the cooperative dairy,
a rule that worked to the disadvantage of the farm laborer and
the poor neighbor. After the introduction of the Gerber apparatus,
payment was generally made on the basis of the fat content of
the milk as well as of its weight.
The cooperative movement made rapid strides, especially in the
years 1887-1888, when no less than 300 cooperative dairies were
founded. In the beginning these received no support and only lukewarm
interest from the large farmers and estate owners, and neither
the State nor any other public agency took notice of them. It
was from the peasant class that the movement recruited both leaders
and followers.
Foremost among the peasants was Niels Pedersen, son of a small
Jutland farmer. He had passed through the usual training of practical
work on the farm, and like many other bright boys of his generation,
he attended winter courses at a folk high school and an agricultural
school. In addition he took a full eighteen months' course at
the Royal Agricultural College, and having thus equipped himself
with the best knowledge that the schools of his time offered to
young farmers, he bought a farm of forty acres near Askov Folk
High School and there opened an agricultural school, Ladelund.
From the beginning he foresaw the success of the Hjedding experiment.
"A wave has risen from the sea in the west; nothing can stem
it until it sweeps over the whole country", he said. So many
farmers' groups came to him for advice about organizing and equipping
cooperative dairies that it is said that the watchdog of Ladelund
never ceased barking.
Niels Pedersen saw the need for education among dairymen; and
he trained many of the men who later became leading dairy managers.
They received high ethical inspiration from him as well as practical
instruction. His students said of him that "he gave us a
scope for our life".
Two years later, Jørgen Petersen (1854-1908), principal
of the large Dalum Agricultural School, followed Niels Pedersen's
example and established special courses for dairymen.
The first task of the cooperative dairies was to produce butter
of such quality as would compare favorably with the butter made
on the large estates. As late as 1890 the estates' dairies were
winning all the prizes for butter at the agricultural shows, but
by the end of the century the situation was quite the reverse.
By 1900 the number of cooperative dairies was twothirds
of today's total. Of the 1,566 dairies in Denmark in 1949, 1,321
were cooperatives, which received 90% of the total milk supplied
to dairies. There is a relatively even distribution over the country,
a fact that accounts for the reduction in the cost of transportation
of milk from the farm to the dairy and back again. The increasing
use of the motor truck has, however, somehow eliminated the need
for so many dairies; and further consolidation could reduce operating
expenses,-coal, for instance.
The total milk production for 1950 was 5,403 million kilograms,
of which some 70% was used for butter, 8% for cheese, 2 % for
condensing, 8% for home use, and 11% sold for consumption. 90%
of the butter was produced by cooperative dairies and 180,000,
i.e. almost 90 % of all Danish farmers were members of cooperative
dairies.
The cooperative principle was also applied in Milk Recording Societies.
It was only natural that the members of the cooperative dairies,
where milk from many farms was mixed together, should be interested
in the fat content of the milk. In 1894, Mrs. Anine Hansen, wife
of the leader of the experiment station at Vejen near .Askov Folk
High School, suggested that a group of farmers should appoint
a man to test and record the yield and cost of feeding each cow.
The next years, Niels Pedersen and thirteen farmers of the neighborhood
organized the "Vejen and District Control Society",
the first of its kind in the world, and appointed a "Control
Assistant", or Milk Recorder.
The report of a teacher from Ladelund Agricultural School in 1896
created something of a sensation when it revealed that it cost
585 øre to produce one kilogram of butter from the poorest
cow, while it cost only 112 øre to produce the same quantity
from the best cow. This report hastened the movement that had
already begun for the elimination of inefficient cows and the
improvement of breeds. The number of Milk Recording Societies
grew until now there are 1,641, with more than half of the cows
in the country under control.
One reason for the rapid growth was that the farmers who, by the
turn of the century had control of Parliament, began to legislate
in the interest of agriculture. The Act of 1902 concerning domestic
animals provided for an annual grant to any Milk Recording Society
which followed the general rules of management.
The members are jointly and severally responsible for the liabilities
of the Society, which is managed by a committee of from three
to five members. This committee in turn is under the joint management
of a district committee. A central committee coordinates the work
and the results of all the societies.
