BHJ in cooperation with Danpo and Rose Poultry
The BHJ Group has made and agreement with Danpo and Rose Poultry to expand cooperation regarding utilization of by-products from the Danish poultry slaughterhouses through a joint venture.
The newly formed company, known as Farmhood, will operate from Danpo's existing production plant in Logstor.
The joint venture company will mean that BHJ Group will be responsible for product development and marketing nationally as well as internationally. Furthermore, the BHJ Group's plants and know-how will be used to optimise the use of raw materials.
The agreements means that the BHJ Group will attain higher security for future supply of raw materials, which is part of the company's strategy to continuously expand supply of raw materials - geographically as well as within new animal by-products.
The basis for the co-operation will be the poultry industry's interest in utilizing andoptimising animal by-products in the best possible way, thereby obtaining optimal international competitive strength, BHJ said.
Present sales are primarily for feed for the fur and pet food industries. In the joint venture the Group will be responsible for the initiation of development projects to create appreciation and production of a number of products for the mink, pet feed and pharmacy sectors.
Production will take place at Danpo's existing plant in Logstor, which will be extended and modernised. In addition to by-products from Danish slaughterhouses the plant is expected to receive raw materials from Swedish slaughterhouses.
BHJ also said that it intends to cease production at its Nykoping plant in Sweden. All costs in respect of the closure and the new extension to Logstor will be included in this financial year. The company added that it expects the co-operation with Danpo and Rose Poultry to have a positive effect from the beginning of the next financial year.
Currently Danpo slaughters 63 million chickens a year at three slaughterhouses. Most of the slaughter is processed and sold on the home market, with a small amount being exported.
Rose Poultry currently slaughters 70 million chickens a years, 80 per cent of which are processed. Its chicken products are sold on the home as well as the export markets.
Both the managing director of Danpo, G. Jensen and the managing director of Rose Poultry, Vinther Moller, said that they expect the co-operative agreement to have a significant and positive effect on the companies' future growth.
