DANISH FOOD CLUSTER
European hub for food innovation
INTERNATIONAL RECOGNITION In 2013, Denmark emerged as Europeâ€™s no. 1 hub for food innovation in a survey of eight countries by the leading research institute LEI Wageningen in the Netherlands
Small country, big on food
CEO Lone Ryg Olsen
Let’s face it – Denmark is not very big. But almost all of the 43,098 square kilometres are well developed, and behind the fertile fields there lies a centuries-old story about getting the best out of the resources provided by nature – and by science. It’s a story of development and innovation, which means that the food industry in Denmark is today known far beyond its borders.
A number of multinational concerns have invested in Danish companies for this reason. On that background Danish Food Cluster has been founded as an association with more than 100 members from all parts of the food value chain.
One of our primary goals is to work together to create an environment where cooperating businesses of all sizes can thrive and grow. This collaboAround the world, food products and rative approach is already behind many technology ‘made in Denmark’ are pioneering solutions to food industry synonymous with quality, safety and challenges within food safety, health high levels of hygiene. Our food manuand processing efficiency to name a facturing businesses operate some of the world’s most advanced processing few. In the future, we believe our joint plants; and our research and innovation expertise will also make a contribution capabilities are internationally renowned. to solving the biggest supply chain challenge of them all – the need for On the international gastronomy scene, 70% more food by 2050 to feed the world’s growing population. the New Nordic Kitchen has joined the ranks of the world’s great cuisines, A leader in innovation praised for its creative use of local, Are you interested in joining a cluster sustainable produce. that is Europe’s recognised leader in This is what makes Danish Food Clus- food innovation? In this booklet, you’ll find an overter a hub of innovative expertise in Europe – and increasingly attractive to view of the core strengths that make Denmark a dynamic hub for the food international businesses and governments in search of new growth oppor- industry – and a logical location for any international food company looking to tunities and knowhow. establish a European base. Pooling our resources Within the cluster, we believe the best I hope you enjoy the read. way for businesses to tap into their growth potential is by pooling resources, Lone Ryg Olsen sharing knowledge and entering innoDanish Food Cluster CEO vation partnerships with universities and specialist consultants.
Danish Food Cluster – maximise the potential
Visit the Danish Food Cluster website to learn more about our vision, objectives and current members.
Denmark is the no. 1 recipient of food research funds from the EU
The Danish food and agriculture sector is the third biggest food cluster in the Western world. Today, it employs more than 180,000 people and accounts for more than 20% of the country’s total product exports. Major potential exists for further global growth. Many large international companies have their base here, along with a dense underlay of research-intensive universities, specialist knowledge organisations and smaller growth businesses. Over the decades, mutually beneficial partnerships have become increasingly commonplace, traversing the sector both vertically and horizontally.
With more than 100 members from industry, knowledge institutions and government, the Danish Food Cluster organisation aims to maximise the potential by: • attracting international business, talents and investment • strengthening innovation in the sector • supporting knowledge sharing and cooperation • branding the cluster and creating visibility for members
Our strong capabilities in research, innovation and production span the entire food value chain.
TOP 5 Export destinations
1 | GERMANY
2 | SWEDEN
3 | CHINA
4 | UK
5 | ITALY
2001 2012 2020
Danish food exports Growth in value - € billion
The front line for research University research is essential to business enterprise and innovation. In Denmark, five of our universities work with food-related research, and all are mentioned in international rankings.
Together, they build and share knowledge on everything from primary production to process technology and from final food products to markets and consumers. Research capitals Most of these research resources are located in Copenhagen and Aarhus. University of Copenhagen, for example, has 50 research groups working with various aspects of foods and food production. Its neighbour in the capital, the Technical University of Denmark has particular competences within food safety, bioprocesses and aquatic products.
Aalborg University has also chosen to place its food-related research in Copenhagen. Aarhus Universityâ€™s many initiatives include the Danish Centre for Food and Agriculture, which serves as consultant for authorities, businesses and other organisations. Start-up enterprises can draw on the facilities and support of Agro Business Park, a specialist science park located right next to one of the university sites. At the University of Southern Denmark, food-related research competences are particularly focused within the field of biochemistry.
â€œThere are strong food science educational and research competences clustered in Denmark, and we have a strong international track record. The Danish Food Cluster alliance has the potential to support further development of these competences and promote research-based breakthrough innovation and education for the benefit of industry, universities and the public sector.â€? Erik Bisgaard Madsen, Vice Dean, University of Copenhagen
BARLEY OF THE FUTURE
How will spring barley stand up to the effect of future climate change? A new PhD project at the Technical University of Denmark has tested 138 barley types to find out which ones cope best with higher temperatures and more CO2 in the atmosphere.
