A few years into its new company structure, DanBred is finding its place in the world. A constant focus on customer needs and what will influence the market for pig production and genetics in the future guides all decision processes in DanBred. Thomas Muurmann Henriksen, CEO at DanBred, shares his thoughts on what the future holds for global pig production.
Knowledge and expertise have always formed a solid foundation for us, and we are confident in the hard work our R&D department carries out day after day, year after year. We are focused and, in many ways, our products are superior to our competitors’. However, the commercial environment is rapidly changing, so our ability to understand and meet end user needs is key to the strong growth, which we anticipate for DanBred. Here are the five key trends, we believe will influence the global pig production.
1: Growing global demand for pork
An important trend is that the global demand for pork is expected to grow by up to 45 % by 2035. This is due to a growing population; especially a growing middle class and increased buying power in the Asian and American markets. The growing global demand represents great growth potential, and as a supplier of breeding animals to more than 40 countries, DanBred is well-positioned to tap into that potential.
We have already established DanBred in key markets such as Spain, France, and the Netherlands, and are well under way in e.g. Russia, Mexico, the Philippines and the US.
The subsidiaries will be supported by strong resources in Denmark; our genetic improvement derived from our nucleus and multiplier herds and our R&D engine, Danish Pig Research Centre.
2: From supplier to business partner
Pig producers are getting bigger, more professional and have more complex buying criteria. This puts high demands on us. It is no longer enough to be a supplier of genetics or sows. We are, increasingly, becoming a business partner delivering solutions, which ensure that the animals’ genetic potential is fully realised. It is a trend we have seen in several other trades, where service solution sales have even exceeded the sale of core products.
In DanBred, we welcome this development, because it goes well with our open and pragmatic culture of cooperation as well as our expertise and product portfolio. High-quality genetics form the foundation of our business. Now we also offer a range of service solutions, which help our customers tap into the full potential of our products. This allows us to build close and lasting relations to our customers.
We also anticipate that more pig producers will have investors who want performance-based business models, where they pay for the production results that our products deliver. In this regard, DanBred has a clear competitive advantage due to the great potential of our products. For the past decades, we have bred for both large litter size, low mortality and low feed consumption – and, therefore, our customers currently achieve up to 40 live piglets per sow / per year.
“High-quality genetics form the foundation of our business. Now we also offer a range of service solutions, which help our customers tap into the full potential of our products. “
Thomas Muurmann Henriksen, CEO, DanBred
3: Closed herd production gains ground
A third trend is that a growing number of pig producers around the world are shifting from open herd production to closed herd production as a consequence of the growing focus on health in pig production – and that development is expected to pick up speed as diseases like African Swine Fever (ASF) are, sadly, ravaging large parts of Asia and Eastern Europe. In DanBred, we have many years of experience delivering genetics for closed herd productions, not least in Denmark, where this encompasses the majority of pig producers, and this know-how is scalable in relation to customers outside Denmark as well. We offer our customers unlimited and direct access to DanBred’s breeding system through GenePro, which ensures genetic progress while maintaining the health status of the herd.
4: Sustainability becomes license to operate
Sustainability is high on the agenda – and it is here to stay. We are at the forefront of this development, as we have had balanced breeding goals for decades focusing on high efficiency, longevity and survival rates, which, among other benefits, contributes positively to the climate footprint of pig production and, thus, sustainability.
Our R&D activities have generated breeding progress and resulted in genetics, which have reduced the feed consumption in DanBred animals and ensure that every sow produces as many live piglets as possible. Furthermore, we breed for robustness. This results in healthy, strong and durable animals, which in turn improves animal welfare and optimizes our costumers’ earnings. Furthermore, as a supplier of genetics for more than 40 countries, we enable pork to be produced locally, close to where it is consumed.
5: Industry consolidation
We anticipate a consolidation in the pig genetics industry, as the customers become bigger, more professional and more advanced. There will be fewer players, and it will happen soon. There will only be room for the players who deliver products with the highest efficiency and health. Our objective is to be among the top 3 global pig genetics brands well-positioned for the long run.
An important element in the race for leadership will be R&D. Genomic selection and other technological tools and methods are gaining ground, and only the large and most professional genetics companies have the R&D muscles, which will be required in the future.
DanBred is already among the leaders. We have a strong R&D engine in DPRC, which ensures continues and record-breaking breeding progress. Our R&D is deeply rooted in one of the most developed and demanding markets, and the best suppliers and customers in the world are right outside our door.
We are ready for the future.
Thomas Muurmann Henriksen