China has approved the import of Danish salami, frankfurter sausages and canned pork, top processor Danish Crown said this week, clearing the way for shipments of higher-value processed meat to the world’s top pork consumer…Full Article: South China Morning Post Feb 2018

Key Points

  • In 2019, construction of Danish Crown’s meat processing factory in Pinghu, south of Shanghai, is expected to be completed.
  • In February 2018, two meat processing factories owned by Tulip Food Company, a subsidiary of Danish Crown, have received export approval by Chinese authorities. The company plans to export frankfurter sausages, hot dogs, pepperoni, salami, canned luncheon meat, and canned sausages to the mainland.

ChinaAg Comments

  • In September 2017, Kaola (Chinese e-commerce platform) signed a distribution agreement with Denmark’s Irma supermarkets, a subsidiary of Coop amba (founded in 1886 in Copenhagen), to sell on a trial basis coffee, chocolate, marmalade jam, and other Danish products. The products would go on sale the following month. During the same month, the president of Denmark-based biotechnology company, Novozymes, stated during a visit to Beijing that his firm would increase investment in China. Novozymes supplies industrial enzymes to producers of ethanol, textiles, bread, and detergent. The company reportedly had a 48% global market share and was hoping to grow its business in line with China’s 2020 bioethanol gasoline push (i.e. E10 or 10% ethanol nationwide). As of 2017, the company had roughly 1,000 employees in China.
  • In June 2017, construction began on Heilongjiang Asia-Europe Animal Husbandry, Sino-Danish pig breeding and processing joint venture in Mingshui County, Heilongjiang Province. Major investors in the pig JV included Denmark’s Investeringsfonden for Udviklingslande (IFU, a private equity/venture capital firm), and the Chinese firms of Zhejiang Rural Development Group (lead investor), Hangzhou Jie Dao Investment Management, and Heilongjiang Green Agricultural Development. Zhejiang Rural Development Group is reportedly a subsidiary of Hunan Dakang Pasture Farming (SHE:002505), which is itself a subsidiary of Shanghai Pengxin.
  • In May 2017, Denmark’s Minister for Environment and Food signed a 5-year agreement in Beijing on the export of organic food products to China. As a result, Tulip Food Company, a meat processor and subsidiary of Danish Crown, announced it would be exporting sausages, salami, pepperoni, and canned luncheon meat products to China in the near future.
  • In November 2016, Danish Crown (pork processor) announced plans to build a meat processing factory near Shanghai that will produce pork chops, sausages, and bacon. Danish Crown planned to invest USD 44 million on the project. The factory will be situated in Pinghu (south of Shanghai) and will have an annual production capacity of 14,000 MTs. At the time, Danish Crown was just a raw material supplier to China, exporting pork, pig toes, ears and tails.
  • In September 2015, Denmark’s S. A. Christensen & Co. (SAC), a milking equipment manufacturer, shipped equipment to China to help establish a demonstration pilot farm. The Danish-Chinese demonstration farm would be based in Heilongjiang province and should be operational by 2016. Arla Foods, a major Danish dairy firm, will participate in the project.
  • In April 2014, China and Denmark signed five agreements that focused primarily on Chinese imports of Danish pork (e.g. sausage), poultry, and dairy products.
  • In November 2012, Danish delegation led by the Minister for Food and Agriculture visited Beijing and Shanghai to promote agricultural trade. In addition, an agreement to construct a dairy technical center was signed.
  • In 1998, Danish Crown acquired Tulip International (Tulip Food Company).

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