Annual Report 2016/17

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Sustainable farming

Animal feed, breeding and rearing of animals and veterinary health are some of the main issues expressed by our stakeholders in the materiality analysis.

With a strategic track dedicated to sustainable farming in the new Sustainability Strategy, we take an important step forward together with our owners and suppliers in the agricultural sector.

We will use the strengths of our cooperative to facilitate and promote cooperation in the value chain and create a sustainable future for our industry and our business.

Win-win for farmers and business

Our cooperative owners expect Danish Crown to ensure that the price they receive for the animals they supply is as high as possible, while at the same time delivering a return on the capital which has been invested in the company through generations. This is a focus of all our business units.

The value created by Danish Crown's activities in its subsidiaries worldwide is continuously paid out to our farmer owners as supplementary payments in connection with the closing of the annual accounts. Danish Crown's strategic objective is to increase the price paid for raw materials by 0.60 DKK per kilogramme compared to our competitors in Germany, France, the Netherlands and Spain.

Dilemmas, challenges and unanswered questions

As we operate in a value chain with an impact on the environment and society, we are faced with many relevant questions. Over the years, we have found answers to quite a few of the big questions, while others are still unanswered, and new ones turn up all the time. The list of classic dilemmas relating to agricultural production includes:

  • Ensure the supply of pigs for slaughter to Danish Crown through high payments to farmers. Including balancing investments in the development of strongly competitive and sustainable solutions with the objective of paying the highest prices for the slaughter animals supplied by farmers.
  • Communicate market expectations to individual suppliers and thus ensuring joint development.
  • Maximise use of the whole carcass. Including the balancing of significant global differences in customer needs and demands.
  • Ensure a future for quality meat in a world characterised by growing pressure on available resources.
  • Ensure that the world around us is sufficiently informed to be able to understand the mechanisms of food production. Including how we produce enough to feed as many people as possible in the world with meat.
  • Develop sustainable solutions for responsible food production, while at the same time ensuring that production is profitable for our owners.