Taking knowledge to industry Danish food innovation owes a lot to research and technology organisations. Building on the technology transfer efforts of our universities, industryspecific experts translate the latest research findings into practical applications that enhance the competitiveness of the food business. Among the many independent consulting firms in the country, several are government approved. Danish Technological Institute, for example,
has extensive special competences in meat, food safety and packaging. For small and medium-sized companies, AgroTech offers consultancy services within food, environment and plant technology. Other hubs for practical research include the Knowledge Centre for Agriculture, Pig Research Centre and Danish Dairy Board.
“We are the Danish meat industry’s research and innovation centre. In close cooperation with abattoirs, meat processors, machine suppliers and universities, we tie everything together to make sure new technology works in real life. Probably 60-70% of the technology used by the pork industry worldwide has been through us.” Lars Hinrichsen, Managing Director, Danish Meat Research Institute
“Danish and international companies use us to develop and test new food products. Our special focus is on transferring the latest technological advances from universities to businesses, helping them to compete more strongly on international markets.” Thomas B Olsen, Chief Executive Officer, AgroTech
All Danish universities have an interest in making their research findings and patentable inventions accessible to commercial enterprise. To this end, the universities have technology transfer offices, responsible for facilitating cooperation between scientists, companies and other interested parties.
Danish Meat Research Institute takes CT scanning from hospitals to slaughter houses 9
Our innovative strength Examples of our strong innovation tradition can be found at all levels of the Danish Food Cluster. Complementing the large manufacturing companies, countless smaller businesses specialise in the individual challenges involved in producing good food safely, efficiently and sustainably and with respect for animal welfare.
International recognition In a 2013 survey of European countries by LEI Wageningen, Denmark scored highest for food R&D expenditure, innovation collaboration, knowledge and business environment. Denmark also had the highest per capita rate of patent applications to the European Patent Organisation.
Agro Food Park Food and agriculture businesses have the ideal international working environment at Agro Food Park in Aarhus. Currently accommodating 46 companies and 900 knowledge workers, the ambition is to house up to 3,000 employees and other facility users by 2020.
“We analysed various locations across Europe before deciding to base our new innovation centre in Aarhus, close to our head office. We see many opportunities to enter scientific and technical partnerships and share knowledge and business opportunities with organisations in Danish Food Cluster, strengthening our innovation culture and reputation and supporting our growth.” Paul Cornillon, Senior Vice President R&D, Arla Foods
SEEDS OF TECHNOLOGY
Our seed industry produces 75% of the world’s spinach seeds. That’s some 500 billion seeds a year, valued for their exclusive high quality and yield – 100% are exported. University scientists, seed manufacturers and specialist consultants are today participating in a joint development project to optimise seed yield even further.
GOOD MEAT GENES
Premium meat can be identified from birth using an efficient genotyping test developed by GenoSkan in collaboration with organic and free-range meat supplier Friland. Determining the taste, tenderness and fat marbling of live animals, the tool is helping to bring more top quality meat to market.
Excellence in production Denmark produces enough food for 15 million people – around three times the population
Take a short drive out of any Danish city, and you will soon be surrounded by farmland. Agriculture is a big part of our culture, producing livestock, grain, feed crops, fruit and vegetables for domestic use and export. Never far away, the waters off the Danish coast are a rich source of fish and seafood for the fishing industry – not to mention one of our flagship seafood companies, Royal Greenland. Over the past 20 years, new technology has enabled farmers to increase their production by 20% while minimising environmental impact.
The result is an increased flow of high quality raw materials to our extensive food processing sector. Food processing centre Although food production companies operate all over the country, the biggest concentration is located in Central and Southern Denmark. Their presence has attracted a network of supporting logistics companies, providing warehouse facilities, animal transport and international distribution services.
“More than half of the large companies in Vejen Municipality work in the food industry, so we have a lot of experience as a centre for food production. With 400,000 people living within an hour’s drive, it’s not a problem to find competent employees. One of our most important roles as a local authority is to make it easy for companies to move here and thrive.” Egon Fræhr, Mayor of Vejen
It has become the custom for profitable production to grow hand-in-hand with improved sustainability. No area demonstrates this more clearly than the organic sector. Danish consumers today purchase more organic products than almost anywhere else in the world – and manufacturers have seen their exports double in just five years.
WORLD-LEADING PLAYERS Horsens in East Jutland is home to the world’s most advanced slaughter hous-
es, owned by Danish Crown. Each day, around 150 visitors from around the globe come to see and learn about the facility. Just a 10-minute drive away, you’ll find another world leader – the international bakery company Lantmännen Unibake, which has 3,700 employees in 18 countries.
