A group of far-sighted investors in Danish Scandinavian Farms Pig Industries will produce pigs on a large scale for the booming market in China.
The decision is made seeing as the Danish investment companies make money like never before on large scale farms in countries such as Poland, Lithuania, Russia and Slovakia.
With an expected investment of one billion dollars in China, the project which includes four industrial farms in Jiangsu Province Scandinavian Farms Pig Industries expects to produce 500,000 pigs a year. This is the equivalent to the annual meat consumption of one million Chinese.
According to the director of the Danish pig project, Jorgen Lindberg, the company will provide high quality food for Chinese consumers. And above all, food safety in production will be in order.
“It is in big demand in China after all the food scandals that have been here in recent years. In China there are customers who are willing to pay for food that is produced under proper conditions, “he said.
In March, 46 people were sentenced to up to six and a half years in prison for processing and selling meat from 1,000 diseased pigs. The scandal re-focused attention on China’s major problems in food safety.
The focus on the production of pigs will be in the province of Jiangsu, where the city of Shanghai is located. The aim is to sell quality meat at high prices to Chinese consumers, which is the world’s largest market for pork. The first of Scandinavian Farms Pig Industries’ production farms expected to be completed in September this year.
China annually produces 700 million pigs. Despite soaring investment and increased focus on improvements in agriculture, China still needs advanced technology and more knowledge.
The Danish investors’ strategy is to build pig farms with the same quality standards as in Denmark. Production is expected to be located in larger cities where awareness of health and quality is increasing rapidly.
“There is great potential in the project in terms of what the Chinese market demand. It is a farm to table concept with Danish food, produced in China, and that is new, “says Glen Mikkelsen, general manager of DI China Department.
Although Scandinavian Farms Pig Industries will produce half a million pigs a year, and by Danish standards is a major production, production is small compared to what the giant Chinese-owned industrial pig farms produce.
‘Scandinavian Farms Pig Industries has an amazing project. If the Danish initiative is a success, and the company will have higher prices than Chinese pigs produced, the Danish production companies in Eastern Europe and the largest Danish pig producers in Denmark will begin to look for ways to invest in China, “assesses Glen Mikkelsen.