The recorders, who work for a modest salary generally receive
their training at the larger agricultural schools, which, after
their regular five or six months' winter course, offer a two months'
course in milk control.
Besides improving breeds. the Milk Recording Societies have furnished
the statistical basis for scientific feeding. The late Professor
Lars Frederiksen, for about ten years leader of the Government
experiments on the feeding of cattle, so systematized feeding
that a very large number of Danish farmers now feed their cattle
according to his formulae.
For many years cooperative dairies occupied the first place in
Danish export business, hut very close to them are the cooperative
bacon factories; in certain years bacon export has become of greater
importance to the Danish farmer shall butter export. The two branches
have developed side by side, as the feeding of pigs depends on
the byproducts of the dairies. In 1950 the total turnover
of the cooperative dairies was 1,7i35 million kroner, and of the
cooperative bacon factories (which handled about 89 per cent of
the total number of pigs supplied for killing) 1,390 million kroner.
In the early nineteenth century the breeding of pigs was far removed
from the modern science of animal husbandry. Halfwild and
illfed animals roamed loose in the woods and groves fending
for themselves on whatever scanty food they could find. The increased
enlightenment and efficiency of the farmers began to reflect themselves
also in better pig raising, and when the cooperative dairies began,
there was already a fairly substantial bacon export to England.
The marketing of bacon, however, was largely in the hands of private
dealers, who bought pigs from farmers and sold them to slaughterhouses.
When P. Bojsen, principal of a training college and a folk high
school in Jutland, discovered that the farmers in his neighborhood
paid a middleman's profit of about 30,000 kroner a year to dealers,
he began in 1887 to agitate for the establishment of a cooperative
slaughterhouse in the town of Horsens. In his opinion there would
be three advantages in such an establishment: 1) the dealers'
charges would be saved; 2) the question of byproducts, an
irksome one for the private abattoirs, would be greatly reduced,
as the cooperators became interested in their utilization; and
3) the private shareholders' profits would be eliminated.
Opposition on the part of the town authorities, which was characteristic
of the feeling of the urban population towards cooperative efforts,
was at last overcome, and on the 22nd of December l887, the first
killing was done in the first cooperative bacon factory. Then
the real struggle began. A large Hamburg firm which owned several
bacon factories in Denmark resolved to kill the new enterprise
at its birth, or at least to give it such a blow that farmers
in other parts of the country would be afraid to follow its example.
It suddenly raised the price of pigs to prevent the cooperative
factory from buying. But the members of the Horsens society saw
through the trick and pledged themselves to sell their pigs to
the cooperative factory only. Though for many years the society
had economic difficulties and enemies everywhere among the private
dealers and butchers, Mr. Bojsen continued his propaganda, and
in the year 1888 four new cooperative slaughterhouses were opened.
For several reasons the cooperative bacon factories had a more
difficult beginning than the cooperative dairies. The bacon factories
had to oppose an already existing and fairly strongly organized
private industry. Moreover it was difficult for the new slaughterhouses
to hire technically skilled men because they were already engaged
in private business. There was even at the annual general meeting
in 1890 some agitation for the sale of the Horsens factory; but
the storll1 blew over, only to be followed shortly by a greater
danger, an attempt to amalgamate Horsens and other cooperative
bacon factories with the private slaughterhouses. Although such
amalgamation would undoubtedly have lessened competition and brought
about many advantages for the factories, it was fortunate that
the attempt was defeated. The keener the competition of the private
curers, the more the need of keeping the cooperative factories
as nearly perfect as possible.
The principles underlying the organization of a modern cooperative
bacon factory are the same as those of the dairies, with a few
essential differences. First, a bacon factory has 30 or 40 times
as many members as a dairy and needs much more capital. Not only
is the initial investment larger, but capital is necessary to
finance the larger stores. Butter can be sent from the dairy the
day after the milk comes in, but the bacon factory needs a longer
time to deliver the finished product.
These facts influence the organization of a slaughterhouse. The
capital is obtained by a loan-as in the case of the dairies-but
the members do not as a rule guarantee this loan with all that
they possess. There is limited liability, and the members within
a smaller district (all known to each other) guarantee either
a fixed sum or an amount proportionate to the number of pigs delivered
from the district.
