Danish Crown’s 4WD strategy specifically declares that DAT-Schaub must be a global market leader. To achieve this goal, additional capacity is required in the selecting and processing of natural casings from pigs and lambs…Full Article: Danish Crown Mar 2018

Key Points

  • In March 2018, DAT-Schaub, a sausage-casing producer and subsidiary of Danish Crown, purchased a majority stake (percentage unspecified) in Shanghai Natural Casing Company. DAT-Schaub noted that Shanghai Natural Casing Company supplies the New York-based DCW Casing LLC, of which, DAT-Schaub has a controlling stake. Lastly, DAT-Schaub stated it owned a stake (percentage unspecified) in a similar Chinese company located ~3 hours north of Shanghai [likely in Jiangsu Province].
  • In 2007, Shanghai Natural Casing Company constructed a casing factory in the outskirts of Shanghai.

ChinaAg Comments

  • In 2019, construction of Danish Crown’s meat processing factory near Shanghai was 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 planned to export frankfurter sausages, hot dogs, pepperoni, salami, canned luncheon meat, and canned sausages to the mainland.
  • 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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