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The Rural Voice, 1997-10, Page 57PERTH irtk County Pork Producers NEWSLETTER News from Denmark Any opinions expressed herein may not necessarily reflect the views of the Perth County Pork Producers' Association. During our September meeting, Perth councillors heard about the pork industry in Denmark from a delegation which visited that country in June. Clare Schlegel and Will Nap, directors on the Ontario Pork Board, along with Julien Den Tandt, CEO of Ontario Pork, and Don Collis from Quality Meat Packers were on hand to describe their trip and some of their findings of the pork industry in Denmark. Even though Denmark is a very small country, (one twenty-fifth the area of Ontario), they produce as many hogs as all of Canada! The industry is very export orientated, since it exports 80 per cent of its product, and is therefore very concerned about world trade agreements. The Danes are very confident of their ability to compete even though they may not always be the lowest cost supplier of pork. Their industry seems very focused on supplying a consistent, high quality product, and one that is willing to satisfy the demands of the consumer. For example, they are willing to produce pork according to United Kingdom requirements that dry sows not be tethered or housed in dry sow stalls, in order to sell into that market. Our delegation toured two farm operations during their visit. The Danes were very conscientious of biosecurity, especially since the disease outbreaks in Holland. The farms appear to be very efficient and mostly farrow to finish. The average farm size appears to be slightly larger than found here in Ontario, and are very up to date and automated. Some of the farms were using liquid feed systems, and lowered their cost of production through the use of altemate feed products, such as bakery products. A statement showed that this farm was receiving about $205 for a 77 kg carcass. The hog farms had been very profitable for the last two years. The marketing system in Denmark Walter Bosch, President 519-356-9000 • The Rural Voice is provided to Perth County Pork Producers by the PCPPA. is based on a co-operative system, very different from our own. There are four processors in the country, which are owned by the farmers. A total of 21 slaughter houses are operated by these four processors. These processors, along with some private investors, own ESS Foods, an export company, which sells and keeps track of the price of pork from their many offices around the world. The processors also sell meat individually to customers. The farmers can choose to sign a contract with the four processors for a period of between one to three years. The processor, in turn, agrees to slaughter all the hogs the farmer delivers. The farmer must book the exact number of hogs they will be shipping by the Thursday of the previous week. The price the farmers receive for their hogs is set once per week, and all four processors pay the same price. This price is derived from a formula using the worldwide prices of specific cuts and is calculated by the Federation of Danish Pig Producers and Processors. Farmers receive a patronage dividend each year from the processor they ship their hogs to. In 1996, the dividend averaged 5.4 per cent of the average base price per 100 kg. Processors, being non-profit farmer co-ops, must decide how to spend their capital, torn between upgrading and improving the efficiency of their plants or paying out higher patronage dividends to farmers to encourage a sufficient supply of hogs for their plant's needs. Our delegation was also taken on a tour of one of the processing plants. The Danish plants are very automated and geared to producing a very high quality product. A lot of attention has gone in the transportation and movement of the hogs, as they had no scratches from handling. This plant had the ability to sort carcasses and move them to separate areas to be dealt with in a way to capture the highest value from the carcass. They also had a system in place to give feedback to the farmers on the quality and health aspects of their hogs. The Danes are world-class producers of pork and are very confident of their ability to compete. They have been forced by their need for other markets to look outwards to the world scene to stay in business. This has given them an aggressive and positive attitude, which will serve them well into the future.0 Thanks to Our Sponsors The PCPPA annual golf tournament was held in August, with many producers and industry personnel enjoying a day of fresh air out on the course. We would like to thank the following for sponsoring our day: Alpharma Animal Health, Ag -Co Products, Exacon, CIBC - Mitchell and Stratford, Logan Agri Systems, Hutton Farm Supplies, Farm Credit - Listowel, St. Willibrord Community Credit Union, Mitchell District Credit Union, Bill Koert Plumbing, Maple Leaf Pork, Hi Tech Feeding Equip., Fred Groenestege Construction, First Choice Agriquip, Perth County Co-op, Royal Bank, Toronto Dominion Bank, BSC Animal Nutrition, Timmermans Elevators, Gencor, OPPMB, Minitube Canada, Pfizer, Shur -Gain, Elanco Animal Health, P.D.M. Agri Services Inc., Grand Valley Fortifiers, Pharmacia Animal Health, Upjohn, Brandy Point Farms. We appreciate your continued support.0 Submitted by Jim Van Herk PERTH COUNTY PORK PRODUCERS' PORK PRODUCTS • Smoked Pork Chops • Fresh Pork Chops • Stuffed Loin Chops • Smoked Sausage • Smoked Cheddar Sausage • Bacon Burgers • Teriyaki Pork Steaks • Vittorio's BBQ Sauce AVAILABLE FROM: Fred de Martines (Sebr.) 393-6812 Martin van Bakel (Dublin) 347-2666 Walter Bosch (Monkton) 356-9000 Ted Keller (Mitchell) 348-9836 OCTOBER 1997 53