The cooperative bacon factory is as a rule situated in a town
easily accessible to the farmers of a certain district. The members
pledge themselves to deliver for a specified period (from 5 to
20 years).
During the war the number of pigs in Denmark decreased, but rose
again, from 1½ millions in 1948 to 3½ millions in 1951.
At present, the pigs are delivered to the bacon factories at a
live weight of about 95 kg. The weight of the slaughtered animal
for export is then approximately 70 kg, which gives 60 kg of bacon.
To make the pig testing work more exact, and the results a better
help to the breeders by the selection of boars and sows, the cooperative
bacon factories have built three large testing stations with individual
feeding.
As already mentioned, the Rev. Hans Christian Sonne established
the first Consumer Cooperative Society in 1866. He thus became
the father of the Danish cooperative movement. Dr. F. F. Ulrich,
a medical man, had called Sonne's attention to the activities
of the English Rochdale pioneers, and it was their principles
he adopted in the town of Thisted's Workers' Society, which began
its cooperative activities by the joint purchase and distribution
of bread and groceries for its members.
Along with his idealism and strict honesty, Sonne possessed a
practical business sense. The movement he initiated was to survive
ridicule and severe attacks in its early existence. About 1875
there were in all about 130 cooperative shops, the greater part
in towns. After 1880, however, there followed an almost explosive
expansion of the cooperative stores in the rural districts, while
the towns, for a period, appeared to lose interest.
The great agricultural crisis in the eighties and nineties compelled
the farmers to look for means to save expenses. During the same
period the farmers carried through not only their political emancipation
in the struggle with the government, but also their cultural and
economic emancipation from both the National Liberals
through their folk high schools-and the large merchants in the
towns- through their cooperatives
There were in 1950 almost two thousand consumers' societies, and
more than 1,900 of these were members of the Cooperative Wholesale.
This had a turnover of 475.7 million kroner. The societies had
a total membership of 420,500 persons. Measured by international
standards the average membership and annual turnover of the Danish
cooperatives are small. They have only to a minor extent adopted
the system of district federation. As in other branches of the
cooperative movement, the selfdetermination and selfgovernment
of the individual societies are maintained.
The first successful attempt toward an organization of the cooperative
stores for the purpose of joint purchases was made by the Zealanders
in 1S84, but it was the Jutlanders, under the leadership of Severin
Jørgensen, manager of the Vester Nebel cooperative store,
who carried the victory when, in 1896, the Cooperative Wholesale
of the Danish Consumers' Stores was founded through an amalgamation
of the Zealand and the Jutland wholesale houses. Tough its headquarters
was situated in Copenhagen, Mr. Severin Jørgensen became
the director. In this as in other important spheres this modest
and unassuming store manager became the strong pioneer of the
Danish cooperative movement.
As in the local societies the General Assembly is the highest
authority. Each society sends a delegate with one vote, except
the Copenhagen Society and the Aarhus Society, which have been
formed by the amalgamation of independent societies and therefore
have several delegates.
[
]
From the farmers' point of view one of the most important activities
of the wholesale society is the improvement and sale of guaranteed
seed. This is also an example of a happy collaboration between
producers' and consumers' cooperatives. A cooperative society
for improving seed. formed by the Danish agricultural societies,
undertakes the production, and the wholesale does the distributing.
The two societies together decide on tht sales price. In November
of each year order blanks are sent to the local consumers' societies
and to the farmers' and small-holders' associations for distribution
among their members. The orders are filed at the wholesale distribution
office, and in the spring the seed is sent in sealed and labelled
parcels to the local stores for distribution to the farmers. The
local societies receive a little more than 5% of the sales price.
Through this successful cooperation of producers and consumers
the farmer is guaranteed well-grown and clean seed of superior
quality.
To a great extent the purchase of grain, feed and chemical fertilizers
ill Denmark is organized on a cooperative basis. The movement
dates back to the Eighties, when inferior seedcakes were
sold in large quantities. The farmers, at a loss to know where
they might obtain such stock feed as would increase the milk yield,
began to organize cooperative societies for the purchase of feed.
