Annual Report 2016/17

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Together with customers & consumers

The group's 4WD business strategy has defined the overall objective of strengthening our position in the consumer market, among other things by focusing on special products such as antibiotics-free pigs, welfare pigs and organic pigs and cattle.

These are products with special, sustainable properties which are in demand among consumers and in society. We are therefore working to strengthen our position in this market. In accordance with the group strategy, we must also constantly seek to create added value for our customers.

As part of this strategy, we are focusing on high-value segments, high-value customers and high-value pork and beef products. This strategic focus supports our objective of offering sustainable products developed in close cooperation with our customers.

Dilemmas in sales

Many farmers are keen to supply special pigs which meet consumer wishes with regard to animal welfare, healthy living, the environment, climate etc.

The production of special pigs entails increased costs, and market demand must therefore contribute to covering these costs. Sales are complicated by the fact that we must sell all parts of the pig, and that the different parts are usually sold in different markets with different requirements.

Consumers in the domestic market may have preferences for organic, free-range pigs or animal welfare labelled pigs, but it may be di cult to recover the additional cost of producing those pigs when many parts of the animal are sold in more distant markets.

However, this should not stop us from driving developments in a more sustainable direction. We have therefore dedicated a separate track for this in the Sustainability Strategy, in which we want to involve customers and consumers in the development of future meals that focus on healthy living, sustainability and great taste experiences.

Privacy and data protection

The trust of customers and consumers is of vital importance for our business. We aim at building trust through our products and dialogues, and see effective protection of our customers’ personal data as an integrated part of this effort.

In 2017, we have initiated a process to implement the new requirements in the EU General Data Protection Regulation in our organisation.