HKScan Enterprise to upgrade poultry primary production
The poultry segment is one of HKScan’s strategic focus areas. The Group is investing in this expanding segment by for instance building a wholly new facility specializing exclusively in poultry products in Rauma, Finland. It is therefore important for HKScan to guarantee a high-quality, competitive supply of feed raw material. The Group is accordingly also investing in its primary production and hatchery operations.
HKScan and Finnish agricultural company Hankkija have signed an agreement to jointly develop poultry and pork feeds and feeding solutions together with Dutch-based Schothorst Feed Research.
Schothorst Feed Research is one of the world’s leading feed research institutes, specializing in poultry, pork and dairy cattle feed. Schothorst offers its partners top-level expertise on the dietary needs of agricultural livestock and the optimization of feed recipes. The institute has its own R&D centre where feeds and feeding solutions are field-tested.
The partnership between HKScan, Hankkija and Schothorst will kick off with the development of a new broiler feed concept. The first sub-project will focus on developing new feed solutions for broiler dams in cooperation with DanHatch Finland Oy. The new broiler dam feed offering will be launched in spring 2016. Refering to the company, feed expenditure actually accounts roughly 60% of the whole broiler costs.
HKScan Finland Oy and Danish DanHatch AS signed an agreement in March 2015 on the sale of HKScan Finland’s hatchery business and real estate assets to their jointly owned associate company, DanHatch Finland Oy. HKScan Finland owns a 20% stake in the company. It owns two Finnish hatcheries, one in Mynämäki and the other in Kokemäki. The company is currently in the process of investing roughly € 5 million in a project to upgrade and increase the capacity of its Mynämäki hatchery. The investment will bring a significant capacity increase. Expansion work is already in progress, with automation scheduled to be installed in summer 2016.
After the investment is completed and increased capacity is harnessed in full at the Mynämäki hatchery, the Kokemäki hatchery can begin producing chicks for export. The investment is scheduled for completion by the end of August 2016.