Under the leadership of a farmer, Anders Nielsen, the Jutland
Feeding Stuffs Association fought a successful battle with private
importers, who attempted to kill the society by dumping huge quantities
of feedstuffs on the market. On Anders Nielsen's insistence the
society resolved to compel its members to buy all their feed from
it, but no more than was required for the use of their own stock.
The latter regulation was made in order to prevent the formation
of any private undertakings that might do harm to the movement
as a whole. In 1948 the feedingstuff societies numbered
1,635 with 100,000 individual members, and handled nearly half
the feed business in Denmark.
In 1901 Anders Nielsen again took the initiative in organizing
the first cooperative for the purchase and sale of artificial
manure. Until the War of 1914-18, however, the society did not
import fertilizer. The fertilizer trust took advantage of the
war situation to demand from the cooperatives that they pledge
themselves to buy all their fertilizer from the trust for five
years. The answer of the cooperatives was a plan for the building
of chemical factories by the Danish Cooperative Manure Supply
Society. The local societies pledged themselves to deal solely
with the association, and in July 1916, Anders Nielsen was able
to inform an assembly of 871 delegates that 1,353 local societies
with 67,000 members had joined the association, which now represented
farms of a collective value of 750,000,000 kroner. The society
has not been able to build its own factories, but it has good
connections in foreign countries and it supplies fertilizer at
reasonable prices to the amount of nearly 40 % of the chemical
fertilizer used in the country.
The cooperative purchasing movement has resulted also in Cooperative
Coal Societies, Dairy Societies' Joint Purchase, and Engineering
Works, and Cement Works.
Other cooperative societies deal in Accident and Damage Insurance;
and there is a Pension Society, and a Cooperative Sanatorium Association
which operates a sanatorium for tuberculosis patients and another
for rheumatic patients.
When the Danish, cooperative dairy societies were formed, they
aimed chiefly at the improvement of the product, leaving the sale
to the merchants; but as early as 1887 an association of cooperative
dairies on the island of Funen was formed for marketing purposes.
Statistics for 194S show that the butter export societies, 10
in number, with an annual turnover of 1,340 million kroner, handled
55 % of the butter exported from the country.
The butter is usually sold f.o.b., and the price is fixed every
Thursday on the Produce Exchange in Copenhagen by a committee
representing the producers, the cooperative export societies,
the private Danish firms, and the established buyers for the English
cooperative stores and chain stores.
Generally the bacon factories sell through brokers in the main
consuming market in England. However, several factories have united
in setting up a selling organization, called the Danish Bacon
Company, which has headquarters in London and branches in a number
of cities.
The Cooperative Egg Marketing Association represents another cooperative
enterprise. It was Severin Jørgensen and two village schoolmasters
who, about 1890, suggested that local egg circles should be organized
and joined into a cooperative egg export society to cover the
whole country. The members contract to collect and handle eggs
in such a way as to produce a high quality product. Each member
and each circle are identified by numbers, and every egg is stamped
with those two numbers. In case of complaint every egg can thus
be traced back to the producer. In 1948 there were 906 egg export
societies in Denmark, with a membership of 49,000, and a turnover
of 68.4 million kroner. The cooperative bacon factories exported
eggs amounting to about 15 million kroner. The private egg export
firms, which must be authorized by the Ministry of Agriculture,
accounted for about 70% of the egg export.
The Government Control Service controlling dairy products also
controls the export eggs in regard to quality, grading, marking
and packing. The eggs are examined by candling.
A number of cattle export associations have been formed, each
local association operating independently. Members contract to
sell all cattle for a period of a few years to the association,
so the latter always has a dependable supply. Operating capital
is raised by borrowing against the members' joint liability. In
1948 there were 20 associations, with 40,000 members and a yearly
turnover of nearly 68.4 million kroner. The cattle export associations
and the cattle sales associations together handle about 40 % of
all Danish exports of cattle and meat.
The usual pooling arrangement obtains in the cattle export association.
The approximate value of the cattle is paid to the owner within
a week's time, and final payment is made at the end of the year,
after operating expenses have been met.
In 1914 a Danish cooperative undertaking was set up which at first
proved a failure. It was a bank which was to operate according
to cooperative principles and do banking for the benefit of the
members. It had a promising start, but the deflation following
the war of 1914-18 brought about heavy losses; and there were
also a few unwise engagements undertaken.
