Danish DLG supplies farmers with feed from its own factories, seed grain, fertilizer, agricultural lime, crop protection, fuel and much more besides for daily operations.
For nearly two years, DLG has been active in the Chinese market for feed and premix, and DLG earlier signed with IFU (Industrialisation Fund for Developing Countries) an agreement to buy 25% stake in Puai Feed in China.
The investment in China with Puai Feed enables DLG to open a modern factory by European standards. PUAI Feed has now inaugurated a new pig feed factory in Hunan province. A second factory will be ready in March 2016. Both factories built according to European standards for quality and food safety. Puai now have five factories.
The investment in Puai Feed is a partnership between DLG and Puai which DLG delivers know-how mainly in pig feed and vitamins / minerals. In addition, training in Denmark and China by Chinese workers and managers from Puai in Denmark. Puai Feed contrast, market knowledge and provides DLG access to the rapidly growing Chinese market through investment.
Puai Feed is a privately owned company that has approximately 1,600 employees and a turnover of over 1 billion. kr. DLG in 2014 received a return on its investment of 10%.
“It is very satisfying that we can help to make a difference in the Chinese market, and there is no doubt that the new feed mill, which is on par with the best European factories can create value in both the Chinese pig as in Puai and DLG’s owners, “said DLG’s CEO Jacob Holm responsible for the business area and Vitamins.
The new factory I perfect timing for next step in the DLG long terms investments in China as the market demands for food safety increases.
In addition to production employees are attached 100 sales employees for the facility. Half of them have customers in the wholesale market, while the other half acts as a kind of farm managers at customer sites. A concept that is far from what we know in Denmark.
“These employees are remunerated in part of us, part of the farmers. They act as a kind of farm managers at farm level. They are well educated and have a minimum of a bachelor’s degree and are very dedicated, “says Jacob Holm.
Also, the feed mix is the last few years has been raised to a higher level. The reason is that Puai regularly has employees in Denmark and Danish people travel to China to share knowledge about what it takes to feed may help to increase the production level of Chinese pig.
China is the world’s largest market for pork and OECD and FAO expect that China will have the highest consumption of pork per. capita worldwide in 2022 with a consumption of over 34 kg each inhabitant. China’s pig population which represents more than 50% of the world’s pig population is more than four times higher than the pig population in the EU (148 million. Vs. 600-700 million.).
The DLG Group is one of the largest agricultural companies in Europe and is currently owned by 30,000 Danish farmers. In addition to agricultural products, the group’s activities also include supplying vegetables to the catering and retail trades, electricity trading, telecom, pot plant sales, etc