Danish Crown and DLG will strengthen the value chain collaboration to benefit the farmer

There are optimization opportunities to be found in the value chain in Danish agriculture, and this should benefit the farmer. This is the opinion of Danish Crown and DLG, which are now joining forces to optimize the value chain for the individual pig producer.

In recent months, the two cooperatives have analyzed optimization options in the overall value chain. Calculations show that there is potentially up to DKK 0,30 per kilo of slaughter weight in productivity improvements and cost savings by optimizing the value chain. 

A partnership has emerged from this, in which Danish Crown sees great opportunities.

- It must be attractive for the owners to gather around the cooperatives. By looking into the optimization of the value chain, we get the cooperatives bound together in what can be called a Danish integrator model with the Danish farmers at the forefront. Because we see this as the way to strengthen competitiveness in the short and long term. In addition, feed is the biggest factor in the climate footprint of our products. With this agreement, we can work purposefully towards creating feed solutions that reduce the products' climate footprint, says CEO of Danish Crown, Jais Valeur.

By linking data from DLG, Danish Crown and the farmer's own production, it can be calculated with great precision which feed mixtures give the highest productivity on the individual farm, so that the pig's full potential is utilized. In the partnership, the idea is that DLG and Danish Crown take a greater share of the responsibility for deciding the feed composition and strategy, as well as the responsibility for the time of purchase and the strategy for disposition of the feed. In addition to a better production economy for the pig producer, the result of the partnership must also deliver on the climate agenda, as improved feed utilization will, for example, reduce CO2-emissions per kg. meat.

- As cooperatives, we are set in the world to create value for our owners, and that is precisely the goal of this collaboration, which can be called the cooperative idea 2.0. With the new collaboration, we become an even greater partner for the farmer, where we bring our expertise into play and look after his interests. In return, he gets lower complexity and increased efficiency in his production, so he can focus on what he is best at, namely producing world-class pigs, says Jesper Pagh, Group COO and member of the Executive Board in DLG.

On January 12th, 2022, selected farmers who are members of both Danish Crown and DLG are invited to a seminar with a view to creating a joint catalog of actions. The goal is to create a community of members, who must be among the first to start the realization of the DKK 0,30 per. kg.