Boycott costing Danish companies €1.5m a day

THE boycott of Danish goods to protest against the publication of Prophet Mohammed caricatures is costing Danish businesses around €1.5m a day.

So far, the main suffering is being felt by Arla Foods, one of Europe's largest dairy companies, but the effects could spread.

Steen Bocian, a chief analyst with Danske Bank, said Danish goods are threatened in 20 Muslim countries, representing nearly €1.5 billion annually.

"However, seen in a macro-economic perspective, that amount is rather small," Mr Bocian said.

In 2004, Denmark's exports worldwide amounted to €60bn, he said.

Overall, it's too early to say how much the boycott is hurting, said Marianne Castenskiold, a spokeswoman for the Confederation of Danish Industries.

Saudi Arabia began the boycott on January 26 when supermarkets either put up signing saying to stop buying Danish goods or removed products.

Arla is losing an estimated €1.5m per day in the boycott, said spokeswoman Astrid Gade Nielsen.

The Danish-Swedish cooperative has €375m in annual sales in the Middle East and about 1,000 employees in the region, its main market outside Europe.

The boycott of its products was almost total in the region, she said

However Lego, one of Denmark's best-known brands internationally, said the protests and boycotts had had little consequence.

"The region is a very small market for us," Lego spokeswoman Charlotte Simonsen said.

The privately held group doesn't market its toys as being Danish "Lego is an international brand" she said.