A distrust of the bank spread among the cooperators, and no serious
attempts were made to keep the bank solvent. This apathy eventually
resulted in bankruptcy, though it proved later that the assets
of the bank could almost have met its liabilities. In fact, it
paid off its creditors at more than 90%.
A new cooperative bank was established in the same year in which
the old one closed; and the "Andelsbanken" is a going
concern, which just before the Occupation was the fourth largest
bank in Denmark, with every expectation of realizing the aspirations
of the first cooperative band.
During the occupation the Germans did not interfere with the Danish
cooperative movement. The consumer societies did suffer from lack
of sufficient supplies and the Cooperative Wholesale was not able
to develop as it might have done under normal conditions. On the
other hand, the efforts to adapt the production to the existing
possibilities caused some new developments. The increased interest
in fruit growing led to the formation of several cooperatives,
which in 1945 were joined together as the Danish Fruit Growers'
Cooperative Association for the sale of fruit to home markets
as well as for export. In 1947 the National Association of Cooperative
Laundries was formed.
After the war one of the main tasks was to find a cooperative
basis for the increasing mechanization of agriculture. In 1947
the Danish Farmer's Cooperative Association for the Purchase of
Machines was formed, and in 1948 the Association of Cooperative
Refrigerator Plants came into existence. Several cooperative machine
stations sprang up in order to help the members get part of their
work done by tractors and other agricultural machines which they
owned in common. However, in spite of the large profits on the
private sale of agricultural machines, not followed suit with
their Swedish colleagues, who often have their machines placed
at agricultural schools for use in instruction. In Sweden some
thirty per cent of all agricultural machines are cooperatively
owned.
The most characteristic form of cooperation in Denmark is the
producers' society; and cooperation throughout bears the stamp
of the farmers who promoted it. The societies borrow their funds
for fixed and working capital, and the farmers' influence is seen
in the liability provisions which hold their members jointly responsible
for obligations incurred by them. This would hardly have been
the case had townspeople determined the policy of the movement.
However close together people live in towns, they are farther
apart in spirit than the farmers scattered through a rural district,
and are less likely to be willing to guarantee loans made in conjunction
with people whom they do not know. In recent years, when large
numbers of townsfolk have joined the cooperative stores, their
influence has been apparent in the organization of the Cooperative
Wholesale, which is based on limited liability. Nor does the Wholesale
any longer demand, as it once did, that its members, i.e., the
cooperative stores, have joint liability within their own ranks.
The greater number of cooperative stores have, however, not yet
availed themselves of this change of policy.
Dean Sonne and Severin Jørgensen, the great pioneers in
the movement, were ardent advocates of unlimited liability. They
feared that if the risk and responsibility were lessened, the
movement would lose its strength and moral importance. It is possible,
however, that the Danish cooperative stores will sooner or later
follow the example of the cooperatives in England, Sweden and
other countries, where each member is held responsible only for
the liability attached to his own shares. Unlimited liability
in Denmark served its purpose at the beginning by making access
to loans easy, but in the course of time it has made. for great
difficulties in cases of failure. These, however, have been few.
In the matter of disposal of surplus, the Danish cooperatives
have travelled a different road from that of the Rochdale pioneers.
The Rochdale policy is to sell goods at current prices and then
to use part of the undistributed surplus for social, educational
and philanthropic purposes. The Danish cooperatives have as a
rule also sold at current prices, but they have used practically
all their surplus for the payment of instalments on debts, the
accumulation of reserve funds, and the payment of dividends to
members. "We already have social legislation which takes
care of the old and the invalid", the farmers said. "And
why should we start an educational program as long as we have
folk high schools? And too much information about our movement
and the ways of running it will do no good, hut will tend rather
to split it". Their reasoning may have been good or bad.
The British movement spends a great deal on educational purposes,
and the Swedish cooperatives have always insisted on the need
of enlightenment for the public and the cooperators alike. After
the War of 191~18, during the period of economic instability,
the need was felt in Denmark for a thorough understanding of the
system. In 1928 the Cooperative Wholesale started an entertaining
fortnightly publication, Brugsforeningsbladet, which serves
as a link between the members of the stores, and advertises the
movement. Another step in the program of selfunderstanding
was the establishment in 1932 of the Middelfart Cooperative College
by the Cooperative Wholesale. The school has about one hundred
students, prospective managers and others, studying cooperation
and commercial subjects.
