A few remarks about HKScan’s poultry business

But at first shortly about meat export.  In a recent issue of Kauppapolitiikka, it’s Trade Policy, published by the ministry concerned, there is, under the title “Blue and white food tours” (in Finnish), an interesting article about HKScan and the main message is that reputation of cleanness and safeness boosts Finnish food export.  As an example of Finnish quality, Hanny Kottonen, CEO HKscan, mentions that in Japan, Finnish pork is served raw in local sushi.  This is something that even Sweden has failed to do, Kottonen notes.  By-products, those parts of carcass, which do not sell in Finland, are perhaps another key to success. Still one key, mentioned by Kottonen, is that HKScan should also export - in addition to raw meat - also consumer products with strong brands.  Now we can only hope that the new Flodins brand does the job. However, the article tells, export is not easy business, even close neighbors, like Russia and Norway, have proven to be challenging.  

And now shortly about poultry. Of all Group’s units only HKScan Denmark, is unprofitable.  For reason or another, this is now explicitly stated in a Danish newspaper. Chicken do not sell and prices are low.  Group’s problem child is the term used. It just came into my mind that Rose Poultry could be for sale.  After the fire, the factory has of course been renovated and it might interest possible buyers.  The Group after all, has invested heavily on poultry in Estonia and plans to invest in Finland, as already noted on this blog earlier. One additional fact is that Denmark is more vulnerable to avian influenza. Perhaps the group does not even think of selling Rose Poultry but I think that there’s some idea to go through this case more closely in the near future. 

Talking about chicken, the valuable Finnish brand ”Kariniemen”, is in fact not that valuable.  On the Finnish list of most prestigious brands, it holds rank number 121 of all 1043 examined brands.  Considering that “Kariniemen” is an old brand and its awareness is high, ranking outside top 100 is terribly bad.

Now Kariniemen is campaigning ethical farming.  Ordinary people, picked by the company, were allowed to videotape freely in a henhouse and make questions freely, company’s Youtube Channel tells.  Well, think about this: they were free to ask anything they wanted.  Superb! Okay, I don’t think that this kind of theatre has any positive impact.  Factory farming is factory farming and that’s it.  Personally I would have liked to see chicken catcher in operation and I would have liked to ask about tetracycline use.

We will discuss HKScan later but on Friday, December 19^th, we are going to look at Atria’s businesses. Chicken rocks!

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