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The Danish Veterinary and Food Administration

The cooperative idea 2.0: Danish Crown and DLG join forces for the benefit of the farmer

A new collaboration between Danish Crown and DLG aim at benefitting the farmer by reducing the cost per kilo pig meat by optimising the value chain. By removing complexity in the farmer’s everyday life, the farmer will have more time to focus on pig production and at the same time be able to reap a gain on the bottom line.

There are optimisation 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, who are joining forces to optimise the value chain for the individual pig producer.

During 2021, the two cooperatives have analysed optimisation opportunities in the overall value chain. Here, calculations show that there is potentially up to DKK 0,3 per kilo of slaughter weight in productivity improvements and cost savings by optimising the value chain

The Danish Way: A collaborative approach

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

“It must be attractive for the owners to gather around the cooperatives. By looking into the optimisation of the value chain, we get the cooperatives tied together in what can be called a Danish integrator model with the Danish farmers at the forefront. To us, this is the way to strengthen competitiveness in both the short and long run. In addition, feed is the biggest factor regarding climate footprint of our products. With this collaboration, 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 farmers’ own production, it can be calculated with great precision which feed mixtures give the highest productivity in the individual herd, so that the pig’s full potential is utilised.

DLG and Danish Crown will 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 disposing of the feed.

A collaboration with climate in mind: “The cooperative idea 2.0”

Besides ensuring a more cost-efficient and productive production for the individual pig producer, the collaboration must also deliver on the climate agenda, as improved feed utilisation will e.g., reduce CO2 emissions.

“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 the farmer’s interests. In return, they get lower complexity and increased efficiency in their production, so they can focus on what they do best – producing world-class pigs,” says Jesper Pagh, Group COO and board member of DLG.

Selected farmers – who are members of both Danish Crown and DLG – was invited to a seminar in the beginning of 2022 with a view of creating a joint catalogue of actions. The goal was to create a community of members, who must be among the first to start the realisation of this collaboration.

Source: DLG (in Danish)