Giga Danish pig farm grows by 17.000 places

The largest pig farm in Denmark has started construction of a barn with 17.000 pig places. However, this is not a signal of a rapid growth of the pig population in the country, says Kim Heiselberg, chairman of interest group Danske Svineproducer. 

Martin Lund Madsen's MLM Group has grown in a few years to a turnover of quarter of a million finishers per year and is spread over approximately 30 barns on the Danish peninsula Jutland. This growth was mainly due to the acquisition of bankrupt companies. This new barn (with 17.000 pig places) is also the result of a recent takeover of a bankrupt pig farm. MLM Group produces the pig feed itself and has its own truck fleet. 

The expansion drive at the largest pig farm in Denmark illustrates the trend that the largest Danish pig farms account for an increasing share of production. In the year 2017, the 10 largest sow farms (more than 3.500 sows per farm) kept approximately 6% of the total number of breeding sows in Denmark (1 million).

Environment and climate
Still, the growth of the largest pig farms is not a signal that the Danish pig herd can grow quickly, Heiselberg thinks. Although the land-related rules for pig farming in Denmark have been relaxed, the environmental and climate preconditions are just as strict as in the Netherlands.

In addition, the costs for fattening pig farming are far too high to enable rapid growth. It is not obvious that breeding sow farming for piglet export will take off even higher. "In recent years, little has been invested in the fattening pig sector in Denmark, but replacement investments are also lagging behind on breeding sow farms."

Double feeling African swine fever
There is also the realization that the increased pig prices may improve returns, but that the cause (African swine fever) can also be the final blow for the sector. "Not in the least, that sentiment is also alive in the financial sector. To be able to invest, you do need the confidence of the banks."

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