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he swine industry
in Denmark is an important part of the national economy. In terms
of value of annual turnover, Danish Crown Cooperative is the
third largest company in the country. About 60,000 people are
employed in the pork industry and pork exports represent nearly
six percent of the country's total export value. Production numbers
are similar to those of Iowa, on a land area about 3/5 the size
of Iowa. (See Table 1.) As a country, Denmark ranks ninth in
the world in the amount of pork produced.
Most of the country's pork
production, harvesting and processing is done through a cooperative
system that's been in place since the 1880s. As with most industries,
change continues to occur. In 1970, there were 50 harvest cooperatives;
now there are two: Danish Crown and Tican. Farmers own part of
the cooperative and sell their pigs there as well. A national
price is set on a weekly basis, which is based on prior week
pork sales. Patronage refunds are received at year end.
The National Committee for
Pig Production, which represents multiple segments of the industry
including producers and cooperatives, conducts research on many
aspects of production and processing. This is done by ranking
resources in order of priorities for these main areas: breeding,
nutrition, reproduction, housing, production systems, health,
information and advisory services. Before implementing a new
project, its value and efficacy are thoroughly discussed. For
example, one current project is genetic selection to increase
the number of live pigs at day five post-farrow. In general,
producers work together to achieve goals for the industry.
The number of pork producers
in Denmark has declined over the past 30 years, falling from
about 80,000 in 1975 to about 10,000 in 2004. But the number
of pigs produced during that same time has more than doubled:
from 11.3 million in 1970 to 25.2 million in 2004. In addition,
herd size has increased. The current sow herd averages about
375 sows and current finishing farms average about 4,400 pigs.
There are no corporate farms in Denmark; the majority of the
operations are owner operators. However, it is a much integrated
system with all parts of the industry focused on specific goals,
markets and quality throughout.
With more than 85 percent
of its production exported, Denmark is the world's largest pork
exporter. More than 130 countries import Danish pork, with the
principle ones being Germany, United Kingdom, Japan and Italy,
respectively. The USA also imports Danish pork, most commonly
in the form of spare ribs. And while the Danes themselves consume
healthy amounts of pork (approximately 122 pounds per capita
in 2004), with a population of 5.4 million, most of their pork
leaves the country. The Danish Agricultural Council estimates
that Denmark represents 23 percent of the world's total pork
trade.
The cost of
production in Denmark is higher than in Iowa. This is due to
the expense of labor, facilities and lighter slaughter weights.
For the past three years, profitability there has been low. The
price is highly dependent upon exchange rates and a low U.S.
dollar, consequently, has weakened the value of Danish pork.
Although the past few years
have not been profitable, many Danish pork producers have expanded,
with much of the growth occurring in sow herds. As in the U.S.,
there are environmental regulations producers need to understand
and implement. Some of these regulations will sound familiar
to Iowa producers: separation distances, maximum nutrient rates
from manure and a permitting system that depends on local control
-- not always a quick process. Producers we talked with commented
on these regulations and how they impacted operations. There
is a great deal of research on odor control and nutrient management,
including separation of manure.
As their operations have expanded,
producers also have had to adopt animal welfare measures enacted
by the European Union (EU) and the Danish Parliament. The cooperative
slaughterhouse companies also have their own Codes of Practice
to ensure producers meet certain standards for domestic and export
markets.
The welfare legislation began
in 1991 with a general statement about animal care and housing.
In 1998, EU requirements were adopted that pertain to loose housing
of sows for gestation, bedding requirements and space requirements
for facilities that would be built after 1999.
What does all this mean for
producers? By 2013, all farms within the EU will be required
to have loose housing for gestating sows (newer EU member countries
will have a phase-in period). Crates may be used for up to four
weeks after mating and for farrowing. Farms must be visited by
a veterinarian every 35 days to ensure welfare standards are
followed. Five percent of farms are audited by the government
annually for adherence to the welfare legislation. There also
are fairly specific measures for transporting market hogs.
Producers are
adapting to these requirements and are building new facilities
with loose housing. More than 60 percent of sows now are maintained
in loose housing systems in several styles of facilities.
Producers are focused on efficiency
and productivity. Most have an efficiency report completed for
them through an advisory service that's part of their farmers
union. Some farms are achieving or getting very close to 30 pigs
weaned per sow per year. The average litter size in live born
pigs is 12.9. This high level of productivity is the result of
several factors, in our observation. Genetics, gilt development
strategies and breeding management all may play roles in achieving
30 p/s/y. Look for more information in future articles.
In addition to animal welfare
legislation, the Danes have adopted a voluntary ban in their
pork production system on growth-promoting antibiotics. The ban
on use in finishers was put in place in 1998. Prior to then,
producers faced a tax system for using antimicrobial growth promoting
antibiotics, so most producers didn't use them. Consequently,
the finisher ban had little effect.
In 2000, the ban was expanded
to nursery pigs, and this was a different story. Pigs grew more
slowly and had more disease problems. The use of therapeutic
drugs increased greatly. To address these issues, producers made
some management changes. Later weaning to achieve heavier pig
weights and a variety of diet additions to achieve "pre-antibiotic
ban" production levels in the nursery have met with varying
levels of success. Even so, producers don't consider the ban
and the resulting changes to have been major barriers in their
respective abilities to be successful. Veterinarians are required
to visit farms each month to document antibiotic usage. More
information on antibiotic usage and producer adaptations will
be provided in a future article.
Our group had the opportunity
to tour the new harvest facility at Horsens that has implemented
a high level of automation in its processing line. Many of the
country's harvest facilities have live animal handling systems
that efficiently move groups of 15 pigs with very little human
effort and little resistance from the animals themselves. This
plant and others use group stunning via CO2.
The producers
and industry representatives we met were very positive about
their industry and expect it to continue to grow. However, they
also recognize that there are environmental limits on how much
growth can be achieved. With the focus on quality and their foothold
in the export market, their industry would appear to be able
to grow if allowed from an environmental standpoint. Some Danish
producers have started to export live pigs to Germany for finishing
and are looking at other countries in which to invest and expand.
Future articles in this series
will include information from other ISU field specialists on
welfare, antibiotic use and producer adaptation, and sow herd
productivity and throughput in Danish pork production.
Contact any Iowa State University
Extension swine or livestock field specialist or the Iowa Pork
Industry Center for more information. If a group would like a
presentation on the Danish pork industry or any of the specific
issues of productivity, antibiotic growth promotants or animal
welfare, contact the field specialists or the Iowa Pork Industry
Center.
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