A top player in ingredients World-leading food ingredient companies have grown up in Denmark, building a sector that today accounts for 14% of the global ingredients market. Top names include AAK, Arla Foods Ingredients, Chr. Hansen, DuPont Biosciences, Novozymes and Palsgaard. Owned by 1,350 potato growers, starch-producing KMC is among the representatives from the Danish cooperative movement.
Denmark is the biggest ingredient supplier in the world measured per citizen
Bio-ingredients, such as enzymes and cultures, and proteins are currently the biggest growth segments. Between them, Chr Hansen and DuPont have
an 80% share of the global market for cultures, used in fermented dairy products and meat. DuPont and Novozymes are behind 75% of global food enzyme sales – important for fresh-keeping bread, full-bodied beer, high-yield juice and many other uses. Agro Food Park is also home to the Scandinavian arm of the world´s largest privately-owned flavour and fragrance company.
“At AAK, we prioritise innovation that strengthens our position as a world-leading vegetable oil supplier. Through active participation in Danish Food Cluster, we can explore new innovative frontiers and new relationships with the potential to create solutions of benefit to the world.” Torben Friis Lange, Vice President, AarhusKarlshamn
FROM WASTE TO HIGH VALUE
Derived from the by-product of cheese production, whey proteins are another success story made in Denmark. Four decades of research have documented the many benefits in mainstream consumer foods and special needs diets. Having captured international attention, whey ingredients and processing expertise are now in high demand.
KEY FIGURES FOR THE DANISH INGREDIENTS SECTOR Growth in turnover 2007-2012: Expected annual growth to 2015: Global market share by 2015: Export of total ingredient production: 14
27% 5% 15-16% 95%
Technology from the bottom up Progressive farming methods and sophisticated processing technology are a cornerstone of our food manufacturing companies’ success. They are also a core Danish strength in their own right, paving the way to full traceability in the supply chain and top standards of safety and hygiene. Big strides have been taken within
greener technology over the years. Denmark is an acknowledged pioneer in this respect – ranking no. 1 out of 38 countries in the 2012 Global Cleantech Innovation Index. Within the food cluster, a wealth of companies have specialised in processing and packaging equipment – some 80% of which is exported.
STRONG DANISH GENES
Danish livestock genes are in demand. By 2020, the Danish pig industry’s genetics division DanAvl expects to be the no. 2 supplier of pig genetics in the world. One reason is that Danish pigs need less food for healthy growth. Cattle genetics are equally sought-after, producing cows with the highest milk yield.
PACKING A CHALLENGE
Food packaging issues are solved by Denmark’s many specialist packaging producers, such as Promens, Glud & Marstrand, Amcor Flexibles and Faerch Plast. Keeping foods safe and delicious means using just the right materials – with an increasing focus on recyclability.
MASTERS OF STAINLESS STEEL
Our processing equipment manufacturers have become so well known for their hygienic, stainless steel designs that they have caught the eye of international concerns such as US-based SPX, Icelandic Marel, Swedish Tetra Pak and Austrian Haas. All three have invested in the Danish brand of precision, easy-clean equipment.
“SPX has decades of experience helping food and beverage companies develop more cost-effective process engineering solutions for the production of high quality, innovative products.” Marc Michael, President, SPX Flow Food and Beverage Equipment for meat, fish and poultry Equipment for dairy products and beverages Equipment for bakery products and chocolate Other equipment Equipment for chilled and frozen storage Analysis and IT equipment Processing equipment categories by turnover Total value (2013): More than EUR 3 billion
Safety through the food chain Danish expertise in food safety and quality assurance has left a strong footprint on global food manufacturing practices – and continues to do so, driven by the many companies specialised in the field. Among them, family-owned FOSS has earned recognition as the world’s leading supplier of dedicated analytical solutions. Using the advanced
platform, producers can, for example, measure the bacterial count in raw milk, detect foreign objects in meat and generally ensure the highest possible product quality – quickly and efficiently. From large international operations to smaller specialist businesses, such as DNA Diagnostic and ISI Food Protection, the Danish food safety segment is an export adventure.
IMPRESSED BY FOOD SAFETY
The Danish cattle database makes quite an impression on international visitors to the Danish Knowledge Centre for Agriculture. Securing full traceability of every piece of beef produced in the country, it is one reason why our food safety tools have earned global respect.
