DanAvl is looking to double its exports of Danish pig genetics worldwide after merging with DanBred International and SPF Denmark to create a single sales organisation. The new collaboration is expected to ensures an even greater trade in semen and breeding stock in the future.
The new partnership means that all sales and production now take place around a newly formed DanAvl-company where the Danish Agriculture and Food Council is majority owner. The company will continue managing the overall sales-and-marketing task directly or through agents and partners.
The minority owners of the new company are the sales company DanBred International – owned by Danish breeding and multiplication herds – and SPF Denmark that will add its activities on breeding stock in the new company.
“With this new collaboration, we will reinforce and further develop our position in the global markets for pig genetics,” the chairman at the Danish Agriculture and Food Council responsible for pig production, Erik Larsen, said. “The goal is that we, over the next five or six years, will double our exports and expand markets worldwide. It creates value for customers, partners, suppliers and owners, including the Danish pig sector as a whole, which is behind the results already accomplished.
“We do something special in Denmark when it comes to making good genes in pig production,” he added. “It’s the result of decades of organising breeding work and the strong unity between Danish pig producers, who’re behind the development of genetics.”
DanAvl currently sells 400,000 breeding stock animals and two million doses of semen to export markets, primarily in Northern Europe. Together with domestic sales, it achieves a turnover of about £197 million annually.
During the coming months, the final arrangements for the new business model will be established on the basis of an already concluded framework agreement.
“Over the years, we have found that we have not been able to exploit the market potential well enough,” Mr Larsen said. “The cause is an outdated business model, and that’s what we’re looking to rectify with this new collaboration.
“The new model supports a clear and future-oriented structure, to which we have great expectations.”