The Cost of Cartoons to Danish Business

Politics International Politics
1

I’m the last to suggest that political concerns begin and end with business, but nor should they be entirely ignored. Whatever… interesting to see what effect the boycott call had.

[quote=“BBC: Cartoons row hits Danish exports”]A Muslim boycott of Danish goods led to a 15.5% drop in total exports between February and June. Trade to the Middle East fell by half, statistics show.

An industry chief said there was little doubt the cartoons row was to blame.

Publication of the cartoons in a Danish newspaper in September 2005 sparked mass protests among Muslims worldwide.

In January, Muslims in a number of countries were urged to show their anger with unofficial boycotts of Danish goods.

National statistics show that exports to Denmark’s main market in the Muslim world, Saudi Arabia, fell by 40% following the boycott, while those to Iran - its third largest market - fell by 47%.
[…]
Dansk Industri said it would still be some time before a complete picture emerged of how much the boycott had cost the country. [/quote]

2

How much were Danish exports to Islamic countries worth anyway ?

3

For the 5 month period in question, usually about $340 milllion, I believe. That dropped to $170 million with the boycott.

Given the degree of ineffectiveness typically displayed by Arab governments–save when it comes to state sponsored demonstrations–I’m surprised that the boycott was so effective.

4

[quote=“Jaboney”]
Given the degree of ineffectiveness typically displayed by Arab governments–save when it comes to state sponsored demonstrations–I’m surprised that the boycott was so effective.[/quote]

Actually live in a Muslim country and you won’t be surprised.

5

More lying by omission. So [i]very[/i] typical of the BBC.

From The Copenhagen Post (dated September 8, one day before the BBC’s report):

[quote]
Record agricultural exports

Increasing demand for pork and mink are pushing agricultural exports towards a record

Although the dairy sector has had a tough year as a result of the Mohammed cartoon crisis, Danish agricultural exports are on a pace to reach their highest levels ever in 2006.

Increasing demand for pork and price rises on mink are the main reasons for the growth in earnings on agricultural exports.

Based on the volume of exports for the first six months of the year, the Agricultural Council of Denmark predicts that the total annual agricultural export will increase by some 7 percent compared with 2005.

The Agricultural Council estimates that the agricultural export will be worth some DKK 60.5 billion (EUR 8.1 billion) in 2006.

Leif Nielsen, chief economist at the Agricultural Council, pointed out that agricultural commodities currently have good trading conditions.

‘There is a growth in demand and the booms are happening on the right markets,’ explains Nielsen.

A growing demand for pork in eastern Europe is driving the export growth, according to Neilsen. At the same time, the price of mink has increased 30 percent year on year. Mink is in particular exported to markets in the Far East and Russia.

The previous agricultural export record was set in 2001, when exports were worth some DKK 59.9 billion (EUR 8 billion).[/quote]

denmark.dk/portal/page?_pageid=3 … mid=930055

6

Reading half the story. So very typical of Dr. Evil.

Denmark’s total exports fell 15.5% between February and June, with trade to the Middle East falling by half. I guess that would make it “a tough year as a result of the Mohammed cartoon crisis” for anyone involved in the dairy sector, as that was the industry most affected by trade to the region.

At the same time, other sectors, pork and mink–I wonder how much pork the Danes sell to the Middle East? Probably NOT a whole lot–are having a banner year. That’s cool. That goes a long ways to filling in the hole punched in the GDP. Probably wouldn’t do a whole lot of good for me if I were a Danish dairyman though, would it?

[quote]
Record agricultural exports

Increasing demand for pork and mink are pushing agricultural exports towards a record

[color=red]Although the dairy sector has had a tough year as a result of the Mohammed cartoon crisis, [/color]Danish agricultural exports are on a pace to reach their highest levels ever in 2006.[/quote]

Now, maybe Danish exports grew after the boycott call because of the “I Support Denmark” campaign. In which case, if the spike in exports outstrips and outlasts the fall due to boycott, there’d be a net benefit to the trade balance. Nonetheless, those in industries hit by the boycott have been hurt and have been paying an economic price for somebody else’s political statement.

7

I read several stories…including the BBC “report”…and understood them. You didn’t. You swallowed the BBC propaganda and think it’s tutti-frutti.

“somebody”…ohhhhhhh! :astonished: (shiver) Black helicopters!!!

8

It would seem then that those industries had an unhealthy dependence on markets with a high risk of disruption due to unforseeable (a cartoon?) political factors.

9

:laughing: Yeah… silly buggers.