PORTABLE PATHOGEN DETECTION
Fruitful collaboration is behind the development of a mobile laboratory for pathogen detection – a tool that will speed up food production and give foods a longer shelf life. The Technical University of Denmark, Danish Crown, Dianova and Scandinavian Micro Biodevices are working on the project.
CHINESE ROLE MODEL
In China, where new, tighter food safety legislation is being enforced, Denmark has been identified as a role model for the production of safe, high quality dairy products. This is one of the reasons why Denmark doubled its exports of food processing equipment to China from 2012 to 2013.
Four Danish giants Among the broad food capabilities you’ll find in Denmark, several core strengths stand out. Each led by a world-leading company. The Danish cooperative movement is very much in evidence here, providing a farm-to-fork insight of value to innovation and business growth.
– a driver in dairy
A cooperative owned by more than 12,000 dairy farmers, Arla Foods ranks as one of the strongest players in the international dairy arena – and the world’s largest manufacturer of organic dairy products. Brands such as Arla®, Castello® and Lurpak® are household names in over 100 countries. Other brands include the trusted milk powder products Milex® and Dano®.
– the hallmark for quality
Danish bacon has an enviable reputation for high quality on international markets. And that’s got a lot to do with Denmark’s oldest meat cooperative, Danish Crown. Expert in maximising the use of each animal, Danish Crown is the biggest meat processer in Europe and the world’s largest pork exporter. One of its subsidiaries is the Tulip Food Company.
– leading in agro business
The DLG Group ranks among the three largest agricultural companies in Europe. Owned by 30,000 Danish farmers, the company is a major exporter of seed, feed and milling grain and has a strong innovation focus on farm technology, energy, plants and feed. DLG has operations in more than 25 countries. Of its 8,000 employees, around 5,000 are employed outside Denmark.
– the best-known beer
Brewed by the world’s fourth largest brewer, Carlsberg is one of the best-known premium brands on international markets. The Carlsberg Group’s 500 brands also include Tuborg, Kronenbourg and Baltika – all three widely popular in Europe. With its 40,000 employees, the Group sells 34 billion bottles of beer a year across 150 markets. The long-term aim is to be fastest growing global brewer.
A good place for investment Strong resources within food research, innovation and production are not the only reasons to invest in Denmark. The businesses based here also have ready access to the rest of Europe – with the potential for next-day deliveries to 100 million of the world’s wealthiest consumers.
Best countries for business
Ease of doing business
1 | IRELAND
1 | SINGAPORE
2 | NEW ZEALAND
2 | HONG KONG, CHINA
3 | HONG KONG, CHINA
3 | NEW ZEALAND
4 | DENMARK
4 | UNITED STATES
5 | SWEDEN
5 | DENMARK
6 | FINLAND
6 | MALAYSIA
7 | SINGAPORE
7 | SOUTH KOREA
8 | CANADA
8 | GEORGIA
9 | NORWAY
9 | NORWAY
10 | THE NETHERLANDS
10 | UNITED KINGDOM
Denmark ranks no. 4 out of 145 countries scored for property rights, innovation, technology, corruption, freedom, red tape, investor protection and stock market performance.
The ease of doing business index measures the conduciveness of the regulatory environment to starting and operating a local firm. Denmark is no. 5 in the world and no. 1 in Europe.
“Invest in Denmark assists foreign companies in mapping business opportunities and becoming established in Denmark. We have a strong network within key Danish industries such as food and cooperate with a range of service providers of use to investors when building a presence in Denmark.” Susanne Hyldelund, Director, Invest in Denmark
Most attractive countries for knowledge-intensive investments
Least corrupt countries for business (Transparency International)
(IBM Global Location Report)
1 | IRELAND
1 | DENMARK
2 | DENMARK
1 | NEW ZEALAND
3 | SINGAPORE
3 | FINLAND
4 | SOUTH KOREA
3 | SWEDEN
5 | UNITED KINGDOM
5 | NORWAY
6 | SWITZERLAND
5 | SINGAPORE
7 | HONG KONG, CHINA
7 | SWITZERLAND
8 | AUSTRALIA
8 | THE NETHERLANDS
9 | SWEDEN
9 | AUSTRALIA
10 | FINLAND
10 | CANADA
Denmark ranks no. 2, measured by the added value and knowledge intensity of jobs created by foreign investment projects.
Denmark is a consistent top scorer in the international transparency index. Several countries in the top 10 have a shared ranking.
