Danish pig producers unite to buy feeds

New company has support of 200 pig producers

A new feed commodities trading company established in Denmark, BNP Supply A/S, has been established to reduce the farm input costs of its pig farmer members by buying commodities directly and on a large scale, according to executives.

For example, it estimates that the industry will need shipments of up to 40,000 metric tons of soybean meal per month, which it can import for itself from South America. The new company claims to have the backing of about 200 large pig producers, who account for around 15% of Danish annual pig supplies.

BNP Supply was started by combining the operations of three existing purchasing companies: Agro Partnere, Agro Nord and B2B Bonus. Its chairman is Danish pig farmer Jørgen H. Rasmussen, who also chairs Agro Partnere. A key factor in its establishment has a perceived reduction of competition in the farm supply market in Denmark after several agribusiness mergers and acquisitions over the past two to three years.