Denmark

DLG, Danish Crown and 20 farmers in a new pilot project

20 farmers will now be part of a pilot project in the Cooperative 2.0, which aims to optimize value chain cooperation in a mutually binding partnership between DLG, Danish Crown and joint cooperative owners. The goal is a saving of 30 øre (1 øre = 0,13 Eur) per kg. meat.

Posted on Sep 26 ,04:20

DLG, Danish Crown and 20 farmers in a new pilot project

Cooperative 2.0, which Danish Crown and DLG are behind, saw the light of day at the end of 2021, with the ambition of significantly closer cooperation between unit owners and companies. Now the project is entering its next phase, where 20 farmers will be connected to the concept, which includes an increased use of data and an optimization of the trade in feed. The plan is that all joint cooperative owners have the opportunity to become part of the Cooperative 2.0 during 2023.

The goal is that the Cooperative Tank 2.0, via the exchange of data, standardization of effective feed mixtures and joint purchasing of raw materials, must ensure the joint co-operative owners a saving of up to 30 øre per kg. meat. It is DLG's allocation team that over time must ensure the best prices for, for example, fodder wheat, fodder barley and soy, while Danish Crown must process and exchange data that the individual farms provide, and as both consultants in DLG, advisors in Danish Crown and the farmer can benefit from the collaboration on optimization of the stable corridor.  

Camilla Blicher Simonsen, Vice President of Sales and Customer Relations at DLG, says: "From the beginning, our owners have been very interested in getting started with Cooperative 2.0, which is why I am also happy that we can now finally fire the starting shot. Over the past nine months, we have had a close dialogue with several of our joint owners about how we can achieve closer cooperation between the cooperatives and production."

Collection of valid data in large quantities, and a new way of trading feed is one of the very central points for Cooperative 2.0 to be a success. According to Nicolaj Nørgaard, head of Owner Service at Danish Crown, data is the key to uncovering which feed mixes have the best performance and the lowest cost per animal.

"We are making good progress in collecting more data in Danish Crown Data, and we need to collect even more in order to achieve the greatest possible savings in the value chain. Cooperative 2.0 is an important step on the way to ensuring joint optimizations that create real value for our joint owners," says Nicolaj Nørgaard.

Camilla Blicher Simonsen adds: "A binding partnership across the value chain gives DLG, Danish Crown and the farmer the opportunity to focus on what we each do best. With trust in each other and greater transparency in the form of data and benchmarks from the farms, we are convinced that the Cooperative 2.0 will over time create more value for all parties."

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