The talented young recruits Successful businesses depend on a skilled, creative workforce to develop their competitive edge and enable growth. To this end, Denmark is a rich source of talented recruits that graduate each year from the countryâ€™s education institutions. University enrolment figures reveal that degree courses related to food and agriculture are gaining in popularity. The Danish government subsidises graduate programmes that support businesses in building new knowledge and innovation skills. These include
industrial PhDs, where students are simultaneously hired by a company and enrolled at a university to work on a three-year industrially focused project. International students In 2013, more than 6,000 international students moved to Denmark to start a further education â€“ accounting for around 10% of all first-year students. Reception programmes at universities and other academic institutions help the new arrivals settle in.
Academic courses in food and agriculture attract almost a thousand new students each year. Danish higher education institutions offer more than 500 degree programmes and 1000 courses taught in English overall
TOP 5 Foreign languages spoken in Denmark
96% OF DANES COMPLETE SECONDARY EDUCATION
GERMAN (53%) FRENCH (11%) SWEDISH (10%) SPANISH (2%) 24
47% COMPLETE A FURTHER EDUCATION PROGRAMME
Strong pre-conditions for growth In a competitive global market place, long-term growth depends on the continuous renewal of products, services and processes. International businesses within Danish Food Cluster have the necessary pre-conditions to achieve that.
and knowledge organisations are specialised in areas such as health, information communication technology and energy and the environment. These inter-related clusters are an additional important source of knowledge and technology.
Government commitment In December 2013, the Danish government launched an ambitious growth plan for the food industry. The plan includes 34 key initiatives aimed at accelerating growth and employment and improving export opportunities.
Experienced, satisfied workforce Knowledge sharing and expertise development are part of the daily routine in the Danish food industry. Employment statistics show that most people stay within the industry when they change job, promoting the cross-pollination of skills and ideas.The level of job satisfaction in Denmark is also generally high. That in itself is an excellent starting point for business growth and development.
Inter-related clusters Denmark is a knowledge-intensive nation. Other clusters of businesses, university research institutes
“We don’t look at salaries as expenses but as investments. In Denmark, we’re able to improve our practices, plus gain knowledge and experience. In that sense, the expenditures in Denmark are small.” Craig F. Binetti, President of DuPont Nutrition & Health
TOP 5 Job quality in Europe 1 | DENMARK 2 | THE NETHERLANDS 3 | LATVIA 4 | MALTA
Evaluation of job quality based on possibilities for further training, the physical and social working environment, and work intensity. (Eurofund, Trends in Job Quality Europe, 2012)
5 | NORWAY
A life in Denmark Now we’ve introduced you to Danish Food Cluster. Here are a few more reasons why Denmark is a great place to live and work.
Flexible working hours make it possible for both men and women to pursue an exciting career with time left over for leisure. Strong expat communities exist to help new international arrivals settle in.
The Danish welfare system is well developed, offering free health care and free education all the way up through university level. Working parents enjoy the high standard of affordable childcare.
Our cities are steeped in history and culture. Reflecting that, Aarhus has been appointed European Capital of Culture for 2017 – a title also previously held by Copenhagen.
Our 391 islands, 7,300 km-long coastline and abundance of green forests give plenty to explore. No matter what your location, our beautiful countryside is never far away.
The New Nordic Kitchen is driven by innovative use of local ingredients. Visit our Michelin-starred restaurants, and you may be served a delicate oyster from western Denmark. In 2014, Noma restaurant in Copenhagen was hailed the world’s best restaurant – the fourth time it has won the title.
This is our Denmark Hear the impressions of some of the people from abroad who have made a life here. 28
Acknowledgements THANKS TO THE FOLLOWING FOR THEIR SUPPORT IN PRODUCING THIS PUBLICATION:
A CENTER FOR FOOD INDUSTRY
FOR THEIR CONTRIBUTION TO THIS PUBLICATION, SPECIAL THANKS GO TO: Danish Agriculture & Food Council Institute for Food Studies & Agroindustrial Development (specifically the report: ‘Food technology – a core Danish strength’, December 2013) Invest in Denmark REG X – The Danish Cluster Academy
PICTURES COURTESY OF: Moment Fotografi (front page, page 5, 20) Copenhagenmediacenter.com (page 25, 26, 29) Danish Technological Institute (page 6, 9) Arla (page 10) AgroTech (page 15, 19) Danish Crown (page 13) Promens (page 16) Marel (page 16)
THE DANISH FOOD CLUSTER INITIATORS: Aarhus City Council Aarhus University Arla Foods Central Denmark Region Chr. Hansen Confederation of Danish Industry Danish Agriculture & Food Council DuPont Biosciences Technical University of Denmark University of Copenhagen
DANISH FOOD CLUSTER AGRO FOOD PARK 13 8200 AARHUS N INFO@DANISHFOODCLUSTER WWW.DANISHFOODCLUSTER.DK
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Published on Apr 27, 2017