EU - Danish Crown and Westfleisch have decided to join forces regarding deboning and sales of sow meat as they propose to found a 50:50 joint venture called Westcrown.
Group CEO of Danish Crown, Kjeld Johannesen, explained: “We have a clear expectation that co-investing in our own deboning facilities will secure better prices for our owners. More specifically, we will remove an intermediary step to increase earnings for our owners.”
Dr Helfried Giesen, spokesman of the Westfleisch eG Board, is pleased as well to see a win/win-partnership emerging.
He said: “We are very pleased to have found such an applicable partner for a common business in a competitive market segment. Danish suppliers are known for high quality sow meat, which adds eminently to our current raw materials in Northwest Germany and our know-how in refining.”
Westfleisch operates a business specialised in deboning of sows in Schöppingen, near the Dutch border, with an annual quantity of ultimately 355,000 animals.
Danish Crown slaughters approximately 325,000 sows in Denmark annually. So far, these have been sold as half carcasses to buyers primarily in Germany.
Mr Johannesen added: “For a long time, we have been trying to find ways to increase the benefits for our cooperative members who supply sows. By pooling our resources with Westfleisch, we are confident to make possible a profitable proposition for both parties from day one.”
Dr Giesen said: “Finding such a promising joint-venture after our recent strategic investment concerning the beef market, is definitely a valuable signal towards our agricultural co-operators, members and customers as a reliable and future-oriented partner.”
Danish Crown is a cooperative, owned by app. 8,300 Danish farmers, and is among the Top 3 exporters of meat worldwide. The members and owners of Westfleisch are more than 4,200 Northwest German farmers and the company belongs to the Top 5 meat suppliers in Europe.
The Joint Venture is subject to approval by the Competition Authority in Brussels.
TheMeatSite News Desk