Denmark’s meat processing company Danish Crown and meat marketer Westfleisch are set to form a joint venture aimed at deboning and sales of sow meat.
Both the companies will have an equal share in the new venture called Westcrown, which 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 being sold so far as half carcasses to buyers primarily in Germany.
Westfleisch is focused on the deboning of sows in Sch ppingen, with an annual quantity of ultimately 355,000 animals.
Westfleisch eG 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."
