DANISH FARM PRODUCING HUNDREDS OF THOUSANDS OF SLAUGHTER PIGS
Over a period of only four years, Danish investors have built a large pig farm in China. The farm supplies slaughter pigs to the Chinese market, which consumes half the pork meat in the world. Quality and food safety have the highest priority.
The Chinese pig industry is changing from small producers to large farms due to an increased demand by the Chinese consumers for healthy food and much stricter environmental standards enforced by the Chinese authorities. Furthermore, China focuses on increasing productivity, as the Chinese eat more and more meat as a result of their increased wealth.
The development in China has led a number of Danish pig farmers and investors to begin production of slaughter pigs in China. In addition, breeding pigs are produced, partly to be used in the Danish-owned farms and partly to be sold to Chinese-owned farms having learned the advantage of investing in Danish genetics.
Danish breeding animals, standards and equipment
Scandinavian Farms has established a new pig farm in the Jiangsu province. The construction of the farm is based on Danish design with Danish stable equipment to ensure both proper animal welfare and high environmental standards. Furthermore, Danish breeding animals have been imported, contributing to higher productivity as a Danish sow usually produces twice as many slaughter pigs as a Chinese sow.
The groundbreaking ceremony took place in 2013, and the first slaughter pigs were delivered in 2014. Today, the farm produces approximately 150,000 slaughter pigs a year. The objective is to increase the annual production to approximately 500,000 slaughter pigs, and this plan is being rolled out as production by the middle of 2017 will reach approximately 360,000 slaughter pigs.
“We have experienced a very sensible market in China, where we can contribute with quality and high environmental standards and at the same time obtain a solid return on our investment”
Jørgen Lindberg, managing director, Scandinavian Farms
Slurry as fertilizer
Since production start, the pig farm has had several visits by the Danish authorities, who are generally impressed by the production efficiency, the high standards for animal welfare and the handling of slurry.
As a new feature in China, equipment to cool the slurry has been installed in all stables, which helps reduce the evaporation of ammoniac and also contributes to heating of offices and other parts of the farm, as the heat extracted from the slurry passes through a heat exchanger. The slurry also passes through a separator, separating it into firm and liquid form. As the farm does not grow crops, the firm slurry is sold to market gardens using it as fertilizer for growing vegetables, while the liquid slurry is used by local Chinese farmers in rice and wheat fields.
IFU and DAF are co-investors
IFU, which has great experience investing in pig production and has made more than 130 investments in China, has contributed with equity, loans and guarantees in the Chinese pig farm together with the Danish Agribusiness Fund. The total investment in the farm in China is DKK 600m.