The Danish societies have not followed the Swedish practice of
limiting dividends to three per cent in order to cut down prices,
but, as has been noted in the chapter on bacon factories and purchasing
societies, they too have successfully competed with monopolies
and trusts, without attempting to become monopolies themselves.
Even today there are no State laws governing the cooperatives
in Denmark. What legal basis exists is a kind of common law which
has developed from the constitutions and bylaws and practices
of the societies themselves. As the farmers did not, as a rule,
employ legal counsel in drawing up contracts and other papers,
these latter have not always been so clear and precise as they
might have been, but they have been able to stand the test of
the courts.
The cooperative consumers' societies were taxfree as long
as they sold to members only, but if they sold to nonmembers
they were taxed on their surplus just as with private stores.
The production societies were exempt from taxation if they worked,
improved, or sold their members" produce, even though they
were sometimes obliged to buy products from nonmembers in
order to maintain their special activity. In 1940, however, an
amendment was introduced making distributive societies and similar
cooperative associations, under certain specified conditions,
liable to the payment of State income tax.
Danish cooperation is not the outcome of a theory. It has been
a spontaneous, sporadic and nonpolitical development, prompted
solely by practical needs and maintained by sociallyminded
local supporters. In this respect it is quite different from the
Finnish cooperative movement, in which the idea antedated the
organization, and in which also centralization from the beginning
made the movement efficient to a degree which the Danish cooperative
attained only after years of experimentation.
It was not until 1899 that an association was set up in Denmark
to coordinate all the central organizations, composed of the local
societies within the separate branches dairies, bacon factories,
etc. This coordinating organization is known as the Federation
of Danish Cooperative Societies. The current affairs and the work
between delegate conferences are conducted by the committee of
the federation, the Central Cooperative Committee of Denmark (Andelsudvalget),
but it is a cardinal principle underlying the activities of the
central committee that it should not interfere with the work of
the individual societies or associations, but confine itself to
joint problems such as representation to government committees,
to the Agricultural Council and to the International Cooperative
Alliance. It prepares matters which may later be passed on to
one or another of the special societies or may occasion the establishment
of a new society. It prepares an annual survey of cooperative
statistics and publishes a journal, Andelsbladet, which serves
as the joint organ of the cooperative movement.
The cooperatives have not transformed society in Denmark. Private
business still is the rule in most urban industries and commerce.
The farmers in the cooperatives are eager to maintain an open
market, and they are free to patronize private concerns, if they
become dissatisfied and choose to terminate their membership at
the end of the contract period. In cases in which there is no
contract, as in the stores, members may leave the society at any
time. But the fact remains that in the course of time the Danish
farmers have been so thoroughly organized that they are environed
by cooperation. A farmer who wishes may get his mortgage loans
from cooperative credit societies, he may electrify his farm through
cooperatives, he may sell his milk, pigs and eggs through cooperative
dairies and export societies, and buy household wares as well
as seed, feed and fertilizer in village cooperative societies.
He can make provision for illness and death through cooperative
sickness and insurance societies, and he can place his savings
in cooperative or mutual savings banks.
Freed from the merchandizing requirements of their calling, the
farmers have been able to concentrate on the production of superior
crops and livestock and to adapt their production to changes in
the foreign market. The cooperatives have made possible the development
of more highly standardized products and the consequent reduction
of their selling costs.
Though the administration with its bulky organization and democratic
methods may make for slower management than an effectively run
private corporation, the cooperatives have, on the whole, operated
economically and have furnished a healthy competition to private
business. They have eliminated the possibility of exploitation
of the farmer and have given the smallholder the same bargaining
power as his more affluent neighbor.
Many farmers grumble at what they consider excessive government
regulations though others consider the regulations as having saved
Danish agriculture. In either case, the farmers' effective organization
and their capacity to work together have made it possible for
the government regulations to be tried and to function as well
as they have.