- Andrea GantzDanish Crown and Westfleisch are in the process of forming a joint venture aimed at the deboning and sales of sow meat.
Denmark meat processing company Danish Crown and meat marketer Westfleisch are in the process of forming a joint venture aimed at the deboning and sales of sow meat.
Both groups will have an equal share in the new venture, which will be known as Westcrown. The venture is still subject to approval by the Competition Authority in Brussels.
Danish Crown Group CEO Kjeld Johannesen said: "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."
Danish Crown, which is a cooperative owned by around 8,300 Danish farmers, slaughters around 325,000 sows in Denmark annually, according to a press release issued by the two companies. About half of its carcasses are sold to buyers primarily in Germany.
Westfleisch is focused on the deboning of sows in Schöppingen, Germany, with an annual quantity of about 355,000 animals.
Westfleisch board spokesman Dr. Helfried Giesen said: "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.
"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."