The Rural Voice, 2002-10, Page 20only in the last 15 years I ever talked
to a meat packer." he said.
"Communications is improving but
‘‘e• ‘e still got a long way to go."
The model for how an integrated
pork production system can work
was illustrated hthe world's largest
exporter of hogs: Denmark. Gunner
Sorensen of Danske Slagterier. the
Danish Bacon and Meat Council.
spoke to the full -house of producers
and representatives of the pork
industry on the unique organization
of the Danish industry where all
major packing plants are owned by
the farmers.
The Danish system grew out of
one group of 150 producers'
reaction to the outbreak of
swine fever in Germany back in
1870. Until then most pigs raised in
Denmark were sold live to the market
in Hamburg through traders. A ban
on live hog imports to Germany led
this one group of producers to form a
co-op to build their own
slaughterhouse and by-pass local
butchers who were paying such low
prices it was impossible for farmers
to produce profitably. The co-
operative was able to build one of the
most modern plants and reduce costs.
The success of the venture led to
the formation of other co-ops
between 1887 and 1920 with co-ops
processing 95 per cent of pigs. Most
exports went to Britain and in order
to produce pigs for the fussy British
requirements, Danish producers
started their own breeding program.
From then until the 1972 entry of
Denmark into the European Union
the industry proceeded fairly quietly
but that political,decision
revolutionized Danih pork
production as producers moved to
become competitive. Modern
housing units were built and two
companies were created, both owned
by the Danish Bacon and Meat
Council, to deal with A.I. and the
Nale of pigs.
Both the number of producers and
the number of processors has
dropped, even as production of pork
has increased. In 1981 there were
62,071 Danish farms with pigs but
this had dropped to 13,000 by 2001.
There were 50 co-operative
slaughterhouses in 1970 and only 18
in 2001 owned by three co-ops (as
well as I1 privately -owned
16 THE RURAL VOICE
slaughterhouses that process 10.000
hogs a year or more). The largest co-
op. Danish Crown. slaughtered 16
million hogs at 15 plants in 2001,
77.3 per cent of the total hogs
processed.
At the same time. hog processing
has risen from 15.87 million head in
1990 to 20.91 million in 2001 with
another 1.3 million live hogs
exported. Of the pork produced. 85
per cent is exported.
Sorensen predicts Denmark has
reached about the limits of its
production growth. There has to be
some room left in Denmark for
people. he smiled.
The Danish Bacon and Meat
Council gives Danish farmers a
competitive advantage in being able
to meet change, Sorensen said. The
organization which is made up of
representatives from all the co-
operatives and is financed with $77
million (Cdn) in payments from the
co-ops. In turn this body carries out
research on behalf of all producers.
The problem of variability in
carcasses, for instance, is overcome
by a national breeding system which
selects for the trait's wanted by
customers.
That breeding program has also
selected for high productivity.
Producers average 24 weaned pigs
per year per sow but the best are over
30. Average daily gain is 900 grams
but the best producers attain more
than 1 kg.
The research extends to other
areas as well. When animal welfare
concerns signalled the end of housing
sows in stalls, the research arm of the
council went to work on finding
ways to design a system to maintain
or increase production while using
loose housing. It meant that all
farmers shared in the research costs
not just a few adventurous souls.
Producers are free to adapt these
systems or come up with their own.
Likewise research has been
undertaken to develop a feeding
program that reduces nitrogen and
phosphorous excretions. Work is also
being undertaken into how to reduce
the smell of pig manure, Sorensen
said.
A division of the council that
researches the most modern
techniques in processing helps keep
processing capacity on the leading
edge. A new slaughterhouse now
being built will. for instance, require
only three people on the slaughter
line, he said. The rest of the operation
is computerized, creating both labour
savings and better control of the
product. Because producers share in
the profits of the processing plants
(they get a cheque just before
Christmas every year), they push the
processors to be better and more
competitive.
"We're very good at adapting to a
new market situation," Sorensen said.
Denmark's unique organization of
the market chain also allowed it to
tackle the reduction of salmonella in
pork through the veterinary service
operated by the council. Producers
can't blame the consumer for the
problem. "We can't just say you
can't cook your meat (properly)," he
said. "We have to reduce the amount
of salmonella."
Through work both at the farm
level and in its slaughterhouses,
Denmark has been able to reduce
salmonella infection to just 1.5 per
cent of carcasses. The level of
infection in hogs from every farm is
measured and council officials work
with farmers to resolve problems.
In the same way Danish producers
have stopped using antibiotic's as
growth promotants. This was a
difficult conversion because it
required changes in management and
facilities, he said. Now however
Denmark is a leader in producing
product consumers want.
The Danish Bacon and Meat
Council also gives that country's
producers a competitive edge in
finding foreign markets, Sorensen
said. When South Korea finally
opened its doors and allowed a small
initial quota of 20,000 tonnes of pork
to be imported, most of it came from
Denmark because the Danes had
already been talking to the Koreans
for 10 years.
Denmark exports 1.55 million
tonnes of pork to 129
countries but the biggest
markets are Britain, Germany and
Japan. In terms of value, Japan is the
most profitable because of its
appetite for the best cuts. Most of the
exports are value-added cuts, bacon
and processed meats.
Danish producers face some
competitive disadvantages because of